IC 36-4-7
Chapter 7. City Budget Procedures and Compensation of Officers
and Employees
IC 36-4-7-1
Application of chapter
Sec. 1. This chapter applies to second and third class cities.
As added by Acts 1980, P.L.212, SEC.3. Amended by Acts 1981,
P.L.44, SEC.45.
IC 36-4-7-2
Elected city officers; fixing of annual compensation
Sec. 2. (a) As used in this section, "compensation" means the total
of all money paid to an elected city officer for performing duties as
a city officer, regardless of the source of funds from which the
money is paid.
(b) The city legislative body shall, by ordinance, fix the annual
compensation of all elected city officers.
(c) The compensation of an elected city officer may not be
changed in the year for which it is fixed nor may it be reduced below
the amount fixed for the previous year.
As added by Acts 1980, P.L.212, SEC.3. Amended by Acts 1981,
P.L.17, SEC.21; P.L.15-1993, SEC.3; P.L.141-2009, SEC.9.
IC 36-4-7-3
Appointive officers, deputies, and other employees; compensation
Sec. 3. (a) This section does not apply to compensation paid by a
city to members of its police and fire departments.
(b) Subject to the approval of the city legislative body, the city
executive shall fix the compensation of each appointive officer,
deputy, and other employee of the city. The legislative body may
reduce but may not increase any compensation fixed by the
executive. Compensation must be fixed under this section not later
than September 30 of each year for the ensuing budget year.
(c) Compensation fixed under this section may be increased or
decreased by the executive during the budget year for which it is
fixed.
(d) Notwithstanding subsection (b), the city clerk may, with the
approval of the legislative body, fix the salaries of deputies and
employees appointed under IC 36-4-11-4.
As added by Acts 1980, P.L.212, SEC.3. Amended by P.L.44-1991,
SEC.5; P.L.35-1999, SEC.5; P.L.89-2001, SEC.7; P.L.169-2006,
SEC.54.
IC 36-4-7-4
City officers and employees connected with operation of
municipally owned utility or function; additional compensation
Sec. 4. (a) Subject to the approval of the city legislative body, the
city executive may provide that city officers and employees receive
additional compensation for services that:
(1) are performed for the city;
(2) are not governmental in nature; and
(3) are connected with the operation of a municipally owned
utility or function.
(b) Subject to the approval of the executive and legislative body,
the administrative agency operating the utility or function shall fix
the amount of the additional compensation, which shall be paid from
the revenues of the utility or function.
As added by Acts 1980, P.L.212, SEC.3.
IC 36-4-7-5
Salary schedule
Sec. 5. Salaries of city officers and employees shall be scheduled
as provided in the budget classification prescribed by the state board
of accounts.
As added by Acts 1980, P.L.212, SEC.3.
IC 36-4-7-6
Budget estimates; formulation procedure
Sec. 6. Before the publication of notice of budget estimates
required by IC 6-1.1-17-3, each city shall formulate a budget estimate
for the ensuing budget year in the following manner:
(1) Each department head shall prepare for his department an
estimate of the amount of money required for the ensuing
budget year, stating in detail each category and item of
expenditure he anticipates.
(2) The city fiscal officer shall prepare an itemized estimate of
revenues available for the ensuing budget year, and shall
prepare an itemized estimate of expenditures for other purposes
above the money proposed to be used by the departments.
(3) The city executive shall meet with the department heads and
the fiscal officer to review and revise their various estimates.
(4) After the executive's review and revision, the fiscal officer
shall prepare for the executive a report of the estimated
department budgets, miscellaneous expenses, and revenues
necessary or available to finance the estimates.
As added by Acts 1980, P.L.212, SEC.3.
IC 36-4-7-7
Report of estimates; ordinance fixing taxation rate; appropriation
Sec. 7. (a) The fiscal officer shall present the report of budget
estimates to the city legislative body under IC 6-1.1-17. After
reviewing the report, the legislative body shall prepare an ordinance
fixing the rate of taxation for the ensuing budget year and an
ordinance making appropriations for the estimated department
budgets and other city purposes during the ensuing budget year. The
legislative body, in the appropriation ordinance, may reduce any
estimated item from the figure submitted in the report of the fiscal
officer, but it may increase an item only if the executive recommends
an increase. The legislative body shall promptly act on the
appropriation ordinance.
(b) In preparing the ordinances described in subsection (a) the
legislative body shall make an allowance for the cost of fire
protection to annexed territory described in IC 36-4-3-7(d), for the
year fire protection is first offered to that territory.
As added by Acts 1980, P.L.212, SEC.3. Amended by P.L.341-1987,
SEC.2; P.L.5-1989, SEC.104.
IC 36-4-7-8
Ordinances; additional appropriations or decrease
Sec. 8. After the passage of the appropriation ordinance, the city
legislative body may, on the recommendation of the city executive,
make further or additional appropriations by ordinance, unless their
result is to increase the tax levy set under IC 6-1.1-17. The legislative
body may, by ordinance, decrease any appropriation. The executive
may, by executive order, decrease the appropriation made for any
executive department.
As added by Acts 1980, P.L.212, SEC.3. Amended by Acts 1980,
P.L.73, SEC.10.
IC 36-4-7-9
Appropriation ordinance; items
Sec. 9. An appropriation ordinance must specify, by items, the
amount of each appropriation and the department for which it is
made.
As added by Acts 1980, P.L.212, SEC.3.
IC 36-4-7-10
Preparation of budgets; contents; submission to legislative body
Sec. 10. The department budgets prepared under section 6 of this
chapter must include the compensation of department heads and must
be submitted to the city legislative body under section 7 of this
chapter.
As added by Acts 1980, P.L.212, SEC.3. Amended by Acts 1982,
P.L.33, SEC.25.
IC 36-4-7-11
Failure to pass tax rate and appropriation ordinances;
continuation
Sec. 11. If the city legislative body does not pass the ordinance
required by section 7 of this chapter before November 2 of each year,
the most recent annual appropriations and annual tax levy are
continued for the ensuing budget year.
As added by Acts 1980, P.L.212, SEC.3. Amended by P.L.176-2002,
SEC.9; P.L.169-2006, SEC.55; P.L.113-2010, SEC.122.