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11 <br />C@R@J(B <br />o13 11 <br />GENERAL MANAGER <br />Jim Friedl <br />DATE: March 3, 2016 <br />TO: Board of Directors <br />FROM: Jim Friedl, General Manager <br />SUBJECT: Annual Review and Adoption of Financial Reserves Policy <br />RECOMMENDATIONS <br />Readopt the District's Financial Reserve Policy. <br />BACKGROUND <br />BOARD OF DIRECTORS <br />Chuck Huffer, Chair <br />George M. Lange, Vice Chair <br />Susan L. Holt, Director <br />Joe Gibson, Director <br />Ed Jones, Director <br />GENERAL MANAGER EMERITUS <br />Tex Ward <br />In order to fulfill its mission, the Conejo Recreation and Park District must be financially stable. A well- <br />worn path to financial stability is savings. Financial reserves are basically the District savings, which <br />help to provide adequate funding to meet the District's short -tern and long-term goals. In addition, <br />reserve funds can serve as a buffer against both present and future uncertainties. <br />On January 9, 2014, the Board of Directors created and adopted the attached Financial Reserves <br />Policy. This Policy was last reviewed by the Board on February 5, 2015. The Balance Sheet as of <br />June 30, 2015 (Exhibit 1) is part of the Audited Financial Statements and lists the balances of the funds <br />within the General Fund which are committed or assigned for particular purposes. These collectively <br />may be referred to as reserves." <br />The following table is an excerpt from relevant portions of the FY 14115 Balance Sheet. <br />Committed for: <br />Other post employment benefits $8,984,979 <br />Claims $2,695,685 <br />Operating reserve $5,500,000 <br />Equipment replacement $3,912,614 <br />Assigned for: <br />Vested leave $1,250,968 <br />Unassigned: $3,970,631 <br />These funds have been saved over the years to fulfill a particular need or to serve a particular purpose. <br />The attached Policy for Financial Reserves (aka "Reserve Policy") (Exhibit 2) is intended to provide <br />clear, concise and well -articulated reasons and guidance for the accumulation and management of the <br />District's reserve funds. <br />403 West Hillcrest Drive I Thousand Oaks, CA 91360-4223 <br />(805) 495-6471 FAX: (805) 497-3199 Email: parks@crpd.org <br />