Ind. Code § 36-5-3-2 – Compensation for officers and employees

(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.
(b) The town legislative body shall, by ordinance, fix the compensation of its own members, the town clerk-treasurer, and the town marshal. The legislative body shall provide reasonable compensation for other town officers and employees.
(c) The compensation of an elected town 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.
(d) The legislative body may provide that 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.