POL 2.105 Fiscal/Budget Reserves

The College shall aspire to accumulate and maintain fiscal and budget reserves as a means to maintain financial stability at the College.

The following basic policy statements apply:

1. Basic budget reserves must be established to maintain stability, to protect the operation of the College during times of funding decline (local, state, national), unexpected emergencies, tax base erosion, or failure of millage or debt proposals.
2. A minimum unrestricted fund balance must be established for each fund as specified:
   1. General Fund Reserves = 8.33% of budgeted general fund expenditures
   2. Maintenance and Repair Fund Reserves = 3% of the College depreciated net capital assets
   3. Debt Service Reserves = total principal and interest payments for one year
3. Administration may maintain additional reserves to expand or improve capital facilities, create new educational programs, purchase equipment, or maintain matching grant funds.

August 11, 1983
Revised November 15, 2016
Revised February 24, 2022