Capital Reserve Funds
Capital reserve funds and expendable trust funds are monies set aside for a specific Town of Hampton or Hampton Beach Village District Precinct purpose, usually by a vote of the Town or Precinct. These funds are usually expended by a similar vote that explicitly directs spending the funds for the previously-voted purpose..
The individual capital reserve funds and expendable trust funds are:
- Town Roads
- Department of Public Works Equipment
- Management Information Systems
- Compensated Leave Trust Fund
- Hampton Beach Village District - Capital Projects & Purchases
- Hampton Beach Village District - Improvements on Current Property
- Hampton Beach Village District - Playground & Beach Area Improvements
- Winnacunnet School District (SAU 21) Special Education Trust Fund
- Winnacunnet High School Building Maintenance Trust Fund
- Winnacunnet High School Technology Trust Fund
- Hampton School District (SAU 90) Special Education Trust Fund
Investment: Capital reserve funds must be invested very conservatively because of the short-term time horizon of the projects for which these funds were designated. Usually, the investment is a certificate of deposit for a specified period of time, or a money market fund. Click to see the Investment Policy for capital reserves. Details about the National Advisors Trust Company capital reserve fund portfolio may be obtained by contacting any of the trustees or the Assistant Bookkeeper.
Accounting: Accounting for capital reserve funds requires the separation of principal and income. When a capital reserve fund is created, money is transferred to the Trustees as the initial corpus of the capital reserve fund. As the fund earns interest, the interest is booked as "income."
Disbursement: When a capital reserve fund has met its purpose, the principal and income is disbursed according to a Town or Precinct vote.
Capital Reserves RSAs: Click here for the RSAs relating to capital reserves.