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The attached Reserve Policy provides for five distinct reserve funds: <br />1. The Operating Reserve is committed for unexpected operating expenses and contingencies. <br />2. The Claims and Liability Reserve is committed for workers' compensation expenses, claims <br />and liabilities. <br />3. The OPEB Reserve is committed for stipends and medical premiums for qualifying retirees from <br />the District. <br />4. The Equipment Replacement Reserve is committed for vehicle and equipment replacement. <br />5. The Vested Leave Reserve is assigned for accrued leave (vacation/sick) payouts. <br />Committed reserves cannot be used for anything but their intended purpose unless otherwise directed by <br />the Board of Directors. Per the attached policy, these reserves and balances therein will be considered <br />at least annually as part of the annual audit presented to the Board. Of course, should circumstances <br />require, the Board may consider potential utilization or adjustments to reserves at any time. <br />Funds remaining "Unassigned" could be utilized for a variety of purposes, such as for capital projects <br />with multiple funding sources to stretch limited resources; for projects which clearly reduce long-term <br />operating costs; to help fund the ongoing capital improvement plan; or other purposes as directed by the <br />Board. Note that $2 million of the "unassigned" available at 6130115 was earmarked by the Board and <br />used for FY 16-17 capital projects. <br />The Finance and Audit Committee met on March 22, 2017 to review the reserve policy and amounts <br />assigned to each of the reserve funds. After consultation with staff, and considering the District's <br />mission, present financial conditions and strategic objectives, the Committee recommends no change to <br />the current reserve balances at this time (Exhibit 3). <br />STRATEGIC PLAN COMPLIANCE <br />Meets Strategic Plan Vision Statement: In order to continue to serve our community and be recognized <br />as a top recreation and park district in the nation, we must be financially stable. <br />Respectfully submitted by, <br />Sheryl Lewanda, Administrator <br />Management Services <br />Attachments <br />