[Adopted 3-15-2021 by Ord. No. 2021-02]
In this article, the following terms have the meanings indicated.
CAPITAL BUDGET
A plan or schedule of major construction projects. Capital improvement items are budgeted separately from the operating budget because they involve large, one-time expenditures which are usually financed differently from day-to-day expenses. Capital expenditures are for projects whose useful lifespan is multi-year or indefinite. Capital outlays of funds can go for the purchase, construction, or repair of land; buildings; infrastructure such as storm sewers, roads, and sidewalks; and unattached equipment or furnishings such as trucks, road repair equipment, and automobiles.
GENERAL FUND
The fund known as the Town's general fund, annual budget or operating budget and fund as defined by generally accepted accounting principles promulgated by the Government Accounting Standards Board and as referenced and described in Section 805 of the Town Charter and Title 16 of the Local Government Article of the Maryland Annotated Code.
MARYLAND LOCAL GOVERNMENT INVESTMENT POOL
The Maryland Local Government Investment Pool (MLGIP) provides local government units of the state a safe investment vehicle for the short-term investment of funds. The state legislature created the Maryland Local Government Investment Pool with the passage of Article 95, § 22g, of the Annotated Code of Maryland and more recently defined by Title 17, Subtitle 3, of the Local Government Article of the Maryland Annotated Code.
PAY-AS-YOU-GO
The pay-as-you-go approach enables a municipality to finance capital projects with current revenues, rather than borrowing against future revenues or creating debt by the issuance of bonds. Fiscal surpluses from taxes, grants, and fee receipts, less current operating expenditures, reserves, and contingencies, may be allocated annually for capital financing.
RESERVE ACCOUNT
A continuing, nonlapsing account or fund in which money is retained to support appropriations that have become unfunded.
A. 
The following reserve funds or accounts are hereby authorized, ratified and approved:
(1) 
Capital Improvement Program Reserve Fund to provide for capital expenditures pursuant an approved capital improvement budget;
(2) 
Maryland Local Government Investment Pool Reserve Fund to provide for short-term investment of funds through the MLGIP;
(3) 
General Fund Surplus (Savings) Reserve Fund to provide safekeeping of surplus revenues over expenditures in any given fiscal year transferred from the general fund, and which may be used for contingencies or to offset shortfalls in revenues as authorized by transfers from time to time to the general fund; and
(4) 
Community Emergency Relief Fund, to also be known as the North Brentwood Community Emergency Assistance Fund (NBCEAF), to provide assistance to individuals, families and businesses of the Town in times of emergency or catastrophe.
B. 
The Town may maintain reserve funds or accounts to be funded by pooled funds residing in an existing or newly opened bank account with periodic transfers from the general fund or from one reserve fund to another, provided an appropriation is approved by the Town Council by resolution or ordinance as required by law. Transfers or expenditures may be made from the general fund or a reserve fund, provided an appropriation or authorization has been made by the Council.
C. 
At a minimum, the Town shall maintain a General Fund Surplus (Savings) Reserve Fund of no less than 7% of budgeted general fund operating revenues.
D. 
The Council is authorized to establish further requirements, criteria, and rules for the appropriation and disbursement of reserve fund accounts by separate resolutions passed from time to time.
A. 
The Town shall deposit public monies in accounts maintained at financial institutions in accordance with its duly adopted investment policy of the Town in compliance with the requirements set forth in Chapter 143 of the Laws of Maryland of 1995 (Senate Bill 86), which became effective June 1, 1995, as amended, and contained provisions and regulations adopted by the State Treasurer regarding local government investments and reporting of all public money, except any money held as part of a pension plan or other trust fund account.
B. 
In addition to any other reporting requirements required under state law, including submission of the comprehensive annual financial report, the annual budget shall include the description and existing balances of any reserve fund created and existing under this article.