AR 6305: Reserves

Reserve funds may be established to maintain, improve, or replace service, property, or equipment. In fund accounting, reserves are established for a specific purpose by the fund.

Areas of Responsibility

• Reserve funds can include funds budgeted for contingency and ending fund balances.
• Reserve funds address emergencies, unanticipated expenses, or a temporary shortfall.
• Reserve funds provide stability during economic cycles.
• Reserve funds provide resources for capital construction and maintenance needs. Reserve funds are designated for a specific stated purpose (e.g., debt service for bond repayment or PERS bonds).

• ORS 294.346
• Oregon Department of Revenue “Local Budgeting Manual” (150-504-420)
• OAR 150-294-0340