(A) This section authorizes the creation and use of a loan repayment reserve for the purpose of collecting funds to meet loan obligations on time and in full.
(B) This reserve is classified as a committed reserve.
(1) Objective. To ensure the town's ability to meet all payments associated with the water department's loans.
(2) Anticipated size. Reserve shall be sufficient to meet:
(a) The annual payment of all water loans;
(b) Any interest or other fees associated with the in-process water project loans; and
(c) Anticipated future payments related to in-process water project loans.
(3) Source of funds.
(a) Funds collected from service availability fees and an equal portion of the water base fees.
(b) Town Council by resolution or ordinance may deposit additional funds into this reserve.
(4) Administration. This section authorizes the Town Clerk to deposit, withdraw and pay obligations that are in full compliance with this chapter.
(Prior Code, § 4.06.034) (Ord. 2024-07, passed 7-9-2024)