(A) There is hereby established a special revenue fund in the town treasury which shall be designated and known as the Town Sales and Use Tax Fund. The Town Sales and Use Tax Fund shall consist of:
(1) All revenues received from collection of the town’s/municipality’s sales and use taxes, including any interest, additions to tax, and penalties deposited with the Town Treasurer;
(2) All appropriations to the fund;
(3) All interest earned from investment of the fund; and
(4) Any gifts, grants, or contributions received and placed by the town into the Town Sales and Use Tax Fund.
(B) Revenues in the Town Sales and Use Tax Fund shall not be treated by any person to be a general revenue of the town. Revenues in the Town Sales and Use Tax Fund shall be disbursed in the manner and consistent with the priorities set forth for in division (C) below.
(C) Revenues in the Town Sales and Use Tax Fund shall be used:
(1) First, to satisfy the debt service requirements each fiscal year on any bonds issued by, or other obligations incurred by, the town, from time to time, allocated or tied to such dedicated revenue account including any refunding bonds; to finance town civic improvement projects; to finance the purchase, construction, and/or modification of a public safety building; as well as town-wide infrastructure and economic development projects; and, for any other economic development or public safety projects, including the funding of any reserve funds relating to any such bonds or other obligations, and/or to make lease payments which secure bonds issued to finance improvements to such projects;
(2) Second, to pay for capital improvement projects on a pay-as-you-go basis; and
(3) Third, after providing for payment of first priority items, any unencumbered revenue in the Town Sales and Use Tax Fund may periodically be transferred as necessary or convenient to the town’s/municipality’s general revenue fund or account.
(Ord. 19-002, passed 5-13-2019)