Financial Reserves Policy

The Library retains reserves both for specified purposes and as insurance against unbudgeted significant expenditures.

The library will transfer unspent grants and donations, received in the year, and its share of net new revenues to reserves.

The library will maintain an equipment replacement reserve fund.

The Library will maintain an undesignated gifts and grants reserve fund of not less than 5% of the Library's annual operating expenditures. 90% of the interest from this undesignated reserve fund will be expended annually on one time projects in support of the Library Board's strategic priorities.

Library Management is authorized to expend designated reserves for the purpose they were accumulated and required expenditures from the equipment replacement without Board approval.

Management is authorized to expend undesignated library reserves up to $50,000 on one time projects which support Library objectives without Library Board approval. Expenditures, from undesignated reserves, over $50,000 require Library Board approval. Staff will provide the Board with an annual summary of disbursements from reserves.

Approved by the Library Board May 26, 2010