The District is authorized to establish and maintain reserve funds for a limited number of specific purposes set forth in New York State Education and General Municipal law.

         When creating or funding reserve funds, the District will:

1)      Consult with legal counsel and other financial experts as necessary for guidance on the authority to establish the reserve fund;

2)      Identify the financial need or purpose to be served by the prospective reserve fund, including an assessment of whether the reserve fund will complement the long-term financial or capital plans of the District;

3)      Communicate clearly and effectively to District residents the specific purpose of and the financial objectives for the reserve;

4)      Maintain open and transparent records of all reserve fund transactions for the benefit of District residents and voters;

5)      Determine optimal funding levels for the reserve, as well as the conditions under which the reserve assets will be utilized;

6)      Periodically assess the reasonableness of the amounts accumulated in the reserve and when conditions warrant (and subject to any and all legal requirements) reduce reserve funds to a reasonable level or liquidate and discontinue a reserve fund that is no longer needed or whose purpose has been achieved;

7)      Provide the Board with regular financial reports on reserve fund activity; and

8)      Customize all payments or transfers into reserve funds by express resolution.