[Adopted by the Board of Selectmen 9-6-2022]
This article shall be known and may be cited as the "Town of
Bethel ('Town') Tax Stabilization Fund ('TSF')."
The purpose of the TSF is to promote sound financial management
and to enforce spending discipline by setting aside monies collected
from revenues received during years of good economic conditions for
use during years with lower growth or declining revenue. The Town's
general tax revenues can be affected negatively by weak economic conditions
as well as actions taken by state and federal governments. Absent
sound financial management and spending discipline, such conditions
and/or actions can cause unanticipated revenue shortfalls during a
fiscal year that would be addressed through reductions to services
or increases in taxes. The TSF may be used to prevent such reductions
to services or increases in taxes.
Pursuant to C.G.S. § 7-148(K), there is hereby established
a fund which shall not lapse at the end of the Town's fiscal year;
said fund shall be known as the "Town of Bethel Tax Stabilization
Fund."
In coordination with the Town's Fund Balance (Unassigned) Policy,
the TSF may be funded, when possible, by the Board of Finance from
the fund balance after the completion of a fiscal year.
The TSF shall not be reduced or used for purposes other than those provided for in § 98-32, Purpose, above. During the development of the annual budget, the Board of Finance may authorize a transfer from the TSF to the General Fund. This transfer will be shown as a revenue line in General Fund Budgeted Revenue consistent to the extent possible with Use of Fund Balance entries. The maximum annual transfer shall be $500,000 in any one fiscal year.
The TSF shall be administered by the Board of Finance pursuant to Charter § C-10-2F. The TSF shall only be terminated by an affirmative vote of the Board of Selectmen, pursuant to Charter § C4-4.
