(A) This section authorizes the creation and use of a capital equipment reserve as a depository to accumulate funds for future acquisitions of Water Department equipment.
(B) This reserve is classified as an assigned reserve.
(1) Objective. Provide the town a mechanism to allocate funds in one or more fiscal budget years for planned equipment acquisitions in future years, thus avoiding financing charges for time payments, while spreading the costs over more than one fiscal year.
(2) Anticipated size. An amount equal to the anticipated costs of the planned equipment acquisition costs
(3) Source of funds.
(a) Funds budgeted from the collection of water fees.
(b) Town Council by resolution or ordinance may deposit additional funds into this reserve.
(4) Authorized uses.
(a) Funds are for exclusive use to meet the town’s anticipated acquisition of equipment as planned and designated in previous and current capital budgets.
(b) This reserve may be used to accumulate an end-of-lease purchase option.
(c) Based on the needs of the Water Department, the Town Council may change, by resolution, the designated equipment to a more critical piece of equipment.
(d) Any excess funds as deemed by a Town Council resolution may be transferred back to the Water Department’s “Unencumbered Funds - Cash” account.
(5) Administration. This section authorizes the Town Clerk to deposit, withdraw and pay obligations that are in full compliance with this chapter.
(Prior Code, § 4.06.038)