SCOPE
The purpose of this special revenue fund is to account for transfers of unused and unencumbered funds under IC 36-1-8-5. IC 36-1-8-5 (b) states that whenever the purposes of a tax levy have been fullfilled and an unused and unencumbered balance remains in the fund, the fiscal body of the city or town shall order the balance of the fund to be transferred to the general fund or rainy day fund of the municipality, as provided in IC 36-1-8-5.1, unless a statute provides that it be transferred otherwise. In any fiscal year a city or town may transfer not more then ten percent (10%) of the city or town's annual budget for that fiscal year to the rainy day fund. The fund should be established by ordinance and the ordinance should state the purposes and the sources of funding for the fund (IC 36-1-8-5). Transfers to the rainy day fund must be made after the last day of the year and before March 1 of the subsequent calender year. (IC 36-1-8-5.1)
Supplemental distributions of CAGIT under IC 6-3.5-1.1-21.1, COIT under IC 6-3.5-6-17.3, and EDIT under IC 6-3.5-7-17.3 must also be deposited in the rainy day fund.
RECEIPTS
* 360 Miscellaneous Revenues
* 361 Interest of Investment
* 390 Other Financing Sources
* 391 Interfund Operating Transfers
* 395 Sale of Investments
DISBURSEMENTS
The fiscal body should determine by ordinance the use of the fund which could be for any purpose permitted by state statutes for other revenues of the city or town.
APPROPRIATIONS
The rainy day fund is subject to the same appropriation process as other funds that receive tax money. The Department of Local Government Finance may not reduce the actual or maximum permissible levy of a city or town as a result of a balance on the rainy day fund.
