Vermont Statutes Title 24 (Appendix). Municipal Charters, App. c. 147 § 11.7a. General Fund unrestricted fund balance

At the sole discretion of the Selectboard, a General Fund unrestricted reserve may be established in an amount that may not exceed five percent of the General Fund budget being considered by the Selectboard for presentation to the voters at Town meeting. The purpose of the fund shall be to aid in the cash flow and operation of the Town and to be used for such purpose as may be caused by an emergency. For expenditures other than an emergency, if in any year a portion of the unrestricted fund balance is applied as revenue to the General Fund or in a year that the reserve fund exceeds five percent of the current operating budget, funds must be applied to fund items found in the Town's capital improvement plan.