(1) Capital improvement projects shall be funded only by monies appropriated in the capital improvement budget.

(2) Monies appropriated for a capital improvement project shall not be used for another capital improvement project without the approval of the Municipal Council.

(3) When a specific capital improvement project is complete, any balance remaining in the applicable capital improvement project fund shall be transferred as follows:

(4) A contingency account shall be created within the capital improvement project budget for each capital improvement fund which shall be used only for cost overruns of an authorized capital improvement project. The amount of contingency fund monies which may be used for any one capital improvement project shall not exceed ten percent (10%) of the budgeted cost of such project unless otherwise approved by the Municipal Council.

(5) A capital improvement reserve fund shall be created for accumulation of resources needed for future capital improvement projects. Reserves may accumulate from fiscal period to fiscal period until the accumulated total is sufficient to permit economical expenditure for a particular capital improvement project. Disbursements from such reserves shall be made only by transfer to a revenue or transfer account within the capital improvement project fund, under a budget appropriation in a budget for the fund adopted in the manner provided by the Uniform Fiscal Procedures Act for Utah Cities, Chapter 6, Title 10, Utah Code Annotated. If monies are intended for specific projects, pending final design or other conditions of funding, the fund balance may be identified by a separately designated fund balance account.