2014 Indiana Code TITLE 36. LOCAL GOVERNMENT ARTICLE 9. TRANSPORTATION AND PUBLIC WORKS CHAPTER 41. FINANCING OF PUBLIC WORK PROJECTS BY POLITICAL SUBDIVISIONS
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IC 36-9-41
Chapter 41. Financing of Public Work Projects by Political
Subdivisions
IC 36-9-41-1
Application
Sec. 1. This chapter applies to the following:
(1) A public work project that will cost the political subdivision
not more than two million dollars ($2,000,000).
(2) An eligible efficiency project that will cost not more than
three million dollars ($3,000,000).
As added by P.L.81-2004, SEC.47. Amended by P.L.88-2009,
SEC.16.
IC 36-9-41-1.5
"Eligible efficiency project"
Sec. 1.5. As used in this chapter, "eligible efficiency project"
means:
(1) a project necessary or useful to carrying out an interlocal
cooperation agreement entered into by two (2) or more political
subdivisions or governmental entities under IC 36-1-7; or
(2) a project necessary or useful to the consolidation of local
government services.
As added by P.L.88-2009, SEC.17.
IC 36-9-41-2
"Public work"
Sec. 2. As used in this chapter, "public work" means a project for
the construction of any public building, highway, street, alley, bridge,
sewer, drain, or any other public facility that is paid for out of public
funds.
As added by P.L.81-2004, SEC.47.
IC 36-9-41-3
Borrowing by political subdivision to finance public work project
or eligible efficiency project; notice; constitutional debt limitation
Sec. 3. Notwithstanding any other statute, a political subdivision
may borrow the money necessary to finance:
(1) a public work project; or
(2) an eligible efficiency project;
from a financial institution in Indiana by executing a negotiable note
under section 4 of this chapter. The political subdivision shall provide
notice of its determination to issue the note under IC 5-3-1. Money
borrowed under this chapter is chargeable against the political
subdivision's constitutional debt limitation.
As added by P.L.81-2004, SEC.47. Amended by P.L.88-2009,
SEC.18.
IC 36-9-41-4
Terms of the note
Sec. 4. A political subdivision borrowing money under section 3
of this chapter shall execute and deliver to the financial institution the
negotiable note of the political subdivision for the sum borrowed.
The note must bear interest, with both principal and interest payable
in equal or approximately equal installments on January 1 and July
1 each year over a period not exceeding ten (10) years.
As added by P.L.81-2004, SEC.47. Amended by P.L.182-2009(ss),
SEC.453.
IC 36-9-41-5
Payments
Sec. 5. (a) The first installment of principal and interest on a note
executed under this chapter is due on the next January 1 or July 1
following the first tax collection for which it is possible for the
political subdivision to levy a tax under subsection (b).
(b) The political subdivision shall appropriate an amount for and
levy a tax each year sufficient to pay the political subdivision's
obligation under the note according to its terms.
(c) An obligation of a political subdivision under a note executed
under this chapter is a valid and binding obligation of the political
subdivision, notwithstanding any tax limitation, debt limitation,
bonding limitation, borrowing limitation, or other statute to the
contrary.
As added by P.L.81-2004, SEC.47.
IC 36-9-41-6
Taxpayer objections
Sec. 6. If a political subdivision gives notice under section 3 of
this chapter of its determination that money should be borrowed
under this chapter, not less than ten (10) taxpayers in the political
subdivision who disagree with the determination may file a petition
in the office of the county auditor not more than thirty (30) days after
notice of the determination is given. The petition must state the
taxpayers' objections and the reasons why the taxpayers believe the
borrowing to be unnecessary or unwise.
As added by P.L.81-2004, SEC.47.
IC 36-9-41-7
Department of local government finance proceedings
Sec. 7. (a) Upon receiving a petition under section 6 of this
chapter, the county auditor shall immediately certify a copy of the
petition, together with other data necessary to present the questions
involved, to the department of local government finance. Upon
receipt of the certified petition and other data, the department of local
government finance shall fix a time and place for a hearing on the
matter.
(b) The hearing shall be held not less than five (5) and not more
than thirty (30) days after the department's receipt of the certified
petition, and shall be held in the county where the petition arose.
(c) The department of local government finance shall give notice
of the hearing by letter to the political subdivision and to the first ten
(10) taxpayer petitioners listed on the petition. A copy of the letter
shall be sent to each of the first ten (10) taxpayer petitioners at the
taxpayer's usual place of residence at least five (5) days before the
date of the hearing. In addition, public notice shall be published at
least five (5) days before the date of the hearing under IC 5-3-1.
(d) After the hearing under subsection (c), the department of local
government shall issue a final determination concerning the petition.
As added by P.L.81-2004, SEC.47.
IC 36-9-41-8
Judicial review
Sec. 8. A:
(1) taxpayer who signed a petition filed under section 6 of this
chapter; or
(2) political subdivision against which a petition is filed under
section 6 of this chapter;
may petition the tax court established by IC 33-3-5-1 for judicial
review of the final determination of the department of local
government finance on the taxpayers' petition. The petition for
judicial review must be filed in the tax court not more than forty-five
(45) days after the date of the department's final determination.
As added by P.L.81-2004, SEC.47.
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