(1) A 911 jurisdiction may maintain a balance in the basic 911 fund account and/or the enhanced 911 fund account if not needed for immediate use for installing, operating or improving a 911 emergency telephone system. The total amount held in these accounts may not exceed the following percentage of the jurisdiction's total operating budget unless an exception is granted by the department.

(a) If a jurisdiction's total operating budget is less than $150,000 per year, the 911 fund account balance may not exceed 30% of the total operating budget.

(b) If a jurisdiction's total operating budget is between $150,000 and $300,000 per year, the 911 fund account balance may not exceed 25% of the total operating budget.

(c) If a jurisdiction's total operating budget is between $300,000 and $400,000 per year, the 911 fund account balance may not exceed 20% of the total operating budget.

(d) If a jurisdiction's total operating budget is more than $400,000 per year, the 911 fund account balance may not exceed 15% of the total operating budget.

(e) The department may grant an exception to allow a jurisdiction to accumulate a larger fund balance if the jurisdiction can demonstrate a need to upgrade or improve the 911 system and the cost will exceed the allowable fund balance.