Section 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.

• (3)
  • (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