A. The rainy day fund may receive transfers of unused and unencumbered funds under IC 36-1-8-5 in respect to funds raised by general or special tax levies.
1. Whenever the purposes of a general or special tax levy, on all taxable property of the city, have been fulfilled and an unused and unencumbered balance remains in the fund. The common council shall order the balance of that fund to be transferred to the rainy day fund.
2. In any fiscal year, the common council may transfer not more than ten percent of the city’s annual budget for the fiscal year, as adopted under IC 6-1.1-17, to the Rainy Day Fund.
B. Supplemental distributions of county adjusted gross income tax (CAGIT) pursuant to IC 6-3.5-1.1-21.1, supplemental distributions of county option income tax (COIT) pursuant to IC 6-3.5-6-17.3 and supplemental distributions of county economic development income tax (CEDIT) pursuant to IC 6-3.5-7-17.3 shall be deposited by the clerk-treasurer into the rainy day fund.
C. The common council may designate such other sources, as it may from time to time, to determine are appropriate to be deposited or transferred to the rainy day fund.
D. The purpose of the rainy day fund shall be to provided such funding as may be determined reasonable and necessary by the common council for the uses and purposes for which funds from the general fund, CAGIT, COIT and CEDIT may otherwise be expended.
E. The rainy day fund is subject to the same appropriation process as other funds that receive tax money. Before making an appropriation, the common council shall make a finding that the proposed uses of the rainy day fund is consistent with the intent of the fund as required by IC 36-1-8-5.1(b).
F. Interest earned on monies in the rainy day fund shall be retained by the rainy day fund.
(Ord. 08-32, 2008)