(a) As used in this section, "compensation" means the total of all money paid to an elected town officer for performing duties as a town officer, regardless of the source of funds from which the money is paid. The term includes all employee benefits paid to an elected town officer, including life insurance, health insurance, disability insurance, retirement benefits, and pension benefits. For purposes of determining an increase or decrease in compensation of an elected town officer, the term does not include any of the following:

1. (1) Payment of an insurance premium.

2. (2) Payments in recognition of:

   1. (A) longevity;
   2. (B) professional certifications; or

   3. (C) educational advancements;

      that are separately identified on a salary ordinance or resolution.

3. (3) Payment of a stipend or per diem allowed by statute.
4. (4) A payment authorized under subsection (d).

(d) The legislative body may provide that town officers (including elected town officers) and employees receive additional compensation for services that:

1. (1) are performed for the town;
2. (2) are not governmental in nature; and

3. (3) are connected with the operation of a municipally owned utility or function.

   Subject to the approval of the 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.

   [Pre-Local Government Recodification Citations: Part new; 18-3-1-34.]

   As added by Acts 1980, P.L.212, SEC.4. Amended by Acts 1981, P.L.17, SEC.26; P.L.351-1983, SEC.1; P.L.15-1993, SEC.4; P.L.209-2019, SEC.15.