194. A by-law establishing a financial reserve may not provide for a projected amount that, if added to the projected amounts of reserves already established by by-law and still in existence, results in an amount exceeding the higher of
(1) an amount corresponding to 30% of the other appropriations provided for in the budget of the fiscal year in which the by-law is adopted; and
(2) an amount corresponding to 15% of the total undepreciated cost of fixed assets.
Where a working fund is constituted under section 189, the maximum amount provided for in the first paragraph is reduced by the amount of the working fund.
As regards a reserve referred to in the second paragraph of section 192, the amount of such a reserve shall not enter into the calculation of the amount provided for in the first paragraph.
2000, c. 34, s. 194; 2001, c. 68, s. 106.