CHAPTER 7. PAYMENT OF EXPENSES
IC 14-33-7
Chapter 7. Payment of Expenses
IC 14-33-7-1
Special benefit taxes
Sec. 1. (a) All the real property in the district, except the propertythat is exempt under section 4 of this chapter, constitutes a taxingdistrict for the purpose of levying special benefit taxes to pay for thefollowing:
(1) The expenses of establishing the district.
(2) General preliminary and administrative expenses.
(3) The expenses of preparing the district plan.
(4) The expenses of putting the district plan into operation byconstructing the necessary works.
(5) The expenses of operating and maintaining the district.
(b) The special tax:
(1) equals the amount of benefits received; and
(2) must be based on return for the benefits.
As added by P.L.1-1995, SEC.26.
IC 14-33-7-2
Water supply, treatment, and distribution; assessments; tap-in fees
Sec. 2. (a) This section applies if:
(1) a petition filed for the establishment of a district states that:
(A) the purpose for establishing the district is providingwater supply, including treatment and distribution fordomestic, industrial, and public use;
(B) it is the election of the petitioners to accomplish thepurpose under IC 14-33-20;
(C) a special benefits tax will not be levied; and
(D) all costs will be paid for by sources other than the levyof a special benefits tax; and
(2) the statements contained in subdivision (1) are incorporatedby the court into the order establishing the district.
(b) The board may not levy a special benefits tax for the purposedescribed in section 1(a)(1) of this chapter. All costs ofaccomplishing the purpose must be paid for by the following:
(1) Receipt of revenues from the sale of water.
(2) An assessment against each tract of real property served bythe resulting water distribution system for the lesser of thefollowing:
(A) Seventy-five dollars ($75).
(B) Five percent (5%) of the estimated average project costaccording to the district plan of serving each tract of realproperty.
(c) In addition, the district may charge a fair and reasonable tap-infee for water service.
(d) An assessment is due within sixty (60) days after notice of theassessment. The assessment is not considered an exceptional benefit,but the provisions of this article pertaining to exceptional benefits
apply to the collection and enforcement of the assessment.
As added by P.L.1-1995, SEC.26.
IC 14-33-7-3
Special benefits tax rate
Sec. 3. In all districts described in IC 14-33-9-4, the specialbenefits tax rate may not exceed six and sixty-seven hundredths cents($0.0667) on each one hundred dollars ($100) of assessed valuationof property in the taxing district.
As added by P.L.1-1995, SEC.26. Amended by P.L.6-1997, SEC.160.
IC 14-33-7-4
Property exempt from special benefits tax
Sec. 4. (a) This section applies to the following tangible propertyowned by or held in trust for the use of a church or religious society:
(1) A building that is used for religious worship.
(2) A building that is used as a parsonage.
(3) The pews and furniture contained within a building that isused for religious worship.
(4) The land upon which a building that is used for religiousworship is situated.
(5) The land, not exceeding fifteen (15) acres, upon which abuilding that is used as a parsonage is situated.
(b) Property is exempt from the special benefits tax that may beimposed under:
(1) IC 14-33-6-13 and section 1 of this chapter; or
(2) IC 14-33-21-5;
to the extent that the special benefits tax revenue will be used for theconstruction or improvement of a water impoundment project,including a lake, pond, or dam.
(c) To obtain an exemption for a parsonage, a church or religioussociety must provide the county auditor with an affidavit at the timethe church or religious society applies for the exemption. Theaffidavit must:
(1) state:
(A) that all parsonages are being used to house one (1) of thechurch's or religious society's rabbis, priests, preachers,ministers, or pastors; and
(B) that none of the parsonages are being used to make aprofit; and
(2) be signed under oath or affirmation by the church's orreligious society's head rabbi, priest, preacher, minister, pastor,or designee of the official church body.
As added by P.L.1-1995, SEC.26. Amended by P.L.264-2003,SEC.13.
IC 14-33-7-5
Additional revenue
Sec. 5. The expenses and obligations of the district may also bepaid from any of the following: (1) The receipt of gifts from any source.
(2) The receipt of money from the federal or state government.
(3) The receipt of revenue from the sale of services or propertyproduced incident to the accomplishment of a purpose forwhich the district is established.
(4) The collection of assessments from land that receivesexceptional benefits from the operation of the district plan.
(5) The collection of assessments for maintenance andoperation of the works of improvement.
As added by P.L.1-1995, SEC.26.
IC 14-33-7-6
Notice costs and court costs
Sec. 6. (a) The:
(1) cost of notice, including publication and mailing; and
(2) other costs of the court in the proceedings to establish thedistrict;
are payable out of the general money of the county in which the courtis sitting, without an appropriation having been made. The court shallorder the county auditor to issue a warrant for the payment.
(b) If the petition is dismissed, the costs shall be:
(1) collected from the petitioners or the sureties of thepetitioners; and
(2) repaid to the county.
(c) If the district is established, the board shall repay the countyfrom the first money collected from the levy of a tax or the collectionof an assessment.
As added by P.L.1-1995, SEC.26.
IC 14-33-7-7
Costs of establishing district; loans and advances
Sec. 7. (a) To pay the costs of establishing a district, includinggeneral, legal, and administrative costs and costs incident topreparing the district plan, money may be obtained from one (1) ora combination of the following methods:
(1) Gifts, loans, or grants from a state or federal agency, orboth.
(2) Gifts from any source.
(3) The collection of the special benefit tax.
(4) Borrowing from private or public sources in anticipation ofthe collection of the tax.
(5) Advances from the general fund of the county under section15 of this chapter.
(6) Borrowing from the economic development fund created byIC 5-28-8 for any of the purposes in IC 14-33-1-1.
(7) Borrowing from the flood control revolving fund created byIC 14-28-5 for any of the purposes in IC 14-33-1-1.
(b) All persons, agencies, and departments charged with theadministration and supervision of funds such as those created byIC 5-28-8 and IC 14-28-5 may make loans and advances to a district.
The procedures, terms, and conditions of the loans must be the sameas provided in the statutes establishing the funds but shall bemodified and supplemented to fit this article to facilitate thefinancing of districts.
(c) This section does not preclude the borrowing of money for thefollowing:
(1) Establishing the district.
(2) General, legal, and administrative costs.
(3) Costs incident to preparing the district plan in conjunctionwith borrowing of money to pay construction costs.
As added by P.L.1-1995, SEC.26. Amended by P.L.4-2005, SEC.127.
IC 14-33-7-8
Fiscal year
Sec. 8. The fiscal year of a district is the calendar year.
As added by P.L.1-1995, SEC.26.
IC 14-33-7-9
Amended district plan; expenses
Sec. 9. If the board is ordered to prepare an amended district plan,the board may use any source of money provided in section 7 of thischapter to defray the expense, which is a proper operating expense.The board may use for this purpose a current operating surplusavailable in the year the board is ordered to amend the district plan.The board may include the estimated expense of preparing anamended district plan in the budget for operating expenses in thenext year.
As added by P.L.1-1995, SEC.26.
IC 14-33-7-10
Loans from federal agencies for works of improvement
Sec. 10. (a) The board may apply to the federal Farmers HomeAdministration, the United States Department of Housing and UrbanDevelopment, or any other federal agency authorized to make loansfor works of improvement for a long term or short term loan to coverthe following:
(1) Expenses of establishing the district.
(2) General, legal, and administrative expenses.
(3) Costs of engineering or other costs of preparing the districtplan.
(4) Costs of putting the district plan into effect by the necessaryconstruction, maintenance, and operation of the works ofimprovement that have been authorized by the approval of thedistrict plan.
(5) Refinancing a loan whose proceeds have been used for anyof the purposes described in this subsection.
(b) A loan under this section:
(1) may be evidenced by one (1) installment note or by a seriesof notes; and
(2) may be secured by: (A) revenues; or
(B) the collection of the special benefits tax levied on thereal property in the district.
If a loan is secured by a pledge of collection of the tax, the loanmay be paid in whole or in part by revenues or the collection ofassessments.
(c) If the board decides not to evidence the financing with afederal agency by an installment note or series of notes and insteadprepares a bond issue, the bond issue may, in whole or in part, beoffered for sale to the federal agency without:
(1) a public offering; or
(2) the securing of competitive bids on the bond offering.
(d) Repayment of a loan begins at the time upon which the boardand the federal agency agree. The:
(1) amount of interest;
(2) time of making payments of interest; and
(3) interval at which interest must be paid;
are subject to the agreement of the parties.
As added by P.L.1-1995, SEC.26.
IC 14-33-7-11
Petition for approval of financial commitments
Sec. 11. (a) Before making firm financial commitments undersection 10 of this chapter with a federal agency, the board must filea petition for approval of the proposed action in the court. Thepetition must state:
(1) the purpose;
(2) the amount; and
(3) the terms;
of the proposed loan.
(b) The court shall set a date for a hearing, giving priority to thehearing in determining the date. However, the court must allow atleast twenty-one (21) days for interested persons to file exceptions.The court shall order notice for the hearing as the court considersnecessary, but publication must at least be made in each countyhaving land in the district in accordance with IC 5-3-1 as if the noticeaffected county business. The notice must state in summary form thecontents of the petition.
(c) If at the hearing the court finds that:
(1) the loan as proposed in the petition is necessary for theaccomplishment of the purpose of the district; and
(2) the terms and conditions are reasonable and probably are asbeneficial to the district as would be obtainable in private,competitive financial markets;
the court shall approve the petition and authorize the board to makefirm commitments for the loan.
(d) Upon approval by the court, the board may levy the specialbenefits taxes necessary for the repayment of the loan.
As added by P.L.1-1995, SEC.26.
IC 14-33-7-12
District plan to include federal agency agreements
Sec. 12. The board shall include agreements made with a federalagency under section 10 of this chapter in the district plan ifagreements have been made at the time of submission of the plan tothe commission.
As added by P.L.1-1995, SEC.26.
IC 14-33-7-13
Special benefits tax levied although district plan abandoned
Sec. 13. The levy of the tax for special benefits may be madealthough an attempt to formulate a district plan has been abandonedbecause of:
(1) changed conditions;
(2) impracticability; or
(3) other reasons;
if money is necessary to meet valid obligations of the district.
As added by P.L.1-1995, SEC.26.
IC 14-33-7-14
Note issuance
Sec. 14. (a) In anticipation of the money to be received from anysource, a board may borrow money by issuing notes. The notes:
(1) must mature in not more than two (2) years; and
(2) may be renewed for periods of not more than two (2) years.
(b) The borrowing may be by direct negotiation with any of thefollowing:
(1) A bank or savings association licensed to do business inIndiana.
(2) An agent of the state or federal government.
As added by P.L.1-1995, SEC.26.
IC 14-33-7-15
County auditor issuing warrants for money
Sec. 15. (a) To pay all:
(1) necessary expenses of establishing a district;
(2) general, legal, and administrative costs; and
(3) costs incident to preparing the district plan;
the court may order the auditor of the county in which the court issitting to issue warrants to the district for money necessary to meetthese expenses.
(b) If at least two (2) counties have land in the district, the courtshall order the auditor of each other county to reimburse the payingcounty from the other county's general fund by issuing warrants inamounts that the court estimates will be reasonable in relation to theestimated benefits that the land in each county will receive from theoperation of the district.
As added by P.L.1-1995, SEC.26.
IC 14-33-7-16 Necessary expenses
Sec. 16. (a) The necessary expenses of establishing a districtinclude the following:
(1) Costs of printing, publication, mailing, surveying, andabstracting.
(2) Court costs.
(3) Reasonable attorney's fees for establishing the district.
(4) Reasonable engineering fees for preliminary studies.
(b) General, legal, and administrative costs and costs incident topreparing a district plan include the following:
(1) Payment of directors.
(2) Secretarial services.
(3) Transportation, administrative, engineering, and legal fees.
(4) Printing, mailing, basic supplies, office equipment, andrental of office space.
As added by P.L.1-1995, SEC.26.
IC 14-33-7-17
Repayment of money advanced to district
Sec. 17. A district shall promptly repay any money that isadvanced to the district from:
(1) the general fund of a county; or
(2) the economic development fund created by IC 5-28-8;
from money received through the collection of an authorized tax orassessment.
As added by P.L.1-1995, SEC.26. Amended by P.L.4-2005, SEC.128.