The Capital Reserve Fund and Land Trust Reserve Fund will be used for the accumulation of funds prescribed in Article V, Financial Procedures, §
C-5.08 Reserve Funds, of the Smithfield Town Charter as amended in November 2020. The Capital Reserve Fund shall be available to the Town as necessary for expenditures relating to certain capital expenditures pursuant to local ordinance. The Land Trust Reserve Fund shall be used exclusively by the Smithfield Land Trust for the acquisition and preservation of real property pursuant to the legislative charter of said land trust. Expenditures from the Capital Reserve Fund and Disbursements from the Land Trust Reserve Fund shall be shall be authorized by a Town Council resolution.
The Capital Reserve Fund shall be used for funding capital improvement
expenditures in excess of $50,000 with a useful life of 10 years or
more. This policy does not preclude the funding of any additional
capital assets from the general fund or other sources. The Town's
twenty-year Capital Improvement Plan or Comprehensive Community Plan
will serve as a basis for annual capital appropriations.
The Town's Finance Director shall maintain all records
of the reserve funds in accordance with general accepted accounting
principles and practices. A report of the fund balances as well as
collections to and disbursements from the funds shall be made annually
in the annual audit report as well as a report in the annual budget
presentation.