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) 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: for the purpose of financing future specified capital improvements; and in accordance with a formal long-range capital plan adopted by the governing body. The reserves described in Subsectionmay accumulate from year to year in a capital improvements fund until the accumulated total is sufficient to permit economical expenditure for the specified purposes. (3)(a)