Ark. Code Ann. § 14-73-102: Authority to establish reserve for improvements

(a) Any local government desiring to own, acquire, construct, reconstruct, remodel, equip, extend, operate, maintain, or otherwise provide improvements may establish a reserve for those improvements so that the costs thereof may be accumulated out of revenues from year to year.

(b) The reserve shall be authorized by resolution of the governing body, provided that a reserve for a local government board, agency, or commission shall also be approved by resolution of the governing body creating the board, agency, or commission.