(A) Creation. The Clerk-Treasurer of the city shall establish a “Rainy Day Fund” to receive transfers of unused and unencumbered funds raised by a general or special tax levy on taxable property within the city whenever the purpose of such levy has been fulfilled and an unused and unencumbered balance remains. Any supplemental CAGIT or EDIT distributions received by the city shall be deposited into the fund.
(B) Purpose. The funds on deposit in the Rainy Day Fund may be used for the operation of the city and its various departments when the city 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) Transfer. The Common Council shall determine the amount, if any, of unused and unencumbered funds available to be transferred to the Rainy Day Fund, which transfer may not exceed more than 10% of the city’s total budget for that fiscal year.
(D) Restrictions. The following restrictions apply if local road and streets, motor vehicle highway, wheel tax and surtax, or major moves funds are transferred to the Rainy Day Fund:
(1) When transferred, these funds shall remain identifiable and be placed in separate funds as follows:
(a) Rainy Day Restricted - Wheel and Sur Tax;
(b) Rainy Day Restricted - Local Road and Street;
(c) Rainy Day Restricted - Major Moves;
(d) Rainy Day Restricted - MVH.
(2) Local road and street, and wheel and surtax funds may only be used as provided under their originating statutes.
(3) Motor vehicle highway and major moves funds may only be used as a committed match for the Local Road and Bridge Matching Grant program established by I.C. 8-32-30.
(4) Any funds originating from motor vehicle highway or major moves funds which are unused at the end of the grant shall be returned to their originating fund.
(E) Appropriations. The Common 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 monies, upon making a finding that the proposed use of the funds is consistent with the intent of the fund.
(F) Amendment and termination. The Fund shall continue in this form until amended or terminated by ordinance. Unless indicated otherwise by ordinance, the proceeds of the Fund at termination shall be deposited into the General Fund.
(Ord. 04-2523, passed 12-6-04; Am. Ord. 12-2689, passed 4-2-12; Am. Ord. 16-2794, passed 7-6-16)