§ 52.04 SYSTEM REPLACEMENT AND UPGRADE RESERVE.
   (A)   This section authorizes the creation and use of a system reserve for the sole purpose of collecting sufficient funds for the repair and upgrades of the existing water system’s components and the replacement of portions of or the entire system in the future.
   (B)   This reserve is classified as a committed reserve.
      (1)   Objective. Set aside sufficient funds to repair, replace and upgrade the existing system as needed to protect the water system’s capacity and the integrity of its operational intent.
      (2)   Anticipated size. The objective is to have a reserve balance commensurate with planned upgrades to the system and the risk of replacing large portions of the system.
      (3)   Source of funds.
         (a)   1.   The town shall budget each year the larger of:
               a.   Annual anticipated depreciation expense for the water system’s infrastructure; or
               b.   The total of annual water loan payments to the state.
            2.   All excess funds following the allocation to the loan repayment reserve shall be deposited in this reserve.
         (b)   Town Council by resolution or ordinance may deposit additional funds into this reserve.
         (c)   At the inception of this ordinance, the combining of two existing reserves; water depreciation reserve and water connection fee reserve shall be transferred by resolution into this reserve.
         (d)   All earnings from investments of this reserve’s funds shall be reinvested into this reserve.
      (4)   Authorized uses. Funds shall be used solely for the repair/upgrades of the water system’s components to maintain the capacities and capabilities of the system and for the replacement of portion of or the entire system.
      (5)   Administration. This section authorizes the Town Clerk to deposit, withdraw and pay obligations that are in full compliance with this chapter.
(Prior Code, § 4.06.032)