(a) Except for the revenue as described in Subsection (b) below, fifty percent (50%) of the proceeds derived from the use tax imposed herein shall be pledged for capital improvements of the Town or for payment of any obligations entered into for such purposes. Said fifty percent (50%) of such proceeds of the use tax shall be deposited immediately upon being received or collected into a special fund entitled the Capital Improvements Fund. Commencing on August 1, 2023 five percent (5%) of the unencumbered revenues collected and received by the Town through the use tax imposed pursuant to this Article shall be dedicated to the Open Space Fund as established under Section 4-1-30 of this Chapter; fifteen percent (15%) of the unencumbered revenues collected and received by the Town through the use tax imposed pursuant to this Article shall be dedicated to and deposited in a separate Reserve Capital Improvement Fund as established under Section 4-1-100 of this Code. For purposes of this Section, unencumbered revenues shall mean those tax revenues not already pledged or dedicated to debt service or obligations created or in effect prior to the collection of said revenues. In no event shall revenues dedicated and transferred into both the Open Space Fund and the Reserve Capital Improvement Fund exceed twenty percent (20%) of the total annual use tax revenues collected and received by the Town in any given year absent express prior authorization of the Town Council by ordinance or resolution.

(b) Pursuant to the vote of the Town electorate at the November 8, 1994 municipal election, all revenues collected and received by the Town pursuant to the one-half-percent use tax for affordable housing shall be deposited in a separate Affordable Housing Fund which shall be used exclusively to fund and finance the development and preservation of affordable housing, including the acquisition of land therefor. (Ord. 1263, 2007; Ord. 1572 §1(C), 2023)