Indiana § 8-1.5-3-11 Funds; management

Indiana Statutes

§ 8-1.5-3-11 — Funds; management

Indiana § 8-1.5-3-11

Art. 1.5MUNICIPAL UTILITIES

Ch. 3Operation of Municipally Owned Utilities Generally

This text of Indiana § 8-1.5-3-11 (Funds; management) is published on Counsel Stack Legal Research, covering Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ind. Code § 8-1.5-3-11 (2026).

Text

(a)The money belonging to each municipally owned utility shall be kept by the municipal fiscal officer as separate funds as required by any bond ordinance or accounting procedures established by the commission or the state board of accounts. The municipal legislative body, with the approval of the board, may transfer surplus earnings of the utility to the general fund. The money may not, however, be transferred unless the terms and conditions of any bond ordinance, resolution, indenture, contract under IC 8-1-2.2, or similar instrument binding upon the utility are complied with.

(b)A cash reserve fund shall be created by ordinance and carried on the records of the utility or utilities by providing for monthly contributions or transfers to the cash reserve fund of surplus earnings of the

Free access — add to your briefcase to read the full text and ask questions with AI

(a) The money belonging to each municipally
owned utility shall be kept by the municipal fiscal officer as separate
funds as required by any bond ordinance or accounting procedures
established by the commission or the state board of accounts. The
municipal legislative body, with the approval of the board, may transfer
surplus earnings of the utility to the general fund. The money may not,
however, be transferred unless the terms and conditions of any bond
ordinance, resolution, indenture, contract under IC 8-1-2.2, or similar
instrument binding upon the utility are complied with.
(b) A cash reserve fund shall be created by ordinance and carried on
the records of the utility or utilities by providing for monthly
contributions or transfers to the cash reserve fund of surplus earnings
of the utility or utilities.
(c) "Surplus earnings" are those cash earnings remaining after
provision has been made to take care of current obligations, including:
(1) operating expense;
(2) depreciation or replacement fund;
(3) bond and interest sinking fund;
(4) retirement fund; or
(5) any other priority fund requirements fixed by law.
(d) After creation of the cash reserve fund, the legislative body may
include in the municipal general fund budget, as revenue in lieu of
taxes, an amount equal to the actual balance in the cash reserve fund as
of June 30 of the current year. However, the available cash reserve fund
balance may be transferred to the municipal general fund only during
the calendar year for which the budget was adopted, and transfers may
not be made from any utility funds to the general fund except from the
cash reserve fund.
(e) If at any time after the final approval of the budget an emergency
should arise for further appropriations from the general fund, the
legislative body may, by ordinance, transfer additional money from the
cash reserve fund to the general fund to provide for the additional
appropriations, the transfer to be limited to the accretions to the cash
reserve fund since the preceding June 30.
(f) A cash reserve fund, if authorized by ordinance, may be used to
make loans to another utility owned by the same municipality, for
periods not to exceed five (5) years, at any interest rate. The repayment
of the loan and interest shall be returned to the cash reserve fund.
As added by Acts 1982, P.L.74, SEC.1.