10-5-113. Accumulation of retained earnings or fund balance -- Limit as to general fund -- Reserve for capital improvements.
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Effective 5/5/2021
10-5-113. Accumulation of retained earnings or fund balance -- Limit as to general fund -- Reserve for capital improvements.
(1)A town may accumulate retained earnings or fund balances, as appropriate, in any fund.
(2)The accumulation of a fund balance in the town general fund may not exceed 100% of the total revenue of the town general fund for the current fiscal period.
(a)The town council may, in a budget year, appropriate from estimated revenue or excess fund balance in the town general fund to a reserve for capital improvements:
(i)for the purpose of financing future specified capital improvements; and
(ii)in accordance with a formal long-range capital plan adopted by the governing body.
(b)The reserves described in Subsection (3)(a) may accumulate from year to year in a capital improvements fund until the accumulated total is sufficient to permit economical expenditure for the specified purposes.
Amended by Chapter 52 , 2021 General Session