IC 36-4-7
    Chapter 7. City Budget Procedures and Compensation of Officersand Employees

IC 36-4-7-1
Application of chapter
    Sec. 1. This chapter applies to second and third class cities.
As added by Acts 1980, P.L.212, SEC.3. Amended by Acts 1981,P.L.44, SEC.45.

IC 36-4-7-2
Elected city officers; fixing of annual compensation
    Sec. 2. (a) As used in this section, "compensation" means the totalof all money paid to an elected city officer for performing duties asa city officer, regardless of the source of funds from which themoney is paid.
    (b) The city legislative body shall, by ordinance, fix the annualcompensation of all elected city officers.
    (c) The compensation of an elected city officer may not bechanged in the year for which it is fixed nor may it be reduced belowthe amount fixed for the previous year.
As added by Acts 1980, P.L.212, SEC.3. Amended by Acts 1981,P.L.17, SEC.21; P.L.15-1993, SEC.3; P.L.141-2009, SEC.9.

IC 36-4-7-3
Appointive officers, deputies, and other employees; compensation
    Sec. 3. (a) This section does not apply to compensation paid by acity to members of its police and fire departments.
    (b) Subject to the approval of the city legislative body, the cityexecutive shall fix the compensation of each appointive officer,deputy, and other employee of the city. The legislative body mayreduce but may not increase any compensation fixed by theexecutive. Compensation must be fixed under this section not laterthan September 30 of each year for the ensuing budget year.
    (c) Compensation fixed under this section may be increased ordecreased by the executive during the budget year for which it isfixed.
    (d) Notwithstanding subsection (b), the city clerk may, with theapproval of the legislative body, fix the salaries of deputies andemployees appointed under IC 36-4-11-4.
As added by Acts 1980, P.L.212, SEC.3. Amended by P.L.44-1991,SEC.5; P.L.35-1999, SEC.5; P.L.89-2001, SEC.7; P.L.169-2006,SEC.54.

IC 36-4-7-4
City officers and employees connected with operation ofmunicipally owned utility or function; additional compensation
    Sec. 4. (a) Subject to the approval of the city legislative body, thecity executive may provide that city officers and employees receiveadditional compensation for services that:        (1) are performed for the city;
        (2) are not governmental in nature; and
        (3) are connected with the operation of a municipally ownedutility or function.
    (b) Subject to the approval of the executive and legislative body,the administrative agency operating the utility or function shall fixthe amount of the additional compensation, which shall be paid fromthe revenues of the utility or function.
As added by Acts 1980, P.L.212, SEC.3.

IC 36-4-7-5
Salary schedule
    Sec. 5. Salaries of city officers and employees shall be scheduledas provided in the budget classification prescribed by the state boardof accounts.
As added by Acts 1980, P.L.212, SEC.3.

IC 36-4-7-6
Budget estimates; formulation procedure
    Sec. 6. Before the publication of notice of budget estimatesrequired by IC 6-1.1-17-3, each city shall formulate a budget estimatefor the ensuing budget year in the following manner:
        (1) Each department head shall prepare for his department anestimate of the amount of money required for the ensuingbudget year, stating in detail each category and item ofexpenditure he anticipates.
        (2) The city fiscal officer shall prepare an itemized estimate ofrevenues available for the ensuing budget year, and shallprepare an itemized estimate of expenditures for other purposesabove the money proposed to be used by the departments.
        (3) The city executive shall meet with the department heads andthe fiscal officer to review and revise their various estimates.
        (4) After the executive's review and revision, the fiscal officershall prepare for the executive a report of the estimateddepartment budgets, miscellaneous expenses, and revenuesnecessary or available to finance the estimates.
As added by Acts 1980, P.L.212, SEC.3.

IC 36-4-7-7
Report of estimates; ordinance fixing taxation rate; appropriation
    Sec. 7. (a) The fiscal officer shall present the report of budgetestimates to the city legislative body under IC 6-1.1-17. Afterreviewing the report, the legislative body shall prepare an ordinancefixing the rate of taxation for the ensuing budget year and anordinance making appropriations for the estimated departmentbudgets and other city purposes during the ensuing budget year. Thelegislative body, in the appropriation ordinance, may reduce anyestimated item from the figure submitted in the report of the fiscalofficer, but it may increase an item only if the executive recommendsan increase. The legislative body shall promptly act on the

appropriation ordinance.
    (b) In preparing the ordinances described in subsection (a) thelegislative body shall make an allowance for the cost of fireprotection to annexed territory described in IC 36-4-3-7(d), for theyear fire protection is first offered to that territory.
As added by Acts 1980, P.L.212, SEC.3. Amended by P.L.341-1987,SEC.2; P.L.5-1989, SEC.104.

IC 36-4-7-8
Ordinances; additional appropriations or decrease
    Sec. 8. After the passage of the appropriation ordinance, the citylegislative body may, on the recommendation of the city executive,make further or additional appropriations by ordinance, unless theirresult is to increase the tax levy set under IC 6-1.1-17. The legislativebody may, by ordinance, decrease any appropriation. The executivemay, by executive order, decrease the appropriation made for anyexecutive department.
As added by Acts 1980, P.L.212, SEC.3. Amended by Acts 1980,P.L.73, SEC.10.

IC 36-4-7-9
Appropriation ordinance; items
    Sec. 9. An appropriation ordinance must specify, by items, theamount of each appropriation and the department for which it ismade.
As added by Acts 1980, P.L.212, SEC.3.

IC 36-4-7-10
Preparation of budgets; contents; submission to legislative body
    Sec. 10. The department budgets prepared under section 6 of thischapter must include the compensation of department heads and mustbe submitted to the city legislative body under section 7 of thischapter.
As added by Acts 1980, P.L.212, SEC.3. Amended by Acts 1982,P.L.33, SEC.25.

IC 36-4-7-11
Failure to pass tax rate and appropriation ordinances;continuation
    Sec. 11. If the city legislative body does not pass the ordinancerequired by section 7 of this chapter before November 2 of each year,the most recent annual appropriations and annual tax levy arecontinued for the ensuing budget year.
As added by Acts 1980, P.L.212, SEC.3. Amended by P.L.176-2002,SEC.9; P.L.169-2006, SEC.55; P.L.113-2010, SEC.122.