(a) All the territory embraced within the limits of the Village is hereby constituted a highway district of the Town of Manchester, and the Selectboard of the Town shall, on or before the first day of September of each year, draw an order on the Treasurer of the Town, to the Treasurer of the Village for five-eighths of the amount of taxes raised or assessed upon the grand list of the Village during the fiscal year next prior to September 1, and expended or used for the highway purposes hereinafter specified by or under the direction of the Town Road Commissioner, the Town Selectboard, or the Town Manager, excepting payments made to the State as provided under sections 4702 and 4703 of the Public Laws and any future revision or amendments thereto or any acts hereafter passed for similar purpose.

(b) The highway purposes herein intended are: construction and maintenance of the highways outside the limits of the Village, including bridges, brooks, and culverts, calcium chloride and other binders; winter road and snow removal and sanding, turning water and opening ditches; highway tools and supplies; new highway equipment and repairs and maintenance of tools and equipment, including gasoline and oil used in operation of the equipment.

(c) The amount due to the Village shall be determined at the end of the fiscal year of the Town by the Town auditors and Selectboard, and the trustees of the Village, and in the event of disagreement, by three arbitrators, one chosen by the Town Selectboard, one by the Village trustees, and a third by the two arbitrators chosen by the Town and Village, and their decision shall be final.

(d) The Selectboard of the Town of Manchester shall also, on or before September 1 of each year, draw an order on the Treasurer of the Town to the Treasurer of the Village for an amount equal to eight percent of the amount paid to the State during the fiscal year of the Town prior to September 1 under sections 4702 and 4703 of the Public Laws and under any future revisions of amendments thereto or any acts hereinafter passed for similar purposes. (Added 1943, No. 183, § 14.)