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5

Baseline Funding Model

One of four primary types of funding models that are presented in a reserve study.

The goal of this Funding Method is to keep the Reserve Balance above zero. While each individual Reserve Component may not be Fully Funded, the reserve balance does not drop below zero during the study period

The models are typically presented as part of the financial analysis in a reserve study and answer the question: "How much money will we have?".

Workflow to illustrate how lumpy funding models form part of a sensitivity analysis.
Fig. Workflow to illustrate how a baseline  funding model could be included in the sensitivity analysis.

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