CA Pub Res Code Section 5788

On or before July 1 of each year, the board of directors shall adopt a preliminary budget that shall conform to the accounting and budgeting procedures for special districts contained in Subchapter 3 (commencing with Section 1031.1) of, and Article 1 (commencing with Section 1121) of Subchapter 4 of Division 2 of Title 2 of the California Code of Regulations. The board of directors may divide the preliminary budget into categories, including, but not limited to:

(a)

Maintenance and operation.

(b)

Employee compensation.

(c)

Capital outlay.

(d)

Interest and redemption for indebtedness.

(e)

Restricted reserve for capital outlay.

(f)

Restricted reserve for contingencies.

(g)

Unallocated general reserve.