The MCB maintains reserve funds to manage both annual budget deficits and annual budget surpluses. Those reserve funds are held in either the Reserve Fund, the Nonrecurring Expense Reserve Fund, or the Operating Reserve Fund. The requirements for those reserve funds are as follows:
- Reserve Fund. The MCB must maintain a minimum balance of $100,000 and an approximate maximum balance of one quarter of non-dues revenue in the Reserve Fund.
- Nonrecurring Expense Reserve Fund. The approximate estimated maximum balance of the Nonrecurring Expense Reserve Fund is $125,000.
- Operating Reserve Fund. When the Reserve Fund reaches an approximate maximum balance of one quarter of non-dues revenue and the Nonrecurring Expense Reserve Fund reaches an approximate estimated maximum balance of $125,000, the MCB will transfer the remainder of its net income to the Operating Reserve Fund.
Approved by the Board of Directors January 21, 2016