2014 Indiana Code TITLE 36. LOCAL GOVERNMENT ARTICLE 9. TRANSPORTATION AND PUBLIC WORKS CHAPTER 25. SANITATION DEPARTMENT IN CERTAIN CITIES
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IC 36-9-25
Chapter 25. Sanitation Department in Certain Cities
IC 36-9-25-1
Application of chapter
Sec. 1. (a) This chapter applies to the following:
(1) A second class city located in a county having a population
of more than one hundred eleven thousand (111,000) but less
than one hundred fifteen thousand (115,000).
(2) Each municipality in a county having a population of more
than four hundred thousand (400,000) but less than seven
hundred thousand (700,000) in which the legislative body has
adopted this chapter by ordinance.
(b) This chapter also applies to each second class city not in such
a county in which the legislative body has adopted this chapter by
ordinance.
(c) In addition, in a consolidated city, sections 9 through 38 of this
chapter apply to the department of public works and the board of
public works, subject to IC 36-3-4-23.
As added by Acts 1981, P.L.309, SEC.98. Amended by P.L.12-1992,
SEC.179; P.L.80-1997, SEC.19; P.L.170-2002, SEC.168;
P.L.119-2012, SEC.230.
IC 36-9-25-2
Definitions
Sec. 2. As used in this chapter:
"Board" refers to a board of sanitary commissioners, or board of
public works of a consolidated city.
"Department" refers to a department of public sanitation, or
department of public works of a consolidated city.
"District" means the area within the jurisdiction of a department.
As added by Acts 1981, P.L.309, SEC.98.
IC 36-9-25-3
Establishment of department; composition of board of
commissioners; oaths, surety bonds, and compensation of
commissioners
Sec. 3. (a) A department of public sanitation is established as an
executive department of the municipality. However, in the case of a
district described in subsection (b)(2), the department is established
as an executive department of each municipality in the district.
(b) The department is under the control of a board of sanitary
commissioners, which is composed as follows:
(1) If the department is established under section 1(a) of this
chapter, the board consists of not less than three (3) but not
more than five (5) commissioners. All of the commissioners
shall be appointed by the municipal executive, unless one (1)
commissioner is the municipal engineer. Not more than two (2)
of the commissioners may be of the same political party, unless
the board consists of five (5) commissioners, in which case not
more than three (3) may be of the same political party.
(2) Notwithstanding subdivision (1), if the department is
established under section 1(a) of this chapter and the district
contains at least one (1) city having a population of less than
one hundred thousand (100,000) and at least one (1) town, the
board consists of one (1) commissioner from each municipality
in the district. The executive of each of those municipalities
shall appoint one (1) commissioner. If after all appointments are
made the board has fewer than five (5) commissioners, the
executive of the municipality with the largest population shall
appoint the number of additional commissioners needed to bring
the total to five (5). Not more than three (3) of the
commissioners may be of the same political party.
(3) If the department is established under section 1(b) of this
chapter, the board consists of not less than three (3)
commissioners but not more than five (5) commissioners. One
(1) commissioner is the city civil engineer. All other
commissioners shall be appointed by the city executive. Not
more than two (2) of the commissioners may be of the same
political party, unless the board consists of five (5)
commissioners, in which case not more than three (3) of the
commissioners may be of the same political party. However, if
the department is located in a county having a population of:
(A) more than one hundred five thousand (105,000) but less
than one hundred ten thousand (110,000);
(B) more than one hundred eleven thousand (111,000) but
less than one hundred fifteen thousand (115,000);
(C) more than one hundred seventy thousand (170,000) but
less than one hundred seventy-five thousand (175,000); or
(D) more than one hundred twenty-five thousand (125,000)
but less than one hundred thirty-five thousand (135,000);
and the city does not have a city civil engineer, one (1) of the
commissioners must be a licensed engineer, appointed by the
executive, with at least five (5) years experience in civil or
sanitary engineering. In addition, in such a city the
commissioners may not hold another public office. Not more
than two (2) of the commissioners may be of the same political
party, unless the board consists of five (5) commissioners, in
which case not more than three (3) of the commissioners may be
of the same political party.
(c) Before beginning the commissioner's duties, each
commissioner shall take and subscribe the usual oath of office. The
oath shall be endorsed upon the certificate of appointment and filed
with the municipal clerk.
(d) Each commissioner shall also execute a bond in the penal sum
of five thousand dollars ($5,000) payable to the state and conditioned
upon the faithful performance of the commissioner's duties and the
faithful accounting for all money and property that comes under the
commissioner's control. The bond must be approved by the municipal
executive.
(e) The appointed commissioners are entitled to a salary of not less
than three thousand six hundred dollars ($3,600) a year during actual
construction and not less than six hundred dollars ($600) a year in
other years.
(f) Notwithstanding IC 36-1-8-10, whenever this section requires
that the membership of the board of sanitary commissioners not
exceed a stated number of members from the same political party, at
the time of appointment the appointee must:
(1) have voted in the two (2) most recent primary elections held
by the party with which the appointee claims affiliation; or
(2) if the appointee did not vote in the two (2) most recent
primary elections or only voted in one (1) of those elections, be
certified as a member of the party with which the appointee
claims affiliation by that party's county chairman for the county
in which the appointee resides.
As added by Acts 1981, P.L.309, SEC.98. Amended by Acts 1982,
P.L.1, SEC.64; P.L.319-1989, SEC.1; P.L.320-1989, SEC.1;
P.L.12-1992, SEC.180; P.L.170-2002, SEC.169; P.L.175-2006,
SEC.21; P.L.17-2007, SEC.1; P.L.119-2012, SEC.231.
IC 36-9-25-4
Commissioners; terms of office; vacancies
Sec. 4. (a) The initial terms of the commissioners are as follows:
(1) If the department is established under section 1(a) of this
chapter, the initial terms are one (1), two (2), and three (3) years
for the first three (3) commissioners. If additional
commissioners are appointed, their initial terms are four (4)
years.
(2) If the department is established under section 1(b) of this
chapter, the initial terms of the two (2) appointed commissioners
are four (4) and three (3) years respectively. However, if a third
commissioner has also been appointed, the commissioner's
initial term is two (2) years.
All terms begin on January 1 following the establishment of the
department.
(b) As the initial terms expire, successors shall be appointed for
four (4) year terms. In a county that is listed in section 3(b)(3) of this
chapter, the appointments must be made before January 16 in the year
the term begins. If a vacancy occurs on the board, the appointing
authority shall appoint a commissioner for the remainder of the term
within thirty (30) days after the vacancy occurs.
As added by Acts 1981, P.L.309, SEC.98. Amended by Acts 1982,
P.L.1, SEC.65; P.L.320-1989, SEC.2; P.L.12-1992, SEC.181.
IC 36-9-25-5
Commissioners; removal from office; appeals
Sec. 5. (a) A commissioner may not be removed from office
except upon charges preferred before the municipal executive and a
hearing held on them. The only permissible reasons for removal are
neglect of duty and incompetence. The commissioner must be given
at least ten (10) days' notice of the time and place of the hearing and
the opportunity to produce evidence and examine and cross-examine
witnesses. All testimony shall be given under oath. The municipal
executive shall put his findings in writing and file them with the
municipal clerk.
(b) If the charges are sustained and the commissioner removed, he
may appeal the findings within ten (10) days after the date they are
filed with the clerk to the circuit or superior court of the county in
which the municipality is located. The commissioner shall file an
original complaint against the executive, stating the charges preferred
and the findings made. The court shall hear the appeal within thirty
(30) days after it is filed without a jury and shall either ratify or
reverse the finding of the executive. The judgment of the court is
final and an appeal may not be taken.
As added by Acts 1981, P.L.309, SEC.98.
IC 36-9-25-6
Commissioners; meetings; officers; quorum; approval of actions;
adoption of rules
Sec. 6. (a) Within six (6) months after the date this chapter is
adopted by ordinance, or within thirty (30) days after the
commissioners are appointed in a county that is listed in section
3(b)(3) of this chapter, the board shall hold a meeting for the purpose
of organization. The board shall choose one (1) of its members to be
president and another to be vice president, who shall perform the
usual duties of those offices. The officers serve for a period of one (1)
year or until their successors are elected and qualified. The municipal
fiscal officer shall perform the same duties with the funds and
accounts of the board as with the funds and accounts of the other
executive departments of the municipality, except as otherwise
provided in this chapter. The fiscal officer receives no additional
compensation for performing these duties.
(b) A majority of the members of the board constitutes a quorum,
and the concurrence of a majority is necessary for any action of the
board. The board shall hold regular meetings at the times it fixes and
may call special meetings at the times and upon the notice that it fixes
by rule or resolution. All meetings must be open to the public. The
board may adopt the rules that it considers necessary to conduct its
meetings and business and to control and manage the property under
its jurisdiction.
As added by Acts 1981, P.L.309, SEC.98. Amended by Acts 1982,
P.L.1, SEC.66; P.L.12-1992, SEC.182.
IC 36-9-25-7
Certain cities; effect of adoption of chapter; enabling ordinances
Sec. 7. (a) This section applies to cities in a county that is listed in
section 3(b)(3) of this chapter. However, subsections (b) and (c) of
this section also apply to municipalities that adopt this chapter by
ordinance under section 1(a) of this chapter.
(b) This chapter does not affect the enabling ordinances, the duties
of the municipality, or the rights of bondholders with regard to
sewage works revenue bonds or other outstanding revenue bonds
issued before this chapter was adopted by ordinance.
(c) Adoption of this chapter by ordinance does not affect the
system of fees for sewage treatment. All revenue derived from fees
shall be applied only to the following purposes:
(1) The administrative expense, operation, construction, and
maintenance of sewage works.
(2) The retirement of outstanding revenue bonds and any
additional revenue bonds that may be issued for construction of
sewage works and improvements, additions, and extensions to
them.
(3) The payment of the cost of improvements, additions, and
extensions to the extent permitted by the ordinances authorizing
the issuance of revenue bonds.
(d) The ordinance adopting this chapter must specify that the
district initially includes all territory within the corporate boundaries
of the city, including any territory, addition, platted subdivision, or
unplatted land lying outside the corporate boundaries of the city that
has been taken into or has been connected with the public sanitation
system of the city in accordance with another statute if the sewage or
drainage of that area discharges into or through the sewage system of
the city.
As added by Acts 1981, P.L.309, SEC.98. Amended by Acts 1982,
P.L.1, SEC.67; P.L.12-1992, SEC.183.
IC 36-9-25-8
Certain cities; enabling ordinances, specifications of purpose;
interim board members; prior approval of bonds
Sec. 8. (a) This section applies to cities in a county having a
population of more than one hundred twenty-five thousand (125,000)
but less than one hundred thirty-five thousand (135,000).
(b) The ordinance adopting this chapter must specify the purpose
or purposes for which the district is established, which must be one
(1) or more of the following:
(1) To provide for the collection, treatment, and disposal of
sanitary sewage and other water-carried wastes of the district.
(2) To provide for the drainage of storm and surface water to
relieve sanitary sewers of that water.
(3) To reduce the pollution of watercourses in the district.
(4) To provide for the collection and disposal of trash, garbage,
and solid waste.
If not all of these purposes are listed in the ordinance, one (1) or more
of the remaining purposes may, by subsequent ordinance, be added
to the purposes of the district.
(c) After adoption of the ordinance, three (3) interim members of
the board shall be appointed for terms until the January 1 following
the adoption. On the January 1 following the adoption, members shall
be appointed as provided in sections 3 and 4 of this chapter.
(d) Bonds of the district may not be sold without the prior
approval of the city legislative body. In addition, the legislative body
must approve all budgets and tax levies of the district.
As added by Acts 1981, P.L.309, SEC.98. Amended by Acts 1982,
P.L.1, SEC.68; P.L.12-1992, SEC.184; P.L.170-2002, SEC.170;
P.L.119-2012, SEC.232.
IC 36-9-25-9
Jurisdiction of board
Sec. 9. The board shall manage and control all sewage works of
the district. The board has concurrent power with the works board of
the municipality to construct, reconstruct, maintain, repair, and
regulate the use of all connecting and intercepting sewers. The board
shall collect and remove garbage, ashes, and other waste materials to
prevent the pollution of watercourses within the district and to protect
the public health. The board may purchase, acquire, construct,
reconstruct, operate, repair, and maintain all sewage works.
As added by Acts 1981, P.L.309, SEC.98.
IC 36-9-25-10
Powers of board
Sec. 10. In performing its duties the board may do the following:
(1) If needed for sewage works, condemn, appropriate, lease,
rent, purchase, and hold any real or personal property within the
district or within five (5) miles outside the boundaries of the
district.
(2) Enter upon any lots or lands for the purpose of surveying or
examining them to determine the location of any sewage works
or other structures, roads, levees, or walls connected with or
necessary for the use or operation of the facilities.
(3) Design, order, contract for, construct, reconstruct, and
maintain the sewage works.
(4) Build or have built all roads, levees, walls, other structures,
or lagoons that may be desirable in connection with sewage
works and make improvements to the grounds and premises
under its control, including the erection and operation of a plant
for the removal of sand and gravel from the grounds.
(5) Compel the owners, operators, or lessees of all factories,
shops, works, plants, or other structures to treat, purify, or
eliminate from the sewage and trade waste of the premises any
ingredients that interfere with the successful operation of the
sewage works. It may compel the owners, operators, or lessees
of the premises located on a watercourse to direct an excessive
flow of water into the watercourse.
(6) Review and approve plans for privately constructed plants
for the treatment or elimination of trade waste. This is to insure
that an owner, operator, or lessee of a house, factory, shop,
works, plant, or other structure that may be directly or indirectly
connected with sewers emptying into the sewage works does not
construct a purification plant, machine, or other device for
eliminating or treating the trade waste from those places for the
purpose of eliminating ingredients that would harm the sewage
works until the plans have been submitted to and approved by
the board. After plans have been submitted to the board, it may
reject them in their entirety or order changes to be made that
include its supervision and regulation of the operation. An
appeal may be taken from the decision of the board rejecting the
plans submitted or ordering changes by the owner, operator, or
lessee of a proposed private plant, in the same manner as
appeals from the works board as far as applicable.
(7) Build or have built a plant or plants and all appurtenances
for the treatment of sludge, pressing of sludge, or converting
sludge into marketable fertilizer.
(8) Sell any byproduct from the sewage works, or furnish any
byproduct free for the use of the municipality or for other public
uses, with revenue derived from the sale above the amount
needed for maintenance to be paid into the sanitary district bond
fund, or if no bonds are outstanding, to revert to its general
fund.
(9) Compel the owners, lessees, or agents in possession of lots
or land from which sewers discharge sewage or drainage and
pollute a watercourse or body of water or constitute a menace to
public health and welfare to connect the sewers with drains
leading directly or indirectly into sewage works regulating the
use and assessing reasonable charges.
(10) Construct or have constructed regulating devices at the
junction of combined sewers with intercepting sewers to
regulate the discharge into the intercepting and connecting
sewers to prevent the pollution of streams or bodies of water or
a menace to the public health and welfare.
(11) Construct, add to, reconstruct, or maintain an incinerating
or reduction plant or other plants for the conversion, destruction,
or disposal of garbage, filth, ashes, dirt, and rubbish. The board
may operate the plant in connection with sewage works, and sell
any byproducts derived from the garbage, filth, ashes, or
rubbish, including sand and gravel taken from lands under the
control of the board at prices that are determined by the board,
or furnish it free to the municipality or for other public uses,
with revenue derived above the amount needed for maintenance
to be paid into the sanitary district bond fund, or if no bonds are
outstanding, to revert to its general fund.
(12) Take charge of all real property, belonging to the
municipality and under the control of the works board, suitably
located for sewage works if the board demands the works board,
subject to contracts, to relinquish and transfer control of real and
personal property used by the works board for the collection and
removal of garbage and ashes. The transfer of personal property
must be made by resolution adopted by the works board
describing the property, with a copy of the resolution to be
delivered to the board and made a matter of record in the
minutes of the proceedings of the board.
(13) Collect and remove, or contract for the collection and
removal of, all garbage, ashes, dead animals, refuse, and wastes
from domestic premises, and construct or have constructed
stations, including barns, garages, sheds, blacksmith shops,
dumps, incinerators, and all other useful or necessary
improvements for this purpose. This includes the power to
collect and remove soil and other sewage in areas not provided
with sewers, and then to discharge or dispose of it into sewage
works.
(14) Enter into contracts in the name of the municipality, with
the approval of the executive as provided by law. However, in
the case of a district described in section 3(b)(2) of this chapter,
the board may enter into contracts in the name of:
(A) a municipality in the district, with the approval of the
executive of the municipality; or
(B) the district, with the approval of the board.
(15) Employ and pay for all engineering, architectural, legal,
and other professional services needed in carrying out this
chapter, including determining the number, prescribing the
duties, and fixing the compensation for all its engineers,
chemists, attorneys, bacteriologists, surveyors, inspectors,
clerks, stenographers, laborers, supervisors, and other
employees as provided by law for other executive departments
of the municipality.
(16) Adopt resolutions, rules, and bylaws that are necessary to
carry out this chapter, including repealing or amending them
consistent with this chapter.
(17) Prepare a schedule of reasonable service fees and collect
them from persons who own, lease, or possess or control as
tenants or as agents lots or lands located outside the boundaries
of the district if the lots or lands are benefited by connection
into the sanitary sewer system of the district as described in this
chapter, with the proceeds from sewage connections and
treatment service credited to the general fund of the district for
general use and maintenance purposes. The fees may be fixed,
repealed, or amended, or the service discontinued, by the board
at its discretion.
(18) Sue or be sued in the name of the municipality, with
payment for obligations and of a judgment against the
municipality in an action to be made solely from funds of the
department and its district that may be available for this
purpose. In the case of a district described in section 3(b)(2) of
this chapter, the board may sue or be sued in the name of any
municipality in the district or in the name of the district. If a
judgment is entered against a municipality in the district,
payment of obligations and the judgment shall be made solely
from available funds of the department or the district.
(19) Pay for services rendered or for any other obligations
incurred by the board while executing its powers, or pay any
judgments, including interest and costs, by issuing and selling
the bonds of the district, or obtaining temporary loans or levying
taxes as authorized by this or other statutes for any other
purpose.
(20) Lease, rent, purchase, and hold real or personal property
more than five (5) miles outside the boundaries of the district if
the property is needed:
(A) to store sludge;
(B) to convert sludge into marketable fertilizer; or
(C) by the district to conduct activities that are related to
activities described in clause (A) or (B).
As added by Acts 1981, P.L.309, SEC.98. Amended by P.L.175-2006,
SEC.22.
IC 36-9-25-11
Fees; persons obligated to pay; establishment by resolution; public
hearing required; fee schedule; change of fees; nonpayment of fees;
penalties and liens; cost recovery; property not occupied by owner
Sec. 11. (a) In connection with its duties, the board may fix fees
for the treatment and disposal of sewage and other waste discharged
into the sewerage system, collect the fees, and establish and enforce
rules governing the furnishing of and payment for sewage treatment
and disposal service. The fees must be just and equitable and shall be
paid by any user of the sewage works and, except as otherwise
provided in an ordinance provision described in subsection (l), the
owner of every lot, parcel of real property, or building that is
connected with and uses the sewage works of the district by or
through any part of the sewerage system. This section applies to
owners of property that is partially or wholly exempt from taxation,
as well as owners of property subject to full taxation.
(b) The board may change fees from time to time. The fees,
together with the taxes levied under this chapter, must at all times be
sufficient to produce revenues sufficient to pay operation,
maintenance, and administrative expenses, to pay the principal and
interest on bonds as they become due and payable, and to provide
money for the revolving fund authorized by this chapter.
(c) Fees may not be established until a public hearing has been
held at which all the users of the sewage works and owners of
property served or to be served by the works, including interested
parties, have had an opportunity to be heard concerning the proposed
fees. After introduction of the resolution fixing fees, and before they
are finally adopted, notice of the hearing setting forth the proposed
schedule of fees shall be given by publication in accordance with
IC 5-3-1. After the hearing the resolution establishing fees, either as
originally introduced or as amended, shall be passed and put into
effect. However, fees related to property that is subject to full
taxation do not take effect until they have been approved by
ordinance of the municipal legislative body or, in the case of a district
described in section 3(b)(2) of this chapter, under section 11.3 of this
chapter.
(d) A copy of the schedule of the fees shall be kept on file in the
office of the board and must be open to inspection by all interested
parties. The fees established for any class of users or property served
shall be extended to cover any additional premises thereafter served
that fall within the same class, without the necessity of hearing or
notice.
(e) A change of fees may be made in the same manner as fees
were originally established. However, if a change is made
substantially pro rata for all classes of service, hearing or notice is not
required, but approval of the change by ordinance of the municipal
legislative body is required, and, in the case of a district described in
section 3(b)(2) of this chapter, approval under section 11.3 of this
chapter is required.
(f) If a fee established is not paid within thirty (30) days after it is
due, the board may recover, in a civil action in the name of the
municipality, the amount, together with a penalty of ten percent
(10%) and a reasonable attorney's fee from:
(1) the delinquent user; or
(2) the owner of the property;
subject to any ordinance described in subsection (l).
(g) Except as otherwise provided in subsection (h) or in an
ordinance provision described in subsection (l), fees assessed against
real property under this section also constitute a lien against the
property assessed. The lien attaches at the time of the filing of the
notice of lien in the county recorder's office. The lien is superior to
all other liens except tax liens, and shall be enforced and foreclosed
in the same manner as is provided for liens under IC 36-9-23-33 and
IC 36-9-23-34.
(h) A fee assessed against real property under this section
constitutes a lien against the property assessed only when the fee is
delinquent for no more than three (3) years from the day after the fee
is due.
(i) In addition to the:
(1) penalties under subsections (f) and (g); or
(2) alternative penalty available under section 11.5 of this
chapter;
a delinquent user may not discharge water into the public sewers and
may have the property disconnected from the public sewers.
(j) The authority to establish a user fee under this section includes
fees to recover the cost of construction of sewage works from
industrial users as defined and required under federal statute or rule.
Any industrial users' cost recovery fees may become a lien upon the
real property and shall be collected in the manner provided by law.
In addition, the imposition of the fees, the use of the amounts
collected, and the criteria for the fees must be consistent with the
regulations of the federal Environmental Protection Agency.
(k) The authority to establish a user fee under this section includes
fees to recover the costs associated with providing financial
assistance under section 42 of this chapter. A fee that is:
(1) established under this subsection or any other law; and
(2) used to provide financial assistance under section 42 of this
chapter;
is considered just and equitable if the project for which the financial
assistance is provided otherwise complies with the requirements of
this chapter.
(l) For purposes of this subsection, "municipal legislative body"
refers to the legislative body of each municipality in the district, in
the case of a district described in section 3(b)(2) of this chapter. This
subsection does not apply to a conservancy district established under
IC 14-33 for the collection, treatment, and disposal of sewage and
other liquid wastes. In an ordinance adopted under this chapter, the
municipal legislative body may include one (1) or more of the
following provisions with respect to property occupied by someone
other than the owner of the property:
(1) That fees for the services rendered by the sewerage system
to the property are payable by the person occupying the
property. At the option of the municipal legislative body, the
ordinance may include any:
(A) requirement for a deposit to ensure payment of the fees
by the person occupying the property; or
(B) other requirement to ensure the creditworthiness of the
person occupying the property as the account holder or
customer with respect to the property;
that the municipal legislative body may lawfully impose.
(2) That the fees for the services rendered by the sewerage
system to the property are payable by the person occupying the
property if one (1) of the following conditions is satisfied:
(A) Either the property owner or the person occupying the
property gives to the board written notice that indicates that
the person occupying the property is responsible for paying
the fees with respect to the property and requests that the
account or other customer or billing records maintained for
the property be in the name of the person occupying the
property. At the option of the municipal legislative body, the
ordinance may provide that a document that:
(i) is executed by the property owner and the person
occupying the property;
(ii) identifies the person occupying the property by name;
and
(iii) indicates that the person occupying the property is
responsible for paying the fees assessed by the board with
respect to the property;
serves as written notice for purposes of this clause.
(B) The account or other customer or billing records
maintained by the board for the property otherwise indicate
that:
(i) the property is occupied by someone other than the
owner; and
(ii) the person occupying the property is responsible for
paying the fees.
(C) The property owner or the person occupying the property
satisfies any other requirements or conditions that the
municipal legislative body includes in the ordinance.
(3) That fees assessed against the property for the services
rendered by the sewerage system to the property do not
constitute a lien against the property, notwithstanding
subsection (g), and subject to any requirements or conditions set
forth in the ordinance.
This subsection may not be construed to prohibit a municipal
legislative body from including in an ordinance adopted under this
chapter any other provision that the municipal legislative body
considers appropriate.
As added by Acts 1981, P.L.309, SEC.98. Amended by Acts 1981,
P.L.45, SEC.65; Acts 1982, P.L.77, SEC.22; P.L.55-1988, SEC.13;
P.L.64-1989, SEC.3; P.L.175-2006, SEC.23; P.L.168-2009, SEC.10;
P.L.196-2014, SEC.8.
IC 36-9-25-11.1
Deposits to secure payment of fees
Sec. 11.1. In a consolidated city, the board may also require the
users of the sewage service to make a reasonable deposit in advance
of a connection or reconnection to the sewerage system to secure
payment of the fees. The deposit may not exceed thirty-three percent
(33%) of the estimated annual cost of the service for a particular user.
As added by P.L.349-1985, SEC.1.
IC 36-9-25-11.2
Fees; notice of delinquency
Sec. 11.2. If a fee established under section 11 of this chapter is
not paid within thirty (30) days after it is due, a copy of any notice of
delinquency sent to a delinquent user who is a tenant must be sent to
the owner of the property occupied by the tenant at the latest address
of the owner as shown on the property tax records of the county in
which the property is located.
As added by P.L.237-1997, SEC.1.
IC 36-9-25-11.3
Procedure for setting fees in certain districts
Sec. 11.3. (a) This section applies to a board and district created
under section 3(b)(2) of this chapter.
(b) For purposes of this section, "commission" refers to the
Indiana utility regulatory commission created by IC 8-1-1-2.
(c) For purposes of this section, "fees" means fees:
(1) for the treatment and disposal of sewage and other waste
discharged into the sewer system of the district; and
(2) related to property that is subject to full taxation.
(d) Fees do not take effect until the fees are:
(1) approved by the board; and
(2) either:
(A) approved in an ordinance adopted by the legislative body
of each municipality in the district; or
(B) established by the commission under this section.
(e) Not earlier than thirty (30) days after fees are approved under
subsection (d)(1), the board may petition the commission to establish
the fees under:
(1) the procedures set forth in IC 8-1-2; and
(2) subsection (f).
(f) The commission shall observe the following requirements
when establishing fees for a district:
(1) Fees must be sufficient to enable the district to furnish
reasonably adequate services and facilities.
(2) Fees for a service must be nondiscriminatory, reasonable,
and just and must produce sufficient revenue, together with
taxes levied under this chapter, to do the following:
(A) Pay all legal and other necessary expenses incident to the
operation of the utility, including the following:
(i) Maintenance costs.
(ii) Operating charges.
(iii) Upkeep.
(iv) Repairs.
(v) Depreciation.
(vi) Interest charges on bonds or other obligations,
including leases.
(B) Provide a sinking fund for the liquidation of bonds or
other obligations, including leases.
(C) Provide a debt service reserve for bonds or other
obligations, including leases, in an amount established by the
board. The amount may not exceed the maximum annual
debt service on the bonds or obligations or the maximum
annual lease rentals, if any.
(D) Provide adequate money for working capital.
(E) Provide adequate money for making extensions and
replacements to the extent not provided for through
depreciation in clause (A).
(F) Provide money for the payment of taxes that may be
assessed against the district.
(3) The fees charged by the district must produce an income
sufficient to maintain district property in a sound physical and
financial condition to render adequate and efficient service. Fees
may not be too low to meet these requirements.
(4) If the board petitions the commission under subsection (e),
the fees established must produce a reasonable return on the
sanitary district facilities.
(5) Fees other than fees established for a municipally owned
utility taxed under IC 6-1.1-8-3 must be sufficient to
compensate the municipality for taxes that would be due the
municipality on the utility property located in the municipality
if the property were privately owned.
(6) The commission must grant a request by the board to
postpone an increase in fees until after the occurrence of a future
event.
(g) The board may transfer fees in lieu of taxes established under
subsection (f)(5) to the general fund of the appropriate municipality.
(h) Fees established by the commission under this section take
effect to the same extent as if the fees were approved by an ordinance
adopted by the legislative body of each municipality in the district.
As added by P.L.175-2006, SEC.24.
IC 36-9-25-11.5
Discontinuance of water service; disputed bills; notice; liability of
utility
Sec. 11.5. (a) As an alternative to the penalties provided in section
11 of this chapter, the board may require that the water utility
providing water service to a delinquent user discontinue service until
payment of all overdue user fees, together with any penalties
provided in this section, are received by the municipality.
(b) If a fee established is not paid within one (1) monthly billing
cycle after it is due, the board or its designee shall send notice to the
delinquent user stating:
(1) the delinquent amount due, together with any penalty;
(2) that water service may be disconnected if the user continues
not to pay the delinquency and any penalty; and
(3) the procedure for resolving disputed bills.
The municipality shall provide by ordinance a procedure for
resolving disputed bills that includes an opportunity for a delinquent
user to meet informally with designated personnel empowered to
correct incorrect charges. Payment of a disputed bill and penalties by
a user does not constitute a waiver of rights to subsequently claim
and recover from the municipality sums improperly charged to the
user.
(c) If the user fails to pay the delinquent amount or otherwise
resolve the charges as specified in subsection (a), the board or its
designee shall give written notice to the water utility serving the user
to discontinue water service to the premises designated in the notice
until notified otherwise. The notice must identify the delinquent
sewer user in enough detail to enable the water utility to identify the
water service connection that is to be terminated. Upon receipt of the
notice, the water utility shall disconnect water service to the user.
(d) Water service may not be shut off under this section if a local
board of health has found and certified to the municipality that the
termination of water service will endanger the health of the user and
others in the municipality.
(e) The water utility that discontinues water service in accordance
with an order from the board or its designee does not incur any
liability except to the extent of its own negligence or improper
conduct.
(f) If the water utility does not discontinue service within thirty
(30) days after receiving notice from the municipality, the utility is
liable for any user fees incurred thirty (30) days after receipt of notice
to discontinue water service and that are not collected from the user.
As added by P.L.349-1985, SEC.2. Amended by P.L.55-1988,
SEC.14; P.L.64-1989, SEC.4; P.L.93-1993, SEC.9; P.L.98-1993,
SEC.6.
IC 36-9-25-11.7
Overdue user fees; ordinance to expense as bad debts
Sec. 11.7. A municipality may, by ordinance, establish a
procedure to expense as bad debt overdue user fees, together with any
penalties provided under this chapter, if the amount of fees and
penalties involved does not exceed twenty-five dollars ($25).
As added by P.L.55-1988, SEC.15.
IC 36-9-25-12
Basis of fees; measurement of water and sewage usage
Sec. 12. (a) The fees for the treatment and disposal of sewage may
be based on:
(1) a flat charge for each sewer connection;
(2) the amount of water used on the premises;
(3) the number and size of water outlets on the premises;
(4) the amount, strength, or character of sewage discharged into
the sewers;
(5) the size of sewer connections; or
(6) any combination of these factors or other factors that the
board determines necessary in order to establish just and
equitable rates and charges.
(b) The board may enter into contracts with a water utility
furnishing water service to users or property served in the district
relative to:
(1) ascertaining the amount of water consumed;
(2) the computation of the amount of charge to be billed to each
user or property served;
(3) the billing and collection of the amounts; and
(4) the discontinuance of water service to delinquent users as
provided in section 11.5 of this chapter.
(c) As an alternative to subsection (b), the board may require a
water utility furnishing water service to users or property served in
the district to perform the functions listed in subsection (b). If the
water utility and the board do not agree upon the reasonable
compensation to be paid to the water utility for the services described
in subsection (b), the board or the water utility may apply to the
utility regulatory commission to establish the reasonable
compensation for the services. Upon receipt of an application, the
utility regulatory commission, after notice to the water utility and the
board and after a hearing, shall establish the reasonable compensation
to be paid for the services. The water utility shall then render the
services described in return for the compensation fixed.
(d) If a person owns or occupies real property that is connected to
the sewage works and either directly or indirectly uses water obtained
from a source other than a water utility that is not measured by a
water meter acceptable to the board, then the board may require the
person, at his own expense, to furnish, install, and maintain a water
or sewage measuring device acceptable to the board.
As added by Acts 1981, P.L.309, SEC.98. Amended by P.L.349-1985,
SEC.3; P.L.23-1988, SEC.129.
IC 36-9-25-13
Authorized actions; regulation of kinds or amounts of chemicals
and strengths of waste and other substances detrimental to sewage
works
Sec. 13. (a) The board, in the name of the municipality, may bring
an action to recover damages for:
(1) the breach of an agreement, express or implied, relating to
the construction, management, or repair of sewage works under
its control, including real property; or
(2) injury to the personal or real property used in the sanitary
disposal of sewage in a municipality located within the district.
(b) The board may recover possession of property, may bring an
action for the specific performance of an agreement, and may use, in
the name of the municipality, any legal or equitable remedy necessary
to protect and enforce the rights and perform the duties of the
department.
(c) The board may establish limits on the kinds or amounts of
chemicals and the strength of the waste or other substances the board
considers detrimental to the sewage works. If a person discharges
sewage into the sewage works that exceeds limits set by the board,
the board may order the person to cease using the sewage works upon
a hearing with notice. However, if evidence indicates a public health
hazard is being created, the board may summarily order the person to
cease without notice or hearing. Orders of the board may be enforced
by bringing an action to enjoin discharges into the sewer works in
any court in the county having jurisdiction to hear equity actions. A
person aggrieved by an order of the board is entitled to appeal the
order to the circuit or superior court of the county in which the city
is located. If an order is given without notice, an appeal must be
perfected within ten (10) days after receipt of the order or the right to
appeal is considered waived.
(d) The board of a department in a district described in section
3(b)(2) of this chapter may bring an action in the name of:
(1) a municipality in the district with the approval of the
executive of the municipality; or
(2) the district, with the approval of the board.
As added by Acts 1981, P.L.309, SEC.98. Amended by P.L.175-2006,
SEC.25.
IC 36-9-25-14
Special taxing districts; incorporation of territory upon request;
sewer service agreements
Sec. 14. (a) As to each municipality to which this chapter applies:
(1) all the territory included within the corporate boundaries of
the municipality; and
(2) any territory, town, addition, platted subdivision, or
unplatted land lying outside the corporate boundaries of the
municipality that has been taken into the district in accordance
with a prior statute, the sewage or drainage of which discharges
into or through the sewage system of the municipality;
constitutes a special taxing district for the purpose of providing for
the sanitary disposal of the sewage of the district in a manner that
protects the public health and prevents the undue pollution of
watercourses of the district.
(b) Upon request by:
(1) a resolution adopted by the legislative body of another
municipality in the same county; or
(2) a petition of the majority of the resident freeholders in a
platted subdivision or of the owners of unplatted land outside
the boundaries of a municipality, if the platted subdivision or
unplatted land is in the same county;
the board may adopt a resolution incorporating all or any part of the
area of the municipality, platted subdivision, or unplatted land into
the district.
(c) A request under subsection (b) must be signed and certified as
correct by the secretary of the legislative body, resident freeholders,
or landowners. The original shall be preserved in the records of the
board. The resolution of the board incorporating an area in the district
must be in writing and must contain an accurate description of the
area incorporated into the district. A certified copy of the resolution,
signed by the president and secretary of the board, together with a
map showing the boundaries of the district and the location of
additional areas, shall be delivered to the auditor of the county within
which the district is located. It shall be properly indexed and kept in
the permanent records of the offices of the auditor.
(d) In addition, upon request by ten (10) or more interested
resident freeholders in a platted or unplatted territory, the board may
define the limits of an area within the county and including the
property of the freeholders that is to be considered for inclusion into
the district. Notice of the defining of the area by the board, and notice
of the location and limits of the area, shall be given by publication in
accordance with IC 5-3-1. Upon request by a majority of the resident
freeholders of the area, the area may be incorporated into the district
in the manner provided in this section. The resolution of the board
incorporating the area into the district and a map of the area shall be
made and filed in the same manner.
(e) In addition, a person owning or occupying real property
outside the district may enter into a sewer service agreement with the
board for connection to the sewage works of the district. If the
agreement provides for connection at a later time, the date or the
event upon which the service commences shall be stated in the
agreement. The agreement may impose any conditions for connection
that the board determines. The agreement must also provide the
amount of service charge to be charged for connection if the persons
are not covered under section 11 of this chapter, with the amount to
be fixed by the board in its discretion and without a hearing.
(f) All sewer service agreements made under subsection (e) or
(after June 30, 2013) a signed memorandum of the sewer service
agreement shall be recorded in the office of the recorder of the county
where the property is located. The agreements run with the property
described and are binding upon the persons owning or occupying the
property, their personal representatives, heirs, devisees, grantees,
successors, and assigns. Each agreement that is recorded, or each
agreement of which a signed memorandum is recorded, and that
provides for the property being served to be placed on the tax rolls
shall be certified by the board to the auditor of the county where the
property is located. The certification must state the date the property
is to be placed on the tax rolls, and upon receipt of the certification
together with a copy of the agreement, the auditor shall immediately
place the property certified upon the rolls of property subject to the
levy and collection of taxes for the district. An agreement may
provide for the collection of a service charge for the period services
are rendered before the levy and collection of the tax.
(g) Except as provided in subsection (j), sewer service agreements
made under subsection (e) must contain a waiver provision that
persons (other than municipalities) who own or occupy property
agree for themselves, their executors, administrators, heirs, devisees,
grantees, successors, and assigns that they will:
(1) neither object to nor file a remonstrance against the proposed
annexation of the property by a municipality within the
boundaries of the district;
(2) not appeal from an order or a judgment annexing the
property to a municipality; and
(3) not file a complaint or an action against annexation
proceedings.
(h) This subsection does not affect any rights or liabilities accrued
or proceedings begun before July 1, 2013. Those rights, liabilities,
and proceedings continue and shall be imposed and enforced under
prior law as if this subsection had not been enacted. For contracts
executed after June 30, 2013, a waiver of the right to remonstrate
under subsection (g) is binding as to an executor, administrator, heir,
devisee, grantee, successor, or assign of a party to a sewer service
agreement under subsection (g) only if the executor, administrator,
heir, devisee, grantee, successor, or assign:
(1) has actual notice of the waiver; or
(2) has constructive notice of the waiver because the sewer
service agreement or a signed memorandum of the sewer service
agreement stating the waiver has been recorded in the chain of
title of the property.
(i) This section does not affect any sewer service agreements
entered into before March 13, 1953.
(j) Subsection (g) does not apply to a landowner if all of the
following conditions apply:
(1) The landowner is required to connect to a sewer service
because a person other than the landowner has polluted or
contaminated the area.
(2) The costs of extension of service or connection to the sewer
service are paid by a person other than the landowner or the
municipality.
As added by Acts 1981, P.L.309, SEC.98. Amended by Acts 1981,
P.L.45, SEC.66; P.L.172-1995, SEC.6; P.L.243-2013, SEC.4.
IC 36-9-25-15
Special taxing districts; incorporation of territory by board
Sec. 15. (a) The board, on its own initiative, whenever any
territory, by its contour and watershed, or because of the extension of
sewers by the municipality, is capable of draining sewage into or
connecting with the sanitary system, may incorporate any territory,
whether platted or unplatted, into the district by adopting a resolution
to that effect describing the reason it is to be included. A certified
copy of the resolution is conclusive evidence in any proceeding that
the territory described was properly incorporated and constitutes a
part of the district, subject to this chapter.
(b) Immediately after the passage of a resolution under subsection
(a), a notice stating the time and place for a public hearing on the
resolution shall be published in accordance with IC 5-3-1. By the date
and time of the hearing any affected person may file in the office of
the board a written remonstrance to having his lands included. The
board shall either confirm, modify, or rescind the resolution after the
hearing. An appeal may be taken from the decision by one (1) or
more persons considering themselves aggrieved or injuriously
affected, as long as those appealing have filed written remonstrances,
as provided in this subsection, by filing their complaint within thirty
(30) days after the final decision of the board. The appeal shall be
governed by IC 34-13-6.
(c) If the court is satisfied upon hearing an appeal under
subsection (b):
(1) that less than seventy-five percent (75%) of the persons
owning property in the territory sought to be incorporated in the
district have remonstrated; and
(2) that the incorporation of the territory into the district will be
for its interest and will cause no manifest injury to the persons
owning property in the territory;
the court shall so find and the incorporation shall be ordered. If the
court is satisfied that seventy-five percent (75%) or more of the
persons owning property in the territory sought to be incorporated
have remonstrated, then the incorporation may not be ordered unless
the court further finds from the evidence that unless it is incorporated,
the health and welfare of residents of the territory or of the adjoining
lands will be materially affected and that the safety and welfare of the
inhabitants and property of other persons and property will be
endangered.
(d) Pending an appeal under subsection (b) and during the time
within which the appeal may be taken, the territory sought to be
incorporated is not a part of the district. Upon the determination of
the appeal, the judgment must particularly describe the resolution
upon which the appeal is based. The clerk of the court shall deliver
a certified copy of the judgment to the secretary of the board, who
shall record it in the minute book of the board and make a
cross-reference to the page upon the margin where the original
resolution was recorded. If a decision is adverse to an incorporation,
further proceedings may not be taken by the board to incorporate that
territory within the district for a period of one (1) year after the
rendition of the judgment.
As added by Acts 1981, P.L.309, SEC.98. Amended by Acts 1981,
P.L.45, SEC.67; P.L.1-1998, SEC.216.
IC 36-9-25-16
Tax levies; liability of disannexed and newly added territory
Sec. 16. (a) If any bonds of the district are outstanding, and until
they are fully paid, all property included within the district at the time
the bonds were issued and sold remains subject to taxes levied and
for its proportion of the indebtedness, notwithstanding that the
property and territory may have been disannexed from the district.
(b) Any property in territory added to the district, as a condition
of the special benefits it receives, becomes liable for its proportion of
all taxes levied to pay all bonds of the special taxing district that are
either outstanding or are later issued and sold. The proportion of
taxation shall be determined in the same manner as when territory is
annexed to a municipality under IC 36-4-3.
As added by Acts 1981, P.L.309, SEC.98.
IC 36-9-25-17
Payment of preliminary expenses
Sec. 17. (a) All preliminary expenses actually incurred by the
board in providing necessary records, giving notice, employing
clerks, engineers, attorneys, and other employees, making surveys,
and all other expenses that must be paid before the issue and sale of
the bonds under section 27 of this chapter, and before the collection
of taxes levied under section 32 of this chapter, shall be met and paid
according to this section. The board shall, from time to time, certify
items of expense to the municipal fiscal officer, directing him to pay
those amounts. The fiscal officer shall at once draw his warrant, with
the warrant to be paid out of the unappropriated part of the general
fund of the municipality, without a special appropriation being made
by the municipal legislative body.
(b) If there is no unappropriated money in the general fund, the
fiscal officer shall recommend to the legislative body either the
temporary transfer from other funds of the municipality of a
sufficient amount to meet the items of expense, or the making of a
temporary loan for this purpose. The legislative body shall, at once,
make the transfer or authorize the temporary loan in the same manner
that other temporary loans are made by the municipality. However,
the fund or funds of the municipality from which payments are made
must be fully reimbursed and repaid by the board:
(1) out of the first proceeds of the sale of bonds to the extent
that expenses paid are chargeable to the cost of acquiring land
or the construction of a work under a resolution adopted and
confirmed under section 18 of this chapter; or
(2) out of the fund raised by taxation under section 32 of this
chapter to the extent that expenses paid are in the nature of a
general expense of the board.
As added by Acts 1981, P.L.309, SEC.98.
IC 36-9-25-18
Findings; preparation of general plans in connection with project;
declaratory resolutions; adoption; remonstrance; hearings and
appeals
Sec. 18. (a) If upon investigation it is found by the board of a
municipality located on or near a watercourse that:
(1) the watercourse is being polluted by the discharge of
sewage, drainage, or other harmful matter from the sewage or
drainage systems of the municipality;
(2) a system of sewage disposal is necessary for the public
health and welfare; and
(3) the construction of a system for the disposal of the sewage
and drainage of the territory will be of public utility and benefit;
the board shall have prepared general plans for the entire project,
including a plat showing the general scope of it and the location and
bounds of all real property then considered necessary to be acquired
or removed, or that would be injuriously affected, in connection with
the project. It shall also have prepared separate descriptions of all real
property and of all personal property affected, and shall determine the
estimated cost of all the work, including the estimated damages to be
awarded to the owners of the real and personal property. The
adoption or filing of any specifications covering all or parts of the
project and details of other matters is optional with the board, and it
may also receive and file alternate plans and specifications, submitted
by any person for all or any part of the project. The board may, at the
final hearing, adopt all or any of these materials in place of the
board's plans and specifications.
(b) When general plans under subsection (a) have been prepared
by the board, it shall adopt a resolution declaring that, upon
investigation, it has been found:
(1) that the watercourse particularly described in the resolution
is being polluted by the discharge of sewage, drainage, or other
harmful matter accumulating within the boundaries of the
district; and
(2) that it is necessary for the public health and welfare and will
be of public utility and benefit to construct and maintain sewage
works to prevent the pollution of the watercourse, and, for that
purpose, to appropriate the property described.
The board shall adopt all general plans and estimates in the
resolution, which must be open to inspection by all persons interested
in or affected by the appropriation of property or the construction of
the work.
(c) Upon the adoption of the resolution, the board shall, in
accordance with IC 5-3-1, publish notice of:
(1) the adoption; and
(2) the fact that general plans and estimates have been prepared
and can be inspected.
The notice must name a date on which the board will receive or hear
remonstrances from persons interested in or affected by the
proceedings and when it will determine the public utility and benefit
of the project. A similar notice shall be mailed to each owner of land
to be appropriated under the resolution. If a nonresident owner's
residence is unknown to the board, then he is considered to have been
notified of the pendency of the proceedings by the publication of
notice. All persons affected in any manner by the proceeding,
including all taxpayers in the district, are considered to be notified of
the pendency of the proceedings and of all subsequent acts, hearings,
adjournments, and orders of the board by the original notice by
publication.
(d) In the resolution and notice, separate descriptions of each piece
or parcel of land are not required, but it is a sufficient description of
the property purchased, to be purchased, or to be appropriated or
damaged to give a description of the entire tract by metes and bounds
whether the property is composed of one (1) or more lots or parcels
and whether it is owned by one (1) or more persons. If the land or a
part of it is to be acquired by purchase, the resolution must also state
the maximum proposed cost.
(e) The board may, at any time before the adoption of the
resolution, obtain from the owner or owners of the land an option for
its purchase or may enter into a contract for its purchase upon terms
and conditions that the board considers best. The option or contract
is subject to the final action of the board confirming, modifying, or
rescinding the resolution and to the condition that the land may be
paid for only out of the special fund resulting from the sale of
sanitary district bonds as provided in this chapter.
(f) The title to any land, rights-of-way, or other property acquired
under the resolution, whether by purchase or by appropriation, does
not vest in the municipality until it is paid for out of the special fund
created by the sale of bonds. Neither an indebtedness nor an
obligation of any kind is incurred by the municipality in its corporate
capacity because of the acquisition of land, rights-of-way, or other
property. All land, rights-of-way, or other property acquired shall be
held by the municipality in trust for sanitary purposes for the use and
benefit of the district and for the general public.
(g) At or before the time fixed for the hearing, an owner of land,
rights-of-way, or other property to be appropriated under the
resolution or injuriously affected, including any person owning real
or personal property located within the boundaries of the district, may
file a written remonstrance with the board. At the hearing, which may
be adjourned from time to time, the board shall hear all persons
interested in the proceedings and all remonstrances that have been
filed. After considering them, the board shall take final action
determining the public utility and benefit of the proposed proceedings
and confirm, modify and confirm, or rescind the resolution. The final
action shall be recorded, and is final and conclusive upon all persons.
However, a person who has remonstrated in writing as provided in
this subsection and who is aggrieved by the decision of the board,
may, within ten (10) days, take an appeal to the superior court of the
county in which the district is located.
(h) The remonstrator shall file in the office of the clerk of the court
a copy of the order of the board and his remonstrance, together with
his bond conditioned to pay the costs of the appeal if the appeal is
determined against him. The only ground of remonstrance that the
court has jurisdiction to hear on appeal is whether it will be of public
utility and benefit to establish and construct the proposed sewage
works described in the resolution. The burden of proof is on the
remonstrator. The cause shall be summarily tried by the court without
a jury as other civil cases are tried. All of the judges of the court shall
sit in the trial. All remonstrances upon which an appeal is taken shall
be consolidated and heard as one (1) cause of action by the court. The
cause shall be heard and determined by the court within thirty (30)
days after the time of the filing of the appeal. Upon the date fixed for
hearing, the court shall hear evidence upon the remonstrances and
shall either confirm the final action of the board or sustain the
remonstrance. The judgment of the court is final and conclusive upon
all persons, and an appeal may not be taken from the judgment of the
court.
As added by Acts 1981, P.L.309, SEC.98. Amended by Acts 1981,
P.L.45, SEC.68; P.L.38-1984, SEC.4; P.L.17-1985, SEC.26.
IC 36-9-25-19
Construction of sewage works; special tax
Sec. 19. After final action of the board or of the court confirming
the resolution in its original or a modified form, all property located
within the boundaries of the district is subject to a special tax to
provide money to pay the total cost of the construction of the sewage
works, including the acquisition of all necessary land or
rights-of-way as described in the resolution of the board and all
necessary incidental expenses. The special tax constitutes the amount
of benefits resulting to the property from the proceedings and shall
be levied as provided in this chapter.
As added by Acts 1981, P.L.309, SEC.98.
IC 36-9-25-20
Construction of sewage works; condemnation; list of affected
property and owners
Sec. 20. If the resolution provides for the appropriation of property
or rights-of-way, after final action by the board or by the court on
appeal, the board shall have prepared a list of all the owners or
holders of property and of interests sought to be taken or that will be
injuriously affected. The list must also show with reasonable
certainty a description of the property to be appropriated or
injuriously affected belonging to those persons or owners, and this
certainty in names and descriptions need not exceed that required in
the assessment of taxes.
As added by Acts 1981, P.L.309, SEC.98.
IC 36-9-25-21
Construction of sewage works; condemnation awards; notification
of owners
Sec. 21. (a) After completion of the list, the board shall consider,
determine, and award the damages sustained by the owners of the
parcels of land or rights-of-way required to be taken and appropriated
or that will be injuriously affected. When the awards are completed,
the board shall have a written notice served upon the owner of each
piece of property, showing the amount of the award, by leaving a
copy at his last usual place of residence in the municipality or county
or by delivering the copy to the owner personally.
(b) If the person is a nonresident, or if his residence is unknown,
he shall be notified by publication in accordance with IC 5-3-1. The
notice must name a date on which the board shall receive or hear
remonstrances from persons regarding the amount of their respective
awards of damages. Persons not included in the lists of awards, but
claiming to be entitled to them, are considered to have been notified
of the pendency of the proceedings by the original notice of the
resolution of the board as provided in section 18 of this chapter.
As added by Acts 1981, P.L.309, SEC.98. Amended by Acts 1981,
P.L.45, SEC.69.
IC 36-9-25-22
Construction of sewage works; condemnation awards; mentally
incompetent persons
Sec. 22. (a) If a person having an interest in land affected by the
proceedings is mentally incompetent or under eighteen (18) years of
age, the board shall certify that fact to its attorney.
(b) The attorney shall apply to the proper court and secure the
appointment of a guardian for that person. The board shall then give
notice to the guardian, who shall appear and protect the interest of the
protected person. However, if the mentally incompetent person or
person under eighteen (18) years of age already has a guardian, the
notice may be served upon that guardian. The requisites of notice to
the guardian are the same as for other notices.
(c) If there are defects or irregularities in the proceedings with
respect to one (1) or more interested persons, they do not affect the
proceedings unless they touch the interests or property of the person
or persons and do not affect any other person. If a defect does exist,
supplementary proceedings may be had in order to supply them.
As added by Acts 1981, P.L.309, SEC.98. Amended by P.L.33-1989,
SEC.128.
IC 36-9-25-23
Construction of
sewage
works;
condemnation
awards;
remonstrances; hearings
Sec. 23. (a) A person notified or considered to be notified under
the preceding sections of this chapter may appear before the board on
the day fixed for hearing remonstrances regarding awards and
remonstrate in writing against them. All persons appearing before the
board who have an interest in land or rights-of-way to be
appropriated or injuriously affected must be given a hearing.
(b) After the remonstrances have been received and the hearing
held, the board shall either sustain the awards or modify the awards
by increasing or decreasing them.
(c) A person remonstrating in writing who is aggrieved by the
decision of the board may, within ten (10) days after the decision,
take an appeal to the circuit or superior court in the county in which
the municipality is located. The appeal affects only the amount of the
award of the person appealing.
As added by Acts 1981, P.L.309, SEC.98.
IC 36-9-25-24
Construction of sewage works; condemnation awards; appeals
Sec. 24. (a) An appeal may be taken by filing an original
complaint in court against the board stating the action of the board
regarding the award and stating the facts relied upon as showing an
error on the part of the board. The court shall hear the matter of the
award de novo and confirm, decrease, or increase the award. The
cause shall be tried by the court without a jury as other civil cases are
tried.
(b) All appeals shall be heard and determined by the court within
thirty (30) days after the appeal is filed. The plaintiff in the appeal
may recover costs only if the court increases the amount of damages
awarded in favor of the property owner by ten percent (10%) or
more.
As added by Acts 1981, P.L.309, SEC.98. Amended by Acts 1981,
P.L.317, SEC.24.
IC 36-9-25-25
Construction of sewage works; condemnation awards; manner of
payment
Sec. 25. (a) The board shall, upon the completion of the award of
damages or upon the determination of appeals taken, make out
certificates for the proper amounts and in favor of the proper persons.
Upon the presentation of the certificate to the municipal fiscal officer,
the person is entitled to the amount due out of the separate and
specific fund derived from the sale of bonds provided in section 27
of this chapter. The payments may not be made from other sources or
funds.
(b) Certificates or vouchers shall, whenever practical, be actually
tendered to the person entitled to them. If this is impractical, they
shall be kept for the persons in the office of the board. The making
and filing of the certificates constitute valid and effectual tender to
the person entitled to them at the time or as soon as there is sufficient
money to pay them. They shall be delivered to him on request.
(c) In case of dispute or doubt as to which person is entitled to the
money, the board shall make out the certificate in favor of the
attorney appointed by the board for the use of persons entitled to it.
The attorney shall then draw the money and pay it into the court in
a proceeding requiring the various claimants to interplead and have
their respective rights determined.
(d) If an injunction is obtained because damages have not been
paid or tendered, the board may tender the certificate for the amount
with interest from the time of entry upon the property if entry has
been made, plus all accrued costs. The injunction shall then be
disposed of, if there is sufficient money to pay the certificate. The
pendency of an appeal as provided in section 24 of this chapter does
not affect the validity of a tender made under this section, but the
board may enter upon and take possession of the property in
question.
As added by Acts 1981, P.L.309, SEC.98.
IC 36-9-25-26
Construction of sewage works; notice of confirmation of resolution;
bids; contracts
Sec. 26. (a) If the board, or the court hearing an appeal, finally
confirms the resolution, the board shall have published, in accordance
with IC 5-3-1, a notice of the general nature of the work and of the
fact that detailed plans, drawings, and specifications are on file in the
office of the board.
(b) The board may advertise for and receive construction bids at
any time after confirming the resolution. The board shall require each
bidder to deposit with his bid a certified check or satisfactory bond
by an incorporated surety company in good standing and qualified to
do business in Indiana in an amount that the board determines to be
at least sufficient to insure the execution of the contract for which the
bid is made. Each bidder shall also file with his bid an affidavit that
he has not, directly or indirectly, entered into any combination,
collusion, understanding, or agreement with another bidder to
maintain the price of the work or contract, to prevent another bidder
from bidding, or to induce a bidder to refrain from bidding on the
contract or work. The affidavit must also state that the bidding is
made without regard to any other bidder and without any agreement,
understanding, or combination, either directly or indirectly, with any
other persons concerning the bidding.
(c) If, after a contract has been let, it appears that the successful
bidder is guilty of collusion, combination, understanding, or
agreement, as defined in the affidavit, the successful bidder forfeits
the contract and the work shall be relet by the board. The board may
impose conditions upon the bidders regarding bond surety,
guaranteeing the good faith and responsibility of the bidders and the
faithful performance of the work according to contract, keeping the
work in repair for a given length of time, or for another purpose. The
board may reject any bids, but if it does reject all bids notices must
be published as originally required before other bids may be received.
(d) The board may let part of the proposed work under different
contracts. A contract may not be let at a bid higher than the estimate
of cost of the work to be performed under the contract. However, the
board may make a new estimate of the cost of the work at any time
after the adoption of the resolution required by section 18 of this
chapter and before the advertising for the receipt of bids for the
construction of the work. If a new estimate is made, notice shall be
given by publication in accordance with IC 5-3-1 naming a date when
a public hearing will be held to determine the public utility of the
new estimate.
(e) The contracts must expressly state that payments for all work
shall be made only from the special fund derived from the proceeds
of bonds authorized for this purpose. If a contract is executed for the
construction of sewage works under this chapter, the validity of the
contract may be questioned only in an action to enjoin the
performance of the contract brought within fifteen (15) days after the
date of execution. Sixteen (16) days after execution, all proceedings
and orders of the board preliminary to and including the contract are
valid, conclusive, and binding upon all persons and are not subject to
attack.
(f) Additions or extensions to sewage works constructed under this
chapter shall be built under contract entered into under this section in
the same manner as the contract for the original works. The cost of
additions or extensions, including additional land or rights-of-way
acquired by the board, may be met by the sale of additional bonds to
be issued and sold by the board and the levy of special taxes to retire
the bonds as provided in this chapter.
As added by Acts 1981, P.L.309, SEC.98. Amended by Acts 1981,
P.L.45, SEC.70.
IC 36-9-25-27
Construction of sewage works; bond issues
Sec. 27. (a) To raise money to pay for the property and the
construction, and in anticipation of the special tax to be levied as
provided in sections 19 and 29 of this chapter, the board may have
issued, in the name of the municipality, the bonds of the district. The
bonds may not exceed in amount the estimated cost of all land,
rights-of-way, and other property to be acquired and the estimated
cost of all construction as provided in the resolution, including all
expenses necessarily incurred in connection with the proceedings,
together with a sum sufficient to pay the cost of supervision and
inspection during the period of construction. The expenses to be
covered by the bond issue include all expenses of every kind actually
incurred preliminary to acquisition of the property and the
construction of the work, such as the cost of necessary records,
engineering expenses, publication of notices, salaries, and other
expenses.
(b) If different parcels of land are to be acquired, or if more than
one (1) contract for work is let by the board at approximately the
same time, whether under one (1) or more resolutions of the board,
the estimated cost may be combined in one (1) bond issue. The bonds
shall be issued in denominations of at least one thousand dollars
($1,000) each and shall have a final maturity of not later than fifty
(50) years from the date of issue. The bonds are negotiable unless
registered, but may be made registrable for principal only or principal
and interest. The bonds may be made redeemable before the stated
maturities on terms and conditions and at the premiums that the board
determines in the resolution authorizing the issuance of the bonds.
(c) Upon adoption of a resolution ordering bonds, the board shall
certify a copy of the resolution to the municipal fiscal officer, who
shall then prepare the bonds. The municipal executive shall execute
the bonds and the fiscal officer shall attest them. The bonds and
interest are exempt from taxation for all purposes, except the
financial institutions tax imposed under IC 6-5.5 or an inheritance tax
imposed under IC 6-4.1. All bonds issued by the board shall be sold
by the fiscal officer to the highest bidder, but not for less than par,
after giving notice of the sale by publication in accordance with
IC 5-3-1.
(d) The bonds are not a corporate obligation or indebtedness of the
municipality, but constitute an indebtedness of the district as a special
taxing district. Except as provided in section 29(c) of this chapter, the
bonds and interest are payable only out of a special tax levied upon
all the property of the district as provided in this chapter. The bonds
must recite these terms upon their face, together with the purpose for
which they are issued.
(e) The board may sell bonds of the district to run for a period of
five (5) years from the date of sale. The five (5) year bonds are
exempt from taxation for all purposes except for the financial
institutions tax imposed under IC 6-5.5. The board may sell bonds of
the district in series for the purpose of refunding at any time the five
(5) year bonds. Actions questioning the validity of the bonds issued
or to prevent their issue may not be brought after the date set for the
sale of the bonds, and all bonds are incontestable for any cause after
that date.
(f) The total amount of the bond issue, including bonds already
issued and to be issued, may not exceed twelve percent (12%) of the
total adjusted value of taxable property in the district as determined
under IC 36-1-15. All bonds issued in violation of this subsection are
void.
As added by Acts 1981, P.L.309, SEC.98. Amended by Acts 1981,
P.L.45, SEC.71; P.L.27-1986, SEC.5; P.L.21-1990, SEC.57;
P.L.80-1997, SEC.20; P.L.254-1997(ss), SEC.34; P.L.6-1997,
SEC.223; P.L.2-1998, SEC.86; P.L.2-1998, SEC.87.
IC 36-9-25-28
Deposit and use of funds
Sec. 28. (a) All proceeds from the sale of bonds under section 27
of this chapter shall be kept as a separate and specific fund to pay the
cost of land, rights-of-way, and other property acquired and for
construction under the resolution, including all costs and expenses
incurred in connection with the project. The proceeds may not be
used for any other purpose. The proceeds shall be deposited at
interest with the depository or depositories of other public funds of
the municipality, and all interest collected on them belongs to the
fund. Any surplus of funds remaining out of the proceeds after all
expenses are paid shall be paid into and becomes a part of the
sanitary district bond fund.
(b) Money derived from sources other than the sale of bonds, such
as state or federal reimbursement grants, matching funds, or other
contributions, including money derived from a project financed from
bond monies, shall be deposited in:
(1) the sanitary district bond fund;
(2) the sanitary maintenance and general expense fund; or
(3) a separate fund established by the board for extensions,
additions, and improvements to the sewage works of the district.
The money may be expended as other money is expended by the
board.
As added by Acts 1981, P.L.309, SEC.98.
IC 36-9-25-29
Construction of sewage works; payment of bonds; tax levy; use of
revenues in lieu of levy
Sec. 29. (a) In order to raise money to pay all bonds issued under
section 27 of this chapter, including interest, and except as set forth
in subsection (c), the board shall levy each year a special tax upon all
the property of the district, to meet and pay the principal of the bonds
as they mature, together with all accrued interest. The board shall
have the tax levied each year certified to the municipal fiscal officer
and to the auditor of the county in which the district is located by
October 1. The tax as levied and certified shall be estimated and
entered upon the tax duplicate by the county auditor. The tax shall be
collected and enforced by the county treasurer in the same manner as
state and county taxes are estimated, entered, collected, and enforced.
(b) As the tax is collected by the county treasurer, it shall be
accumulated and kept in a separate fund to be known as the sanitary
district bond fund. It shall be applied to the payment of the bonds and
interest as they mature and not to another purpose. All accumulations
of the fund before their use for the payment of the bonds and interest
shall be deposited with the depository or depositories of other public
funds in the municipality. The fund may also be invested as other
funds are invested. In determining the amount of levy necessary for
this section, the board shall consider the amount of revenue, if any,
to be derived from the collection of fees for sewage treatment service
above the amount of revenues necessary to be applied to the
operation, maintenance, and administrative expenses of the district.
(c) In lieu of making a levy under this section, or to reduce the
amount of the levy, the board may set aside, by resolution, the
revenues of the district to be collected before the maturity of the
principal and interest of the bonds payable in the following calendar
year. If the board adopts the resolution, then the board may not use
any part of the amount set aside out of the revenues for any purpose
other than the payment of the bonds and interest. A proportionate
payment of the amount shall be made to the bond fund monthly.
As added by Acts 1981, P.L.309, SEC.98. Amended by P.L.80-1997,
SEC.21.
IC 36-9-25-30
Construction of sewers, drains, or appurtenances; procedure
Sec. 30. (a) If the board finds it necessary to build, alter, or repair
a sewer, drain, or appurtenance used in connection with sewage
works in a public way or other public place in the district or a
highway outside its boundaries, it shall file with the works board of
the municipality, or the executive of the county in which the
municipality is located, a petition and a map showing the route of the
sewer or drain or the location of the structure or appurtenance
proposed to be built, altered, or repaired, including the part of the
public way or other public place to be used in the work. That body
shall then adopt a resolution granting the board the right to use the
public way or other public place.
(b) If the board shows in the petition that it is necessary to open or
vacate a public way or public place, the appropriate body shall
promptly begin the proceedings necessary for the opening or
vacation. Within a reasonable time after the completion of the work,
the board shall restore the surface of a public way or public place to
the same condition that it was in before the performance of the work.
(c) If the land on which it is necessary to build, alter, or repair a
sewer, drain, structure, or appurtenance in connection with the
sewage works is already in use for another public purpose or has been
condemned or appropriated for a use authorized by statute and is
being used for that purpose by the body appropriating it, the public
use or prior condemnation does not bar the board from condemning
the use of the land for purposes in connection with the sewage works.
However, the use by the board does not permanently prevent the use
of the land for the public use or by the body condemning or
appropriating the land. In addition, in a proceeding prosecuted by the
board to condemn the use of the land for purposes permitted by this
chapter, the burden is upon the board to show that its proposed use
will not permanently interfere with the continued public use of the
land or by the body condemning it, including its successors.
As added by Acts 1981, P.L.309, SEC.98.
IC 36-9-25-31
Payment of general expenses; special tax levy for payment of bonds
Sec. 31. To provide money to pay for general expenses of the
board not chargeable to the cost of any property acquired or work
done under a resolution of the board for which bonds of the district
are issued, the board may issue the bonds of the district in an
aggregate amount not to exceed two percent (2%) of the adjusted
value of the taxable property within the district as determined under
IC 36-1-15. The bonds are payable from a special tax, which the
board shall levy annually at the rate required to finance the bonds.
The tax shall be levied, collected, and expended according to section
32 of this chapter.
As added by Acts 1981, P.L.309, SEC.98. Amended by P.L.6-1997,
SEC.224.
IC 36-9-25-32
General expenses and operation of sewage works; tax levy;
procedure; loans
Sec. 32. (a) To provide money to pay:
(1) all general expenses of the board, including salaries of
officers and employees, fees and expenses for professional
services, and other items of expense not chargeable to the cost
of property acquisition or work done under a resolution of the
board for which bonds of the district are issued; and
(2) for the operation, maintenance, and repair of sewage works,
including the cost of the collection and removal of garbage and
ashes;
a tax on all the taxable property in the district, at the rate required to
provide the money needed to defray all expenses, shall be levied
annually by the board.
(b) The county auditor shall estimate the taxes and enter them
upon the tax duplicate, and the county treasurer shall collect and
enforce the taxes in the same manner as state and county taxes are
estimated, entered, collected, and enforced. The county treasurer
shall, by the tenth day of each month, notify the board of the amount
of taxes collected during the preceding month and shall credit a fund
to be known as the sanitary maintenance and general expense fund
with that amount. The fund may not be used for a purpose other than
one stated in this section. The board has complete and exclusive
authority to expend on behalf of the district all money thus realized.
Warrants for the expenditures shall be drawn by the municipal fiscal
officer upon vouchers of the board.
(c) The board may, by resolution, make:
(1) temporary loans in anticipation of taxes actually levied
under this section; or
(2) emergency loans for the expenditure of any sums not
provided for in the current levy of the board, for which a levy
shall then be made in the next annual budget of the board.
The loans mature and shall be paid within one (1) year after the date
the loan is made and may bear interest at any rate payable at the
maturity of the loan. The warrants or other evidence of the loans may
not be sold for less than par. Before making the loan, notice of the
time, place, amount, and terms of the loan shall be given by
publication in accordance with IC 5-3-1. The warrants carry no
personal obligation for their payment and are payable only out of the
tax levied.
As added by Acts 1981, P.L.309, SEC.98. Amended by Acts 1981,
P.L.45, SEC.72; Acts 1982, P.L.77, SEC.23.
IC 36-9-25-33
Disposition of surplus funds; funds belonging to sanitary districts
Sec. 33. (a) All money remaining in a fund to the credit of the
board at the end of the calendar year belongs to the fund for use by
the board for the purposes for which the fund was created. In
addition, all money raised under this section shall be deposited at
interest with the depository of other public funds of the municipality,
with all interest collected on the fund belonging to the fund.
(b) Notwithstanding the provisions of any other statute, money
collected for or belonging to a sanitary district belongs to the sanitary
district, and not to any city or town in the sanitary district. This
money shall be deposited in an interest bearing account, and all
interest earned from this deposit shall belong to the sanitary district.
If no statutory provision exists to require the crediting or deposit of
this interest to a specific fund of the sanitary district, the interest shall
be deposited in the sanitary district's sanitary maintenance and
general expense fund.
(c) Notwithstanding subsections (a) through (b), money may be
transferred from the fund as provided in IC 36-1-8-4.
As added by Acts 1981, P.L.309, SEC.98. Amended by Acts 1981,
P.L.318, SEC.1; P.L.57-1991, SEC.4.
IC 36-9-25-34
Deposit and use of fees; revolving fund for payment of preliminary
expenses
Sec. 34. (a) All revenues derived from the collection of fees for
sewage treatment become a part of the sanitary maintenance and
general expense fund established under section 32 of this chapter and
shall be deposited, held, and used as provided in that section, except
any part that the board sets aside in the sanitary district bond fund
established under section 29 of this chapter or the sinking fund
established under section 41 of this chapter.
(b) The board may appropriate and set aside from the sanitary
maintenance and general expense fund an amount of money to be
used as a revolving fund for the payment of necessary preliminary
expenses incurred by the board in connection with proposed projects,
such as making surveys, estimating cost, employing engineers and
other employees, preparing plans and specifications, and all other
expenses to be paid before the issuance and sale of bonds under
section 27 of this chapter.
(c) The revolving fund shall be fully repaid by the board out of the
first proceeds of the sale of bonds to the extent that the expenses paid
are chargeable to the cost of acquiring land or construction under a
resolution adopted and confirmed under section 18 of this chapter.
The appropriations to the revolving fund shall be made in accordance
with statutes governing appropriations by municipal corporations, but
it is not necessary to appropriate the money set aside in the revolving
fund before making expenditures from it.
As added by Acts 1981, P.L.309, SEC.98. Amended by P.L.80-1997,
SEC.22.
IC 36-9-25-35
Payment of contracts, condemnation awards, etc.; retention of
portion of contract payments
Sec. 35. (a) From the sanitary district bond fund and not from any
other source, the board shall pay to the appropriate parties the
amounts respectively due them for land, rights-of-way, or other
property taken or purchased or for work done by contract or
otherwise. If all or part of the land, rights-of-way, or other property
is secured by purchase or contract, payment shall be made according
to the terms of the contract. If property is taken by condemnation
under this chapter, the amount of damages assessed shall be paid
within ninety (90) days after the final determination of the
condemnation proceedings or as soon after that as the fund from the
bonds is available. The title to the land, rights-of-way, or other
property or that part paid for or otherwise acquired for that purpose
then vests in the municipality in the manner, to the extent, for the
purpose, and subject to the limitations of this chapter.
(b) The board shall order that payments from the funds be made
to contractors in the amounts and at the times they determine. The
board may retain a part of the amount otherwise due the contractor.
The amount that may be retained by the board is as follows:
(1) Until work is fifty percent (50%) complete, not more than
ten percent (10%) of the payment claimed.
(2) When work is fifty percent (50%) complete, five percent
(5%) of the value of all work satisfactorily completed to date, as
long as the contractor is making satisfactory progress and there
is no specific cause for greater withholding.
(3) When the work is substantially complete (operational or
beneficially occupied), an amount below five percent (5%) that
is necessary to assure completion.
As added by Acts 1981, P.L.309, SEC.98.
IC 36-9-25-36
Property acquisitions; filing and recording requirements
Sec. 36. Within sixty (60) days after land or a right in it is paid for
and acquired under this chapter, the board shall file and have
recorded in the recorder's office in the county in which the land is
located a description of it sufficiently accurate for its identification,
together with a statement of the purpose for which it is acquired or
taken signed by a majority of the board members.
As added by Acts 1981, P.L.309, SEC.98.
IC 36-9-25-37
Authority to expend money; warrants and vouchers
Sec. 37. Money raised under this chapter may be expended only
upon warrants drawn by the municipal fiscal officer upon vouchers
of the board. An appropriation is not necessary, but all money raised
under this chapter is considered appropriated to the respective
purposes stated and is under the control of the board. The board has
complete and exclusive authority to expend the money for the
purposes provided.
As added by Acts 1981, P.L.309, SEC.98.
IC 36-9-25-38
Construction of sewers connecting with sewage works
Sec. 38. After the erection and completion of sewage works under
this chapter, any municipality within the boundaries of the district
shall construct and maintain sewers so that they directly or indirectly
convey all sewage and drainage matter into the sewage works.
As added by Acts 1981, P.L.309, SEC.98.
IC 36-9-25-39
Certain departments; temporary loans in anticipation of funds
Sec. 39. (a) This section applies only to departments in a county
having a population of:
(1) more than four hundred thousand (400,000) but less than
seven hundred thousand (700,000); or
(2) more than two hundred fifty thousand (250,000) but less
than two hundred seventy thousand (270,000).
(b) The board may secure temporary loans in anticipation of
revenues of the district actually levied and in the course of collection
for the fiscal year in which loans are made. The loans must be
authorized by a resolution of the board, and the securities evidencing
them shall be issued and sold in the same manner as tax anticipation
warrants by second class cities in anticipation of property tax
revenues as provided in IC 36-4-6-20. The temporary loans shall be
evidenced by time warrants of the district in terms designating the
nature of the consideration, the time or times payable, the funds and
revenues in anticipation of which the warrants are issued and out of
which they are payable, and the place where they are payable upon
presentation on or after the date of maturity. The interest accruing on
the warrants to date of maturity shall be included in their face value.
The resolution authorizing the issue of the temporary loans must
appropriate and pledge a sufficient amount of the current revenues in
anticipation of which the warrants are issued for their payment.
As added by Acts 1981, P.L.309, SEC.98. Amended by P.L.12-1992,
SEC.185; P.L.119-2012, SEC.233.
IC 36-9-25-40
Certain districts; exercise of powers on behalf of second class city
alone
Sec. 40. If the district of a department established under section
1(b) of this chapter includes territory of another municipality, the
powers granted the board over local sewers and drains, solid waste
collection, and collection of dead animals may be exercised for the
use and benefit of the second class city alone as long as all of the
direct and allocable costs of the service are paid from money raised
solely from the property located within the city, from charges made
to persons within the city, or both.
As added by Acts 1981, P.L.309, SEC.98.
IC 36-9-25-41
Consolidated cities; revenue bonds for sewage works
Sec. 41. (a) This section applies to each consolidated city.
(b) To raise money to pay the costs of acquiring, constructing, and
improving sewage works and property necessary for sewage works,
the board may have issued, in the name of the municipality, revenue
bonds payable solely from the revenues of the sewage works for
which they are issued. Revenue bonds issued under this section are
not a corporate indebtedness of the district or the municipality.
(c) The revenue bonds bear interest at a rate not to exceed the
maximum rate per annum specified by the board and will be payable
and mature at the time or times determined by the board in the
resolution.
(d) The revenue bonds may be made redeemable before maturity
at the option of the board, to be exercised by the board, at not more
than their par value plus a premium of five percent (5%), under the
terms and conditions fixed by the resolution authorizing the issuance
of the bonds.
(e) The principal and interest of the revenue bonds may be made
payable in any lawful medium.
(f) The resolution authorizing the issuance of the revenue bonds
must determine the form of the bonds and must fix the denomination
or denominations of the bonds and the place or places of payment of
their principal and interest, which may be at any bank or trust
company in Indiana or another state.
(g) The revenue bonds must contain a statement on their face that
neither the district nor the municipality is obligated to pay the
principal or interest on them, except from the net revenue of the
sewage works that are deposited in the sinking fund established by
subsection (t).
(h) The revenue bonds are negotiable instruments.
(i) Provision may be made for the registration of any of the
revenue bonds in the name of the owner as to principal alone or as to
both principal and interest.
(j) The revenue bonds shall be executed in the same manner as
other bonds issued under section 27 of this chapter.
(k) The revenue bonds shall be sold by the district and the
municipal fiscal officer in the manner that is determined to be in the
best interests of the district, but only at public sale in accordance with
the statutes concerning the sale of municipal bonds.
(l) Before the preparation of the definite revenue bonds, temporary
revenue bonds may be issued with or without coupons. The
temporary revenue bonds, which shall be issued in the manner
prescribed by this section, may be exchanged for the definite revenue
bonds when they are issued.
(m) If the proceeds of the revenue bonds are less than the cost of
the sewage works, additional revenue bonds may be issued under this
section to provide the amount of the deficit. Unless otherwise
provided in the resolution authorizing the first issue, the additional
revenue bonds are considered part of the first issue and are entitled
to payment from the same fund, without priority for the first issue.
(n) Subject to the provisions and limitations of any resolution or
trust indenture pertaining to any outstanding revenue bonds,
additional bonds payable from the revenues of the sewage works may
be authorized and issued in the manner prescribed by this section for
the purpose of improving any works acquired or constructed under
this chapter without priority of one (1) issue over another.
(o) Revenue bonds issued under this section are exempt from
taxation for all purposes.
(p) Any action to contest the validity of revenue bonds issued
under this section must be brought at least five (5) days before the
advertised date for the sale of the bonds.
(q) The first proceeds of any revenue bonds issued under this
section shall be used to repay all amounts advanced for preliminary
expenses. The remaining proceeds of the bond issue shall be applied
to the cost of acquiring, constructing, or improving the sewage
works.
(r) After the payments required by subsection (q) have been made,
any proceeds of the bond issue that have not been spent shall be
deposited in the sinking fund established by subsection (t).
(s) The holders of the revenue bonds have a lien on the bond
proceeds until they are applied under this section.
(t) At or before the time of issuance of revenue bonds under this
section, the board, by resolution, shall:
(1) establish a sinking fund for the payment of:
(A) the principal of and interest on the revenue bonds; and
(B) the charges of banks or trust companies for making
payment of the principal or interest on the revenue bonds;
and
(2) pledge the net revenues of the sewage works, after the
payment of the reasonable expense of operation, repair, and
maintenance of the works, to the payment of the expenses
described in subdivision (1).
The resolution may also provide for the accumulation of reasonable
reserves in the sinking fund as a protection against default, and for
the payment of premiums on bonds retired by call or purchase under
this section.
(u) The rights granted by this section are subject to any restrictions
contained in the resolution authorizing the issuance of revenue bonds
or in any trust indenture securing the bonds. The holder of any
revenue bonds or any coupons attached to them, and the trustee, if
any, may, either at law or in equity, protect and enforce all rights
granted by this section or under the resolution or trust indenture,
including the making and collecting of reasonable and sufficient fees
for services rendered by the sewage works. If the principal or interest
of any of the revenue bonds is not paid on the date named in the
bonds for payment, any court having jurisdiction of the action may
appoint a receiver to administer the sewage works on behalf of the
district, municipality, the bondholders, and the trustee, if any. The
receiver may:
(1) charge and collect fees sufficient to provide for the payment
of the expenses of operation, repair, and maintenance of the
works;
(2) pay any revenue bonds and interest outstanding; and
(3) apply the revenues in conformity with this chapter, the
resolution authorizing the bond issue, and the trust indenture, if
any.
(v) Bonds issued under this section are subject to the requirements
of IC 36-3-5-8.
As added by P.L.80-1997, SEC.23.
IC 36-9-25-42
Financial assistance to certain property owners
Sec. 42. (a) The board may adopt a resolution authorizing the
board to provide financial assistance, including grants, to property
owners to construct or install regulating devices, improvements, or
overhead plumbing or backflow prevention devices for one (1) or
more of the following purposes:
(1) To regulate or prevent discharge into private dwellings.
(2) To prevent the pollution of streams or bodies of water.
(3) To reduce or ameliorate inflow and infiltration in sewage
works.
(4) To remedy or prevent a menace to the public health and
welfare.
(b) A resolution adopted by the board under subsection (a) must
do the following:
(1) State that provided financial assistance as described in
subsection (a) will accomplish one (1) or more of the purposes
listed in subsection (a)(1) through (a)(4).
(2) State that the board anticipates that the costs associated with
providing the financial assistance will be less than the financial
burdens potentially incurred if the financial assistance is not
provided.
(3) Find that providing financial assistance as described in
subsection (a) is necessary to avoid or reduce additional
financial burdens.
(4) Establish rules and regulations concerning financial
assistance provided under subsection (a). A rule or regulation
must provide that:
(A) a grant or other financial assistance provided by the
board may not exceed eighty percent (80%); and
(B) the property owner that receives the financial assistance
must pay for at least twenty percent (20%);
of the total anticipated cost of the project for which the financial
assistance is provided.
As added by P.L.168-2009, SEC.11.
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