[HISTORY: Adopted by the Board of Trustees of the Village of Bloomfield 5-23-2013 (Ch. 49 of the 2016 Code). Amendments noted where applicable.]
The Village of Bloomfield Board of Trustees is responsible for providing the best possible public water service for the most affordable price. This requires a balance between maintaining existing infrastructure, replacing aging infrastructure, and keeping the cost of water service affordable for the residents who live here. This reserve policy is not intended to address any new mandates or expansions of the existing system. Although the Village has had a water reserve fund since 1992, this chapter is intended to formalize a written plan for future Boards, to dedicate funds to said water reserve.
By establishing a relationship between the annual operating budget and a long-term water capital reserve, the Trustees may be able to reduce the ultimate costs to the residents by spreading the cash outlay over a period of time. A capital reserve will assist in the orderly maintenance and replacement of aging infrastructure by:
A. 
Allowing the trustees to determine the best timing for financing major projects.
B. 
Setting some money aside in advance of need so that financial impact of projects can be lessened in the year of purchase or construction.
C. 
Stabilizing water rate increases over a longer period of time.
D. 
Prioritizing water system projects so that the most pressing needs are addressed first to avoid unscheduled emergency projects.
E. 
Providing for depreciation, including wear and tear on existing infrastructure, to allow for long-term planning with a minimum need to incur debt.
The Village of Bloomfield Board of Trustees shall develop a long-term water capital plan in conjunction with a water reserve fund.
A. 
Use of the water GIS (geographic information system) and AMP (asset management plan) software will inventory, rate and prioritize water infrastructure.
B. 
A general long-term water capital plan should be defined and reviewed annually.
C. 
Trustees will develop a rolling five-year plan for reserves and set a water rate annually, as part of the budget process, to include funding for the reserve. The reserve fund will be structured such that the first 10 years will recognize the replacement costs of the remaining infrastructure which was constructed prior to 1980. Following completion of old infrastructure replacement, the long-term reserve will address depreciation.