ANNUAL RESERVES POLICY - Laserfiche WebLink

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The attached Reserve Policy provides for five distinct reserve funds: 1. The Operating Reserve is committed for unexpected operating expenses and contingencies. 2. The Claims and Liability Reserve is committed for workers' compensation expenses, claims and liabilities. 3. The OPEB Reserve is committed for stipends and medical premiums for qualifying retirees from the District. 4. The Equipment Replacement Reserve is committed for vehicle and equipment replacement. 5. The Vested Leave Reserve is assigned for accrued leave (vacation/sick) payouts. Committed reserves cannot be used for anything but their intended purpose unless otherwise directed by the Board of Directors. Per the attached policy, these reserves and balances therein will be considered at least annually as part of the annual audit presented to the Board. Of course, should circumstances require, the Board may consider potential utilization or adjustments to reserves at any time. Funds remaining "Unassigned" could be utilized for a variety of purposes, such as for capital projects with multiple funding sources to stretch limited resources; for projects which clearly reduce long-term operating costs; to help fund the ongoing capital improvement plan; or other purposes as directed by the Board. The Finance and Audit Committee met on February 24, 2016 to review the reserve policy and amounts assigned to each of the reserve funds. After consultation with staff, and considering the District's mission, present financial conditions and strategic objectives, the Committee recommends no change to the current reserve balances at this time (Exhibit 3). STRATEGIC PLAN COMPLIANCE Meets Strategic Plan Vision Statement. In order to continue to serve our community and be recognized as a top recreation and park district in the nation, we must be financially stable. Respectfully submitted by, Sheryl Lewanda, Administrator Management Services Attachments