Capital reserve funds are to be managed in the best interests of the district.  All capital reserve accounts shall be initiated by a resolution of the board.  The director of business will report to the board on a regular basis regarding rates of return and make recommendations as needed to best utilize the district's reserves.  The superintendent shall specifically report to the board at any time the reserves have fallen below 15% of the annual budget.  The sum of all reserves including contingency funds, depreciation funds and cash reserves may not exceed the percentage of the general fund budget as shown below:


Average district daily membership                                 Allowable reserve percentage


             0 - 471                                                                                    45

     471.01 - 3,044                                                                                35

  3,044.01 - 10,000                                                                              25

10,000.01 and over                                                                              20


Legal Reference:                       Neb. Statute 79-1027