Township funds that can be transferred to the RDF:
Township (General): Can be transferred to RDF, subject to max of 10% total annual budget
Fire: Can be transferred to RDF, subject to max of 10% total annual budget
Fire Cumulative: Can be transferred to RDF, subject to max of 10% total annual budget [IC 36-8-14] - NOTE: If money is transferred from a Cumulative fund, the DLGF will probably question if you still need that tax levy.
Park & Recreation: Can be transferred to RDF, subject to max of 10% total annual budget - NOTE: For Townships with a population between 2,000 and 3,000 the following statute would apply and these funds may not be transferred to RDF. [IC 36-10-7-7 states in part: “to be used…for the maintenance and improvement of the park and for no other purpose].”
Township funds that could be in the Township General fund, depending on other information:
Donations: If it is a nonrestricted donation, it would go to the Township General fund. If it is a restricted donation, we would audit to the agreement.
Cemetery: If a cemetery is conveyed to a township, all the assets, funds, cash, etc. may only be used in connection with that cemetery [IC 23-14-64-3], and therefore could not be transferred to the RDF. However, if the township has established a cemetery, the expenses shall be paid out of the Township General fund [IC 23-14-69-9].
For more information about the Rainy Day Fund, see our 2018 September Township bulletin (page 4)