What is a sinking fund and is it necessary?

A sinking fund is an account where money that is received prior to a payment is set aside to make future loan payments or retire debt.  We are proposing a sinking fund so that the loan is paid off before another plant is needed.  The goal is to avoid stacking debt.

Show All Answers

1. Is the Town looking into grant funding for the needed Wastewater and Water Treatment Plant Expansions?
2. Will the bond for the Wastewater Treatment Plant go to the voters or to the trustees?
3. If voters approve, can sales tax from Marijuana be used for the water fund?
4. What is a sinking fund and is it necessary?
5. Why can’t we use general fund money for issues related to water?
6. What is an enterprise fund?
7. Is the Town going to slow growth to accommodate for the water and wastewater capacity challenge?
8. What is an impact fee and how does it work?
9. What is the 2-year and 5-year plan for addressing treatment capacity issues?
10. Why do we need an expansion at the Wastewater Treatment Plant?
11. If growth was just stopped, would we need a wastewater plant expansion?
12. What will we do between now and 2024 when the wastewater plant comes online?