Utah Code § 10-5-113

Accumulation of retained earnings or fund balance -- Limit as to general fund -- Reserve for capital improvements
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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. 
 
 
 
 (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.

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