Upon the authority of Chapter 108 of the General
Statutes of the State of Connecticut, as amended, there is hereby
created a Capital and Nonrecurring Expenditures Reserve Fund for the
purpose of financing capital improvement programs.
Such fund may be used for the financing of all
or part of the planning, construction, reconstruction or acquisition
of any specific capital improvement or the acquisition of any specific
item of equipment. No part of the fund shall be used for ordinary
repairs or for maintenance of a recurring nature.
[Amended 9-15-1980]
Appropriation of moneys from such fund shall
be approved by the City Council, provided that after necessary recommendation
and approval an appropriation shall be set up, plainly designated
for the project or acquisition for which it had been authorized, and
such unexpended appropriation may be continued until such project
or acquisition is completed. Any unexpended portion of such appropriation
remaining after such completion shall revert to said Capital and Nonrecurring
Expenditures Reserve Fund.
If any appropriation is duly authorized in accordance
with the provisions of the preceding section and through unforeseen
circumstances the completion of the project or acquisition for which
such appropriation has been designated is impossible to attain, upon
recommendation of the budget-making authority and approval by the
legislative body, such appropriation shall terminate and no longer
be in effect. Any unexpended portion of such appropriation remaining
after such termination shall revert to said Capital and Nonrecurring
Expenditures Reserve Fund.
[Amended 9-15-1980]
If, in the opinion of the City Council, such
reserve fund is insufficient to meet the cost of any capital or nonrecurring
expenditure which it deems immediately necessary, it may authorize
that an appropriation be made therefor, provided that the total of
such fund and the sum anticipated from a tax collected for the purposes
of implementing this article in the year following the date when such
authorization is made is estimated by said City Council to be sufficient
to meet such expenditures. Nothing herein shall prohibit the City
from supplementing said reserve fund to meet the cost of capital or
nonrecurring expenditures by issuing bonds or notes in accordance
with the applicable provisions of the statute.
[Amended 9-15-1980]
The City Council may, from time to time, direct
the Treasurer to invest, in securities which are legal investments
for savings banks, such portion of the fund as in its opinion is advisable,
provided that not less than 50% of the total amount invested shall
be invested in the stocks or bonds on interest-bearing notes or obligations
of the United States, or those for which the faith of the United States
is pledged to provide for the payment of principal and interest, including
the bonds of the District of Columbia.
[Amended 9-15-1980]
The Treasurer shall annually submit a complete
and detailed report of the condition of such fund to the City Council.
Such report shall be made a part of the annual report of the City.
No payment shall be made to the reserve fund
as provided for in the foregoing sections which will cause the amount
of such funds to exceed the current tax levy of the municipality except
the addition of interest and dividends earned by such fund.
[Amended 9-15-1980]
The Capital and Nonrecurring Expenditures Reserve
Fund may be discontinued upon approval of the City Council, and said
fund shall be converted into or added to a sinking fund to provide
for the retirement of its nonserial bonded indebtedness. If the municipality
has no bonded indebtedness, such fund shall be transferred to the
general fund of the municipality.