BUSINESS AND NONINSTRUCTIONAL OPERATIONS
Reserve Fund

A. Generally
In order to be in a better position to respond to (i) unexpected shortfalls in state or federal funding, (ii) emergency expenditures of a nonrecurring nature that would not have been anticipated at the time of preparation and adoption of the School Operating Budget, or (iii) other fiscal emergencies, the board shall set aside a reserve for contingencies (hereinafter "Reserve Fund" or "Fund") up to two (2) percent of the previous year's School Operating Budget, may be placed into this Fund. The purpose of this policy is to specify what funds shall be placed in the Reserve Fund, and to set forth the board's requirement for any expenditures to be made from the Fund.

B. Policy

1. The board may direct that funds from interest earned on the Reserve Fund balance, year-end reversions, actual-over-estimated revenues, the sale of excess school property, or other sources approved by the board and city council be used to supplement the Fund subject to the council's appropriation of these additional funds to the board for this purpose.

2. Any expenditure of funds in the Reserve Fund shall require a resolution adopted by eight school board members (two-thirds majority of the members of the board) such resolution shall state the purpose(s) of the expenditure, and the total amount to be expended.

3. Pursuant to applicable provisions of state law, the Reserve Fund must be appropriated by city council annually as part of the school operating budget, and any funds that the board desires to be added to the Fund during the fiscal year must also be appropriated by city council.

Legal Reference:

Code of Va., § 22.1-88. Of what school funds to consist.
Code of Va., § 22.1-94. Appropriations by county, city or town governing body for public schools.

Adopted by School Board: May 6, 1997
Amended by School Board: May 6, 2003