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Exeter District Ambulance Reserve Policy

Purpose

Exeter District Ambulance (the District) shall maintain reserve funds. This policy establishes the level of reserves necessary for maintaining the District's credit worthiness and for adequately providing for:

  • Funding infrastructure replacement.
  • Economic uncertainties and other financial hardships.
  • Loss of significant revenue sources such as property tax receipts or connection fees.
  • Local disasters or catastrophic events.
  • Future debt or capital obligations.
  • Cash flow requirements.
  • Unfunded mandates including costly regulatory requirements.

Policy

Unassigned Reserve Funds 

The minimum amount of unassigned reserve funds  will equal two months of operating expenses. The maximum amount of unassigned reserve funds will equal three months of operating expenses.

Procedure for Using Reserve Funds

Unassigned Reserve Funds 

Unassigned Reserve Funds will be a budget line approved in open session by the District Board of Directors annually as apart of the budget for a given year. Unassigned reserve funds can be used at any time to meet cash flow requirements of District operations. Authority to use the funds is at the discretion of the Board of Directors. The District Manager will, in compliance with the Brown Act, create an agenda item for any purchase or financial burden that may require use of unassigned reserve funds. The Board of Directors will review the agenda item in either open or closed session in compliance with the Brown act and approve or deny the request from the District Manager. If the item meets the requirements for closed session no action will be taken in closed session. The Board of Directors will  return from closed session and take action on any closed session item during "report from closed session" in compliance with the Brown act. Approvals of purchases or financial burdens will be documented through Board Resolutions and meeting minutes.

Procedure for Monitoring Reserve Levels

The District Manager shall perform a reserve analysis to be submitted to the Board of Directors upon the occurrence of the following events:

  • Board of Directors' deliberation of the annual budget;
  • Board of Directors request for report on financial position;
  • When a major change in conditions threatens the reserve levels established within this policy.

If the analysis indicates projected or actual reserve levels falling 10% below or above the levels outlined in this policy, at least one of the following actions shall be included with the analysis:

  • An explanation of why the reserve levels are not at the targeted level, and/ or
  • An identified course of action to bring reserve levels within the minimum and maximum levels prescribed.