§ 36-8-19-8 — Fire protection territory fund; establishment; purposes; budget; tax levies

Note: This version of section effective until 7-1-2027. See also
following version of this section, effective 7-1-2027.
Sec. 8. (a) Upon the adoption of identical ordinances
or resolutions, or both, by the participating units under section 6 of this
chapter, the designated provider unit must establish a fire protection
territory fund from which all expenses of operating and maintaining the
fire protection services within the territory, including repairs, fees,
salaries, depreciation on all depreciable assets, rents, supplies,
contingencies, and all other expenses lawfully incurred within the
territory shall be paid. The purposes described in this subsection are the
sole purposes of the fund, and money in the fund may not be used for
any other expenses. Except as allowed in subsections (d) and (e) and
section 8.5 of this chapter, the provider unit is not authorized to transfer
money out of the fund at any time.
(b) The fund consists of the following:
(1) All receipts from the tax imposed under this section.
(2) Any money transferred to the fund by the provider unit as
authorized under subsection (d).
(3) Any receipts from a false alarm fee or service charge imposed
by the participating units under IC 36-8-13-4.
(4) Any money transferred to the fund by a participating unit
under section 8.6 of this chapter.
(5) Any receipts from a distribution made under IC 6-3.6-6-8(d),
which shall be deposited in the fund.
(c) The provider unit, with the assistance of each of the other
participating units, shall annually budget the necessary money to meet
the expenses of operation and maintenance of the fire protection
services within the territory. The provider unit may maintain a
reasonable balance, not to exceed one hundred twenty percent (120%)
of the budgeted expenses. Except as provided in IC 6-1.1-18.5-10.5,
and subject to section 7(c) of this chapter, after estimating expenses
and receipts of money, the provider unit shall establish the tax levy
required to fund the estimated budget. Subject to IC 6-1.1-18.5-10.5(c),
the amount budgeted under this subsection shall be considered a part
of each of the participating unit's budget.
(d) If the amount levied in a particular year is insufficient to cover
the costs incurred in providing fire protection services within the
territory, the provider unit may transfer from available sources to the
fire protection territory fund the money needed to cover those costs. In
this case:
(1) the levy in the following year shall be increased by the amount
required to be transferred; and
(2) the provider unit is entitled to transfer the amount described
in subdivision (1) from the fund as reimbursement to the provider
unit.
(e) If the amount levied in a particular year exceeds the amount
necessary to cover the costs incurred in providing fire protection
services within the territory, the levy in the following year shall be
reduced by the amount of surplus money that is not transferred to the
equipment replacement fund established under section 8.5 of this
chapter. The amount that may be transferred to the equipment
replacement fund may not exceed five percent (5%) of the levy for that
fund for that year. Each participating unit must agree to the amount to
be transferred by adopting an ordinance (if the unit is a county or
municipality) or a resolution (if the unit is a township) that specifies an
identical amount to be transferred.
(f) The tax under this section is subject to the tax levy limitations
imposed under IC 6-1.1-18.5-10.5.

Legislative History

As added by P.L.37-1994, SEC.3. Amended by P.L.326-1995, SEC.2; P.L.82-2001, SEC.4; P.L.240-2001, SEC.5; P.L.47-2007, SEC.3; P.L.128-2008, SEC.7; P.L.182-2009(ss), SEC.443; P.L.183-2014, SEC.27; P.L.95-2022, SEC.9; P.L.236-2023, SEC.209.