Ohio Code § 5705.13

§ 5705.13.

(A) A taxing authority of a subdivision, by resolution or ordinance, may establish reserve

balance accounts to accumulate currently available resources for the following purposes: (1) To stabilize subdivision budgets against cyclical changes in revenues and expenditures; (2) Except as otherwise provided by this section, to provide for the payment of claims

and deductibles under an individual or joint self-insurance program for the subdivision,

if the subdivision is permitted by law to establish such a program; (3) To provide for the payment of claims, assessments, and deductibles under a self-insurance

program, individual retrospective ratings plan, group rating plan, group retrospective

rating plan, medical only program, deductible plan, or large deductible plan for workers'

compensation. The ordinance or resolution establishing a reserve balance account shall state the

purpose for which the account is established, the fund in which the account is to

be established, and the total amount of money to be reserved in the account. Not more than one reserve balance account may be established for each of the purposes

permitted under divisions (A)(2) and (3) of this section.  Money to the credit of a reserve balance account may be expended only for the purpose

for which the account was established. A reserve balance account established for the purpose described in division (A)(1)

of this section may be established in the general fund or in one or more special funds

for operating purposes of the subdivision.  The amount of money to be reserved in such an account in any fiscal year shall not

exceed five per cent of the revenue credited in the preceding fiscal year to the fund

in which the account is established, or, in the case of a reserve balance account

of a county or of a township, the greater of that amount or one-sixth of the expenditures

during the preceding fiscal year from the fund in which the account is established. At any time, a taxing authority of a subdivision, by resolution or ordinance, may

reduce or eliminate the reserve balance in a reserve balance account established for

the purpose described in division (A)(1) of this section. A reserve balance account established for the purpose described in division (A)(2)

or (3) of this section shall be established in the general fund of the subdivision

or by the establishment of a separate internal service fund established to account

for the operation of an individual or joint self-insurance program described in division

(A)(2) of this section or a workers' compensation program or plan described in division

(A)(3) of this section, and shall be based on sound actuarial principles.  The total amount of money in a reserve balance account for self-insurance may be

expressed in dollars or as the amount determined to represent an adequate reserve

according to sound actuarial principles. A taxing authority of a subdivision, by resolution or ordinance, may rescind a reserve

balance account established under this division.  If a reserve balance account is rescinded, money that has accumulated in the account

shall be transferred to the fund or funds from which the money originally was transferred. (B) A taxing authority of a subdivision, by resolution or ordinance, may establish a

special revenue fund for the purpose of accumulating resources for the payment of

accumulated sick leave and vacation leave, and for payments in lieu of taking compensatory

time off, upon the termination of employment or the retirement of officers and employees

of the subdivision.  The special revenue fund may also accumulate resources for payment of salaries during

any fiscal year when the number of pay periods exceeds the usual and customary number

of pay periods.  Notwithstanding sections 5705.14 , 5705.15 , and 5705.16 of the Revised Code , the taxing authority, by resolution or ordinance, may transfer money to the special

revenue fund from any other fund of the subdivision from which such payments may lawfully

be made.  The taxing authority, by resolution or ordinance, may rescind a special revenue

fund established under this division.  If a special revenue fund is rescinded, money that has accumulated in the fund shall

be transferred to the fund or funds from which the money originally was transferred. (C) A taxing authority of a subdivision, by resolution or ordinance, may establish a

capital projects fund for the purpose of accumulating resources for the acquisition,

construction, or improvement of fixed assets of the subdivision.  For the purposes of this section, “ fixed assets ” includes motor vehicles.  More than one capital projects fund may be established and may exist at any time.  The ordinance or resolution shall identify the source of the money to be used to

acquire, construct, or improve the fixed assets identified in the resolution or ordinance,

the amount of money to be accumulated for that purpose, the period of time over which

that amount is to be accumulated, and the fixed assets that the taxing authority intends

to acquire, construct, or improve with the money to be accumulated in the fund. A taxing authority of a subdivision shall not accumulate money in a capital projects

fund for more than ten years after the resolution or ordinance establishing the fund

is adopted.  If the subdivision has not entered into a contract for the acquisition, construction,

or improvement of fixed assets for which money was accumulated in such a fund before

the end of that ten-year period, the fiscal officer of the subdivision shall transfer

all money in the fund to the fund or funds from which that money originally was transferred

or the fund that originally was intended to receive the money. A taxing authority of a subdivision, by resolution or ordinance, may rescind a capital

projects fund.  If a capital projects fund is rescinded, money that has accumulated in the fund

shall be transferred to the fund or funds from which the money originally was transferred. Notwithstanding sections 5705.14 , 5705.15 , and 5705.16 of the Revised Code , the taxing authority of a subdivision, by resolution or ordinance, may transfer

money to the capital projects fund from any other fund of the subdivision that may

lawfully be used for the purpose of acquiring, constructing, or improving the fixed

assets identified in the resolution or ordinance.