Financial Reserve Policy

The Circle XX CSD shall maintain a Financial Reserve bank account named "Savings Account #2" with a minimum balance of $15,000.

The reserve is to provide for large emergency Circle XX CSD expenditures.

The District uses the majority of the discretionary funds in the regular bank accounts to pay for usual road work and other expenses over the summer months. The District maintains a minumum balance in the regular checking and savings accounts over the winter period.  In the past reserve funds have been used in the winter months to cover immediately required road repairs caused by water damage from blocked or damaged road culverts.

Use of Reserves Procedure

A formal Board action is required to transfer money from the reserve savings account to the district checking account for Board approved emergency expenditures.

Funds from the next County tax revenue deposit into the Circle XX CSD bank account will be transfered back into the reserve account to reestablish the $15,000 minimum balance.