Genoa Township trustees approved the initial deposit into the recently created reserve balance account, also known as a rainy-day fund.

Genoa Township trustees approved the initial deposit into the recently created reserve balance account, also known as a rainy-day fund.

At their Feb. 14 meeting, trustees approved a deposit of $250,000 from the general fund carryover balance into the fund. Documents from Delaware County auditor George Kaitsa's office provided by the township show the unencumbered carryover balance for the general fund to be $2.1-million on Jan.1.

The township's fiscal audit committee recommended that the trustees establish the account, which is a sub-account of the general fund.

The account would be used to stabilize any part of the township's budget or for anything deemed an emergency by the trustees.

For instance, if there were a decrease in property values and a subsequent decrease in property tax revenue, the township could use the fund to help make up the difference, said fiscal officer Patrick Myers.

"If we needed $100,000 five years from now, we could go here and get it. Anything that is deemed an emergency by the board of trustees - it doesn't matter whether it's for fire, police, maintenance, ... or capital expense - anything that is deemed an emergency," said Myers.

It would take the actions of the trustees to appropriate the money from the fund into another fund, from which it would be spent, said trustee Karl Gebhardt, board liaison to the fiscal committee.

"Money is not spent from this fund; it would have to be moved to another fund to be spent," Gebhardt said. "It requires us as trustees, as well as the administration, to think hard about spending that money because it is there for an emergency. We would budget 'X' amount of money every year to go into that account."

"To set something aside is a wise thing to do," said trustee Barbara Lewis.

Trustee Rick Carfagna agreed.

The annual deposits will not exceed 5 percent of the annual general fund revenues, which are permitted by law to be used on any township expense, Myers said.

The auditor's document estimates the township will receive $2-million in general fund revenues.

The target balance for the reserve fund will be 20 percent of the total annual expenditures of the township, Myers said, adding that it will never exceed that.

Documents from the township's 2011 appropriation discussions show the overall expenses of the township estimated to be $13-million.

Each year the trustees would review it and decide on a deposit for the coming year.