[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:
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.
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.
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.
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.
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.
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]
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.
Upon passage, the Finance Director is directed to transfer all unencumbered balances from every department presently existing as of April 1, 1999.