§ 45-11-1 - Establishment and use of funds. - Rhode Island Statutes

SECTION 45-11-1

   § 45-11-1  Establishment and use of funds.– The city council of any city and voters of any town in this state in afinancial town meeting, or any other municipal body legally empowered toappropriate funds of a city or town, if they see fit to do so, may vote:

   (1) To establish a fund to be designated as a reserve fund,this fund to be available to the city or town as necessary for temporaryborrowings in anticipation of taxes, but otherwise available only for capitalexpenditures;

   (2) To transfer, from time to time, to the reserve fund thewhole or any portion of the surplus funds as the city or town may have at theend of the current or any succeeding year, to add to the fund by directappropriation or to augment the fund by either or both methods;

   (3) To permit the investment by the city or town treasurer,with the advice and consent of the city or town council, as the case may be, ofthe fund in savings accounts or certificates of deposit of commercial orsavings banks or trust companies, or in obligations of the United States or itsagencies, or in any other short term investment, as would be made by prudentpersons of discretion and intelligence;

   (4) To provide that transfers or appropriations shall not bevoted to the fund which cause the fund to exceed five percent (5%) of the totalassessed valuation of real estate and tangible personal property in the city ortown; and

   (5) To provide that no city council and no financial townmeeting, either annual or special, shall appropriate any moneys out of the fundunless notice of the proposal to do so, reasonably detailed as to purpose andextent, appears in the call for the meeting.