The recycling center to which I was board member for six years had a policy of putting a certain percentage of cash flow into a separate bank account. That money was to be used to replace equipment as it wore out.

My local school board has a similar reserve to allocate to building repair. If a serious repair is needed, the board need only make the decision. It does not have to look for cash.

This practice should be more common.

If it not done, then it is a sign of poor governance.