The
college may establish a separate “reserve fund” (as
described in ORS 341.321 and ORS 294.525) for the purpose of providing
short-term stabilization in anticipation of possible shortfalls
in revenue.
A stabilization reserve fund may be
established under one or
more of the following circumstances:
- State budget appropriations for
community colleges are not approved by the time the college budget is
approved and adopted.
- A
situation exists where significant changes in enrollment are possible
but not
reasonably predictable.
- When
any operating expenditure that is beyond the control of the college
could
reasonably be expected to increase after the college budget is approved
and
adopted.
- When
any operating expenditure that is beyond the control of the college
could
reasonably be expected to increase after the college budget is approved
and
adopted.
- Any
other situation in which the Board determines that there is a
reasonable
expectation that major shifts in revenue or expenditures could occur
during the
budget year.
Stabilization reserve levels:
- Minimum
reserve levels shall be at the discretion of the board under advice
from the
budget committee and the president.
- Maximum
reserve levels shall be no more than the maximum reasonably estimated
shortfall
at the time of the adoption of the budget.
Stabilization
reserves will be reviewed annually as part of the budget development
process. The stabilization
reserve fund shall
be closed out when the Board determines that the precipitating threat
to
revenues and/or expenditures no longer exists.
As long as the conditions exist that caused the fund to be
established,
the funds shall be kept in reserve for the purpose intended. If and when the fund is closed out, any
remaining balance shall be returned to operating funds.