Capital Account Policy
Capital Reserve Fund – Repairs & Replacements Account; Capital Outlay Account
(a) Establishment of Funds and Accounts. The District shall establish a separate and independent fund to be designated as the “Capital Reserve Fund.” Within the Capital Reserve Fund, the District shall establish two separate accounts to de designated as the “Repairs and Replacement Account” and the “Capital Outlay Account” (collectively the “Accounts”).
(b) Repairs & Replacements Account. In adopting its annual budget, the District shall create line items in both the revenue and expenditure portions of the Capital Reserve Fund for the Repairs & Replacement Account. Specifically, the budget shall designate the exact amount of money, if any, the District intends to place into the Repairs and Replacements Account during the course of the fiscal year. Expenditures from the Repairs and Replacements Account are intended to fund items that are included in the District’s Capital Reserve Study and reasonably anticipated to be expended by the District during the given fiscal year. Under certain circumstances, and subject to Board approval, funds within the Repairs and Replacement Account may be expended for unanticipated repairs and replacements.
(c) Capital Outlay Account. In adopting its annual budget, the District shall create line items in both the revenue and expenditure portions of the Capital Reserve Fund for the Capital Outlay Account. Specifically, the budget shall designate the exact amount of money, if any, the District intends to place into the Capital Outlay Account during the course of the fiscal year. The expenditure must be for a capital acquisition or construction project in excess of $1,000 that involves the acquisition or construction of new (not previously existing) capital assets for the District. Any acquisition or capital project less than $1,000 that involves the rehabilitation of existing capital assets shall be paid for from the General Fund or Recreation Fund, as appropriate.
(d) Board Approval. The Board of Supervisors shall approve all draws and expenditures upon either of the Accounts. Additionally, the Board of Supervisors shall approve any transfer of funds into or out of either of the Accounts.
(e) Emergencies. In cases of emergency capital repairs, replacements or acquisitions, the general manager, upon consultation with the District’s Chairperson or Vice Chairperson and the District Manager, may take necessary actions and seek ratification of those actions at the next meeting of the Board of Supervisors.
(f) Excess Operating Funds. The Board of Supervisors may designate any excess operating funds realized at year end to be transferred into either of the Accounts.