CHAPTER 6. FISCAL ADMINISTRATION
IC 36-2-6
Chapter 6. Fiscal Administration
IC 36-2-6-1
Application of chapter
Sec. 1. This chapter applies to all counties.
As added by Acts 1980, P.L.212, SEC.1.
IC 36-2-6-2
Claims against county; procedure
Sec. 2. A person who has a claim against a county shall file aninvoice or a bill with the county auditor. The auditor shall present theinvoice or bill to the executive, which shall examine the merits of theclaim. The executive may allow any part of the claim that it finds tobe valid.
As added by Acts 1980, P.L.212, SEC.1. Amended by P.L.39-1996,SEC.9.
IC 36-2-6-3
Inapplicability of section to certain claims; publication of courtallowances; payments in violation; offense
Sec. 3. (a) This section does not apply to claims for salaries fixedin a definite amount by ordinance or statute, per diem of jurors, andsalaries of officers of a court.
(b) The county auditor shall publish all allowances made bycourts of the county. Court allowances shall be published at leastthree (3) days before the issuance of warrants in payment of thoseallowances. Allowances subject to this section shall be published asprescribed by IC 5-3-1 except that only one (1) publication in two (2)newspapers is required.
(c) A county auditor who issues warrants in payment ofallowances made by a court of the county, before compliance withsubsection (b), commits a Class C infraction.
(d) A county auditor shall publish one (1) time in accordance withIC 5-3-1 a notice of all allowances made by a circuit or superiorcourt. The notice must be published within sixty (60) days after theallowances are made and must state their amount, to whom they aremade, and for what purpose they are made.
As added by Acts 1980, P.L.212, SEC.1. Amended by Acts 1980,P.L.127, SEC.2; P.L.52-1987, SEC.2; P.L.64-1995, SEC.12;P.L.141-2009, SEC.7.
IC 36-2-6-4
Allowance and payment of claims; requirements; violation;offense; action to recover illegal allowance
Sec. 4. (a) This section does not apply to a county having aconsolidated city.
(b) Except as provided in section 4.5 of this chapter, the countyexecutive may allow a claim or order the issuance of a countywarrant for payment of a claim only at a regular or special meeting
of the executive. The county auditor may issue a county warrant forpayment of a claim against the county only if the executive or a courtorders him to do so. However, this subsection does not apply to theissuance of warrants related to management of the common orcongressional school fund.
(c) The county executive may allow a claim if the claim:
(1) complies with IC 5-11-10-1.6; and
(2) is placed on the claim docket by the auditor at least five (5)days before the meeting at which the executive is to considerthe claim.
(d) A county auditor or member of a county executive whoviolates this section commits a Class C infraction.
(e) A county auditor who violates this section is liable on hisofficial bond for twice the amount of the illegally drawn warrant,which may be recovered for the benefit of the county by a taxpayerof the county. A person who brings an action under this subsectionshall give security for costs, and the court shall allow him areasonable sum, including attorney's fees, out of the moneyrecovered as compensation for his trouble and expense in bringingthe action. This compensation shall be specified in the court's order.
(f) If, within sixty (60) days after the county executive allows aclaim, a taxpayer of the county demands that the executive refundthat allowance to the county, and the executive refuses to do so, thetaxpayer may bring an action to recover an illegal, unwarranted, orunauthorized allowance for the benefit of the county. A person whobrings an action under this subsection shall give security for costs,and the court shall allow him a reasonable sum, including attorney'sfees, out of the money recovered as compensation for his trouble andexpense in bringing the action. This compensation shall be specifiedin the court's order.
As added by Acts 1980, P.L.212, SEC.1. Amended by P.L.39-1996,SEC.10; P.L.89-2001, SEC.5.
IC 36-2-6-4.5
Claim payments in advance of board allowance
Sec. 4.5. (a) A county executive may adopt an ordinance allowingmoney to be disbursed for lawful county purposes under this section.
(b) Notwithstanding IC 5-11-10, with the prior written approvalof the board having jurisdiction over the allowance of claims, thecounty auditor may make claim payments in advance of boardallowance for the following kinds of expenses if the county executivehas adopted an ordinance under subsection (a):
(1) Property or services purchased or leased from the UnitedStates government, its agencies, or its political subdivisions.
(2) License or permit fees.
(3) Insurance premiums.
(4) Utility payments or utility connection charges.
(5) General grant programs where advance funding is notprohibited and the contracting party posts sufficient security tocover the amount advanced. (6) Grants of state funds authorized by statute.
(7) Maintenance or service agreements.
(8) Leases or rental agreements.
(9) Bond or coupon payments.
(10) Payroll.
(11) State or federal taxes.
(12) Expenses that must be paid because of emergencycircumstances.
(13) Expenses described in an ordinance.
(c) Each payment of expenses under this section must besupported by a fully itemized invoice or bill and certification by thecounty auditor.
(d) The county executive or the county board having jurisdictionover the allowance of the claim shall review and allow the claim atits next regular or special meeting following the preapprovedpayment of the expense.
As added by P.L.89-2001, SEC.6. Amended by P.L.234-2005,SEC.191; P.L.145-2006, SEC.373; P.L.146-2008, SEC.688;P.L.141-2009, SEC.8.
IC 36-2-6-5
Supplies; review of invoice and certification; approval of claim oncontract; allowance
Sec. 5. (a) A county officer or employee authorized to receivesupplies contracted for by the county shall review the invoice or billfor the supplies item by item and certify in writing on the invoice orbill:
(1) the fact that the supplies listed on the invoice or bill havebeen delivered to him in compliance with the contract; or
(2) the facts showing a breach of contract.
If the officer or employee discovers a breach of contract on receiptof the supplies, he shall deduct a just amount from the invoice or bill.The officer or employee shall immediately file his certificate and thebill or invoice with the county auditor.
(b) The county executive may approve a claim on a contract forsupplies only if:
(1) it finds that the claimant has complied with the contract; and
(2) the county auditor certifies in writing that the invoice or billfor the supplies corresponds with the contract as to quality andprices.
The executive may not use a county auditor's certificate as the solebasis for this finding.
(c) The county executive may make an allowance for printedblanks or stationery for a county officer only if they are to be usedfor the benefit of the county.
As added by Acts 1980, P.L.212, SEC.1.
IC 36-2-6-6
Claim for work on contract; certification of supervisor; allowance
Sec. 6. (a) The county executive may allow a contract claim for
work that was to be conducted under the supervision of the countysurveyor, or an architect, engineer, superintendent, or inspectorappointed by the executive, only if that supervisor certifies in writingon the claim that the work listed in the claim has been performedaccording to the contract and that the claim is due and owing underthe contract. The supervisor's certificate must be filed with the claim.
(b) A county executive may not allow a claim on a contractcovered by this section solely on the basis of the supervisor'scertificate.
As added by Acts 1980, P.L.212, SEC.1.
IC 36-2-6-7
Payment of claims; warrants; requirements
Sec. 7. (a) The county auditor may issue a warrant for money tobe paid out of the county treasury in payment of a claim only if theclaim:
(1) complies with IC 5-11-10-1.6; and
(2) is filed with the auditor more than five (5) days before thefirst day of the meeting of the county executive at which it isallowed.
(b) The county auditor may issue a warrant for money to be paidout of the county treasury in payment of a claim:
(1) for supplies; or
(2) on a contract with the county executive for the execution ofa public work;
only if the supplies were purchased or the contract was made incompliance with this article.
As added by Acts 1980, P.L.212, SEC.1. Amended by P.L.39-1996,SEC.11.
IC 36-2-6-8
Prohibited allowances; allowances to certain officers; violation;offense
Sec. 8. (a) The county executive or a court may not make anallowance to a county officer for:
(1) services rendered in a criminal action;
(2) services rendered in a civil action; or
(3) extra services rendered in the county officer's capacity as acounty officer.
(b) The county executive may make an allowance to the clerk ofthe circuit court, county auditor, county treasurer, county sheriff,township assessor (if any), or county assessor, or to any of thoseofficers' employees, only if:
(1) the allowance is specifically required by law; or
(2) the county executive finds, on the record, that the allowanceis necessary in the public interest.
(c) A member of the county executive who recklessly violatessubsection (b) commits a Class C misdemeanor and forfeits themember's office.
As added by Acts 1980, P.L.212, SEC.1. Amended by P.L.222-1997,
SEC.2; P.L.146-2008, SEC.689.
IC 36-2-6-9
Appeal of decision by county executive by aggrieved person;procedure
Sec. 9. A person aggrieved by a decision of the county executivemade under section 2 of this chapter may appeal that decision to thecircuit or superior court of the county or bring an action against thecounty. An appeal must be taken within thirty (30) days of theexecutive's action and must be accompanied by a bond coveringcourt costs and payable to the executive. If the appeal does not resultin an increase of the executive's original allowance, the appellantshall pay the costs of the appeal.
As added by Acts 1980, P.L.212, SEC.1.
IC 36-2-6-10
Judgments obligating county to exceed its appropriation
Sec. 10. A court may obligate the county to exceed itsappropriation for that court only by judgment rendered in a cause inwhich the court has jurisdiction of the parties and subject matter ofthe action. An obligation imposed on a county in violation of thissection is void.
As added by Acts 1980, P.L.212, SEC.1.
IC 36-2-6-11
Charge of claim against appropriation; apportionment
Sec. 11. Whenever the county auditor draws a warrant for a claimunder this chapter he shall charge the claim against the appropriationmade for that purpose. If the claim is for materials, supplies, or laborfor more than one (1) officer or institution, the auditor shallapportion the claim and charge the proper amount against theappropriation for each officer or institution. Similar apportionmentsshall be made in other cases in which a claim should be charged tomore than one (1) appropriation.
As added by Acts 1980, P.L.212, SEC.1.
IC 36-2-6-12
Drawing of warrant on county treasury; notification of depletionof treasury; liability of county treasurer or county officer; voidagreements
Sec. 12. (a) A warrant for the payment of money may be drawn onthe county treasury only if there is money in the county treasury.
(b) The county treasurer shall notify county officers authorized todraw warrants on the county treasury when there is no money in thecounty treasury. A county treasurer is liable on his official bond topersons holding county warrants if those warrants were issued:
(1) when there was no money in the county treasury; and
(2) before the county treasurer gave the notice required by thissubsection.
The treasurer is liable for the amount of those warrants, plus interest. (c) A county officer or member of the county executive who:
(1) recklessly issues a bond, certificate, or warrant for thepayment of money that would require the county to exceed itsappropriation for the bond, certificate, or warrant; or
(2) enters into an agreement of any type that would require thecounty to exceed its appropriation for a particular purpose;
commits a Class B misdemeanor and is liable on his official bond toany person injured by his offense.
(d) An agreement of any type that:
(1) is entered into by the county executive or a county officer,agent, or employee; and
(2) would require the county to exceed its appropriation for aparticular purpose;
is void.
As added by Acts 1980, P.L.212, SEC.1.
IC 36-2-6-13
Recovery of payments in violation of article
Sec. 13. (a) Money paid out of the county treasury in violation ofthis article may be recovered by the county executive in an action inthe name of the state against the officer who paid the money orassisted in the payment, the person who received the money, or both.If the county executive fails to bring the action within thirty (30)days after the illegal payment, a citizen or taxpayer may make awritten demand on the county executive to bring the action and maythen bring the action in the name of the state for the benefit of thecounty if the executive fails to comply with his demand.
(b) If an action brought under this section is successful, the courtshall award the amount of money paid out of the treasury illegally,plus interest at the rate of six percent (6%) per year, to the countyand shall award reasonable attorney's fees and expenses to theplaintiff.
As added by Acts 1980, P.L.212, SEC.1.
IC 36-2-6-14
Money received for taxes; record; certification of gross amountreceived
Sec. 14. The county treasurer shall keep a record of all money hereceives for taxes imposed by the county fiscal body, and, on the firstday of each month, shall certify the gross amount of taxes receivedduring the preceding month to the county auditor. The part of thatamount that belongs to the county may be used by the county to payany item of appropriation for that year.
As added by Acts 1980, P.L.212, SEC.1.
IC 36-2-6-14.5
Special assessment required to be certified to county auditor
Sec. 14.5. Notwithstanding any other provision of law, a specialassessment required to be certified to the county auditor and addedto the tax duplicate by law shall be certified within each county on
or before a uniform date or dates established by the legislative bodyof that county. If the legislative body of a county does not establisha date for the certification required by this section, a specialassessment required to be certified to the county auditor and addedto the tax duplicate by law shall be certified on or before March 1.
As added by P.L.154-1999, SEC.3.
IC 36-2-6-15
Settlement made by county executive with county, township, orschool officer; overpayment
Sec. 15. (a) A settlement made by the county executive with acounty, township, or school officer is binding on the state or countyonly if the officer has accounted for all money he has collected byvirtue of his office and has performed every duty required of him bylaw. If the settlement is not binding, the officer and his sureties areliable as if no settlement had been made.
(b) If the county executive finds that through mistake or any othercause a county, township, or school officer has paid over to thecounty, or reported, settled, or accounted to the county executive formore money than he owed, the executive may:
(1) order that the officer be repaid out of the proper fund and begiven the proper credit by the county auditor; or
(2) if the money has not yet been paid by the officer, release somuch of his debt as it finds to be mistaken.
As added by Acts 1980, P.L.212, SEC.1.
IC 36-2-6-16
Repealed
(Repealed by P.L.252-1993, SEC.6.)
IC 36-2-6-17
Purchase of supplies for county institutions
Sec. 17. (a) This section applies to purchases of supplies used forthe maintenance and subsistence of persons confined to, living in, ortreated at county institutions.
(b) Supplies shall be contracted for and shall be purchased by thebusiness manager or purchasing agent of each county institution.
(c) The executive shall make contracts for:
(1) meats;
(2) groceries;
(3) dry goods;
(4) fuel; and
(5) furniture and equipment;
at stated prices, leaving the quantity to vary with the needs of thecounty.
As added by Acts 1980, P.L.212, SEC.1. Amended by Acts 1980,P.L.125, SEC.21; P.L.252-1993, SEC.4.
IC 36-2-6-18
Loans; bonds; tax anticipation warrants; deficits Sec. 18. (a) The county fiscal body may, by ordinance:
(1) make loans for the purpose of procuring money to be usedin the exercise of county powers and for the payment of countydebts other than current running expenses, and issue bonds orother county obligations to refund those loans;
(2) make temporary loans to meet current running expenses, inanticipation of and not in excess of county revenues for thecurrent fiscal year, which shall be evidenced by tax anticipationwarrants of the county; and
(3) make loans and issue notes under subsection (d).
(b) An ordinance authorizing the issuance of bonds under thissection must state the purpose for which the bonds are issued andmay provide that the bonds:
(1) are or are not negotiable;
(2) bear interest at any rate;
(3) run not longer than twenty (20) years; and
(4) mature by installments payable annually or otherwise.
(c) An ordinance authorizing the issuance of tax anticipationwarrants under this section must:
(1) state the total amount of the issue;
(2) state the denomination of the warrants;
(3) state the time and place payable;
(4) state the rate of interest;
(5) state the funds and revenues in anticipation of which thewarrants are issued and out of which they are payable; and
(6) appropriate and pledge a sufficient amount of thoserevenues to the punctual payment of the warrants.
The warrants are exempt from taxation for all purposes.
(d) The county fiscal body may, by ordinance, make loans ofmoney for not more than five (5) years and issue notes for thepurpose of refunding those loans. The loans may be made only forthe purpose of procuring money to be used in the exercise of thepowers of the county, and the total amount of outstanding loansunder this subsection may not exceed five percent (5%) of thecounty's total tax levy in the current year (excluding amounts leviedto pay debt service and lease rentals). Loans under this subsectionshall be made in the same manner as loans made under subsection(a)(1), except that:
(1) the ordinance authorizing the loans must pledge to theirpayment a sufficient amount of tax revenues over the ensuingfive (5) years to provide for refunding the loans;
(2) the loans must be evidenced by notes of the county in termsdesignating the nature of the consideration, the time and placepayable, and the revenues out of which they will be payable;and
(3) the interest accruing on the notes to the date of maturity maybe added to and included in their face value or be made payableperiodically, as provided in the ordinance.
Notes issued under this subsection are not bonded indebtedness forpurposes of IC 6-1.1-18.5. (e) If a deficit is incurred for the current running expenses of thecounty because the total of county revenues for the fiscal year is lessthan the anticipated total, the county fiscal body shall provide for thedeficit in the next county tax levy.
As added by Acts 1980, P.L.212, SEC.1. Amended by P.L.37-1988,SEC.21.
IC 36-2-6-19
Bonds or tax anticipation warrants; sale; bidding; notice;disclosures
Sec. 19. (a) Whenever bonds authorized under section 18 of thischapter are to be sold, the county auditor shall prepare and place onfile copies of:
(1) the ordinance authorizing the sale;
(2) specifications describing the bonds to be sold;
(3) a list of the outstanding debts of the county;
(4) a statement of the assessed valuation of property in thecounty, according to the most recent assessment for property taxpurposes; and
(5) any other information that may help bidders and otherinterested persons to understand the financial condition of thecounty and to determine the market value of the bonds.
The auditor shall present these items to persons requesting them andto financial institutions that are in the market for the purchase ofcounty bonds.
(b) After filing the items required by subsection (a), the countyauditor must, in the manner prescribed by IC 5-3-1 and IC 5-1-11-2,publish a notice calling for sealed bids on the bonds and stating:
(1) the amount and type of bonds to be sold;
(2) the rate of interest the bonds are to bear;
(3) the time the bonds are to run; and
(4) that specifications and information concerning the bonds areon file in the office of the county auditor and available onrequest.
(c) Whenever tax anticipation warrants issued under section 18 ofthis chapter are to be sold, the county auditor must publish a noticeof sale in accordance with IC 5-3-1. No other publication orstatement is necessary.
(d) The county auditor shall sell bonds or tax anticipationwarrants to the highest responsible bidder, if a satisfactory bid isreceived. However, they may not be sold for less than their par valueplus the interest:
(1) accrued at the date of sale, in the case of bonds; or
(2) accrued at the date of delivery, in the case of taxanticipation warrants.
(e) Notwithstanding subsection (d), if on the date of a sale of taxanticipation warrants no bids at par value plus the interest accrued atthe date of delivery are received, the county auditor may:
(1) sell all or part of the warrants at a private sale or sales; or
(2) issue and deliver all or part of the warrants in payment of
claims against the county that have been approved by thecounty executive;
at not less than par value plus the interest accrued at the date ofdelivery.
(f) Whenever a loan authorized by the county fiscal body is to berefunded by some manner other than the sale of bonds or taxanticipation warrants, the county auditor must give notice, receivebids, and let the loans in the manner prescribed by this section.
As added by Acts 1980, P.L.212, SEC.1. Amended by Acts 1981,P.L.45, SEC.10.
IC 36-2-6-20
Issuance of bonds, notes, or warrants; requirements; disposition ofproceeds and delivery of instruments
Sec. 20. (a) Whenever any county bonds, notes, or warrants are tobe issued, the county auditor must:
(1) supervise the preparation and engraving or printing of thebonds, with the advice of an attorney representing the county;and
(2) deliver the bonds to the county treasurer, who shall becharged with them.
(b) Each county bond, note, or warrant must contain a referenceto the ordinance authorizing it, including the date of adoption of thatordinance.
(c) All bonds, notes, or warrants of the county must be executedby the board of commissioners of the county and attested by thecounty auditor. Money received for the bonds, notes, or warrantsshall be paid to the county treasurer, who shall then deliver thebonds, notes, or warrants to the persons entitled to receive them.
(d) Tax anticipation warrants are payable at the office of thecounty treasurer or at one (1) of the authorized depositories of thecounty, as checks or other warrants of the county are payable, uponpresentation on or after their maturity date. All interest on taxanticipation warrants ceases upon their maturity.
As added by Acts 1980, P.L.212, SEC.1. Amended by P.L.137-1989,SEC.15.
IC 36-2-6-21
Repealed
(Repealed by Acts 1981, P.L.57, SEC.45.)
IC 36-2-6-22
Payments in lieu of taxes
Sec. 22. (a) As used in this section, the following terms have themeanings set forth in IC 6-1.1-1:
(1) Assessed value.
(2) Exemption.
(3) Owner.
(4) Person.
(5) Property taxation. (6) Real property.
(7) Township assessor.
(b) As used in this section, "PILOTS" means payments in lieu oftaxes.
(c) As used in this section, "property owner" means the owner ofreal property described in IC 6-1.1-10-16.7 that is not located in acounty containing a consolidated city.
(d) Subject to the approval of a property owner, the fiscal body ofa county may adopt an ordinance to require the property owner topay PILOTS at times set forth in the ordinance with respect to realproperty that is subject to an exemption under IC 6-1.1-10-16.7. Theordinance remains in full force and effect until repealed or modifiedby the legislative body, subject to the approval of the property owner.
(e) The PILOTS must be calculated so that the PILOTS are in anamount equal to the amount of property taxes that would have beenlevied upon the real property described in subsection (d) if theproperty were not subject to an exemption from property taxation.
(f) PILOTS shall be imposed in the same manner as property taxesand shall be based on the assessed value of the real propertydescribed in subsection (d). Except as provided in subsection (i), thetownship assessor, or the county assessor if there is no townshipassessor for the township, shall assess the real property described insubsection (d) as though the property were not subject to anexemption.
(g) PILOTS collected under this section shall be distributed in thesame manner as if they were property taxes being distributed totaxing units in the county.
(h) PILOTS shall be due as set forth in the ordinance and bearinterest, if unpaid, as in the case of other taxes on property. PILOTSshall be treated in the same manner as taxes for purposes of allprocedural and substantive provisions of law.
(i) If the duties of the township assessor have been transferred tothe county assessor as described in IC 6-1.1-1-24, a reference to thetownship assessor in this section is considered to be a reference tothe county assessor.
As added by P.L.185-2001, SEC.5 and P.L.291-2001, SEC.196.Amended by P.L.1-2002, SEC.155; P.L.219-2007, SEC.107;P.L.146-2008, SEC.690.