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|Full Funding / Fully Funded
reserve balance in
the reserve account
contributions) is sufficient to
fund an appropriate portion of all the asset renewal projects that are
forecast over the planning
The fully funded reserve includes both the progressive reserve and any backlog that may have accumulated.
A fully funded reserve is equivalent to the progressive reserve but only if there is no catch-up reserve (ie., reserve backlog).
Fig 1. Funding spectrum extending from underfunded (red zone)to full funding (green zone).
Fig. Illustration of full funding relative to a single project
Fig. A cash flow that is fully funded over the entire strategic planning horizon. The reserve fund maintains a positive balance in all fiscal years.
Fig. "I. Care", our cartoon character, is trying to raise funding levels quicker than the owners can sustain.
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