1. Reserve Requirement

1.1. Minimum
NSWERS shall maintain a reserve fund that is no less than eight percent (8%) of the prior fiscal year’s operating budget.

1.2. Purpose of Reserve
The reserve is intended as a last-resort source to manage unplanned expenditures, inflationary pressures, or revenue shortfalls (e.g., funding gaps or unanticipated costs).

1.3. Approval to Draw Below Minimum
Approval must be provided by the Executive Director before initiating any action that would cause the reserve to drop below the eight percent (8%) minimum reserve. The approval to drop below the minimum will be reported to the Executive Council along with a plan and timeline to return the reserve to the minimum level.