Purpose

1. Reserve Fund refers to the difference between assets and liabilities in governmental funds. The reserve fund serves as a measure of the financial resources available to a government agency. The Manitowoc Public Library Board of Trustees has approved a Reserve Fund Policy that establishes a range at which the General Reserve Fund balance should be maintained.
2. This policy is established to provide financial stability, cash flow for operations, and the assurance that the Library will be able to respond to emergencies with fiscal strength.

Definitions

The five categories of reserve fund, as established by Governmental Accounting Standards Board Statement No. 54, are as follows:

1. Nonspendable – amounts that cannot be spent because they are not in spendable form (e.g., principle portion of permanent fund, inventory).
2. Restricted – amounts not available for expenditure due to external restrictions, including grant restrictions, laws, or regulations.
3. Committed – amounts that are designated for specific purposes by formal action of the Library Board. (The Library Board may reverse this action if it is later determined the funds are needed for another purpose.)
4. Assigned – amounts management (i.e., Executive Director) intends to use for specific purposes.
5. Unassigned – refers to amounts available for any purpose.

Unrestricted reserve fund refers to the total amount of committed, assigned, and unassigned fund balances.

Note: The Library will spend the most restricted dollars before the less restricted, in the following order: restricted, committed, assigned, unassigned.

Level of Unrestricted Reserve Fund

It is the goal of the Manitowoc Public Library Board of Trustees to maintain no less than 10% and no more than 15% of operating expenses in the General Reserve Fund.

Should the General Reserve Fund fall below 10% of General Reserve Fund revenues a plan for regaining compliance with the policy shall be submitted to the Library Board of Trustees. In the event the General Reserve Fund Balance is above 15%, the difference must be used for property tax relief and/or one-time capital expenditures, which do not increase ongoing Library costs.

Restricted Fund Balances

Funds that are provided by a specific line item in the annual property tax levy are legally restricted to the purpose of that fund.

Monitoring Targets

The Executive Director in conjunction with the Manitowoc Public Library Board of Trustees will monitor revenue collections, expenditures, and availability of cash by reviewing monthly financial reports. The Executive Director shall advise the Board whenever revenue projections suggest that revenue will fall short of expectations, unexpected expenditures will exceed budget, or fund target(s) may not be met by the end of the fiscal year.

Reserve fund balances may fall occasionally outside of the target ranges because of special projects, construction, emergencies, other extenuating circumstances, and/or levy restrictions.

This Reserve Fund Policy will be reviewed on an annual basis by the Manitowoc Public Library Board of Trustees.

Board Approved April 27, 2021

Policy:

The Manitowoc Public Library Board recognizes that a gift to the library is a gift to the community. Therefore, monetary and material gifts are both welcomed and encouraged.

According to the Wisconsin State Statues. 43.58 (Powers and Duties), the library board shall have exclusive control of the expenditure of all moneys collected, donated or appropriated for the library fund.

Implementation:

Monetary Gifts

Monies gifted to the library in the form of cash, stocks, bonds, etc. may be used for special projects, programs and services as the Board of Trustees may determine to enhance the Library’s ability to provide the best possible services to the community it serves.

Unrestricted bequests and gifts made to the Manitowoc Public Library may be assigned by the Manitowoc Public Library Board of Trustees to the Manitowoc Public Library Foundation and treated as if the bequest was made to the Foundation.

Other Donations

Donations of art objects, portraits, antiques and other museum objects are accepted or rejected on the basis of suitability to the library’s mission, décor and availability of space, as well as the understanding that the Library Board of Trustees has the authority to make whatever disposition is deemed advisable which may include the sale or transfer to another agency.

Requirement of special housing or special handling of any item proposed as a gift may render it unacceptable.

Materials

Materials gifted to the library in all formats are subject to the Manitowoc Public Library Collection Development Policy. Any items not added to the collection will be given to the Friends of Manitowoc Public Library. Friends of MPL will either make those items available for sale at its ongoing or special event sales, or dispose of the items, as they see fit.  The library staff with provide an acknowledgement of the material donation but this will not include a value of the material.

The following items are useful to the Friends of Manitowoc Public Library:

• Hardcover editions of works by popular authors
• New paperbacks (under a year old), particularly romances that are in great condition

The following items are not useful and can incur a recycling cost to the library:

• Encyclopedias
• Textbooks
• National Geographic magazines
• Other magazines

Memorial Donations

Manitowoc Public Library accepts and encourages donations to be made in memory of the deceased or for other significant life events, like the birth of a child or anniversaries.  Memorial donations for books will be acknowledged with a bookplate; In Memory of (Honoree’s Name) by (Donor’s Name (s).

To make a memorial donation please use the form on the library’s website www.manitowoclibrary.org or contact the Business Office 920-686-3041.

Board approved 4/8/10