Councilors discussed whether to transfer part of the county's Local Income Tax (LIT) supplemental distribution into the county rainy day fund and asked legal counsel to draft an ordinance for review at the next meeting.

William Hughes (council) proposed moving the excess of this year’s supplemental LIT distribution over last year’s amount into rainy day reserves. He said last year’s supplemental certified share was $638,000 and this year’s was about $1,104,000, leaving an excess of $466,000. Hughes said the rainy day account currently holds $609,025 and moving the excess would raise the balance to about $1,075,088.

County legal counsel (Ben) summarized applicable guidance: a DLGF memo dated Jan. 29 and an Attorney General opinion circa Feb. 2003 indicate a taxing unit may transfer unused, unencumbered funds from its general fund or other levy funds to a rainy day fund, but the council must adopt an ordinance that defines the fund’s purpose and conditions for withdrawal. Counsel said funds placed in rainy day must be used for the purpose stated in the ordinance and withdrawals require the same additional-appropriation process as other appropriations.

Council members asked that counsel review prior ordinances tied to the existing rainy day balance to ensure consistent governance and that counsel prepare a draft ordinance for the council’s next meeting. The council agreed to the request; no formal appropriation was made at the meeting. The legal review will include whether the supplemental LIT portion can be moved into rainy day and whether the county must reappropriate it back into general fund when withdrawn for a different purpose.