(A) This section authorizes the creation and use of a loan repayment reserve for sole purpose as a depository of equal, monthly deposits from monthly water fees and to ensure the availability of 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 project loans from the various agencies of the state.
(2) Anticipated size. An amount, such that the reserve never goes below $1 during any fiscal period. Reserve shall be sufficient to meet:
(a) Each annual payment of all water loans;
(b) The anticipated cost for interim interest or fees associated with a water system construction project loan; and
(c) Known future payments related to in-process water project loans.
(3) Source of funds.
(a) Funds collected from a portion of the base fees and service availability fees required to meet the annual total of the water system’s loan payments.
(b) Town Council by resolution or ordinance may deposit additional funds into this reserve.
(4) Authorized uses. Funds are for exclusive use to meet the town’s obligations for:
(a) Each annual payment of all water loans, on time and in full; and
(b) Can be used to cover the cost of any interim interest or fees associated with a water system construction project loan.
(5) Administration. This section authorizes the Town Clerk to deposit, withdraw and pay obligations that are in full compliance with this chapter.
(Prior Code, § 4.06.034)