Utah Code Ann. § 10-5-113 – Accumulation of retained earnings or fund balance -- Limit as to general fund -- Reserve for capital improvements. | Midpage
§ 10-5-113
Utah Code Ann. § 10-5-113
Accumulation of retained earnings or fund balance -- Limit as to general fund -- Reserve for capital improvements.
(1) Towns may accumulate retained earnings or fund balances, as appropriate, in any fund.
(2) The accumulation of a fund balance in the General Fund may not exceed 75% of the total estimated revenue of the General Fund.
(3) The council may, in any budget year, appropriate from estimated revenue or excess fund balance in the General Fund to a reserve for capital improvements, for the purpose of financing future specified capital improvements, pursuant to a formal long-range capital plan adopted by the governing body. The reserves 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.