California Government Code

§ 61112

GOV § 61112 Effective Jan 1, 2006Div. 3 · Title 6 · Part 3 · Ch. 2

Statute text

(a)In its budget, the board of directors may establish a designated reserve for capital outlay and a designated reserve for contingencies. When the board of directors establishes a designated reserve, it shall declare the exclusive purposes for which the funds in the reserve may be spent. The funds in the designated reserve shall be spent only for the exclusive purposes for which the board of directors established the designated reserve. The reserves shall be maintained according to generally accepted accounting principles.

(b)Any time after the establishment of a designated reserve, the board of directors may transfer any funds to that designated reserve.

(c)If the board of directors finds that the funds in a designated reserve are no longer required for the purpose for which it established the designated reserve, the board of directors may, by a four-fifths vote of the total membership of the board of directors, discontinue the designated reserve or transfer any funds that are no longer required from the designated reserve to the district’s general fund.

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Legislative history

Repealed and added by Stats. 2005, Ch. 249, Sec. 3. Effective January 1, 2006.