Section 3-65 - Source of funds for appropriations; operating expenses for departments; creation of special funds(a) All money received from taxation, assessments, fines, and other lawful sources, except revenues and income of the Water, Waste Water/Solid Waste, and Traffic Divisions of the Public Works Department and of the Electric Light Department, shall constitute the entire sum from which appropriations and payments are to be made by and under the authority of the City Council. The necessary operating expenses and the cost of repairs, improvements, and additions to the property and equipment of such Divisions and of the Light Department shall be paid from the receipts of said Divisions and Department, respectively. (1) The Electric Light Department, the Water Division, and the Waste Water Division shall every fiscal year make a contribution to the City in lieu of taxes in the form of a cash payment or the equivalent in free services and municipal rate benefits, or a combination of cash and free services, in an amount equaling the amount of money that would be received by the City in ad valorem real estate taxes and personal property inventory taxes were such Divisions and Department privately owned utilities. (A) In order to determine the amount of contribution in lieu of taxes to be received from each such Division and Department, the City Assessor shall annually make an assessment of their respective properties in the same manner as and at the same time that assessments of taxable properties are made. Each Division and Department shall likewise file with the City Assessor inventory forms at the time and in the manner required by State law of taxable persons.(B) Each Division and Department shall have the same right of grievance and appeal as is afforded to taxpayers except that the determination of the Board of Civil Authority shall be final.(C) The specific level of the contribution shall be fixed in the same manner as the amount of tax on taxable properties and inventories are determined, immediately upon the setting of the annual tax rate by the City Council.(2) The City Council, with the prior approval of the Board of Light Commissioners or the Board of Public Works Commissioners, as applicable, shall have authority to create and establish, maintain, build up, and increase from year to year from the earnings of such Department and Divisions, special reserve funds for such Department and Divisions, to be kept by the City Treasurer in a separate bank deposit and in a separate account for each Department and Division and to be used only to pay for such expenses as the Electric Light or Public Works Departments may recommend and the City Council may approve and authorize.(A) Appropriations and payments from the earnings of said Department and Divisions to said reserve funds may be made at any time but must be authorized by separate resolution of the City Council for each Department and Division.(B) The total amount of such reserve funds may be limited to such sum as the City Council may by resolution from time to time determine and prescribe.(3) All portions of all appropriations remaining unexpended at the close of the fiscal year, except in the case of appropriations to the School Department and the Streets Division of the Public Works Department, shall then become part of the General Fund, unless the City Council provides otherwise by resolution.(b) In addition to the Reserve Funds for the Electric Light Department and for such Divisions of the Public Works Department authorized in subsection (a) of this section, the City Council may by resolution create and establish reserve funds to pay for public improvements, replacement of equipment, capital expenses, and planned or unplanned operating expenditures of any City department(s) or division(s) thereof. (1) Once established, the City Council may maintain, build up, and increase a fund from year to year by depositing in the fund any monies the City Council may deem advisable, to the extent not prohibited by any other law or regulation.(2) Monies deposited in and expended from a reserve fund shall be identified in the City budget as it may be amended from time to time.(3) Reserve funds shall be kept in separate accounts and invested in the same manner as other public funds.(4) The City Council may expend monies from a reserve fund for any legal purpose for which that fund was established.24 Appendix V.S.A. § 3-65
Amended 2015, No. M-7, § 2, eff. 5/18/2015.