(A) Purpose.
(1) The purpose of this special revenue fund is to account for transfers of unused and unencumbered funds under I.C. 36-1-8-5.
(2) I.C. 36-1-8-5(b) states that whenever the purposes of a tax levy have been fulfilled and an unused and unencumbered balance remains in the fund, the fiscal body of the city shall order the balance of the fund to be transferred to the General Fund or Rainy Day Fund of the municipality, as provided in I.C. 36-1-8-5.1, unless a statue provides that it be transferred otherwise. In any fiscal year, a city may transfer not more than 10% of the city’s annual budget for that fiscal year to the Rainy Day Fund. The Fund should be established by ordinance, and the ordinance should state the purposes and sources of funding for the Fund (I.C. 36-1-8-5). Transfers to the Rainy Day Fund must be made after the last day of the year before March 1 of the subsequent calendar year per I.C. 36-1-8-5.1.
(3) Supplemental distributions of CAGIT, COIT and CREDIT under I.C. 36-1-8-5.1 must also be deposited in the Rainy Day Fund.
(Prior Code, § 3.86.010)
(B) Receipts.
360 | Miscellaneous revenues |
361 | Interest of investments |
390 | Other financing sources |
391 | Interfund operating transfers |
395 | Sales of investments
|
(Prior Code, § 3.86.020)
(C) Disbursements. The fiscal body should determine by ordinance the use of the Fund, which could be for any purpose permitted by state statutes for other revenues of the city.
(Prior Code, § 3.86.030)
(D) Appropriations. The Rainy Day Fund is subject to the same appropriation process as other funds which receive tax money. The Department of Local Government Finance may not reduce the actual or maximum permissible levy of a city as a result of a balance on the Rainy Day Fund.
(Prior Code, § 3.86.040)
(Ord. 2004-05, passed 5-3-2004)