(A) A Rainy Day Fund is established in and for the Town of Darlington.
(B) The Rainy Day Fund may receive transfers of unused and unencumbered funds under I.C. 36-1-8-5 in respect to funds raised by general or special tax levies.
(C) Whenever the purposes of a general or special tax levy on all taxable property of the town have been fulfilled and an unused and unencumbered balance remains in that fund, the Town Council shall order the balance of that fund to be transferred to the Rainy Day Fund.
(D) In any fiscal year, the Town Council may transfer not more than 10% of the town’s annual budget for the fiscal year, as adopted under I.C. 6-1.1-17, to the Rainy Day Fund.
(E) Supplemental distributions of County Option Income Tax pursuant to I.C. 6-3.5-6-17.3 and supplemental distributions of County Economic Development Income Tax pursuant to I.C. 6-3.5- 7-17.3 shall be deposited by the Clerk-Treasurer into the Rainy Day Fund. Any receipts from those income taxes currently deposited into the General Fund of the town out of necessity shall be transferred to the Rainy Day Fund.
(F) The Town Council may designate such other sources as it may from time to time determine are appropriate to be deposited or transferred to the Rainy Day Fund.
(G) The purpose of the Rainy Day Fund shall be to provide such funding as may be determined reasonable and necessary by the Town Council for the uses and purposes for which funds from the General Fund, the County Option Income Tax, and County Economic Development Income Tax may otherwise be expended.
(H) The Rainy Day Fund is subject to the same appropriation process as other funds that receive tax money. Before making an appropriation, the Town Council shall make a finding that the proposed use of the Rainy Day Fund is consistent with the intent of the fund as required by I.C. 36-1-8-5.1(b).
(I) Interest earned on monies in the Rainy day Fund shall be retained by the Rainy Day fund.
(Ord. 03-05-2009, passed 3-5-2009)