§ 36-1-8-4 — Transfer of prescribed amount to fund in need of money for cash flow purposes; extension of time for transfer

(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.
[Pre-Local Government Recodification Citation:
19-11-2-2.]
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.