(A) Creation of Rainy Day Fund. There is hereby established a “Rainy Day Fund” to receive transfers of unused and unencumbered funds raised by a general or special tax levy on taxable property within the town whenever the purpose of such tax levy has been fulfilled and an unused and unencumbered balance remains.
(B) Purposes of funds. The funds on deposit in the Fund may be used for the operation of the town and its various departments, when the town does not have sufficient levies or funds to pay such costs, including, but not limited to salaries and wages, costs of services, supplies, equipment, capital improvements, repairs, and similar expenditures.
(C) Transfers to funds. On or before December 31 of each year, the Council shall determine the amount, if any, of any unused and unencumbered funds available to be transferred to the Fund, which transfer may not exceed more than 10% of the town’s total budget for that fiscal year.
(D) Appropriations. The Council or the town may authorize the expenditure of funds from the Fund by appropriations made in the same manner as other funds are appropriated that receive tax moneys, upon making a finding that the proposed use of the funds is consistent with the intent of the Fund.
(2011 Code, § 31.20) (Ord. 2001-10, passed 11-19-2001)
Statutory reference:
Rainy day funds, see I.C. 36-1-8-5.1