Section 4891.1 Of Article 4. Finances And Taxation From California Health And Safety Code >> Division 5. >> Part 3. >> Chapter 4. >> Article 4.
4891.1
. The annual tax levy may include a reserve for contingencies
not to exceed 10 percent of the total levy. The contingency reserve
shall be available for expenditure during the fiscal year for which
the levy was made for necessary expenses of the district for which no
specific appropriation has been made. The board may provide for the
cancellation of the contingency reserve at the end of each fiscal
year and for the establishment of such reserve as a specific
appropriation or reserve or both or may carry it forward as
encumbered surplus and add to it.