[Adopted 5-24-1999 by Ord. No. 1081 (Sec.
8-51 of the 1979 Code)]
In accordance with R.I.G.L. § 45-11-1,
the Johnston Town Council recognizes and declares that it is prudent
and necessary for the Town of Johnston to establish a reserve fund
as follows:
A.
Said fund shall be available to the Town at the sole
discretion of the Town Council by majority vote, for capital expenditures
and/or infrastructure expenditures.
B.
The Finance Director of the Town of Johnston is hereby
directed to forthwith open and maintain an interest-bearing savings
account or certificate of short-term deposit as would be made by prudent
men of discretion and intelligence.
C.
All fees, revenues, monies, or payments of every kind
and description, whether by contract or otherwise, received by the
Town of Johnston from the so-called “power plant” or the
entity known as “Houston Industries/Reliant Energy/Hope Energy,”
or any other name that it shall ever be known as, are to be immediately
deposited by the Finance Director into said reserve fund.
D.
Moneys from said reserve fund shall not be used for,
held, pledged, contracted for, or obligated in any manner whatsoever
without prior consent of the majority of the Town Council.
E.
The Town Council may, in its sole discretion and upon
majority vote, direct monies be used from said reserve fund for capital
expenditures and/or infrastructure expenditures.
F.
In accordance with R.I.G.L. § 45-11-1(4),
deposits to said reserve fund shall not exceed 5% of the total assessed
valuation of real estate and tangible personal property of the Town
of Johnston.
[Amended 6-14-2004 by Ord. No. 2004-9]
G.
Upon passage, the Finance Director is hereby directed
to provide the Town Council with the amount of the total assessed
valuation of real estate and tangible personal property of the Town
of Johnston, and to update the Town Council, on a monthly basis, as
to the amount of principal and interest held in said reserve fund.
H.
Upon passage, the Finance Director is directed to
transfer all unencumbered balances from every department presently
existing as of April 1, 1999.
