NY S03027

Town of Saranac (Clinton County) may establish a retired employee health insurance premium reserve fund to cover retired town employee health insurance premiums and stabilize tax rates.

Fund sources include budgetary appropriations, tax revenues, legally appropriated funds, and transfers from other reserve funds established under sections 6-n, 6-p, or 6-r of the General Municipal Law.

Transfers from other reserve funds require governing board resolution and public hearing with at least 15 days' notice published in the town's official newspaper or a newspaper with general circulation.

Reserve fund moneys may only be expended to finance health insurance premiums for retired town employees, and funds are deposited, invested, and accounted for separately from other town funds.

Governing board members are declared trustees of the fund with fiduciary duties; unauthorized withdrawals or expenditures constitute a misdemeanor; the fund may be terminated by resolution with remaining moneys transferred to other reserve funds.