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(A) There is established a "Rainy Day Fund."
(B) The purpose of the Rainy Day Fund is to serve as a hedge against shortfalls in revenue, delays in tax distributions and other similar events; and as a source of funding for additional or unexpected costs in excess of the tax monies raised by the town on an annual basis.
(C) (1) The Rainy Day Fund will be funded by the following:
(a) Any unused and unencumbered funds;
(b) As provided in I.C. 36-1-8-5.1, any unused and unencumbered balance of a tax levy, the purpose of which has been fulfilled, unless a statute provides that it be transferred otherwise;
(c) Supplemental distributions of CAGIT, COIT, and CEDIT funds; and
(d) Any other source not prohibited by law.
(2) Monies may be deposited directly into the Rainy Day Fund, if provided by statute. Monies may be transferred to the Rainy day Fund only by passage of a resolution by the Town Council. Transfers are limited to 10% of the town's total annual budget adopted under I.C. 6-1.1-17 in any fiscal year. Transfers to the Fund can be made at any time during the year.
(D) Funds may be used for any lawful purpose subject to the discretion and approval of the Town Council. Appropriations from the Rainy Day Fund will be subject to the same appropriation process as other tax monies.
(E) Monies from the Rainy Day Fund will be disbursed by the Clerk-Treasurer consistent with Indiana statutes and the usual and customary manner of paying claims by the town.
(F) Monies in the Rainy Day Fund will not revert to other funds unless the Fund is terminated. If terminated, any monies in the Fund are to be transferred to the fund from which they came or as provided in a resolution adopted by the Town Council should Indiana statutes allow a different distribution.
(Ord. 2007-15, passed 8-14-2007)