FINANCIAL RESERVES POLICY - Laserfiche WebLink

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"California Association for Park and Recreation Indemnity" (CAPRI), and has a self- insured retention (SIR) of $100,000 for liability claims and $350,000 for workers' compensation claims. Funding: This reserve balance is $2.50 million as of March 7, 2019. Claims are currently handled on a pay-as-you-go basis out of the General Fund. Other Post -Employment Benefits (OPEB)/PT Pension Reserve — Closed Purpose: The CIPEB/PT Pension Reserve was accumulated t cover the projected costs of medica stipends and premiums for qualifying retirees from the District, and the pension plan for parttime employees hired prior to January 2013. Use of Funds: The OPEB Reserve was intended to cover the accrued liability (as determined by an actuarial study conducted every 2 years) of promised post -employment employee benefits, primarily for retired medical expenses. History: In June,, 2018 the Board authorized a transfer of $4.0 million from this reserve to a section 401(a) pension trust for the stipend and part time pension liabilities. In November,- 2018, the Board authorized a transfer of $4.5 million to a section 115 Post - Employment Benefit Trust for the retiree medical premium liability and CalPERS health care minimum contribution. The balance of this reserve, $2.51 million, was transferred to the Pension Stabilization Reserve (discussed below). Accordingly, this reserve now has a balance of $0 and it is closed effective March 7, 2019. Equipment Replacement Reserve Purpose: The Equipment Replacement Reserve is committed for vehicle and information . technology and recreation equipment replacement. Use of Funds: The Equipment Replacement Reserve is designed as a structured vehicle and equipment replacement program to keep necessary vehicles and equipment functional and effective. Equipment and vehicle replacements are made from this fund. Funding: Annually, the estimated replacement cost is transferred from the General Fund to the Equipment Replacement Fund. As of January 16,, 2020, the balance in this reserve is $4.58 million. Vested Leave Reserve Purpose: The Vested Leave Reserve is assigned for accrued leave (vacation/sick) payouts. Use of Funds: The Vested Leave Fund is to be used to cover the estimated cost of the vested accrued vacation/sick leave of all District employees.