The Capital Reserve Fund will be used for the accumulation of funds as prescribed in Article V, FINANCIAL PROCEDURES, § C-5.07, Reserve Funds, of the Smithfield Town Charter, as amended in November 2000:
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 five-year Capital Improvement Program Plan or the Comprehensive Community Plan will serve as the basis for annual capital appropriations.
By the second Thursday of March of each year, the Town Manager shall submit to the Town Council a budget for the ensuing fiscal year. This budget may include capital improvement expenditures funded from the Capital Reserve Fund.
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 Financial Town Meeting.
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 the appropriation.
The Smithfield Town Council shall oversee the expenditures of all funds disbursed under this article.
Should an "emergency" situation arise, Section 5.09(b) Emergency Appropriation [following budget adoption] could be implemented.
Definitions. As used in this article, the following terms shall have the meanings indicated:
- CAPITAL IMPROVEMENTS
- Improvements with a useful life of 10 years or more, and in excess of $50,000 which increase or improve the service capacity of a public facility.
- (1) Water supply production, treatment, storage, and distribution facilities;
- (2) Wastewater and solid waste collection, treatment, and disposal facilities;
- (3) Roads, streets and bridges, including rights-of-way, traffic signals, landscaping and local components of state and federal highways;
- (4) Stormwater collection, retention, detention, treatment and disposal facilities, flood control facilities, bank and shore projections, and enhancement improvements;
- (5) Parks, open space areas, and recreational facilities;
- (6) Police, emergency medical, rescue, and fire protection facilities;
- (7) Public schools and libraries; and
- (8) Other public facilities consistent with the Smithfield Capital Improvement Program Plan or Comprehensive Community Plan; including but not limited to historic preservation or restoration projects.
The Town's Financial 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.