Indiana Code 36-1-8-5.1. Rainy day funds established by political subdivisions; transfers by schools
(1) an ordinance, in the case of a county, city, or town; or
Terms Used In Indiana Code 36-1-8-5.1
- Appropriation: The provision of funds, through an annual appropriations act or a permanent law, for federal agencies to make payments out of the Treasury for specified purposes. The formal federal spending process consists of two sequential steps: authorization
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
- Year: means a calendar year, unless otherwise expressed. See Indiana Code 1-1-4-5
(b) An ordinance or a resolution adopted under this section must specify the following:
(1) The purposes of the rainy day fund.
(2) The sources of funding for the rainy day fund, which may include the following:
(A) Unused and unencumbered funds under:
(i) section 5 of this chapter; or
(ii) IC 6-3.6-9-15.
(B) Any other funding source:
(i) specified in the ordinance or resolution adopted under this section; and
(ii) not otherwise prohibited by law.
(c) The rainy day fund is subject to the same appropriation process as other funds that receive tax money.
(d) In any fiscal year, a political subdivision may, at any time, do the following:
(1) Transfer any unused and unencumbered funds specified in subsection (b)(2)(A) from any fiscal year to the rainy day fund.
(2) Transfer any other unobligated cash balances from any fiscal year that are not otherwise identified in subsection (b)(2)(A) or section 5 of this chapter to the rainy day fund as long as the transfer satisfies the following requirements:
(A) The amount of the transfer is authorized by and identified in an ordinance or resolution.
(B) The amount of the transfer is not more than:
(i) before January 1, 2021, ten percent (10%);
(ii) after December 31, 2020, and before January 1, 2025, fifteen percent (15%); and
(iii) after December 31, 2024, ten percent (10%);
of the political subdivision’s total annual budget adopted under IC 6-1.1-17 for that fiscal year.
(C) The transfer is not made from a debt service fund.
(e) A political subdivision may use only the funding sources specified in subsection (b)(2)(A) or in the ordinance or resolution establishing the rainy day fund. The political subdivision may adopt a subsequent ordinance or resolution authorizing the use of another funding source.
(f) The department of local government finance may not reduce the actual or maximum permissible levy of a political subdivision as a result of a balance in the rainy day fund of the political subdivision.
(g) A county, city, or town may at any time, by ordinance or resolution, transfer to:
(1) its general fund; or
(2) any other appropriated funds of the county, city, or town;
money that has been deposited in the rainy day fund of the county, city, or town.
(h) A school corporation may at any time, by resolution, transfer to its education fund or operations fund money that has been deposited in its rainy day fund.
As added by P.L.251-2001, SEC.2. Amended by P.L.90-2002, SEC.461; P.L.173-2003, SEC.19; P.L.267-2003, SEC.15; P.L.81-2004, SEC.45; P.L.53-2011, SEC.2; P.L.105-2013, SEC.1; P.L.288-2013, SEC.71; P.L.197-2016, SEC.120; P.L.140-2018, SEC.29; P.L.38-2021, SEC.79.
Indiana Code 36-1-8.5-1. Applicability
As added by P.L.106-2013, SEC.2. Amended by P.L.91-2023, SEC.1.