1. Temporary transfer for an economic development purpose of money held for a different purpose.
Interfund Borrowing:
Pursuant to IC 36-1-8-4, a political subdivision may authorize the transfer of money to a depleted fund from another fund which has sufficient money on deposit. Any amounts transferred must be returned to the orginal fund no later than the end of the budget year in which the transfer occurs.
Borrowing Utility Funds:
A city or town may borrow existing surplus moneys from a utility owned by the city or town (which in most cases would include water and electric utilities, but not municipally owned sewage utilities)pursuant to IC 8-1.5-3-12 the loan must be used for current purposes and is payable from taxes levied and to be collected during the current and following year. The loan may not be in an amount greater than 50% of the anticipated taxes to be collected and must be repaid on or before thirty days after the last date for payment of such anticipated taxes.
Other Borrowings:
Depending on the nature of the project, other ways to obtain funds may be specifically authorized by statue. Pursuant to IC 36-7-14-24 moneys from the general fund of a county, city or town may be transferred without appropriation, or in the event no unappropriated moneys are available in the general fund, may be transferred from another fund or loaned (in the same manner as other transfers and loans are made) to a redevelopment commission to pay certain project costs incurred prior to the collection of special taxes levied. The amount of such transfer or loan may not exceed $50,000 and must be repaid by the redevelopment commission.
2. Appropriation for an economic development purpose of money originally appropriated for a different purpose.
Additional Appropriations: Political subdivisions have the authority under IC 6-1.1-18-5 to authorize an additional appropriation, limited to available revenues in excess of revenues anticipated in the orginal budget. A political subdivision may also appropriate under IC 6-1.1-18-5 which have become available through the reduction of an existing appropariation. (See IC 36-4-7-8; IC 36-5-3-5) Any such additional appropriation requires a properly noticed public hearing. If the additional appropriation is made from a fund that receives distributions from the motor vehicle highway account ( IC 8-14-1-1) or the local road and street account ( IC8-14-2-4) or revenue from property taxes, approval by the Department of Local Government Finance is required.
Freedom of Speech wonders if the following items are a contributing factor in the state of our city:
* Stormwater Board
* Repayment of loans from Sewer Fund
* Misappropriation of funds
What is the solution?
"It isn't that they can't see the solution. It's that they can't see the problem."
~G.K.Chesterton
