Funds may be withdrawn and used for the sole purposes, as defined in the specific reserve’s section, exclusively under the following conditions:
(A) Authorization for planned use of Reserve Funds.
(1) Budgeted projects. The project is part of and specifically identified in General Fund’s annual budgets: appropriations for current fiscal year (see Ord. 2019-02).
(2) Procedure. The town will follow the standard procedure for Project Contracting when withdrawal of funds from any Reserve, except the Capital Equipment and Natural Resources-Donations Reserves, for a budgeted project, following these general steps:
(a) Public notification of a specific project;
(b) Initiate contract action; and
(c) Council meeting:
1. Project plan - details;
2. Intent to finance the project with funds from a specific reserve; and
3. Resolution.
(B) Authorization for Emergency Use of Reserve Funds. This subchapter gives the Mayor (or Mayor Pro Tem) the authority to declare an “emergency” for the specific purpose of using funds from a specific reserve to pay for the emergency.
(1) Emergency.
(a) An emergency exists which significantly threatens the health, safety and public welfare of the citizens or the normal operation of the town; and
(b) There is insufficient time to authorize the use of reserve fund in order to effectively address the emergency situation.
(2) Procedure. Prior to the actual withdrawal of funds from a reserve for an emergency, steps in divisions (a) and (b) below ((a) Documentation; and (b) Notification), shall be completed;
(a) Documentation.
1. Declaration shall be within 48 hours of the detection of the condition.
2. A document shall be presented to the Town Clerk for verification of the action.
a. Description of the condition.
b. Estimate of time and cost to repair.
c. Authorization of Town Clerk to transfer funds from the specific reserve as needed to meet payment requirements.
d. Signed by Mayor (or Mayor Pro Tem) and one additional Council member.
(b) Notification. Town Clerk will immediately upon receipt of the documentation inform the following individuals of the “emergency” with a copy of the declaration:
1. Town Council;
2. Town administration staff;
3. Public Works Director; and
4. Public notification.
(c) Hold an emergency Town Council meeting within ten days of declaration. Pass an emergency ordinance General Fund budget amendment for immediate use of funds needed.
(d) At the next regularly scheduled Town Council meeting, continue to follow up the emergency ordinance process with a first reading of a budget amendment ordinance.
(Prior Code, § 3.A06.020) (Ord. 2018-14, passed 10-24-2018)