(a) General rule.— The board of commissioners may create and maintain a separate operating reserve fund in order to:

1. (1) Minimize future revenue shortfalls and deficits.
2. (2) Provide greater continuity and predictability in the funding of vital government services.
3. (3) Minimize the need to increase taxes to balance the budget in times of fiscal distress.
4. (4) Provide the capacity to undertake long-range financial planning and to develop fiscal resources to meet long-term needs.

(c) Authorized purposes.— The board of commissioners may, at any time by resolution, make appropriations from the operating reserve fund for the following purposes only:

1. (1) Meet emergencies involving the health, safety and welfare of the residents of the township.
2. (2) Counterbalance potential budget deficits resulting from shortfalls in anticipated revenues or program receipts from any source.
3. (3) Counterbalance potential budget deficits resulting from increases in anticipated costs for goods or services.
4. (4) Provide anticipated operating expenditures related either to the planned growth of existing projects or programs or to establish new projects or programs if, for a project or program, appropriations have been made and allocated to a separate restricted account established within the operating reserve fund.