The Treasurer is authorized to establish additional internal equipment and maintenance reserves for the various trusts and Auxiliary Enterprises facilities, in order to establish reserves for those facilities not now covered and to supplement the existing reserves to compensate for the erosion of real value caused by inflation.

The aggregate total of such reserves, now existing or hereafter established, shall not exceed 7.5% of the then current insurable replacement value of facilities without Board approval. The Treasurer, in response to the requirements of then current conditions, may reallocate funds between these internal reserves.

Funding sources for these reserves may include, but are not necessarily limited to, such Auxiliary Enterprises activities accounts as unpledged revenues, unpledged interest income, and refunded excess net revenues.