Earmarked Reserves

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Earmarked Reserves

Money in savings that one intends to use only for a certain, stated purpose. Earmarked reserves are common in both personal savings and in corporate finance. For example, an individual may earmark reserves for his/her honeymoon and a company may do the same to pay off bonds when they mature.
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"Costs relating to the severe winter event totalled PS1.244m within the environmental assets division, of which PS750,000 was supported from an earmarked reserve.
* The Retail Trust's [pounds sterling]50,000 earmarked reserve funding to provide urgently-needed assistance to shopkeepers, shop workers and the families of victims;
Finance officer Simone Donaghy pointed out the "substantial savings" made by the council owning the CCTV equipment and added that an earmarked reserve fund would also be set up, of pounds 50,000 a year, to go towards maintainance and replacement costs.
She added: "Audit Scotland has commented that our level of earmarked reserves is low, I am suggesting that we remedy that."
"Our concern was that the balance of other earmarked reserves was less than that initial budget gap for 2020/21," he said.
The council is forecasting a net revenue deficit of PS0.1m for 2018-19, but only after the use of PS3.5m of earmarked reserves, which is PS1.6m higher than budgeted at the start of the financial year.
But while the authority's finance officer confirmed their proposals would be acceptable, he raised concern over taking out PS1m from earmarked reserves and another PS565,000 out of the authority's general balances.
"These are being managed via a combination of one off actions - use of earmarked reserves, use of one-off grant, Every Penny Counts exercise - and ongoing actions (review of existing budgets and realignments where feasible).
Before the meeting, Cllr Loveday warned the council could not afford to continue raiding earmarked reserves to top up its Dedicated Schools Grant deficit.
Officers say the proposed changes will result in a budget shortfall that will be addressed through earmarked reserves in 2018-19 but point out a longer-term solution will need to be developed.
It's time to set in train mergers that will save significant amounts of money." Newcastle City Council will use PS5.6m from its earmarked reserves this year to pay for highways, adult social care, services for children with disabilities and staffing.