A. 
The Town of Smithfield hereby establishes the School Capital Reserve fund that will adhere to the applicable Rhode Island General Laws governing School Department autonomy. The purpose of the fund is to augment the Smithfield Public School's capital budget that is approved through the Town's annual budget process and ensure that the Smithfield School Department complies with the minimum threshold for capital maintenance requirements for approved projects under Rhode Island General Law 16-7-23.
B. 
The Town Manager's annual budget that is submitted to the Budget and Financial Review Board shall include an appropriate amount to be deposited into the School Capital Reserve Fund.
C. 
The School Capital Reserve Fund shall be used for funding school facility capital improvement expenditures in excess of $50,000 with a useful life of 10 years or more. A Town Council resolution shall be required for any expenditure from this fund.
D. 
The Town's twenty-year Capital Program will serve as a basis for capital expenditures from this fund.
E. 
All Rhode Island Department of Education reimbursements received due to expenditures from this fund shall be deposited into this fund.
The Capital Reserve Fund and Land Trust Reserve Fund will be used for the accumulation of funds prescribed in Article V, Financial Procedures, § C-5.08 Reserve Funds, of the Smithfield Town Charter as amended in November 2020. The Capital Reserve Fund shall be available to the Town as necessary for expenditures relating to certain capital expenditures pursuant to local ordinance. The Land Trust Reserve Fund shall be used exclusively by the Smithfield Land Trust for the acquisition and preservation of real property pursuant to the legislative charter of said land trust. Expenditures from the Capital Reserve Fund and Disbursements from the Land Trust Reserve Fund shall be shall be authorized by a Town Council resolution.
The Capital Reserve Fund shall be used for funding capital improvement expenditures in excess of $50,000 with a useful life of 10 years or more. This policy does not preclude the funding of any additional capital assets from the general fund or other sources. The Town's twenty-year Capital Improvement Plan or Comprehensive Community Plan will serve as a basis for annual capital appropriations.
A. 
By the first of March each year, the Town Manager shall submit to the Budget and Financial Review Board a budget for the ensuing fiscal year. This budget may include capital improvement expenditures funded from the Capital Reserve Fund.
B. 
Any subsequent increases or decreases to the expenditures from the Capital Reserve Fund proposed by the Town Council will follow the procedure outlined in the Town Charter for increases or decreases in the budget. Moreover, all expenditures from the Capital Reserve Fund must be approved by a specific resolution at the Town Council public budget hearing.
C. 
In no event shall the sum of funds appropriated under this article exceed the total funds available in the Capital Reserve Fund at the time of appropriation.
D. 
The Smithfield Town Council shall oversee the expenditure of all funds disbursed under this article.
E. 
Should an "emergency" situation arise, under Section C-5.10(a) of the Town Charter an emergency appropriation (following budget adoption) could be implemented.
The Town's Finance Director shall maintain all records of the reserve funds in accordance with general accepted accounting principles and practices. A report of the fund balances as well as collections to and disbursements from the funds shall be made annually in the annual audit report as well as a report in the annual budget presentation.