(a) The Board of Trustees for the Town of Frederick designates the Frederick Oil Royalty Trust Fund to be used to support the Frederick High School Scholarship Program, community organization grants, economic development programs, and those governmental purposes as the Board may be designated from time to time.

(b) The Board further adopts a cap on annual disbursements from the fund to no more than four and one-half percent (4.5%) of the fund balance, as determined on December 31 of the prior year.

(c) Monies applied from the Oil Royalty Trust Fund to establish the Frederick Facade Improvement Revolving Loan Program shall not be included in the annual cap in the year in which the revolving loan fund program is started. (Ord. 1101 §§1—3, 2012)