[HISTORY: Adopted by the Town Council of the Town of Tolland 1-29-2015 by Ord. No. 87. Amendments noted where applicable.]
There is hereby created a Debt Service Fund to provide funding resources to pay interest, principal, and other fees associated with short-term and long-term debt. These funds will be used as part of a financial plan to ensure that the Town maintains sufficient funds to handle the costs of debt over time.
Contributions to the fund shall be received from:
A. 
Moneys received by the Town from bond and note premium receipts.
B. 
Appropriations made in the annual budget, special appropriations and emergency appropriations consistent with the Town Charter.
C. 
A general fund contribution of excess funds remaining within the debt budget after all annual debt payments have been covered, including any savings within the budget resulting from a bond refunding. The Town Finance Director and Town Manager shall have the authority to transfer the funds from the associated debt accounts to the Debt Service Fund.
D. 
Any other moneys appropriated to the fund by the Town Council.
The fund shall be in the custody of the Treasurer of the Town of Tolland, and all or any part of the moneys in said fund may, from time to time, be invested in any securities in which public funds may lawfully be invested. All income derived from such investments shall be paid into the fund and become a part thereof. The moneys so invested shall at all times be subject to withdrawal for use as provided in this section.
A. 
Money paid to the Debt Service Fund and interest earned thereon shall be used solely by the Town for payment of principal, interest and other fees associated with short-term and long-term debt, provided that all such expenditures shall be approved by the Town Manager and Director of Finance and Records. Other fees may include items such as bond issuance costs, legal fees associated with debt, advisory fees and other debt-associated fees.
B. 
The use of the funds may be included for future use in the Town's Debt Management Plan to offset debt in future years.
C. 
The Town Council may, from time to time, authorize a special appropriation to transfer funds from the Debt Service Fund to the General Fund or other funds by annual budget appropriation or special appropriation consistent with the Town Charter.
D. 
The funds which remain at the close of each fiscal year within the Debt Service Fund shall remain in the fund balance of said fund and shall not, therefore, be lapsed to the balance of the General Fund. The Town Treasurer and the Director of Finance and Records shall exercise control and administration of the Debt Service Fund in accordance with their duties under the Town Charter.