CHAPTER 15. DEBT LIMITATION

IC 36-1-15
Chapter 15. Debt Limitation

IC 36-1-15-1
Application of chapter
    Sec. 1. This chapter applies to:
        (1) a unit; and
        (2) any other political subdivision for which a statute imposesan assessed value limitation on the aggregate amount of bondsthat the political subdivision may issue.
As added by P.L.6-1997, SEC.203.

IC 36-1-15-2
Legislative intent
    Sec. 2. It is the intent of the general assembly that the amount ofdebt incurred by a political subdivision after February 28, 2001, notexceed, in the aggregate, the amount of debt that the politicalsubdivision could have incurred under:
        (1) Article 13, Section 1 of the Constitution of the State ofIndiana; and
        (2) any statute imposing an assessed value limitation on theaggregate amount of bonds that a political subdivision mayissue;
if property were assessed at thirty-three and one-third percent(33.33%) of true tax value.
As added by P.L.6-1997, SEC.203.

IC 36-1-15-3
Computation of adjusted value of taxable property within politicalsubdivision
    Sec. 3. The department of local government finance shallcompute, in conjunction with the approvals required under:
        (1) IC 6-1.1-18.5-8(b); and
        (2) IC 20-46-7-8, IC 20-46-7-9, and IC 20-46-7-10;
an adjusted value of the taxable property within each politicalsubdivision. The department of local government finance mayrequest a certification of net assessed valuation from the countyauditor in order to make a calculation under this section.
As added by P.L.6-1997, SEC.203. Amended by P.L.90-2002,SEC.466; P.L.2-2006, SEC.191.

IC 36-1-15-4
Adjusted value
Sec. 4. The adjusted value of the taxable property in a politicalsubdivision is equal to the result determined under STEP TWO ofthe following formula:
STEP ONE: Determine the value of the taxable property withinthe political subdivision for the last assessment for state andcounty taxes using one hundred percent (100%) of true taxvalue. STEP TWO: Divide the STEP ONE amount by three (3).
As added by P.L.6-1997, SEC.203.

IC 36-1-15-5
Duties of department of local government finance
    Sec. 5. The department of local government finance shall do thefollowing:
        (1) Maintain a schedule of the adjusted value of taxableproperty of each political subdivision.
        (2) Provide the political subdivision and the county auditor forthe county in which a political subdivision is located with thelatest adjusted value of taxable property determined for thepolitical subdivision.
As added by P.L.6-1997, SEC.203. Amended by P.L.90-2002,SEC.467.

IC 36-1-15-6
Restrictions on indebtedness
Sec. 6. Subject to section 7 of this chapter, a political subdivisionmay not become indebted in any manner or for any purpose in anamount in the aggregate that exceeds two percent (2%) of the latestadjusted value of taxable property determined for the politicalsubdivision immediately preceding the incurring of the indebtedness.However, if a statute limits the debt of a political subdivision to apercentage other than two percent (2%) of the value of taxableproperty in the political subdivision, the political subdivision maynot become indebted in an amount that exceeds the percentage set bystatute multiplied by the latest adjusted value of taxable propertydetermined for the political subdivision immediately preceding theincurring of the indebtedness.
As added by P.L.6-1997, SEC.203.

IC 36-1-15-7
Permitted excess of debt limitation
    Sec. 7. A political subdivision may incur debt that exceeds themaximum amount allowed under section 6 of this chapter asnecessary for the public protection and defense only:
        (1) in time of war, foreign invasion, or other great publiccalamity; and
        (2) upon petition of a majority of the property owners innumber and value within the limits of the political subdivision.
The amount of the excess may not be greater than the amountspecified in the petition.
As added by P.L.6-1997, SEC.203.

IC 36-1-15-8
Debt in excess of maximum amount void
Sec. 8. Debt in excess of the maximum amount specified insections 6 and 7 of this chapter is void.
As added by P.L.6-1997, SEC.203.
IC 36-1-15-9
Liability for erroneous determination or computation
Sec. 9. The department of local government finance is not liablefor an erroneous determination or computation made by thedepartment under this chapter.
As added by P.L.6-1997, SEC.203. Amended by P.L.90-2002,SEC.468.