§ 2-80. Reserve account.

(a)

A reserve account is hereby established. Such account shall be invested and maintained in accordance with all applicable laws, statutes and regulations, including but not limited to sections 2.2-4500 et seq. of the Code of Virginia (1950) as amended, governing the investments of public funds. Seventy-five (75) percent of the interest income from said investments after expenses shall annually be transferred to the town's general fund and accordingly thereafter expended.

(b)

Funds in the reserve account may be transferred to the town's general fund and accordingly thereafter expended upon the affirmative vote of two-thirds ( 2/3 ) of all members elected to the town council, at a regularly scheduled town council meeting, following a duly advertised and conducted public hearing on such transfer.

(c)

The minimum value of the reserve account shall be an amount equal to ten (10) percent of the town's annual general fund. In the event that the value of the reserve account falls below said minimum as of the monthly statement date for the reserve account, then within sixty (60) days the town council shall devise a plan to transfer into the reserve account an amount sufficient to bring the value of the reserve account to at least said minimum amount.

(d)

This section shall be amended or repealed only upon the affirmative vote of two-thirds ( 2/3 ) of all members elected to the town council, at a regularly scheduled council meeting, following a duly advertised and conducted public hearing on such amendment or repeal.

(e)

This plan shall be reviewed as a part of the annual audit presentation.

(Ord. No. 284; Ord. No. 329; Ord. No. 349; Ord. No. 372; Ord. No. 374; Ord. No. 378; Ord. No. 456; Ord. No. 491; Ord. No. 513-05)

(Ord. No. 284; Ord. No. 329; Ord. No. 349; Ord. No. 372; Ord. No. 374; Ord. No. 378; Ord. No. 456; Ord. No. 491; Ord. No. 513-05)