(A) Creation. There is hereby established a Rainy Day Fund to receive transfers of unused and unencumbered moneys, and to receive funds from other sources specified within this section, to be used for the purposes specified within this section.
(2004 Code, § 2-601)
(B) Purposes. The funds on deposit in the Rainy Day Fund, in the Town Council’s discretion, may be used for all purposes permitted by applicable state statutes including, without limitation, to pay or purchase the following: salaries and wages; costs of services, supplies, equipment; capital improvements; repairs; promotional expenses for the town; awards and gifts; plaques, medals, citations, certificates, and other commemorative items in recognition or appreciation of town employees, elected and appointed officials and volunteers; costs of special events in support of the community; town employees, elected and appointed officials, and volunteers, including, by way of example, but not limited to, holiday and ceremonial gatherings, meals, banquets and receptions.
(2004 Code, § 2-602)
(C) Sources of funding. The source of the funds of the Rainy Day Fund may be any one or more of the following:
(1) A transfer of unused and unencumbered funds of dormant fund balances pursuant to I.C. 36-1-8-5;
(2) A transfer to the Rainy Day Fund from a budgeted appropriation of any fund of the town, except for any fund dedicated to the payment of a capital lease or debt service;
(3) A transfer to the Rainy Day Fund from a duly approved additional appropriation of any fund of the town, except for any fund dedicated to the payment of a capital lease or debt service;
(4) A transfer to the Rainy Day Fund of funds received from the county’s adjusted gross income tax (CAGIT), pursuant to I.C. 6-3.5-1.1-21.1, or the county’s option income tax (COIT);
(5) Earnings resulting from the investment of town funds pursuant to I.C. 5-13; and
(6) Funds gifted to the town and specified by the donor to be credited to the Rainy Day Fund or for the purposes of the Rainy Day Fund, or gifted funds unrestricted by the donor and then specified by the town’s fiscal body to be credited to the Rainy Day Fund.
(2004 Code, § 2-603)
(D) Transfers.
(1) During the period January 1 through February 28 of each year, the Town Council shall determine the amount, if any, of funds to be transferred to the Rainy Day Fund and take action to transfer such funds.
(2) In any fiscal year, the town may transfer to the Rainy Day Fund not more than 10% of the town’s annual budget for that fiscal year, as adopted under I.C. 6-1.1-17.
(2004 Code, § 2-604)
(E) Appropriations. The Town Council may authorize the expenditure of funds from the Rainy Day 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 rainy day funds is consistent with the intent of the Rainy Day Fund.
(2004 Code, § 2-605)
(Ord. 2015-14, passed 12-1-2015)
Editor’s note:
I.C. 6-3.5-1.1-21.1 was repealed by P.L.243-2015, sec. 1