Sec. 31.1. (a) The fiscal body of each city and the fiscal body of each town shall, by ordinance or resolution, establish a cumulative capital improvement fund for the city or town. Except as otherwise provided in subsection (c), the city or town may only use money in its cumulative capital improvement fund:

(1) to purchase land, easements, or rights-of-way;

(2) to purchase buildings;

(3) to construct or improve city owned property;

(4) to design, develop, purchase, lease, upgrade, maintain, or repair:

(A) computer hardware;

(B) computer software;

(C) wiring and computer networks; and

(D) communications access systems used to connect with computer networks or electronic gateways;

(5) to pay for the services of full-time or part-time computer maintenance employees;

(6) to conduct nonrecurring in-service technology training of unit employees;

(7) to undertake Internet application development;

(8) to retire general obligation bonds issued by the city or town for one (1) of the purposes stated in subdivision (1), (2), (3), (4), (5), or (6); or

(9) for any other governmental purpose for which money is appropriated by the fiscal body of the city or town.

(b) The money in the city's or town's cumulative capital improvement fund does not revert to its general fund.

(c) A city or town may at any time, by ordinance or resolution, transfer to:

(1) its general fund; or

(2) an authority established under IC 36-7-23;

money derived under this chapter that has been deposited in the city's or town's cumulative capital improvement fund.

As added by Acts 1977, P.L.89, SEC.4. Amended by P.L.8-1989, SEC.31; P.L.346-1989(ss), SEC.4; P.L.1-1990, SEC.83; P.L.140-2002, SEC.1; P.L.113-2010, SEC.69.