The attached ordinance and budget amendment establishes a capital reserve fund to account for the money being accumulated in fund balances for various infrastructure projects. The capital reserve fund allows for more clarity and transparency than keeping the money in the fund balances, as is the current practice.
The capital reserve fund ordinance establishes three distinct reserve items:
1) Boardwalk/Bulkhead Repair and Reconstruction. In FY19 the Town accumulated $315,000 to use toward the necessary repairs and reconstruction of the Front Street boardwalk and bulkhead. In FY19, $285,000 will be raised for that same purpose.
2) Street Improvements. There is a total of $164,102 available from FY18 and FY19. There will be another appropriation made after financing is secured and the debt service requirements are known for the street rehabilitation projects in FY20.
3) Utility Line Rehabilitation and Replacement. Funds from accumulated utility capacity fees (and now utility system development fees), plus the budgeted contributions to capital reserve in the Utility Fund, will be accounted for here. The initial contribution to the reserve is $2,946,516, and will be followed by annual contributions.