[Adopted 6-18-2007]
Pursuant to generally accepted accounting principles, the Finance Director shall have the authority to establish any required special revenue funds and funds for the appropriate accounting of capital projects.
Funds shall be in the custody of the Treasurer of the Town of Wethersfield. All or any part of the moneys in said fund may, from time to time, be placed in any investment instruments in which public funds may lawfully be invested. Certain special revenue funds may have legal restrictions that prevent them from earning investment income or may require a separate cash account. Those funds shall be segregated into the appropriate account to adhere to such legal restrictions. All income derived from the funds that are legally permitted to have such investments shall be paid into the appropriate fund and in appropriate cases shall become a part thereof. The moneys so invested shall at all times be subject to withdrawal from such investment for the uses provided herein.
Annually, the Finance Director shall submit to the Council the annual financial report, which will include the accounting of these funds.
Such fund shall be used by the municipality for the payment of restricted or designated expenditures of the fund.
Such fund shall not lapse at the close of the municipal fiscal year. Special revenue funds shall be closed when the purpose of that fund has been completed. In some instances the fund will be ongoing. Any balance at the close of the special revenue fund shall be transferred to the fund deemed legally appropriate by the Town Manager and Finance Director. Capital project or improvement funds/accounts are temporary funds which should be eliminated once the specific capital project has been completed. Any balance which remains in a capital improvements or capital projects fund shall be transferred to the appropriate debt service fund or other fund as may be required.
As used in this article, the following terms shall have the meanings indicated:
CAPITAL PROJECT FUNDS
Funds used to account for financial resources to be used for the acquisition or construction of major capital facilities other than those financed by proprietary funds and trust funds. The financial resources of capital project funds come from several different sources, including general obligation bonds, grants from the state and federal government and appropriations from the general or special revenue funds.
SPECIAL REVENUE FUNDS
Funds used to account for the proceeds of special revenue sources (other than special assessments, expendable trusts, or major capital projects) that are restricted to provide for particular functions and activities of the Town. The restricted revenues are segregated into individual funds to ensure that expenditures are made exclusively for the purpose designated.