Ottawa Outdoor Club

Amendment 1b: Remove all budgetary limits on reserve fund

Proposer

John Galbraith

Proposal

Remove both the lower limit of 80% and the upper limit of 160% on the reserve fund as described in Bylaw Article 5, Section 2 - Budget, subsection (b) (link).

Rationale

Bylaw Article 5, Section 2 - Budget, subsection (b) is as follows:

The proposed annual budget shall ensure a reserve fund in the amount of 80% to 160% of the previous average of the previous 3 years' actual income.

The "reserve fund" refers to the Club's cash reserves at the end of the fiscal year, September 30, with known expenses that have not been paid subtracted from this amount and with expected revenues that have not been received added to this amount.  The cash reserves are maintained in the Club's chequing and PayPal accounts,

This section was added to the Bylaws in the late 1990s with the desire to assure that (1) some money would be available should an unexpected expenditure arise, whether due to an emergency or for some other unplanned reason, and (2) money could accumulate only to a limit such that it might be a temptation to a Club member who has withdrawal privileges for the Club's bank account(s) to take the money.  In addition, it ensured that the OOC either spent money on activities or equipment related to the Club or reduced the membership fees.

A concern, however, is that these limits reduce flexibility for the executive and the Club members regarding the budget.

Proposed changes

Proposed additions to the text are italicized and in green.  Proposed removals from the text are crossed out and in red.

Bylaws, Article 5, Section 2 - Budget (b)

Current wording

(b) The proposed annual budget shall ensure a reserve fund in the amount of 80% to 160% of the previous average of the previous 3 years' actual income.

Proposed change

(b) The proposed annual budget shall ensure a reserve fund in the amount of 80% to 160% of the previous average of the previous 3 years' actual income.

Additional information

This amendment supersedes Amendment 1a, "Remove upper limit of 160% on reserve fund".