(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. (1) to purchase land, easements, or rights-of-way;
2. (2) to purchase buildings;
3. (3) to construct or improve city owned property;

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

   1. (A) computer hardware;
   2. (B) computer software;
   3. (C) wiring and computer networks; and
   4. (D) communications access systems used to connect with computer networks or electronic gateways;
5. (5) to pay for the services of full-time or part-time computer maintenance employees;
6. (6) to conduct nonrecurring in-service technology training of unit employees;
7. (7) to undertake Internet application development;
8. (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. (9) for any other governmental purpose for which money is appropriated by the fiscal body of the city or town.

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

1. (1) its general fund; or

2. (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.