(1) In its final budget resolution, the governing body may authorize adjustments to appropriations funded by fees throughout the budget period. Adjustable appropriations are:
(a) proprietary fund appropriations; or
(b) other appropriations specifically identified in the local government's final budget resolution as fee-based appropriations.
(2) Adjustments of fee-based appropriations must be:
(a) based upon the cost of providing the services supported by the fee; and
(b) fully funded by the related fees for services, fund reserves, or nonfee revenue such as interest.