(A) Creation of Rainy Day Fund. There is hereby established a “Rainy Day Fund” to receive transfers of unused and unencumbered monies, and to receive funds from other sources specified within this chapter, to be used for the purposes specified within this chapter.
(B) Purposes of the Rainy Day Fund. The funds on deposit in the Rainy Day Fund may be used for the operation of the town and its various departments, when the town does not have sufficient levies or funds to pay such costs, including, but not limited to, salaries and wages, costs of services, supplies, equipment, capital improvements, repairs, and similar expenditures.
(C) Sources of funding. The sources 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 Adjusted Gross Income Tax (CAGIT), pursuant to state law, or the County Option Income Tax (COIT), pursuant to state law.
(5) Earnings resulting from the investment of town funds pursuant to I.C. 5-13.
(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 restricted by the donor and then specified by the town’s fiscal body to be credited to the Rainy Day Fund.
(D) Transfer to Rainy Day Fund. 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. 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.
(E) Appropriations. The Town Council of the town 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 monies, upon making a finding that the proposed use of the Rainy Day Fund is consistent with the intent of the Rainy Day Fund.
(Ord. 325, passed 12-20-04)