CT SB01062

Municipalities may create a Climate Change and Coastal Resiliency Reserve Fund by majority vote upon recommendation of the chief executive officer and approval of the budget-making authority, effective July 1, 2019.

Reserve funds may be funded with amounts transferred from general fund cash surplus at fiscal year-end and proceeds from bonds, notes, or other obligations issued by the municipality.

Fund investments are limited to 40% in equity securities (or 50% if the municipality has adopted an asset allocation and investment policy), with remaining funds invested in government bonds, certificates of deposit, municipal obligations, and other approved securities.

Municipal treasurers must submit annual detailed reports on the reserve fund's condition to elected officials, budget-making authority, and legislative body as part of the municipality's annual report.

Reserve funds may be used to pay for municipal property losses, capital projects, and climate change mitigation studies including land acquisition, and may be discontinued with remaining funds converted to a debt sinking fund or transferred to the general fund.