Indiana League of Municipal Clerks and Treasurers

Question No. 1: Do I need an appropriation in the Rainy Day fund before I can spend money in that fund?

Answer: Yes. The rainy day fund is subject to the same appropriation process as other funds that receive tax
money. [IC 36‐1‐8‐5‐1]

Question No. 2: Where do I receipt supplemental distributions of CAGIT, COIT, and CEDIT?
Answer: Supplemental distributions of CAGIT, COIT, CEDIT must be deposited in the Rainy Day fund.

Question No. 3: When can I make transfers of unused and unencumbered balances to the Rainy Day fund?
Answer: IC 36‐1‐8‐5 states that such transfers may be made at any time during the year.

Question No. 4: Does a city or town need to pass an ordinance to establish a Rainy Day fund?
Answer: Yes. IC 36‐1‐8‐5.1 requires the fund to be established by ordinance.

Question No. 5: What can money in the Rainy Day fund be used for?
Answer: Money in a Rainy Day fund may be used for any lawful purpose.

TrustINdiana, Indiana’s local government investment pool, opened February 1st, 2008. Established by the
Indiana General Assembly in 2007, the pool is open to deposits from all local governmental entities.