1. The governing body of a local government may, by resolution, establish a fund for the construction of capital projects.

2. Any interest or income earned on money in the fund in excess of any amount which is reserved for rebate payments to the Federal Government pursuant to 26 U.S.C. § 148, as amended, or is otherwise required to be applied in a specific manner by the Internal Revenue Code of 1986, as amended, must be credited to the fund.

3. The money in the fund must be used only for the construction of capital projects which are included in the plan for capital improvement of the local government prepared pursuant to NRS 350.013. The money in the fund at the end of the fiscal year may not revert to any other fund or be a surplus for any purpose other than the purpose specified in this subsection.

4. The annual budget and audit report of the local government prepared pursuant to NRS 354.624 must specifically identify the fund and:

(a) Indicate in detail the capital projects that have been constructed with money from the fund;

(b) Specify the amount of money, if any, that will be deposited in the fund for the next fiscal year;

(c) Specify any proposed capital projects that will be constructed with money from the fund during the next fiscal year; and

(d) Identify any planned accumulation of the money in the fund.

The audit report must include a statement by the auditor whether the local government has complied with the provisions of this subsection.

(Added to NRS by 1995, 2551)