IC 36-1-8
Chapter 8. Miscellaneous Fiscal and Administrative Provisions
IC 36-1-8-1 Application of chapter
Sec. 1. This chapter applies to all political subdivisions. As added by Acts 1980, P.L.211, SEC.1.
IC 36-1-8-2 Cash change fund; establishment; use
Sec. 2. (a) The fiscal body of a political subdivision may permit
any of its officers or employees having a duty to collect cash
revenues to establish a cash change fund. Such a fund must be
established by a warrant drawn on the appropriate fund of the
political subdivision in favor of the officer or employee, in an
amount determined by the fiscal body, without need for
appropriation to be made for it.
(b) The officer or employee who establishes a cash change fund
shall convert the warrant to cash, shall use it to make change when
collecting cash revenues, and shall account for it in the same manner
as is required for other funds of the political subdivision.
(c) The fiscal body shall require the entire cash change fund to be
returned to the appropriate fund whenever there is a change in the
custodian of the fund or if the fund is no longer needed. As added by Acts 1980, P.L.211, SEC.1.
IC 36-1-8-3 Petty cash fund; establishment; use; reimbursement
Sec. 3. (a) The fiscal body of a political subdivision may establish
a petty cash fund for any of its offices in a like manner to that
prescribed by section 2 of this chapter.
(b) The custodian of a petty cash fund shall use it to pay small or
emergency items of operating expense. A receipt shall be taken for
each expenditure made from the fund.
(c) The custodian of a petty cash fund shall periodically file a
voucher, with all original receipts totaling the cash claimed expended
being attached to it, so that the fund can be reimbursed for
expenditures from it. Reimbursement must be approved and made in
the same manner as is required for other expenditures of the political
subdivision. As added by Acts 1980, P.L.211, SEC.1.
IC 36-1-8-4 Transfer of prescribed amount to fund in need of money for cash
flow purposes; extension of time for transfer
Sec. 4. (a) The fiscal body of a political subdivision may, by
ordinance or resolution, permit the transfer of a prescribed amount,
for a prescribed period, to a fund in need of money for cash flow
purposes from another fund of the political subdivision if all these
conditions are met:
(1) It must be necessary to borrow money to enhance the fund
that is in need of money for cash flow purposes.
(2) There must be sufficient money on deposit to the credit of
the other fund that can be temporarily transferred.
(3) Except as provided in subsection (b), the prescribed period
must end during the budget year of the year in which the
transfer occurs.
(4) The amount transferred must be returned to the other fund
at the end of the prescribed period.
(5) Only revenues derived from the levying and collection of
property taxes or special taxes or from operation of the political
subdivision may be included in the amount transferred.
(b) If the fiscal body of a political subdivision determines that an
emergency exists that requires an extension of the prescribed period
of a transfer under this section, the prescribed period may be
extended for not more than six (6) months beyond the budget year of
the year in which the transfer occurs if the fiscal body does the
following:
(1) Passes an ordinance or a resolution that contains the
following:
(A) A statement that the fiscal body has determined that an
emergency exists.
(B) A brief description of the grounds for the emergency.
(C) The date the loan will be repaid that is not more than six
(6) months beyond the budget year in which the transfer
occurs.
(2) Immediately forwards the ordinance or resolution to the
state board of accounts and the department of local government
finance. As added by Acts 1980, P.L.211, SEC.1. Amended by P.L.57-1991,
SEC.3; P.L.10-1997, SEC.24; P.L.90-2002, SEC.460.
IC 36-1-8-5 Funds raised by general or special tax levy; disposition of unused
balance; transfers to local rainy day fund
Sec. 5. (a) This section applies to all funds raised by a general or
special tax levy on all the taxable property of a political subdivision.
(b) Whenever the purposes of a tax levy have been fulfilled and
an unused and unencumbered balance remains in the fund, the fiscal
body of the political subdivision shall order the balance of that fund
to be transferred as follows, unless a statute provides that it be
transferred otherwise:
(1) Funds of a county, to the general fund or rainy day fund of
the county, as provided in section 5.1 of this chapter.
(2) Funds of a municipality, to the general fund or rainy day
fund of the municipality, as provided in section 5.1 of this
chapter.
(3) Funds of a township for redemption of township assistance
obligations, to the township assistance fund of the township or
rainy day fund of the township, as provided in section 5.1 of
this chapter.
(4) Funds of any other political subdivision, to the general fund
or rainy day fund of the political subdivision, as provided in
section 5.1 of this chapter. However, if the political subdivision
is dissolved or does not have a general fund or rainy day fund,
then to the general fund of each of the units located in the
political subdivision in the same proportion that the assessed
valuation of the unit bears to the total assessed valuation of the
political subdivision.
(c) Whenever an unused and unencumbered balance remains in
the civil township fund of a township and a current tax levy for the
fund is not needed, the township fiscal body may order any part of
the balance of that fund transferred to the debt service fund of the
school corporation located in or partly in the township. However, if
more than one (1) school corporation is located in or partly in the
township, then any sum transferred shall be transferred to the debt
service fund of each of those school corporations in the same
proportion that the part of the assessed valuation of the school
corporation in the township bears to the total assessed valuation of
the township.
(d) If there is:
(1) an unexpended balance in the debt service fund of any
school township; and
(2) no outstanding bonded or other indebtedness of the school
township to the payment of which the unexpended balance or
any part of the unexpended balance can be legally applied;
the township trustee of the township, with the approval of the
township board, may transfer the unexpended balance in the debt
service fund to the school general fund of the school township.
(e) Whenever any township has collected any fund for the special
or specific purpose of erecting or constructing a school building and
the township trustee of the township decides to abandon the proposed
work of erecting or constructing the school building, the township
trustee of the township shall transfer the fund collected for the
special or specific purpose to the township fund of the township,
upon the order of the township board to make the transfer. It is
lawful thereafter to use the funds for any purpose for which the
township funds of the township may be used.
(f) Transfers to a political subdivision's rainy day fund may be
made at any time during the political subdivision's fiscal year. As added by Acts 1980, P.L.211, SEC.1. Amended by P.L.251-2001,
SEC.1; P.L.173-2003, SEC.18; P.L.73-2005, SEC.171;
P.L.169-2006, SEC.46; P.L.2-2006, SEC.185; P.L.1-2007, SEC.238.
IC 36-1-8-5.1 Rainy day funds established by political subdivisions
Sec. 5.1. (a) A political subdivision may establish a rainy day fund
by the adoption of:
(1) an ordinance, in the case of a county, city, or town; or
(2) a resolution, in the case of any other political subdivision.
(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;
(ii) IC 6-3.5-1.1-21.1;
(iii) IC 6-3.5-6-17.3; or
(iv) IC 6-3.5-7-17.3.
(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 transfer under
section 5 of this chapter not more than ten percent (10%) of the
political subdivision's total annual budget for that fiscal year,
adopted under IC 6-1.1-17, to the rainy day 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. 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.
IC 36-1-8-6 Reversion of unused appropriation; funds received from state or
the United States
Sec. 6. (a) The unused and unencumbered balance of an
appropriation made by a unit for any purpose reverts, at the end of
the unit's fiscal year, to the fund from which the appropriation was
made, unless a statute provides otherwise.
(b) Any amount necessary to pay a bill, judgment, or valid claim
concerning any balance that reverts under subsection (a) shall be
taken from the fund to which it reverted to pay the bill, judgment, or
valid claim.
(c) Notwithstanding subsection (a), if an appropriation is made by
a unit to establish or maintain a program of self-insurance by the
unit, the balance described in subsection (a) reverts to the fund only
if the fiscal body of the unit specifically adopts subsection (a) when
it makes the appropriation.
(d) Subsection (a) does not apply to dedicated or appropriated
funds received from the state or the United States, to funds of
municipal utilities, or to balances of appropriations made from the
general fund of a city for transfer to the aviation fund of the city. As added by Acts 1980, P.L.211, SEC.1.
IC 36-1-8-7 Bank deposit or cash on hand constituting pledge or guaranty
Sec. 7. A bank deposit or cash on hand, together with any accrued
interest, constituting a pledge or guaranty on behalf of a political
subdivision shall be deposited as a part of the funds of the political
subdivision and be credited to the proper funds by the officers having
custody of those funds after one (1) year has elapsed after the period
for which the pledge or guaranty has been posted to a special
account. As added by Acts 1980, P.L.211, SEC.1.
IC 36-1-8-8 Protection of employees reporting violations of federal, state, or
local laws; disciplinary actions; procedures
Sec. 8. (a) An employee of a political subdivision may report in
writing the existence of:
(1) a violation of a federal law or regulation;
(2) a violation of a state law or rule;
(3) a violation of an ordinance of a political subdivision; or
(4) the misuse of public resources;
first to a supervisor or appointing authority, unless the supervisor or
appointing authority is the person whom the employee believes is
committing the violation or misuse of public resources. In that case,
the employee may report the violation or misuse of public resources
in writing to either the supervisor or appointing authority or any
official or agency entitled to receive a report from the state ethics
commission under IC 4-2-6-4(b)(2)(G) or IC 4-2-6-4(b)(2)(H). If a
good faith effort is not made to correct the problem within a
reasonable time, the employee may submit a written report of the
incident to any person, agency, or organization.
(b) For having made a report under subsection (a), an employee
may not:
(1) be dismissed from employment;
(2) have salary increases or employment related benefits
withheld;
(3) be transferred or reassigned;
(4) be denied a promotion that the employee otherwise would
have received; or
(5) be demoted.
(c) Notwithstanding subsections (a) and (b), an employee must
make a reasonable attempt to ascertain the correctness of any
information to be furnished and may be subject to disciplinary
actions for knowingly furnishing false information, including
suspension or dismissal, as determined by the employee's appointing
authority or the appointing authority's designee. However, any
employee disciplined under this subsection is entitled to process an
appeal of the disciplinary action under the procedure set forth in any
personnel policy or collective bargaining agreement adopted by the
political subdivision.
(d) An employer who violates this section commits a Class A
infraction. As added by P.L.32-1987, SEC.4. Amended by P.L.9-1990, SEC.16.
IC 36-1-8-9 Riverboat fund establishment; administration and investment of
funds
Sec. 9. (a) Each unit that receives:
(1) tax revenue under IC 4-33-12-6 or IC 4-33-13;
(2) revenue under an agreement to share the tax revenue
received under IC 4-33-12 or IC 4-33-13 by another unit; or
(3) revenue under a development agreement (as defined in
section 9.5 of this chapter);
may establish a riverboat fund. Money in the fund may be used for
any legal or corporate purpose of the unit.
(b) The riverboat fund established under subsection (a) shall be
administered by the unit's treasurer, and the expenses of
administering the fund shall be paid from money in the fund. Money
in the fund not currently needed to meet the obligations of the fund
may be invested in the same manner as other public funds may be
invested. Interest that accrues from these investments shall be
deposited in the fund. Money in the fund at the end of a particular
fiscal year does not revert to the unit's general fund. As added by P.L.90-1997, SEC.7. Amended by P.L.199-2005,
SEC.28.
IC 36-1-8-9.2 Separate fund for deposit of county slot machine wagering fee
revenue
Sec. 9.2. (a) Each unit that receives:
(1) tax revenue under IC 4-35-8.5; or
(2) revenue under an agreement to share the tax revenue
received under IC 4-35-8.5 by another unit;
shall establish a fund, separate from the unit's general fund, into
which the revenue shall be deposited. Money in the fund may be
used for any legal or corporate purpose of the unit.
(b) The fund established by subsection (a) shall be administered
by the unit's treasurer, and the expenses of administering the fund
shall be paid from money in the fund. Money in the fund not
currently needed to meet the obligations of the fund may be invested
in the same manner as other public funds may be invested. Interest
that accrues from these investments shall be deposited in the fund.
Money in the fund at the end of a particular fiscal year does not
revert to the unit's general fund. As added by P.L.142-2009, SEC.31.
IC 36-1-8-9.5 "Development agreement"
Sec. 9.5. (a) As used in this section, "development agreement"
means an agreement between a licensed owner (as defined in
IC 4-33-2-13) and a unit setting forth the licensed owner's financial
commitments to support economic development in the unit.
(b) Funds received by a unit under a development agreement are
public funds (as defined in IC 5-13-4-20).
(c) Funds received under a development agreement:
(1) may not be used to reduce the unit's maximum levy under
IC 6-1.1-18.5 but may be used at the discretion of the unit to
reduce the property tax levy of the unit for a particular year;
(2) may be used for any legal or corporate purpose of the unit,
including the pledge of money to bonds, leases, or other
obligations under IC 5-1-14-4; and
(3) are considered miscellaneous revenue. As added by P.L.199-2005, SEC.29.
IC 36-1-8-10 "Board" defined; political affiliation of board appointees
Sec. 10. (a) As used in this section, "board" means an
administration, an agency, an authority, a board, a bureau, a
commission, a committee, a council, a department, a division, an
institution, an office, a service, or another similarly designated body
of a political subdivision.
(b) Whenever a law or political subdivision's resolution requires
that an appointment to a board be conditioned upon the political
affiliation of the appointee, or that the membership of a board not
exceed a stated number of members from the same political party, at
the time of an appointment, one (1) of the following must apply to
the appointee:
(1) The most recent primary election in which the appointee
voted was a primary election held by the party with which the
appointee claims affiliation.
(2) If the appointee has never voted in a primary election, the
appointee claims a party affiliation.
(3) The appointee is certified as a member of that party by the
party's county chairman for the county in which the appointee
resides.
(c) Notwithstanding any other law, if the term of an appointed
member of a board expires and the appointing authority does not
make an appointment to fill the vacancy, the member may continue
to serve on the board for only sixty (60) days after the expiration date
of the member's term. As added by P.L.185-1988, SEC.1. Amended by P.L.68-1996, SEC.4;
P.L.167-2001, SEC.10; P.L.199-2001, SEC.28; P.L.126-2002,
SEC.91.
IC 36-1-8-10.5 Employee of political subdivision as candidate for or appointed to
office
Sec. 10.5. (a) This section does not apply to the following:
(1) An elected or appointed officer.
(2) An individual described in IC 20-26-4-11.
(b) An employee of a political subdivision may:
(1) be a candidate for any elected office and serve in that office
if elected; or
(2) be appointed to any office and serve in that office if
appointed;
without having to resign as an employee of the political subdivision. As added by P.L.26-2000, SEC.45. Amended by P.L.1-2005,
SEC.231.
IC 36-1-8-11 Methods of payments to subdivisions or utilities
Sec. 11. (a) This section does not apply to a county treasurer
governed by IC 36-2-10-23.
(b) As used in this section, "credit card" means a:
(1) credit card;
(2) debit card;
(3) charge card; or
(4) stored value card.
(c) A payment to a political subdivision or a municipally owned
utility for any purpose may be made by any of the following financial
instruments that the fiscal body of the political subdivision or the
board of the municipally owned utility authorizes for use:
(1) Cash.
(2) Check.
(3) Bank draft.
(4) Money order.
(5) Bank card or credit card.
(6) Electronic funds transfer.
(7) Any other financial instrument authorized by the fiscal
body.
(d) If there is a charge to the political subdivision or municipally
owned utility for the use of a financial instrument, the political
subdivision or municipally owned utility may collect a sum equal to
the amount of the charge from the person who uses the financial
instrument.
(e) If authorized by the fiscal body of the political subdivision or
the board of the municipally owned utility, the political subdivision
or municipally owned utility may accept payments under this section
with a bank card or credit card under the procedures set forth in this
section. However, the procedure authorized for a particular type of
payment must be uniformly applied to all payments of the same type.
(f) The political subdivision or municipally owned utility may
contract with a bank card or credit card vendor for acceptance of
bank cards or credit cards.
(g) The political subdivision or municipally owned utility may pay
any applicable bank card or credit card service charge associated
with the use of a bank card or credit card under this subsection.
(h) The authorization of the fiscal body of the political
subdivision is not required by the bureau of motor vehicles or the
bureau of motor vehicles commission to use electronic funds transfer
or other financial instruments to transfer funds to the political
subdivision. As added by P.L.40-1996, SEC.5. Amended by P.L.18-1996, SEC.32;
P.L.2-1997, SEC.78; P.L.173-2003, SEC.20.
IC 36-1-8-12 Special fund for state grant money and local matching money;
reversion of unused money
Sec. 12. (a) If a political subdivision other than a school
corporation receives state grant money requiring local matching
money, the political subdivision shall create a special fund and
deposit the grant money and matching money into the special fund.
The money in the fund may be used only for the purposes of the
grant.
(b) If a political subdivision completes the project for which the
state grant money was provided and money remains in the fund:
(1) the political subdivision shall transfer the state's share of the
remaining money to the treasurer of state for deposit in the fund
from which the grant was made; and
(2) the political subdivision's pro rata share of the remaining
money reverts to the political subdivision's general fund. As added by P.L.10-1997, SEC.25. Amended by P.L.68-2001, SEC.9.
IC 36-1-8-13 Referral of dishonored checks to prosecuting attorney
Sec. 13. A unit that is unable to obtain payment of a dishonored
check shall, not later than ninety (90) days after the check is initially
received by the unit, refer the matter to the prosecuting attorney for
the county where the dishonored check was received for prosecution. As added by P.L.98-2000, SEC.17.
IC 36-1-8-14 Three-fourths vote rounded to nearest whole number
Sec. 14. Whenever this title requires an action to be taken by a
three-fourths (3/4) vote, the number of votes necessary to satisfy the
requirement is rounded to the nearest whole number. As added by P.L.125-2001, SEC.1.
IC 36-1-8-14.2 Payments in lieu of taxes; exemptions
Sec. 14.2. (a) As used in this section, the following terms have the
meanings 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 of
taxes.
(c) As used in this section, "property owner" means the owner of
real property described in IC 6-1.1-10-16.7.
(d) Subject to the approval of a property owner, the governing
body of a political subdivision may adopt an ordinance to require the
property owner to pay PILOTS at times set forth in the ordinance
with respect to real property that is subject to an exemption under
IC 6-1.1-10-16.7, if the improvements that qualify the real property
for an exemption were begun or acquired after December 31, 2001.
The ordinance remains in full force and effect until repealed or
modified by the governing body, subject to the approval of the
property owner.
(e) The PILOTS must be calculated so that the PILOTS are in an
amount equal to the amount of property taxes that would have been
levied by the governing body for the political subdivision upon the
real property described in subsection (d) if the property were not
subject to an exemption from property taxation.
(f) PILOTS shall be imposed as are property taxes and shall be
based on the assessed value of the real property described in
subsection (d). Except as provided in subsection (j), the township
assessor, or the county assessor if there is no township assessor for
the township, shall assess the real property described in subsection
(d) as though the property were not subject to an exemption.
(g) PILOTS collected under this section shall be deposited in the
unit's affordable housing fund established under IC 5-20-5-15.5 and
used for any purpose for which the affordable housing fund may be
used.
(h) PILOTS shall be due as set forth in the ordinance and bear
interest, if unpaid, as in the case of other taxes on property. PILOTS
shall be treated in the same manner as taxes for purposes of all
procedural and substantive provisions of law.
(i) This section does not apply to a county that contains a
consolidated city or to a political subdivision of the county.
(j) If the duties of the township assessor have been transferred to
the county assessor as described in IC 6-1.1-1-24, a reference to the
township assessor in this section is considered to be a reference to
the county assessor. As added by P.L.186-2001, SEC.8. Amended by P.L.181-2006,
SEC.61; P.L.219-2007, SEC.105; P.L.146-2008, SEC.686.
IC 36-1-8-15 Shortened term of county office under constitution; benefits
Sec. 15. (a) This section is enacted to implement Article 6,
Section 2(b) of the Constitution of the State of Indiana.
(b) This section applies to an individual:
(1) who was elected at least two (2) times to a county office;
and
(2) who would have served at least eight (8) years in the elected
county office had the individual's term of office not been
shortened under a statute enacted under Article 6, Section 2(b)
of the Constitution of the State of Indiana.
(c) As used in this section, "benefit of office" refers to a benefit
to which an individual who holds an elected county office is entitled
because of a statute, an ordinance, or a contract.
(d) As used in this section, "county office" refers to any of the
county offices referred to in Article 6, Section 2 of the Constitution
of the State of Indiana.
(e) An individual described in subsection (b) who is otherwise
entitled to a benefit of office may not be deprived of the benefit of
office based on a requirement in any other statute or any ordinance
or contract that to be eligible for the benefit of office an individual
must hold elected county office for at least eight (8) years. As added by P.L.88-2005, SEC.14.
IC 36-1-8-16 Property taxes collected for property disposed by county executive
Sec. 16. (a) If a county executive disposes of real property, the
property taxes collected for each item of the real property in the first
year the item of real property is subject to taxation after the year the
real property is sold or otherwise conveyed shall be disbursed to the
county executive that sold or otherwise conveyed the item of real
property.
(b) Disbursements to the county executive under subsection (a)
shall be deposited into the county general fund, the redevelopment
fund, the unsafe building fund, or the housing trust fund and shall be
used only for one (1) or more of the purposes authorized under
IC 36-7-14-22.5 or IC 36-7-15.1-15.5.
(c) The county executive shall forward a copy of each resolution
that disposes or otherwise conveys real property to the county
auditor.
(d) The disbursement of property taxes under subsection (a) shall
terminate in the second year the item of real property is subject to
taxation after the property is sold or otherwise conveyed. As added by P.L.169-2006, SEC.47.
IC 36-1-8
Chapter 8. Miscellaneous Fiscal and Administrative Provisions
IC 36-1-8-1 Application of chapter
Sec. 1. This chapter applies to all political subdivisions. As added by Acts 1980, P.L.211, SEC.1.
IC 36-1-8-2 Cash change fund; establishment; use
Sec. 2. (a) The fiscal body of a political subdivision may permit
any of its officers or employees having a duty to collect cash
revenues to establish a cash change fund. Such a fund must be
established by a warrant drawn on the appropriate fund of the
political subdivision in favor of the officer or employee, in an
amount determined by the fiscal body, without need for
appropriation to be made for it.
(b) The officer or employee who establishes a cash change fund
shall convert the warrant to cash, shall use it to make change when
collecting cash revenues, and shall account for it in the same manner
as is required for other funds of the political subdivision.
(c) The fiscal body shall require the entire cash change fund to be
returned to the appropriate fund whenever there is a change in the
custodian of the fund or if the fund is no longer needed. As added by Acts 1980, P.L.211, SEC.1.
IC 36-1-8-3 Petty cash fund; establishment; use; reimbursement
Sec. 3. (a) The fiscal body of a political subdivision may establish
a petty cash fund for any of its offices in a like manner to that
prescribed by section 2 of this chapter.
(b) The custodian of a petty cash fund shall use it to pay small or
emergency items of operating expense. A receipt shall be taken for
each expenditure made from the fund.
(c) The custodian of a petty cash fund shall periodically file a
voucher, with all original receipts totaling the cash claimed expended
being attached to it, so that the fund can be reimbursed for
expenditures from it. Reimbursement must be approved and made in
the same manner as is required for other expenditures of the political
subdivision. As added by Acts 1980, P.L.211, SEC.1.
IC 36-1-8-4 Transfer of prescribed amount to fund in need of money for cash
flow purposes; extension of time for transfer
Sec. 4. (a) The fiscal body of a political subdivision may, by
ordinance or resolution, permit the transfer of a prescribed amount,
for a prescribed period, to a fund in need of money for cash flow
purposes from another fund of the political subdivision if all these
conditions are met:
(1) It must be necessary to borrow money to enhance the fund
that is in need of money for cash flow purposes.
(2) There must be sufficient money on deposit to the credit of
the other fund that can be temporarily transferred.
(3) Except as provided in subsection (b), the prescribed period
must end during the budget year of the year in which the
transfer occurs.
(4) The amount transferred must be returned to the other fund
at the end of the prescribed period.
(5) Only revenues derived from the levying and collection of
property taxes or special taxes or from operation of the political
subdivision may be included in the amount transferred.
(b) If the fiscal body of a political subdivision determines that an
emergency exists that requires an extension of the prescribed period
of a transfer under this section, the prescribed period may be
extended for not more than six (6) months beyond the budget year of
the year in which the transfer occurs if the fiscal body does the
following:
(1) Passes an ordinance or a resolution that contains the
following:
(A) A statement that the fiscal body has determined that an
emergency exists.
(B) A brief description of the grounds for the emergency.
(C) The date the loan will be repaid that is not more than six
(6) months beyond the budget year in which the transfer
occurs.
(2) Immediately forwards the ordinance or resolution to the
state board of accounts and the department of local government
finance. As added by Acts 1980, P.L.211, SEC.1. Amended by P.L.57-1991,
SEC.3; P.L.10-1997, SEC.24; P.L.90-2002, SEC.460.
IC 36-1-8-5 Funds raised by general or special tax levy; disposition of unused
balance; transfers to local rainy day fund
Sec. 5. (a) This section applies to all funds raised by a general or
special tax levy on all the taxable property of a political subdivision.
(b) Whenever the purposes of a tax levy have been fulfilled and
an unused and unencumbered balance remains in the fund, the fiscal
body of the political subdivision shall order the balance of that fund
to be transferred as follows, unless a statute provides that it be
transferred otherwise:
(1) Funds of a county, to the general fund or rainy day fund of
the county, as provided in section 5.1 of this chapter.
(2) Funds of a municipality, to the general fund or rainy day
fund of the municipality, as provided in section 5.1 of this
chapter.
(3) Funds of a township for redemption of township assistance
obligations, to the township assistance fund of the township or
rainy day fund of the township, as provided in section 5.1 of
this chapter.
(4) Funds of any other political subdivision, to the general fund
or rainy day fund of the political subdivision, as provided in
section 5.1 of this chapter. However, if the political subdivision
is dissolved or does not have a general fund or rainy day fund,
then to the general fund of each of the units located in the
political subdivision in the same proportion that the assessed
valuation of the unit bears to the total assessed valuation of the
political subdivision.
(c) Whenever an unused and unencumbered balance remains in
the civil township fund of a township and a current tax levy for the
fund is not needed, the township fiscal body may order any part of
the balance of that fund transferred to the debt service fund of the
school corporation located in or partly in the township. However, if
more than one (1) school corporation is located in or partly in the
township, then any sum transferred shall be transferred to the debt
service fund of each of those school corporations in the same
proportion that the part of the assessed valuation of the school
corporation in the township bears to the total assessed valuation of
the township.
(d) If there is:
(1) an unexpended balance in the debt service fund of any
school township; and
(2) no outstanding bonded or other indebtedness of the school
township to the payment of which the unexpended balance or
any part of the unexpended balance can be legally applied;
the township trustee of the township, with the approval of the
township board, may transfer the unexpended balance in the debt
service fund to the school general fund of the school township.
(e) Whenever any township has collected any fund for the special
or specific purpose of erecting or constructing a school building and
the township trustee of the township decides to abandon the proposed
work of erecting or constructing the school building, the township
trustee of the township shall transfer the fund collected for the
special or specific purpose to the township fund of the township,
upon the order of the township board to make the transfer. It is
lawful thereafter to use the funds for any purpose for which the
township funds of the township may be used.
(f) Transfers to a political subdivision's rainy day fund may be
made at any time during the political subdivision's fiscal year. As added by Acts 1980, P.L.211, SEC.1. Amended by P.L.251-2001,
SEC.1; P.L.173-2003, SEC.18; P.L.73-2005, SEC.171;
P.L.169-2006, SEC.46; P.L.2-2006, SEC.185; P.L.1-2007, SEC.238.
IC 36-1-8-5.1 Rainy day funds established by political subdivisions
Sec. 5.1. (a) A political subdivision may establish a rainy day fund
by the adoption of:
(1) an ordinance, in the case of a county, city, or town; or
(2) a resolution, in the case of any other political subdivision.
(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;
(ii) IC 6-3.5-1.1-21.1;
(iii) IC 6-3.5-6-17.3; or
(iv) IC 6-3.5-7-17.3.
(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 transfer under
section 5 of this chapter not more than ten percent (10%) of the
political subdivision's total annual budget for that fiscal year,
adopted under IC 6-1.1-17, to the rainy day 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. 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.
IC 36-1-8-6 Reversion of unused appropriation; funds received from state or
the United States
Sec. 6. (a) The unused and unencumbered balance of an
appropriation made by a unit for any purpose reverts, at the end of
the unit's fiscal year, to the fund from which the appropriation was
made, unless a statute provides otherwise.
(b) Any amount necessary to pay a bill, judgment, or valid claim
concerning any balance that reverts under subsection (a) shall be
taken from the fund to which it reverted to pay the bill, judgment, or
valid claim.
(c) Notwithstanding subsection (a), if an appropriation is made by
a unit to establish or maintain a program of self-insurance by the
unit, the balance described in subsection (a) reverts to the fund only
if the fiscal body of the unit specifically adopts subsection (a) when
it makes the appropriation.
(d) Subsection (a) does not apply to dedicated or appropriated
funds received from the state or the United States, to funds of
municipal utilities, or to balances of appropriations made from the
general fund of a city for transfer to the aviation fund of the city. As added by Acts 1980, P.L.211, SEC.1.
IC 36-1-8-7 Bank deposit or cash on hand constituting pledge or guaranty
Sec. 7. A bank deposit or cash on hand, together with any accrued
interest, constituting a pledge or guaranty on behalf of a political
subdivision shall be deposited as a part of the funds of the political
subdivision and be credited to the proper funds by the officers having
custody of those funds after one (1) year has elapsed after the period
for which the pledge or guaranty has been posted to a special
account. As added by Acts 1980, P.L.211, SEC.1.
IC 36-1-8-8 Protection of employees reporting violations of federal, state, or
local laws; disciplinary actions; procedures
Sec. 8. (a) An employee of a political subdivision may report in
writing the existence of:
(1) a violation of a federal law or regulation;
(2) a violation of a state law or rule;
(3) a violation of an ordinance of a political subdivision; or
(4) the misuse of public resources;
first to a supervisor or appointing authority, unless the supervisor or
appointing authority is the person whom the employee believes is
committing the violation or misuse of public resources. In that case,
the employee may report the violation or misuse of public resources
in writing to either the supervisor or appointing authority or any
official or agency entitled to receive a report from the state ethics
commission under IC 4-2-6-4(b)(2)(G) or IC 4-2-6-4(b)(2)(H). If a
good faith effort is not made to correct the problem within a
reasonable time, the employee may submit a written report of the
incident to any person, agency, or organization.
(b) For having made a report under subsection (a), an employee
may not:
(1) be dismissed from employment;
(2) have salary increases or employment related benefits
withheld;
(3) be transferred or reassigned;
(4) be denied a promotion that the employee otherwise would
have received; or
(5) be demoted.
(c) Notwithstanding subsections (a) and (b), an employee must
make a reasonable attempt to ascertain the correctness of any
information to be furnished and may be subject to disciplinary
actions for knowingly furnishing false information, including
suspension or dismissal, as determined by the employee's appointing
authority or the appointing authority's designee. However, any
employee disciplined under this subsection is entitled to process an
appeal of the disciplinary action under the procedure set forth in any
personnel policy or collective bargaining agreement adopted by the
political subdivision.
(d) An employer who violates this section commits a Class A
infraction. As added by P.L.32-1987, SEC.4. Amended by P.L.9-1990, SEC.16.
IC 36-1-8-9 Riverboat fund establishment; administration and investment of
funds
Sec. 9. (a) Each unit that receives:
(1) tax revenue under IC 4-33-12-6 or IC 4-33-13;
(2) revenue under an agreement to share the tax revenue
received under IC 4-33-12 or IC 4-33-13 by another unit; or
(3) revenue under a development agreement (as defined in
section 9.5 of this chapter);
may establish a riverboat fund. Money in the fund may be used for
any legal or corporate purpose of the unit.
(b) The riverboat fund established under subsection (a) shall be
administered by the unit's treasurer, and the expenses of
administering the fund shall be paid from money in the fund. Money
in the fund not currently needed to meet the obligations of the fund
may be invested in the same manner as other public funds may be
invested. Interest that accrues from these investments shall be
deposited in the fund. Money in the fund at the end of a particular
fiscal year does not revert to the unit's general fund. As added by P.L.90-1997, SEC.7. Amended by P.L.199-2005,
SEC.28.
IC 36-1-8-9.2 Separate fund for deposit of county slot machine wagering fee
revenue
Sec. 9.2. (a) Each unit that receives:
(1) tax revenue under IC 4-35-8.5; or
(2) revenue under an agreement to share the tax revenue
received under IC 4-35-8.5 by another unit;
shall establish a fund, separate from the unit's general fund, into
which the revenue shall be deposited. Money in the fund may be
used for any legal or corporate purpose of the unit.
(b) The fund established by subsection (a) shall be administered
by the unit's treasurer, and the expenses of administering the fund
shall be paid from money in the fund. Money in the fund not
currently needed to meet the obligations of the fund may be invested
in the same manner as other public funds may be invested. Interest
that accrues from these investments shall be deposited in the fund.
Money in the fund at the end of a particular fiscal year does not
revert to the unit's general fund. As added by P.L.142-2009, SEC.31.
IC 36-1-8-9.5 "Development agreement"
Sec. 9.5. (a) As used in this section, "development agreement"
means an agreement between a licensed owner (as defined in
IC 4-33-2-13) and a unit setting forth the licensed owner's financial
commitments to support economic development in the unit.
(b) Funds received by a unit under a development agreement are
public funds (as defined in IC 5-13-4-20).
(c) Funds received under a development agreement:
(1) may not be used to reduce the unit's maximum levy under
IC 6-1.1-18.5 but may be used at the discretion of the unit to
reduce the property tax levy of the unit for a particular year;
(2) may be used for any legal or corporate purpose of the unit,
including the pledge of money to bonds, leases, or other
obligations under IC 5-1-14-4; and
(3) are considered miscellaneous revenue. As added by P.L.199-2005, SEC.29.
IC 36-1-8-10 "Board" defined; political affiliation of board appointees
Sec. 10. (a) As used in this section, "board" means an
administration, an agency, an authority, a board, a bureau, a
commission, a committee, a council, a department, a division, an
institution, an office, a service, or another similarly designated body
of a political subdivision.
(b) Whenever a law or political subdivision's resolution requires
that an appointment to a board be conditioned upon the political
affiliation of the appointee, or that the membership of a board not
exceed a stated number of members from the same political party, at
the time of an appointment, one (1) of the following must apply to
the appointee:
(1) The most recent primary election in which the appointee
voted was a primary election held by the party with which the
appointee claims affiliation.
(2) If the appointee has never voted in a primary election, the
appointee claims a party affiliation.
(3) The appointee is certified as a member of that party by the
party's county chairman for the county in which the appointee
resides.
(c) Notwithstanding any other law, if the term of an appointed
member of a board expires and the appointing authority does not
make an appointment to fill the vacancy, the member may continue
to serve on the board for only sixty (60) days after the expiration date
of the member's term. As added by P.L.185-1988, SEC.1. Amended by P.L.68-1996, SEC.4;
P.L.167-2001, SEC.10; P.L.199-2001, SEC.28; P.L.126-2002,
SEC.91.
IC 36-1-8-10.5 Employee of political subdivision as candidate for or appointed to
office
Sec. 10.5. (a) This section does not apply to the following:
(1) An elected or appointed officer.
(2) An individual described in IC 20-26-4-11.
(b) An employee of a political subdivision may:
(1) be a candidate for any elected office and serve in that office
if elected; or
(2) be appointed to any office and serve in that office if
appointed;
without having to resign as an employee of the political subdivision. As added by P.L.26-2000, SEC.45. Amended by P.L.1-2005,
SEC.231.
IC 36-1-8-11 Methods of payments to subdivisions or utilities
Sec. 11. (a) This section does not apply to a county treasurer
governed by IC 36-2-10-23.
(b) As used in this section, "credit card" means a:
(1) credit card;
(2) debit card;
(3) charge card; or
(4) stored value card.
(c) A payment to a political subdivision or a municipally owned
utility for any purpose may be made by any of the following financial
instruments that the fiscal body of the political subdivision or the
board of the municipally owned utility authorizes for use:
(1) Cash.
(2) Check.
(3) Bank draft.
(4) Money order.
(5) Bank card or credit card.
(6) Electronic funds transfer.
(7) Any other financial instrument authorized by the fiscal
body.
(d) If there is a charge to the political subdivision or municipally
owned utility for the use of a financial instrument, the political
subdivision or municipally owned utility may collect a sum equal to
the amount of the charge from the person who uses the financial
instrument.
(e) If authorized by the fiscal body of the political subdivision or
the board of the municipally owned utility, the political subdivision
or municipally owned utility may accept payments under this section
with a bank card or credit card under the procedures set forth in this
section. However, the procedure authorized for a particular type of
payment must be uniformly applied to all payments of the same type.
(f) The political subdivision or municipally owned utility may
contract with a bank card or credit card vendor for acceptance of
bank cards or credit cards.
(g) The political subdivision or municipally owned utility may pay
any applicable bank card or credit card service charge associated
with the use of a bank card or credit card under this subsection.
(h) The authorization of the fiscal body of the political
subdivision is not required by the bureau of motor vehicles or the
bureau of motor vehicles commission to use electronic funds transfer
or other financial instruments to transfer funds to the political
subdivision. As added by P.L.40-1996, SEC.5. Amended by P.L.18-1996, SEC.32;
P.L.2-1997, SEC.78; P.L.173-2003, SEC.20.
IC 36-1-8-12 Special fund for state grant money and local matching money;
reversion of unused money
Sec. 12. (a) If a political subdivision other than a school
corporation receives state grant money requiring local matching
money, the political subdivision shall create a special fund and
deposit the grant money and matching money into the special fund.
The money in the fund may be used only for the purposes of the
grant.
(b) If a political subdivision completes the project for which the
state grant money was provided and money remains in the fund:
(1) the political subdivision shall transfer the state's share of the
remaining money to the treasurer of state for deposit in the fund
from which the grant was made; and
(2) the political subdivision's pro rata share of the remaining
money reverts to the political subdivision's general fund. As added by P.L.10-1997, SEC.25. Amended by P.L.68-2001, SEC.9.
IC 36-1-8-13 Referral of dishonored checks to prosecuting attorney
Sec. 13. A unit that is unable to obtain payment of a dishonored
check shall, not later than ninety (90) days after the check is initially
received by the unit, refer the matter to the prosecuting attorney for
the county where the dishonored check was received for prosecution. As added by P.L.98-2000, SEC.17.
IC 36-1-8-14 Three-fourths vote rounded to nearest whole number
Sec. 14. Whenever this title requires an action to be taken by a
three-fourths (3/4) vote, the number of votes necessary to satisfy the
requirement is rounded to the nearest whole number. As added by P.L.125-2001, SEC.1.
IC 36-1-8-14.2 Payments in lieu of taxes; exemptions
Sec. 14.2. (a) As used in this section, the following terms have the
meanings 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 of
taxes.
(c) As used in this section, "property owner" means the owner of
real property described in IC 6-1.1-10-16.7.
(d) Subject to the approval of a property owner, the governing
body of a political subdivision may adopt an ordinance to require the
property owner to pay PILOTS at times set forth in the ordinance
with respect to real property that is subject to an exemption under
IC 6-1.1-10-16.7, if the improvements that qualify the real property
for an exemption were begun or acquired after December 31, 2001.
The ordinance remains in full force and effect until repealed or
modified by the governing body, subject to the approval of the
property owner.
(e) The PILOTS must be calculated so that the PILOTS are in an
amount equal to the amount of property taxes that would have been
levied by the governing body for the political subdivision upon the
real property described in subsection (d) if the property were not
subject to an exemption from property taxation.
(f) PILOTS shall be imposed as are property taxes and shall be
based on the assessed value of the real property described in
subsection (d). Except as provided in subsection (j), the township
assessor, or the county assessor if there is no township assessor for
the township, shall assess the real property described in subsection
(d) as though the property were not subject to an exemption.
(g) PILOTS collected under this section shall be deposited in the
unit's affordable housing fund established under IC 5-20-5-15.5 and
used for any purpose for which the affordable housing fund may be
used.
(h) PILOTS shall be due as set forth in the ordinance and bear
interest, if unpaid, as in the case of other taxes on property. PILOTS
shall be treated in the same manner as taxes for purposes of all
procedural and substantive provisions of law.
(i) This section does not apply to a county that contains a
consolidated city or to a political subdivision of the county.
(j) If the duties of the township assessor have been transferred to
the county assessor as described in IC 6-1.1-1-24, a reference to the
township assessor in this section is considered to be a reference to
the county assessor. As added by P.L.186-2001, SEC.8. Amended by P.L.181-2006,
SEC.61; P.L.219-2007, SEC.105; P.L.146-2008, SEC.686.
IC 36-1-8-15 Shortened term of county office under constitution; benefits
Sec. 15. (a) This section is enacted to implement Article 6,
Section 2(b) of the Constitution of the State of Indiana.
(b) This section applies to an individual:
(1) who was elected at least two (2) times to a county office;
and
(2) who would have served at least eight (8) years in the elected
county office had the individual's term of office not been
shortened under a statute enacted under Article 6, Section 2(b)
of the Constitution of the State of Indiana.
(c) As used in this section, "benefit of office" refers to a benefit
to which an individual who holds an elected county office is entitled
because of a statute, an ordinance, or a contract.
(d) As used in this section, "county office" refers to any of the
county offices referred to in Article 6, Section 2 of the Constitution
of the State of Indiana.
(e) An individual described in subsection (b) who is otherwise
entitled to a benefit of office may not be deprived of the benefit of
office based on a requirement in any other statute or any ordinance
or contract that to be eligible for the benefit of office an individual
must hold elected county office for at least eight (8) years. As added by P.L.88-2005, SEC.14.
IC 36-1-8-16 Property taxes collected for property disposed by county executive
Sec. 16. (a) If a county executive disposes of real property, the
property taxes collected for each item of the real property in the first
year the item of real property is subject to taxation after the year the
real property is sold or otherwise conveyed shall be disbursed to the
county executive that sold or otherwise conveyed the item of real
property.
(b) Disbursements to the county executive under subsection (a)
shall be deposited into the county general fund, the redevelopment
fund, the unsafe building fund, or the housing trust fund and shall be
used only for one (1) or more of the purposes authorized under
IC 36-7-14-22.5 or IC 36-7-15.1-15.5.
(c) The county executive shall forward a copy of each resolution
that disposes or otherwise conveys real property to the county
auditor.
(d) The disbursement of property taxes under subsection (a) shall
terminate in the second year the item of real property is subject to
taxation after the property is sold or otherwise conveyed. As added by P.L.169-2006, SEC.47.
IC 36-1-8
Chapter 8. Miscellaneous Fiscal and Administrative Provisions
IC 36-1-8-1 Application of chapter
Sec. 1. This chapter applies to all political subdivisions. As added by Acts 1980, P.L.211, SEC.1.
IC 36-1-8-2 Cash change fund; establishment; use
Sec. 2. (a) The fiscal body of a political subdivision may permit
any of its officers or employees having a duty to collect cash
revenues to establish a cash change fund. Such a fund must be
established by a warrant drawn on the appropriate fund of the
political subdivision in favor of the officer or employee, in an
amount determined by the fiscal body, without need for
appropriation to be made for it.
(b) The officer or employee who establishes a cash change fund
shall convert the warrant to cash, shall use it to make change when
collecting cash revenues, and shall account for it in the same manner
as is required for other funds of the political subdivision.
(c) The fiscal body shall require the entire cash change fund to be
returned to the appropriate fund whenever there is a change in the
custodian of the fund or if the fund is no longer needed. As added by Acts 1980, P.L.211, SEC.1.
IC 36-1-8-3 Petty cash fund; establishment; use; reimbursement
Sec. 3. (a) The fiscal body of a political subdivision may establish
a petty cash fund for any of its offices in a like manner to that
prescribed by section 2 of this chapter.
(b) The custodian of a petty cash fund shall use it to pay small or
emergency items of operating expense. A receipt shall be taken for
each expenditure made from the fund.
(c) The custodian of a petty cash fund shall periodically file a
voucher, with all original receipts totaling the cash claimed expended
being attached to it, so that the fund can be reimbursed for
expenditures from it. Reimbursement must be approved and made in
the same manner as is required for other expenditures of the political
subdivision. As added by Acts 1980, P.L.211, SEC.1.
IC 36-1-8-4 Transfer of prescribed amount to fund in need of money for cash
flow purposes; extension of time for transfer
Sec. 4. (a) The fiscal body of a political subdivision may, by
ordinance or resolution, permit the transfer of a prescribed amount,
for a prescribed period, to a fund in need of money for cash flow
purposes from another fund of the political subdivision if all these
conditions are met:
(1) It must be necessary to borrow money to enhance the fund
that is in need of money for cash flow purposes.
(2) There must be sufficient money on deposit to the credit of
the other fund that can be temporarily transferred.
(3) Except as provided in subsection (b), the prescribed period
must end during the budget year of the year in which the
transfer occurs.
(4) The amount transferred must be returned to the other fund
at the end of the prescribed period.
(5) Only revenues derived from the levying and collection of
property taxes or special taxes or from operation of the political
subdivision may be included in the amount transferred.
(b) If the fiscal body of a political subdivision determines that an
emergency exists that requires an extension of the prescribed period
of a transfer under this section, the prescribed period may be
extended for not more than six (6) months beyond the budget year of
the year in which the transfer occurs if the fiscal body does the
following:
(1) Passes an ordinance or a resolution that contains the
following:
(A) A statement that the fiscal body has determined that an
emergency exists.
(B) A brief description of the grounds for the emergency.
(C) The date the loan will be repaid that is not more than six
(6) months beyond the budget year in which the transfer
occurs.
(2) Immediately forwards the ordinance or resolution to the
state board of accounts and the department of local government
finance. As added by Acts 1980, P.L.211, SEC.1. Amended by P.L.57-1991,
SEC.3; P.L.10-1997, SEC.24; P.L.90-2002, SEC.460.
IC 36-1-8-5 Funds raised by general or special tax levy; disposition of unused
balance; transfers to local rainy day fund
Sec. 5. (a) This section applies to all funds raised by a general or
special tax levy on all the taxable property of a political subdivision.
(b) Whenever the purposes of a tax levy have been fulfilled and
an unused and unencumbered balance remains in the fund, the fiscal
body of the political subdivision shall order the balance of that fund
to be transferred as follows, unless a statute provides that it be
transferred otherwise:
(1) Funds of a county, to the general fund or rainy day fund of
the county, as provided in section 5.1 of this chapter.
(2) Funds of a municipality, to the general fund or rainy day
fund of the municipality, as provided in section 5.1 of this
chapter.
(3) Funds of a township for redemption of township assistance
obligations, to the township assistance fund of the township or
rainy day fund of the township, as provided in section 5.1 of
this chapter.
(4) Funds of any other political subdivision, to the general fund
or rainy day fund of the political subdivision, as provided in
section 5.1 of this chapter. However, if the political subdivision
is dissolved or does not have a general fund or rainy day fund,
then to the general fund of each of the units located in the
political subdivision in the same proportion that the assessed
valuation of the unit bears to the total assessed valuation of the
political subdivision.
(c) Whenever an unused and unencumbered balance remains in
the civil township fund of a township and a current tax levy for the
fund is not needed, the township fiscal body may order any part of
the balance of that fund transferred to the debt service fund of the
school corporation located in or partly in the township. However, if
more than one (1) school corporation is located in or partly in the
township, then any sum transferred shall be transferred to the debt
service fund of each of those school corporations in the same
proportion that the part of the assessed valuation of the school
corporation in the township bears to the total assessed valuation of
the township.
(d) If there is:
(1) an unexpended balance in the debt service fund of any
school township; and
(2) no outstanding bonded or other indebtedness of the school
township to the payment of which the unexpended balance or
any part of the unexpended balance can be legally applied;
the township trustee of the township, with the approval of the
township board, may transfer the unexpended balance in the debt
service fund to the school general fund of the school township.
(e) Whenever any township has collected any fund for the special
or specific purpose of erecting or constructing a school building and
the township trustee of the township decides to abandon the proposed
work of erecting or constructing the school building, the township
trustee of the township shall transfer the fund collected for the
special or specific purpose to the township fund of the township,
upon the order of the township board to make the transfer. It is
lawful thereafter to use the funds for any purpose for which the
township funds of the township may be used.
(f) Transfers to a political subdivision's rainy day fund may be
made at any time during the political subdivision's fiscal year. As added by Acts 1980, P.L.211, SEC.1. Amended by P.L.251-2001,
SEC.1; P.L.173-2003, SEC.18; P.L.73-2005, SEC.171;
P.L.169-2006, SEC.46; P.L.2-2006, SEC.185; P.L.1-2007, SEC.238.
IC 36-1-8-5.1 Rainy day funds established by political subdivisions
Sec. 5.1. (a) A political subdivision may establish a rainy day fund
by the adoption of:
(1) an ordinance, in the case of a county, city, or town; or
(2) a resolution, in the case of any other political subdivision.
(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;
(ii) IC 6-3.5-1.1-21.1;
(iii) IC 6-3.5-6-17.3; or
(iv) IC 6-3.5-7-17.3.
(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 transfer under
section 5 of this chapter not more than ten percent (10%) of the
political subdivision's total annual budget for that fiscal year,
adopted under IC 6-1.1-17, to the rainy day 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. 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.
IC 36-1-8-6 Reversion of unused appropriation; funds received from state or
the United States
Sec. 6. (a) The unused and unencumbered balance of an
appropriation made by a unit for any purpose reverts, at the end of
the unit's fiscal year, to the fund from which the appropriation was
made, unless a statute provides otherwise.
(b) Any amount necessary to pay a bill, judgment, or valid claim
concerning any balance that reverts under subsection (a) shall be
taken from the fund to which it reverted to pay the bill, judgment, or
valid claim.
(c) Notwithstanding subsection (a), if an appropriation is made by
a unit to establish or maintain a program of self-insurance by the
unit, the balance described in subsection (a) reverts to the fund only
if the fiscal body of the unit specifically adopts subsection (a) when
it makes the appropriation.
(d) Subsection (a) does not apply to dedicated or appropriated
funds received from the state or the United States, to funds of
municipal utilities, or to balances of appropriations made from the
general fund of a city for transfer to the aviation fund of the city. As added by Acts 1980, P.L.211, SEC.1.
IC 36-1-8-7 Bank deposit or cash on hand constituting pledge or guaranty
Sec. 7. A bank deposit or cash on hand, together with any accrued
interest, constituting a pledge or guaranty on behalf of a political
subdivision shall be deposited as a part of the funds of the political
subdivision and be credited to the proper funds by the officers having
custody of those funds after one (1) year has elapsed after the period
for which the pledge or guaranty has been posted to a special
account. As added by Acts 1980, P.L.211, SEC.1.
IC 36-1-8-8 Protection of employees reporting violations of federal, state, or
local laws; disciplinary actions; procedures
Sec. 8. (a) An employee of a political subdivision may report in
writing the existence of:
(1) a violation of a federal law or regulation;
(2) a violation of a state law or rule;
(3) a violation of an ordinance of a political subdivision; or
(4) the misuse of public resources;
first to a supervisor or appointing authority, unless the supervisor or
appointing authority is the person whom the employee believes is
committing the violation or misuse of public resources. In that case,
the employee may report the violation or misuse of public resources
in writing to either the supervisor or appointing authority or any
official or agency entitled to receive a report from the state ethics
commission under IC 4-2-6-4(b)(2)(G) or IC 4-2-6-4(b)(2)(H). If a
good faith effort is not made to correct the problem within a
reasonable time, the employee may submit a written report of the
incident to any person, agency, or organization.
(b) For having made a report under subsection (a), an employee
may not:
(1) be dismissed from employment;
(2) have salary increases or employment related benefits
withheld;
(3) be transferred or reassigned;
(4) be denied a promotion that the employee otherwise would
have received; or
(5) be demoted.
(c) Notwithstanding subsections (a) and (b), an employee must
make a reasonable attempt to ascertain the correctness of any
information to be furnished and may be subject to disciplinary
actions for knowingly furnishing false information, including
suspension or dismissal, as determined by the employee's appointing
authority or the appointing authority's designee. However, any
employee disciplined under this subsection is entitled to process an
appeal of the disciplinary action under the procedure set forth in any
personnel policy or collective bargaining agreement adopted by the
political subdivision.
(d) An employer who violates this section commits a Class A
infraction. As added by P.L.32-1987, SEC.4. Amended by P.L.9-1990, SEC.16.
IC 36-1-8-9 Riverboat fund establishment; administration and investment of
funds
Sec. 9. (a) Each unit that receives:
(1) tax revenue under IC 4-33-12-6 or IC 4-33-13;
(2) revenue under an agreement to share the tax revenue
received under IC 4-33-12 or IC 4-33-13 by another unit; or
(3) revenue under a development agreement (as defined in
section 9.5 of this chapter);
may establish a riverboat fund. Money in the fund may be used for
any legal or corporate purpose of the unit.
(b) The riverboat fund established under subsection (a) shall be
administered by the unit's treasurer, and the expenses of
administering the fund shall be paid from money in the fund. Money
in the fund not currently needed to meet the obligations of the fund
may be invested in the same manner as other public funds may be
invested. Interest that accrues from these investments shall be
deposited in the fund. Money in the fund at the end of a particular
fiscal year does not revert to the unit's general fund. As added by P.L.90-1997, SEC.7. Amended by P.L.199-2005,
SEC.28.
IC 36-1-8-9.2 Separate fund for deposit of county slot machine wagering fee
revenue
Sec. 9.2. (a) Each unit that receives:
(1) tax revenue under IC 4-35-8.5; or
(2) revenue under an agreement to share the tax revenue
received under IC 4-35-8.5 by another unit;
shall establish a fund, separate from the unit's general fund, into
which the revenue shall be deposited. Money in the fund may be
used for any legal or corporate purpose of the unit.
(b) The fund established by subsection (a) shall be administered
by the unit's treasurer, and the expenses of administering the fund
shall be paid from money in the fund. Money in the fund not
currently needed to meet the obligations of the fund may be invested
in the same manner as other public funds may be invested. Interest
that accrues from these investments shall be deposited in the fund.
Money in the fund at the end of a particular fiscal year does not
revert to the unit's general fund. As added by P.L.142-2009, SEC.31.
IC 36-1-8-9.5 "Development agreement"
Sec. 9.5. (a) As used in this section, "development agreement"
means an agreement between a licensed owner (as defined in
IC 4-33-2-13) and a unit setting forth the licensed owner's financial
commitments to support economic development in the unit.
(b) Funds received by a unit under a development agreement are
public funds (as defined in IC 5-13-4-20).
(c) Funds received under a development agreement:
(1) may not be used to reduce the unit's maximum levy under
IC 6-1.1-18.5 but may be used at the discretion of the unit to
reduce the property tax levy of the unit for a particular year;
(2) may be used for any legal or corporate purpose of the unit,
including the pledge of money to bonds, leases, or other
obligations under IC 5-1-14-4; and
(3) are considered miscellaneous revenue. As added by P.L.199-2005, SEC.29.
IC 36-1-8-10 "Board" defined; political affiliation of board appointees
Sec. 10. (a) As used in this section, "board" means an
administration, an agency, an authority, a board, a bureau, a
commission, a committee, a council, a department, a division, an
institution, an office, a service, or another similarly designated body
of a political subdivision.
(b) Whenever a law or political subdivision's resolution requires
that an appointment to a board be conditioned upon the political
affiliation of the appointee, or that the membership of a board not
exceed a stated number of members from the same political party, at
the time of an appointment, one (1) of the following must apply to
the appointee:
(1) The most recent primary election in which the appointee
voted was a primary election held by the party with which the
appointee claims affiliation.
(2) If the appointee has never voted in a primary election, the
appointee claims a party affiliation.
(3) The appointee is certified as a member of that party by the
party's county chairman for the county in which the appointee
resides.
(c) Notwithstanding any other law, if the term of an appointed
member of a board expires and the appointing authority does not
make an appointment to fill the vacancy, the member may continue
to serve on the board for only sixty (60) days after the expiration date
of the member's term. As added by P.L.185-1988, SEC.1. Amended by P.L.68-1996, SEC.4;
P.L.167-2001, SEC.10; P.L.199-2001, SEC.28; P.L.126-2002,
SEC.91.
IC 36-1-8-10.5 Employee of political subdivision as candidate for or appointed to
office
Sec. 10.5. (a) This section does not apply to the following:
(1) An elected or appointed officer.
(2) An individual described in IC 20-26-4-11.
(b) An employee of a political subdivision may:
(1) be a candidate for any elected office and serve in that office
if elected; or
(2) be appointed to any office and serve in that office if
appointed;
without having to resign as an employee of the political subdivision. As added by P.L.26-2000, SEC.45. Amended by P.L.1-2005,
SEC.231.
IC 36-1-8-11 Methods of payments to subdivisions or utilities
Sec. 11. (a) This section does not apply to a county treasurer
governed by IC 36-2-10-23.
(b) As used in this section, "credit card" means a:
(1) credit card;
(2) debit card;
(3) charge card; or
(4) stored value card.
(c) A payment to a political subdivision or a municipally owned
utility for any purpose may be made by any of the following financial
instruments that the fiscal body of the political subdivision or the
board of the municipally owned utility authorizes for use:
(1) Cash.
(2) Check.
(3) Bank draft.
(4) Money order.
(5) Bank card or credit card.
(6) Electronic funds transfer.
(7) Any other financial instrument authorized by the fiscal
body.
(d) If there is a charge to the political subdivision or municipally
owned utility for the use of a financial instrument, the political
subdivision or municipally owned utility may collect a sum equal to
the amount of the charge from the person who uses the financial
instrument.
(e) If authorized by the fiscal body of the political subdivision or
the board of the municipally owned utility, the political subdivision
or municipally owned utility may accept payments under this section
with a bank card or credit card under the procedures set forth in this
section. However, the procedure authorized for a particular type of
payment must be uniformly applied to all payments of the same type.
(f) The political subdivision or municipally owned utility may
contract with a bank card or credit card vendor for acceptance of
bank cards or credit cards.
(g) The political subdivision or municipally owned utility may pay
any applicable bank card or credit card service charge associated
with the use of a bank card or credit card under this subsection.
(h) The authorization of the fiscal body of the political
subdivision is not required by the bureau of motor vehicles or the
bureau of motor vehicles commission to use electronic funds transfer
or other financial instruments to transfer funds to the political
subdivision. As added by P.L.40-1996, SEC.5. Amended by P.L.18-1996, SEC.32;
P.L.2-1997, SEC.78; P.L.173-2003, SEC.20.
IC 36-1-8-12 Special fund for state grant money and local matching money;
reversion of unused money
Sec. 12. (a) If a political subdivision other than a school
corporation receives state grant money requiring local matching
money, the political subdivision shall create a special fund and
deposit the grant money and matching money into the special fund.
The money in the fund may be used only for the purposes of the
grant.
(b) If a political subdivision completes the project for which the
state grant money was provided and money remains in the fund:
(1) the political subdivision shall transfer the state's share of the
remaining money to the treasurer of state for deposit in the fund
from which the grant was made; and
(2) the political subdivision's pro rata share of the remaining
money reverts to the political subdivision's general fund. As added by P.L.10-1997, SEC.25. Amended by P.L.68-2001, SEC.9.
IC 36-1-8-13 Referral of dishonored checks to prosecuting attorney
Sec. 13. A unit that is unable to obtain payment of a dishonored
check shall, not later than ninety (90) days after the check is initially
received by the unit, refer the matter to the prosecuting attorney for
the county where the dishonored check was received for prosecution. As added by P.L.98-2000, SEC.17.
IC 36-1-8-14 Three-fourths vote rounded to nearest whole number
Sec. 14. Whenever this title requires an action to be taken by a
three-fourths (3/4) vote, the number of votes necessary to satisfy the
requirement is rounded to the nearest whole number. As added by P.L.125-2001, SEC.1.
IC 36-1-8-14.2 Payments in lieu of taxes; exemptions
Sec. 14.2. (a) As used in this section, the following terms have the
meanings 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 of
taxes.
(c) As used in this section, "property owner" means the owner of
real property described in IC 6-1.1-10-16.7.
(d) Subject to the approval of a property owner, the governing
body of a political subdivision may adopt an ordinance to require the
property owner to pay PILOTS at times set forth in the ordinance
with respect to real property that is subject to an exemption under
IC 6-1.1-10-16.7, if the improvements that qualify the real property
for an exemption were begun or acquired after December 31, 2001.
The ordinance remains in full force and effect until repealed or
modified by the governing body, subject to the approval of the
property owner.
(e) The PILOTS must be calculated so that the PILOTS are in an
amount equal to the amount of property taxes that would have been
levied by the governing body for the political subdivision upon the
real property described in subsection (d) if the property were not
subject to an exemption from property taxation.
(f) PILOTS shall be imposed as are property taxes and shall be
based on the assessed value of the real property described in
subsection (d). Except as provided in subsection (j), the township
assessor, or the county assessor if there is no township assessor for
the township, shall assess the real property described in subsection
(d) as though the property were not subject to an exemption.
(g) PILOTS collected under this section shall be deposited in the
unit's affordable housing fund established under IC 5-20-5-15.5 and
used for any purpose for which the affordable housing fund may be
used.
(h) PILOTS shall be due as set forth in the ordinance and bear
interest, if unpaid, as in the case of other taxes on property. PILOTS
shall be treated in the same manner as taxes for purposes of all
procedural and substantive provisions of law.
(i) This section does not apply to a county that contains a
consolidated city or to a political subdivision of the county.
(j) If the duties of the township assessor have been transferred to
the county assessor as described in IC 6-1.1-1-24, a reference to the
township assessor in this section is considered to be a reference to
the county assessor. As added by P.L.186-2001, SEC.8. Amended by P.L.181-2006,
SEC.61; P.L.219-2007, SEC.105; P.L.146-2008, SEC.686.
IC 36-1-8-15 Shortened term of county office under constitution; benefits
Sec. 15. (a) This section is enacted to implement Article 6,
Section 2(b) of the Constitution of the State of Indiana.
(b) This section applies to an individual:
(1) who was elected at least two (2) times to a county office;
and
(2) who would have served at least eight (8) years in the elected
county office had the individual's term of office not been
shortened under a statute enacted under Article 6, Section 2(b)
of the Constitution of the State of Indiana.
(c) As used in this section, "benefit of office" refers to a benefit
to which an individual who holds an elected county office is entitled
because of a statute, an ordinance, or a contract.
(d) As used in this section, "county office" refers to any of the
county offices referred to in Article 6, Section 2 of the Constitution
of the State of Indiana.
(e) An individual described in subsection (b) who is otherwise
entitled to a benefit of office may not be deprived of the benefit of
office based on a requirement in any other statute or any ordinance
or contract that to be eligible for the benefit of office an individual
must hold elected county office for at least eight (8) years. As added by P.L.88-2005, SEC.14.
IC 36-1-8-16 Property taxes collected for property disposed by county executive
Sec. 16. (a) If a county executive disposes of real property, the
property taxes collected for each item of the real property in the first
year the item of real property is subject to taxation after the year the
real property is sold or otherwise conveyed shall be disbursed to the
county executive that sold or otherwise conveyed the item of real
property.
(b) Disbursements to the county executive under subsection (a)
shall be deposited into the county general fund, the redevelopment
fund, the unsafe building fund, or the housing trust fund and shall be
used only for one (1) or more of the purposes authorized under
IC 36-7-14-22.5 or IC 36-7-15.1-15.5.
(c) The county executive shall forward a copy of each resolution
that disposes or otherwise conveys real property to the county
auditor.
(d) The disbursement of property taxes under subsection (a) shall
terminate in the second year the item of real property is subject to
taxation after the property is sold or otherwise conveyed. As added by P.L.169-2006, SEC.47.
