Special Road Fund

The Board of Township Supervisors may transfer funds from the General Fund of the Township to the Special Road Fund. This requires a resolution by the board, voted on and recorded in the meeting minutes, to move an amount from the General Fund to the Special Road Fund. The county auditor should be notified that this amount has been transferred to the special road fund. It does not require a separate bank account, but some townships find it handy to put the Special Road Fund into a CD or money market account. Once funds are transferred into the Special Road Fund, they can only be withdrawn to cover the costs of road construction, graveling, snow removal, or surfacing.

The purpose of the Special Road Fund is to allow a township to build a fund for road projects without hampering the ability to levy the taxes needed to fund those projects and normal township operations. There is no ability to levy for this fund, but funds from any source can be transferred into the fund.

57-15-19.2. Township supervisors authority to transfer funds into special road fund - Limitations - Use. The board of supervisors, at the time of the annual township meeting, upon resolution, may transfer or set aside a part or all of any funds into a special road fund, which fund must be separate and distinct from all other funds. The special road fund may not exceed the sum of five hundred thousand dollars for any one congressional township. The special road fund may be expended, at the option of the board of supervisors, for the purpose of road construction, graveling, snow removal or surfacing.

57-15-19.3. Funds not considered in determining budget. The special road fund may not be considered in determining the budget of the amount to be levied for each township fiscal year, for normal tax purposes, but must be shown in such budget as a special road fund and may not be deducted therefrom as otherwise provided by law.