The Reserve Fund Resolution of 2010 is hereby rescinded, to be replaced by a new resolution adopted today. The amount presently in the Reserve Fund created under the 2010 resolution shall be divided between the Liquid Reserve and the Invested Reserve created under the new resolution, in a proportion to be decided by the Board of Trustees, on the advice of the Budget and Investment Committee.
Section 1: There shall be a fund designated "Liquid Reserve," which shall be kept in one or more liquid accounts.
Section 2: The primary purpose of the Liquid Reserve is to pay for currently necessary repairs, maintenance, and renovations of the real property of the church, beyond those covered in the annual operating budget.
Section 3: The decision whether an expense pursuant to Section 2 is currently necessary shall be made by the Board of Trustees.
Section 4: A decision to use the Liquid Reserve for any other purpose shall require a two-thirds vote of the Congregation at a meeting duly called with notice of the proposed use.
Section 1: There shall be a fund designated "Invested Reserve," which shall be kept in one or more long-term investment accounts. The nature of such accounts shall be determined by the Board of Trustees, on the advice of the Budget and Investment Committee.
Section 2: The Board of Trustees is authorized to add other invested funds of the Church to the Invested Reserve.
Section 3: Any bequest or other unbudgeted gift to the Church, not designated for a specific use, shall be added to the Invested Reserve.
Section 4: The Board of Trustees may authorize a percentage of the value of the Invested Reserve to be periodically distributed from the Invested Reserve, such percentage to be prudently set by the Board of Trustees, on the advice of the Budget and Investment Committee, to be low enough to maintain the purchasing power of the balance of the Invested Reserve. The amount so distributed from the Invested Reserve shall be added to the Liquid Reserve.
Section 5: Any redemption from the Invested Reserve, other than the distribution authorized under Section 4, shall require an 80% vote of the Congregation at a meeting duly called with notice of the proposed redemption.
Whenever feasible, the annual budget shall include an addition to the Reserve Funds. The allocation of such addition between the Liquid Reserve and the Invested Reserve shall be determined by the Board of Trustees, on the advice of the Budget and Investment Committee.
Any amendment of this resolution shall require an 80% vote of the Congregation at a meeting duly called with notice of the proposed amendment.
The Endowment Fund Resolution of 1991 (amended 1998) is hereby rescinded, and the Board of Trustees is authorized to divide the amount formerly in the Endowment Fund between the Invested Reserve and the Liquid Reserve.
The investment vehicle recommended by the Budget and Investment Committee for the Invested Reserve is our existing account in the UUA Common Endowment Fund.
The Committee recommends that the initial amount in the Liquid Reserve be $20,000. It is understood that the liquid accounts in which the Liquid Reserve is kept may include, at the discretion of the Treasurer, short-term certificates of deposit, statement savings, and the Church's regular checking account.
The initial amount of the Invested Reserve would be approximately $128,000. The Committee recommends that the regular distribution from the Invested Reserve be set initially at 1.2% per annum.