YATES BAPTIST CHURCH
BUILDING RESERVE ACCOUNT POLICY
Adopted July 18, 2012
Purpose
The purpose of the Building Reserve Account is to provide funding for unanticipated facility repairs and upkeep that are not included in the operating budget. The Building Reserve Account will be managed by the guidelines below.
Policy Guidelines
A. Each year during the annual budget planning season, the House and Grounds Committee shall submit to the Finance Committee a list of the anticipated major facility repairs and expenses over the next five years.
B. In response to the anticipated need over that five (5) year period, Yates Baptist Church, through the leadership of the Finance Committee, shall consider both the five (5) year proposal as to how and when to fund the anticipated 5 year expenses and shall also take reasonable and prudent efforts to maintain a minimum of $50,000 in the Building Reserve Account. The $50,000 is intended to be funds on hand for emergencies and shall be in addition to the funds requested by the House and Grounds Committee for those known or anticipated major repairs.
C. Each year the church through the Finance Committee should make reasonable and prudent efforts to designate such funds from the annual church budget as are necessary to maintain the $50,000 minimum balance in the Building Reserve Account for emergencies. Requests for monies from the Building Reserve Account shall come from the House and Grounds Committee to the Finance Committee.
D. Through a majority vote, the Finance Committee shall authorize disbursement of funds from the Building Reserve Account to pay for church facility costs.
E. Emergency repairs necessary for maintaining a safe operational environment of the Church such as urgent repair of heating or cooling units, leakage, etc. may be made by a staff member if the chairpersons of the House and Grounds Committee and the Finance Committee cannot be reached before a decision has to be made. In the event of an emergency, the Treasurer and chairpersons of the Finance and House and Grounds Committees should be contacted as soon as possible.
F. The minimum amount of any disbursement from this Account shall be $1,000. Any repair costing less than $1,000 shall be paid from the House and Grounds operating budget.
G. In the business meeting immediately following any disbursement from the Building Reserve Account, the Finance Committee and the House and Grounds Committee shall make a full report of all monies spent from this Account and provide supporting explanations.
H. The acquisition of capital assets shall be in accordance with the Yates Baptist Church Capital Expenditures Policy.