Utah Code Ann. § 17B-1-612 – Accumulated fund balances -- Limitations -- Excess balances -- Unanticipated excess of revenues -- Reserves for capital projects.

(1)
1. (a) A local district may accumulate retained earnings or fund balances, as appropriate, in any fund.
2. (b) For the general fund only, an accumulated fund balance may be used only:
  1. (i) to provide working capital to finance expenditures from the beginning of the budget year until general property taxes or other applicable revenues are collected, subject to Subsection (1)(c);
  2. (ii) to provide a resource to meet emergency expenditures under Section 17B-1-623; and
  3. (iii) to cover a pending year-end excess of expenditures over revenues from an unavoidable shortfall in revenues, subject to Subsection (1)(d).
3. (c) Subsection (1)(b)(i) may not be construed to authorize a local district to appropriate a fund balance for budgeting purposes, except as provided in Subsection (4).
4. (d) Subsection (1)(b)(iii) may not be construed to authorize a local district to appropriate a fund balance to avoid an operating deficit during a budget year except:
  1. (i) as provided under Subsection (4); or
  2. (ii) for emergency purposes under Section 17B-1-623.
(2) The accumulation of a fund balance in the general fund may not exceed the greater of:
1. (a) 100% of the current year's property tax; or
2. (b)
  1. (i) 25% of the total general fund revenues for a district with an annual general fund budget greater than $100,000; or
  2. (ii) 50% of the total general fund revenues for a district with an annual general fund budget equal to or less than $100,000.
(3) If the fund balance at the close of any fiscal year exceeds the amount permitted under Subsection (2), the district shall appropriate the excess in the manner provided in Section 17B-1-613.
(4) Any fund balance in excess of 5% of the total revenues of the general fund may be utilized for budget purposes.
(5)
1. (a) Within a capital projects fund the board of trustees may, in any budget year, appropriate from estimated revenue or fund balance to a reserve for capital projects for the purpose of financing future specific capital projects, including new construction, capital repairs, replacement, and maintenance, under a formal long-range capital plan adopted by the board of trustees.
2. (b) A local district may allow a reserve amount under Subsection (5)(a) to accumulate from year to year until the accumulated total is sufficient to permit economical expenditure for the specified purposes.
3. (c) A local district may disburse from a reserve account under Subsection (5)(a) only by a budget appropriation adopted in the manner provided by this part.
4. (d) Expenditures from the above appropriation budget accounts shall conform to all requirements of this part relating to execution and control of budgets.