Vt. Stat. tit. 24A § 601-37
The Board of Supervisors, with the approval of a majority of the voters present and voting at a special District meeting called and warned for the purpose, may establish and provide for a sinking fund that shall serve and be used exclusively as a debt service reserve fund for the retirement of bond issue or other service reserve fund for the retirement of bond issue or other debt. When established, the sinking fund shall be kept intact and separate from other monies at the disposal of the District, shall be accounted for as a pledged asset for the purpose of retiring those obligations, and shall not be appropriated or used for the current expenses of the District. The cost of payments to any sinking fund shall be included in the annual budget of the District provided in subsection 33(c) of this chapter, unless otherwise provided by applicable law and in the vote authorizing the same.
24 Appendix V.S.A. § 601-37