What can unexpended funds in a capital ordinance be cancelled to?

Unexpended funds in a capital ordinance can be canceled to capital surplus. This is because capital surplus serves as a reserve of funds that can be allocated towards future capital projects or expenditures when they become necessary. By canceling unexpended funds to capital surplus, municipalities maintain financial flexibility, allowing them to address future capital needs without requiring new funding sources or increasing indebtedness.

The other options do not align with the regulations governing municipal budgetary practices. For instance, general revenue and operational expenses typically relate to the operational side of municipal finance, which is distinct from capital funding. Future budget appropriations require a formal budget process and cannot simply be allocated from unexpended capital funds. Thus, transferring unexpended funds to capital surplus is the most appropriate and compliant action within the context of municipal finance.