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.