Unless canceled by resolution, what happens to the full balance in a line item appropriation at the end of the budget year?

At the end of the budget year, unless action is taken to cancel it through a resolution, the full balance in a line item appropriation is typically held in reserve. This means that the unspent funds remain allocated for potential future use, specific to that line item or purpose. Holding the balance in reserve allows municipal entities the flexibility to revisit the use of those funds in future budget cycles or address any obligations related to that line item. This practice helps maintain fiscal discipline while also planning for ongoing or upcoming expenses that may need to be covered by those designated funds. The other options provided don't accurately represent the common practices concerning budget appropriations at year-end.