The college shall establish and maintain separate reserve funds (as described in ORS 341.321 and ORS 294.525) in Capital Projects Fund IV for the following purposes:
- To replace capital equipment that is broken or beyond its useful life as determined by the Capital Assets Replacement Forecast;
- To maintain and repair college facilities according to the Major Maintenance Schedule;
- To maintain and upgrade the college's information/telecommunications system according to planning schedules maintained by Information Technology;
- To build new instructional facilities and/or to purchase property that facilitates planned long-term growth of the college.
Appropriate levels of funding for reserves will be determined using existing college decision-making structures. The president will make recommendations to the Board of Education for approval to establish and fund these reserves.
Optimal funding levels will be determined using benchmarks, professional standards and best practices from other colleges and adapting these to Lane's specific situation. It is expected that full funding of these reserves will take place over a number of years and that annual transfers to these reserves will be budgeted from the General Fund and other sources as appropriate.
As required in ORS 294.525, the board shall periodically review the reserve fund "and determine whether the fund will be continued or abolished." While ORS 294 allows review to take place every 10 years, reserve funds established under these policies shall be reviewed (a) annually by the president; and (b) at least every three years or more frequently as determined by the board.
As allowed in ORS 294.525, the board may determine at any time that a reserve fund is no longer necessary or that some or all of the reserves may be transferred to the General Fund.
ADOPTED: January 14, 2004
REVIEWED: February 14, 2007
REVIEWED: October 19, 2009
REVIEWED: December 5, 2012
REVIEWED: October 7, 2015