Chapter 090
2011 -- S 0531
Enacted 06/21/11
A N A C T
RELATING TO THE
TOWN OF
Introduced By: Senators Ciccone, E O`Neill, and DaPonte
Date Introduced: March 10, 2011
It is enacted by the
General Assembly as follows:
SECTION 1. Article 5, Chapter 2 of Chapter 237 of the 1973
Public Laws entitled “An
Act to Incorporate the Town
of
following:
5-2-6. Amendment to Promote Fiscal Responsibility.
(a)
Purpose.
The
town of
fiscal responsibility and the promotion of property tax
stabilization are goals which promote the
public health, safety and welfare of the town of
is the purpose of this amendment to establish a
mechanism whereby the fiscal integrity of the
town of
town’s property tax rate is promoted through the
establishment of a systemic and disciplined
process for the prudent and planned utilization of revenues.
(b)
Establishment of Budget Reserve Account.
The
town council shall establish a budget reserve account within the general fund.
Funding of the reserve
account shall commence no later than the first fiscal year following
repayment of the deficit reduction bond approved by the town
council on June 8, 2010. Each year
following the repayment of the deficit reduction bond one
percent (1%) of each year’s estimated
general revenue shall be directed into the budget reserve
account until a balance equal to eight
percent (8%) of the fiscal year’s estimated general revenue
within the general fund is achieved.
(c)
Minimum Budget Reserve Balance Requirement.
Once
the budget reserve account balance has reached eight percent (8%) of the fiscal
year’s estimated general revenues within the general fund,
as required under subsection (b)
above, the budget reserve account, for any fiscal year,
shall be maintained at a level of not less
than said eight percent (8%) of the actual general revenue
within the general fund.
(d)
Budget Reserve Account Use.
The
town council, in an emergency as defined as a situation where immediate action
is
required to preserve and protect the property, public welfare,
peace, health or safety of the people
in the town and adequate prior action could not have
been taken thereto or in the case of an
unexpected shortfall in general revenue, may upon an affirmative
vote of five-sevenths (5/7) of its
full membership withdraw funds from the budget reserve
account.
(e)
Restoration of Funds to Budget Reserve Account.
In
every fiscal year following the withdrawal of funds from the budget reserve
account,
as permitted in subsection (d) herein, the town of
percent (2%) of that year’s estimated general revenue to the
budget reserve account until the
budget reserve account’s balance equals eight percent (8%)
of the fiscal year’s estimated general
revenue within the general fund.
SECTION 2. This act shall take effect upon passage.
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LC01356
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