The district’s 2010-11 budget has $9.5 million of a $23.8 million reserve designated for equipment replacement, retiree medical costs and other known future liabilities, leaving $14.3 million in the general reserve. Haverty suggested the board review the district policy that mandates retaining a full year’s operating revenue in reserve. The policy locks up $13.6 million of the $14.3 million undesignated reserve balance for fiscal year 2010-11. “That’s very high,” he said. “Ten to 25 percent of operating expenses is common.”