Fund Balance Reserve Policy

Target Cash Balance

The Library Board recognizes the need to maintain sufficient year-end carry over balances in its general fund. In the interest of sound fiscal management, tax levies shall be pursued, and the library's finances otherwise managed, to ensure a general fund cash balance equivalent to at least two (2) months (16.67%) of operating expenses.

The Board directs the Chief Fiscal Officer to monitor the sufficiency of the general fund cash balance in accordance with this Policy. Upon receiving any indication, or upon any determination that such a cash balance may not be achieved at any point within the long-range plan financial forecast period, the Chief Fiscal Officer shall report such a finding to the Board. Upon such notification by the Chief Fiscal Officer, the Director and Chief Fiscal Officer will propose options that the Board may consider to forestall such eventuality.