Indiana Code Title 36. Local Government § 36-10-3-32

Sec. 32. (a) A participating unit may withdraw from a joint department at the end of a fiscal year by repealing its adopting ordinance and filing a copy of the repealing ordinance with the other participating units.

(b) The joint board may by resolution terminate the participation of a unit when the unit does not contribute its proportion of the total budget agreed upon in the original agreement and ordinance.  The termination occurs at the end of the fiscal year in which the joint board makes its finding.

(c) At the conclusion of the fiscal year in which a withdrawal or termination occurs, the joint board shall equitably distribute to participating units all money remaining in the fund.

(d) A withdrawal does not alter the obligation of the units and the joint board to continue to levy and collect special benefit taxes to provide debt service on all outstanding bonds of the joint district.

(e) If a unit has appropriated money for payment to a joint board that has been discontinued, the money shall be placed in the fund of the board of that unit.  If the separate board no longer exists, the money shall be deposited in the general fund of the unit.