(A) Establishment.
(1) There is hereby authorized, created and established a fund of the Town of Kouts, to be called the Rainy Day Fund, pursuant to I.C. 36-1-8-5 et seq.
(2) The Rainy Day Fund is dedicated and established to provide resources for accumulating funds for cash flow purposes and mitigating interest expense on tax anticipation warrants when tax revenues are not received in a timely manner and other purposes permitted by I.C. 36-1-8-5 as may be amended from time to time and as set forth in this code.
(3) The sources of funding for the Rainy Day Fund may include the following:
(a) Unused and unencumbered funds governed under: I.C. 36-1-8-5; I.C. 6-3.5-1.1-21.1; I.C. 6-3.5-6-17.3; or I.C. 6-3.5-7-17.3.
(b) The distribution of County Economic Development Income Tax.
(4) The Rainy Day Fund is subject to the same appropriation process as other funds of the municipality that receive tax money.
(5) In any fiscal year, the Town Council may transfer not more than 10% of the town’s total annual budget for that fiscal year, adopted under I.C. 6-1.1-17, to the Rainy Day Fund as authorized by I.C. 36-1-8-5.
(6) The Rainy Day Fund is established until such time as the fund is repealed or rescinded by action of the Town Council.
(B) Purposes, uses and permissible expenditures.
(1) Expenditures from the Rainy Day Fund may be used for temporary transfers to other funds of the town for cash flow purposes to meet debt service, payroll and monthly accounts payable when tax revenues are not received in a timely manner to mitigate interest expense on tax anticipation debt. Transfers from the Rainy Day Fund to other funds shall be characterized as interfund loans to be retired within at least one and one half years as prescribed by I.C. 36-1-4.
(2) The affirmative vote of four members of the Town Council may authorize a temporary or permanent transfer of assets of the Rainy Day Fund to another fund of the town for any lawful purpose authorized by state statutes.
(C) Expenditure upon appropriation. Expenditures from the Rainy Day Fund may be made only upon appropriation by the fiscal body for the purpose for which the fund is specifically established, in the manner provided by statute for making other appropriations and shall be disbursed only on approved accounts payable vouchers allowed by the legislative body, all pursuant to I.C. 5-11-10 and I.C. 36-5-4.
(D) Investments authorized. Money in the Rainy Day Fund may be invested provided that the yields from the purchase and sale of any such investments shall be deposited with the fund pursuant to I.C. 5-13-9.
(E) Preservation and disposition of Fund assets. All unused and unencumbered cash on deposit to the credit of the Rainy Day Fund do not revert to the corporation general fund nor to any other fund but shall remain with the Rainy Day Fund until such time as an ordinance is passed and approved by at least four members of the Town Council which authorizes a transfer of any remaining unexpended, unencumbered assets of the fund, all pursuant to I.C. 36-1-8-5.
(Ord. 2007-11, passed 9-17-07)