Capay Valley Fire Protection District (the District) shall maintain reserve funds. This policy establishes the level of reserves necessary for maintaining the District's credit worthiness and for adequately providing for:

• Funding infrastructure replacement.
• Economic uncertainties and other financial hardships.
• Loss of significant revenue sources such as property tax receipts or connection fees.
• Local disasters or catastrophic events.
• Future debt or capital obligations.
• Cash flow requirements.
• Unfunded mandates including costly regulatory requirements.

 The intent of Capay Valley FPD is to maintain a general reserve fund equal to 50% of our annual secured revenue and special assessments.