CHAPTER 25. SANITATION DEPARTMENT IN CERTAIN CITIES
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 populationof more than one hundred ten thousand (110,000) but less thanone hundred fifteen thousand (115,000).
(2) Each municipality in a county having a population of morethan four hundred thousand (400,000) but less than sevenhundred thousand (700,000) in which the legislative body hasadopted this chapter by ordinance.
(b) This chapter also applies to each second class city not in sucha county in which the legislative body has adopted this chapter byordinance.
(c) In addition, in a consolidated city sections 9 through 38 of thischapter apply to the department of public works and the board ofpublic 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.
IC 36-9-25-2
Definitions
Sec. 2. As used in this chapter:
"Board" refers to a board of sanitary commissioners, or board ofpublic works of a consolidated city.
"Department" refers to a department of public sanitation, ordepartment 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 ofcommissioners; oaths, surety bonds, and compensation ofcommissioners
Sec. 3. (a) A department of public sanitation is established as anexecutive department of the municipality. However, in the case of adistrict described in subsection (b)(2), the department is establishedas an executive department of each municipality in the district.
(b) The department is under the control of a board of sanitarycommissioners, which is composed as follows:
(1) If the department is established under section 1(a) of thischapter, the board consists of not less than three (3) but notmore than five (5) commissioners. All of the commissionersshall 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, unlessthe board consists of five (5) commissioners, in which case notmore than three (3) may be of the same political party. (2) Notwithstanding subdivision (1), if the department isestablished under section 1(a) of this chapter and the districtcontains at least one (1) city having a population of less thanone hundred thousand (100,000) and at least one (1) town, theboard consists of one (1) commissioner from each municipalityin the district. The executive of each of those municipalitiesshall appoint one (1) commissioner. If after all appointments aremade the board has fewer than five (5) commissioners, theexecutive of the municipality with the largest population shallappoint the number of additional commissioners needed tobring the total to five (5). Not more than three (3) of thecommissioners may be of the same political party.
(3) If the department is established under section 1(b) of thischapter, 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 othercommissioners shall be appointed by the city executive. Notmore than two (2) of the commissioners may be of the samepolitical party, unless the board consists of five (5)commissioners, in which case not more than three (3) of thecommissioners may be of the same political party. However, ifthe department is located in a county having a population of:
(A) more than one hundred five thousand (105,000) but lessthan one hundred ten thousand (110,000);
(B) more than one hundred ten thousand (110,000) but lessthan one hundred fifteen thousand (115,000);
(C) more than one hundred forty-eight thousand (148,000)but less than one hundred seventy thousand (170,000); or
(D) more than one hundred thirty thousand (130,000) butless than one hundred forty-five thousand (145,000);
and the city does not have a city civil engineer, one (1) of thecommissioners must be a licensed engineer, appointed by theexecutive, with at least five (5) years experience in civil orsanitary engineering. In addition, in such a city thecommissioners may not hold another public office. Not morethan two (2) of the commissioners may be of the same politicalparty, unless the board consists of five (5) commissioners, inwhich case not more than three (3) of the commissioners maybe of the same political party.
(c) Before beginning the commissioner's duties, eachcommissioner shall take and subscribe the usual oath of office. Theoath shall be endorsed upon the certificate of appointment and filedwith the municipal clerk.
(d) Each commissioner shall also execute a bond in the penal sumof five thousand dollars ($5,000) payable to the state and conditionedupon the faithful performance of the commissioner's duties and thefaithful accounting for all money and property that comes under thecommissioner's control. The bond must be approved by the municipalexecutive.
(e) The appointed commissioners are entitled to a salary of not
less than three thousand six hundred dollars ($3,600) a year duringactual construction and not less than six hundred dollars ($600) ayear in other years.
(f) Notwithstanding IC 36-1-8-10, whenever this section requiresthat the membership of the board of sanitary commissioners notexceed a stated number of members from the same political party, atthe time of appointment the appointee must:
(1) have voted in the two (2) most recent primary elections heldby the party with which the appointee claims affiliation; or
(2) if the appointee did not vote in the two (2) most recentprimary elections or only voted in one (1) of those elections, becertified as a member of the party with which the appointeeclaims affiliation by that party's county chairman for the countyin 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.
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 thischapter, the initial terms are one (1), two (2), and three (3) yearsfor the first three (3) commissioners. If additionalcommissioners are appointed, their initial terms are four (4)years.
(2) If the department is established under section 1(b) of thischapter, the initial terms of the two (2) appointedcommissioners are four (4) and three (3) years respectively.However, if a third commissioner has also been appointed, thecommissioner's initial term is two (2) years.
All terms begin on January 1 following the establishment of thedepartment.
(b) As the initial terms expire, successors shall be appointed forfour (4) year terms. In a county that is listed in section 3(b)(3) of thischapter, the appointments must be made before January 16 in theyear the term begins. If a vacancy occurs on the board, the appointingauthority shall appoint a commissioner for the remainder of the termwithin 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 officeexcept upon charges preferred before the municipal executive and ahearing held on them. The only permissible reasons for removal areneglect of duty and incompetence. The commissioner must be givenat least ten (10) days' notice of the time and place of the hearing and
the opportunity to produce evidence and examine and cross-examinewitnesses. All testimony shall be given under oath. The municipalexecutive shall put his findings in writing and file them with themunicipal clerk.
(b) If the charges are sustained and the commissioner removed, hemay appeal the findings within ten (10) days after the date they arefiled with the clerk to the circuit or superior court of the county inwhich the municipality is located. The commissioner shall file anoriginal complaint against the executive, stating the charges preferredand the findings made. The court shall hear the appeal within thirty(30) days after it is filed without a jury and shall either ratify orreverse the finding of the executive. The judgment of the court isfinal 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 isadopted by ordinance, or within thirty (30) days after thecommissioners are appointed in a county that is listed in section3(b)(3) of this chapter, the board shall hold a meeting for the purposeof organization. The board shall choose one (1) of its members to bepresident and another to be vice president, who shall perform theusual duties of those offices. The officers serve for a period of one(1) year or until their successors are elected and qualified. Themunicipal fiscal officer shall perform the same duties with the fundsand accounts of the board as with the funds and accounts of the otherexecutive departments of the municipality, except as otherwiseprovided in this chapter. The fiscal officer receives no additionalcompensation 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 theboard. The board shall hold regular meetings at the times it fixes andmay call special meetings at the times and upon the notice that itfixes by rule or resolution. All meetings must be open to the public.The board may adopt the rules that it considers necessary to conductits meetings and business and to control and manage the propertyunder 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 listedin section 3(b)(3) of this chapter. However, subsections (b) and (c)of this section also apply to municipalities that adopt this chapter byordinance under section 1(a) of this chapter.
(b) This chapter does not affect the enabling ordinances, theduties of the municipality, or the rights of bondholders with regard
to sewage works revenue bonds or other outstanding revenue bondsissued before this chapter was adopted by ordinance.
(c) Adoption of this chapter by ordinance does not affect thesystem of fees for sewage treatment. All revenue derived from feesshall be applied only to the following purposes:
(1) The administrative expense, operation, construction, andmaintenance of sewage works.
(2) The retirement of outstanding revenue bonds and anyadditional revenue bonds that may be issued for construction ofsewage works and improvements, additions, and extensions tothem.
(3) The payment of the cost of improvements, additions, andextensions to the extent permitted by the ordinances authorizingthe issuance of revenue bonds.
(d) The ordinance adopting this chapter must specify that thedistrict initially includes all territory within the corporate boundariesof the city, including any territory, addition, platted subdivision, orunplatted land lying outside the corporate boundaries of the city thathas been taken into or has been connected with the public sanitationsystem of the city in accordance with another statute if the sewage ordrainage of that area discharges into or through the sewage systemof 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 apopulation of more than one hundred thirty thousand (130,000) butless than one hundred forty-five thousand (145,000).
(b) The ordinance adopting this chapter must specify the purposeor 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 ofsanitary sewage and other water-carried wastes of the district.
(2) To provide for the drainage of storm and surface water torelieve 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) ormore of the remaining purposes may, by subsequent ordinance, beadded to the purposes of the district.
(c) After adoption of the ordinance, three (3) interim members ofthe board shall be appointed for terms until the January 1 followingthe adoption. On the January 1 following the adoption, membersshall be appointed as provided in sections 3 and 4 of this chapter.
(d) Bonds of the district may not be sold without the priorapproval 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.
IC 36-9-25-9
Jurisdiction of board
Sec. 9. The board shall manage and control all sewage works ofthe district. The board has concurrent power with the works board ofthe municipality to construct, reconstruct, maintain, repair, andregulate the use of all connecting and intercepting sewers. The boardshall collect and remove garbage, ashes, and other waste materials toprevent the pollution of watercourses within the district and toprotect the public health. The board may purchase, acquire,construct, reconstruct, operate, repair, and maintain all sewageworks.
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 thedistrict or within five (5) miles outside the boundaries of thedistrict.
(2) Enter upon any lots or lands for the purpose of surveying orexamining them to determine the location of any sewage worksor other structures, roads, levees, or walls connected with ornecessary for the use or operation of the facilities.
(3) Design, order, contract for, construct, reconstruct, andmaintain the sewage works.
(4) Build or have built all roads, levees, walls, other structures,or lagoons that may be desirable in connection with sewageworks and make improvements to the grounds and premisesunder its control, including the erection and operation of a plantfor 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, oreliminate from the sewage and trade waste of the premises anyingredients that interfere with the successful operation of thesewage works. It may compel the owners, operators, or lesseesof the premises located on a watercourse to direct an excessiveflow of water into the watercourse.
(6) Review and approve plans for privately constructed plantsfor the treatment or elimination of trade waste. This is to insurethat an owner, operator, or lessee of a house, factory, shop,works, plant, or other structure that may be directly or indirectlyconnected with sewers emptying into the sewage works doesnot construct a purification plant, machine, or other device foreliminating or treating the trade waste from those places for thepurpose of eliminating ingredients that would harm the sewage
works until the plans have been submitted to and approved bythe board. After plans have been submitted to the board, it mayreject them in their entirety or order changes to be made thatinclude its supervision and regulation of the operation. Anappeal may be taken from the decision of the board rejecting theplans submitted or ordering changes by the owner, operator, orlessee of a proposed private plant, in the same manner asappeals from the works board as far as applicable.
(7) Build or have built a plant or plants and all appurtenancesfor the treatment of sludge, pressing of sludge, or convertingsludge into marketable fertilizer.
(8) Sell any byproduct from the sewage works, or furnish anybyproduct free for the use of the municipality or for other publicuses, with revenue derived from the sale above the amountneeded for maintenance to be paid into the sanitary district bondfund, or if no bonds are outstanding, to revert to its generalfund.
(9) Compel the owners, lessees, or agents in possession of lotsor land from which sewers discharge sewage or drainage andpollute a watercourse or body of water or constitute a menaceto public health and welfare to connect the sewers with drainsleading directly or indirectly into sewage works regulating theuse and assessing reasonable charges.
(10) Construct or have constructed regulating devices at thejunction of combined sewers with intercepting sewers toregulate the discharge into the intercepting and connectingsewers to prevent the pollution of streams or bodies of water ora menace to the public health and welfare.
(11) Construct, add to, reconstruct, or maintain an incineratingor reduction plant or other plants for the conversion,destruction, or disposal of garbage, filth, ashes, dirt, andrubbish. The board may operate the plant in connection withsewage works, and sell any byproducts derived from thegarbage, filth, ashes, or rubbish, including sand and graveltaken from lands under the control of the board at prices that aredetermined by the board, or furnish it free to the municipalityor for other public uses, with revenue derived above the amountneeded for maintenance to be paid into the sanitary district bondfund, or if no bonds are outstanding, to revert to its generalfund.
(12) Take charge of all real property, belonging to themunicipality and under the control of the works board, suitablylocated for sewage works if the board demands the works board,subject to contracts, to relinquish and transfer control of realand personal property used by the works board for thecollection and removal of garbage and ashes. The transfer ofpersonal property must be made by resolution adopted by theworks board describing the property, with a copy of theresolution to be delivered to the board and made a matter ofrecord in the minutes of the proceedings of the board. (13) Collect and remove, or contract for the collection andremoval of, all garbage, ashes, dead animals, refuse, and wastesfrom domestic premises, and construct or have constructedstations, including barns, garages, sheds, blacksmith shops,dumps, incinerators, and all other useful or necessaryimprovements for this purpose. This includes the power tocollect and remove soil and other sewage in areas not providedwith sewers, and then to discharge or dispose of it into sewageworks.
(14) Enter into contracts in the name of the municipality, withthe approval of the executive as provided by law. However, inthe 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 theexecutive 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 thischapter, including determining the number, prescribing theduties, and fixing the compensation for all its engineers,chemists, attorneys, bacteriologists, surveyors, inspectors,clerks, stenographers, laborers, supervisors, and otheremployees as provided by law for other executive departmentsof the municipality.
(16) Adopt resolutions, rules, and bylaws that are necessary tocarry out this chapter, including repealing or amending themconsistent with this chapter.
(17) Prepare a schedule of reasonable service fees and collectthem from persons who own, lease, or possess or control astenants or as agents lots or lands located outside the boundariesof the district if the lots or lands are benefited by connectioninto the sanitary sewer system of the district as described in thischapter, with the proceeds from sewage connections andtreatment service credited to the general fund of the district forgeneral use and maintenance purposes. The fees may be fixed,repealed, or amended, or the service discontinued, by the boardat its discretion.
(18) Sue or be sued in the name of the municipality, withpayment for obligations and of a judgment against themunicipality in an action to be made solely from funds of thedepartment and its district that may be available for thispurpose. In the case of a district described in section 3(b)(2) ofthis chapter, the board may sue or be sued in the name of anymunicipality in the district or in the name of the district. If ajudgment is entered against a municipality in the district,payment of obligations and the judgment shall be made solelyfrom available funds of the department or the district.
(19) Pay for services rendered or for any other obligationsincurred by the board while executing its powers, or pay anyjudgments, including interest and costs, by issuing and selling
the bonds of the district, or obtaining temporary loans orlevying taxes as authorized by this or other statutes for anyother purpose.
(20) Lease, rent, purchase, and hold real or personal propertymore than five (5) miles outside the boundaries of the district ifthe 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 toactivities 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; establishment; modification; collection; procedure
Sec. 11. (a) In connection with its duties, the board may fix feesfor the treatment and disposal of sewage and other waste dischargedinto the sewerage system, collect the fees, and establish and enforcerules governing the furnishing of and payment for sewage treatmentand disposal service. The fees must be just and equitable and shall bepaid by any user of the sewage works and the owner of every lot,parcel of real property, or building that is connected with and usesthe sewage works of the district by or through any part of thesewerage system. This section applies to owners of property that ispartially or wholly exempt from taxation, as well as owners ofproperty 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 besufficient to produce revenues sufficient to pay operation,maintenance, and administrative expenses, to pay the principal andinterest on bonds as they become due and payable, and to providemoney for the revolving fund authorized by this chapter.
(c) Fees may not be established until a public hearing has beenheld at which all the users of the sewage works and owners ofproperty served or to be served by the works, including interestedparties, have had an opportunity to be heard concerning the proposedfees. After introduction of the resolution fixing fees, and before theyare finally adopted, notice of the hearing setting forth the proposedschedule of fees shall be given by publication in accordance withIC 5-3-1. After the hearing the resolution establishing fees, either asoriginally introduced or as amended, shall be passed and put intoeffect. However, fees related to property that is subject to fulltaxation do not take effect until they have been approved byordinance of the municipal legislative body or, in the case of adistrict described in section 3(b)(2) of this chapter, under section11.3 of this chapter.
(d) A copy of the schedule of the fees shall be kept on file in theoffice of the board and must be open to inspection by all interestedparties. The fees established for any class of users or property servedshall be extended to cover any additional premises thereafter served
that fall within the same class, without the necessity of hearing ornotice.
(e) A change of fees may be made in the same manner as feeswere originally established. However, if a change is madesubstantially pro rata for all classes of service, hearing or notice isnot required, but approval of the change by ordinance of themunicipal legislative body is required, and, in the case of a districtdescribed in section 3(b)(2) of this chapter, approval under section11.3 of this chapter is required.
(f) If a fee established is not paid within thirty (30) days after it isdue, the amount, together with a penalty of ten percent (10%) and areasonable attorney's fee, may be recovered by the board from thedelinquent user or owner of the property served in a civil action inthe name of the municipality.
(g) Fees assessed against real property under this section alsoconstitute a lien against the property assessed. The lien attaches atthe time of the filing of the notice of lien in the county recorder'soffice. The lien is superior to all other liens except tax liens, andshall be enforced and foreclosed in the same manner as is providedfor liens under IC 36-9-23-33 and IC 36-9-23-34.
(h) A fee assessed against real property under this sectionconstitutes a lien against the property assessed only when the fee isdelinquent for no more than three (3) years from the day after the feeis due.
(i) In addition to the penalties under subsections (f) and (g) andsection 11.5 of this chapter, a delinquent user may not dischargewater into the public sewers and may have the property disconnectedfrom the public sewers.
(j) The authority to establish a user fee under this section includesfees to recover the cost of construction of sewage works fromindustrial users as defined and required under federal statute or rule.Any industrial users' cost recovery fees may become a lien upon thereal property and shall be collected in the manner provided by law.In addition, the imposition of the fees, the use of the amountscollected, and the criteria for the fees must be consistent with theregulations of the federal Environmental Protection Agency.
(k) The authority to establish a user fee under this section includesfees to recover the costs associated with providing financialassistance 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 thischapter;
is considered just and equitable if the project for which the financialassistance is provided otherwise complies with the requirements ofthis chapter.
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.
IC 36-9-25-11.1 Deposits to secure payment of fees
Sec. 11.1. In a consolidated city, the board may also require theusers of the sewage service to make a reasonable deposit in advanceof a connection or reconnection to the sewerage system to securepayment of the fees. The deposit may not exceed thirty-three percent(33%) of the estimated annual cost of the service for a particularuser.
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 isnot paid within thirty (30) days after it is due, a copy of any noticeof delinquency sent to a delinquent user who is a tenant must be sentto the owner of the property occupied by the tenant at the latestaddress of the owner as shown on the property tax records of thecounty 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 createdunder section 3(b)(2) of this chapter.
(b) For purposes of this section, "commission" refers to theIndiana 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 wastedischarged 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 bodyof 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 undersubsection (d)(1), the board may petition the commission to establishthe fees under:
(1) the procedures set forth in IC 8-1-2; and
(2) subsection (f).
(f) The commission shall observe the following requirementswhen establishing fees for a district:
(1) Fees must be sufficient to enable the district to furnishreasonably adequate services and facilities.
(2) Fees for a service must be nondiscriminatory, reasonable,and just and must produce sufficient revenue, together withtaxes levied under this chapter, to do the following:
(A) Pay all legal and other necessary expenses incident tothe 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 orother obligations, including leases.
(C) Provide a debt service reserve for bonds or otherobligations, including leases, in an amount established by theboard. The amount may not exceed the maximum annualdebt service on the bonds or obligations or the maximumannual lease rentals, if any.
(D) Provide adequate money for working capital.
(E) Provide adequate money for making extensions andreplacements to the extent not provided for throughdepreciation in clause (A).
(F) Provide money for the payment of taxes that may beassessed against the district.
(3) The fees charged by the district must produce an incomesufficient to maintain district property in a sound physical andfinancial 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 thesanitary district facilities.
(5) Fees other than fees established for a municipally ownedutility taxed under IC 6-1.1-8-3 must be sufficient tocompensate the municipality for taxes that would be due themunicipality on the utility property located in the municipalityif the property were privately owned.
(6) The commission must grant a request by the board topostpone an increase in fees until after the occurrence of afuture event.
(g) The board may transfer fees in lieu of taxes established undersubsection (f)(5) to the general fund of the appropriate municipality.
(h) Fees established by the commission under this section takeeffect to the same extent as if the fees were approved by an ordinanceadopted 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 ofutility
Sec. 11.5. (a) As an alternative to the penalties provided in section11 of this chapter, the board may require that the water utilityproviding water service to a delinquent user discontinue service untilpayment of all overdue user fees, together with any penaltiesprovided 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 thedelinquent user stating:
(1) the delinquent amount due, together with any penalty;
(2) that water service may be disconnected if the user continuesnot to pay the delinquency and any penalty; and
(3) the procedure for resolving disputed bills.
The municipality shall provide by ordinance a procedure forresolving disputed bills that includes an opportunity for a delinquentuser to meet informally with designated personnel empowered tocorrect incorrect charges. Payment of a disputed bill and penalties bya user does not constitute a waiver of rights to subsequently claimand recover from the municipality sums improperly charged to theuser.
(c) If the user fails to pay the delinquent amount or otherwiseresolve the charges as specified in subsection (a), the board or itsdesignee shall give written notice to the water utility serving the userto discontinue water service to the premises designated in the noticeuntil notified otherwise. The notice must identify the delinquentsewer user in enough detail to enable the water utility to identify thewater service connection that is to be terminated. Upon receipt of thenotice, the water utility shall disconnect water service to the user.
(d) Water service may not be shut off under this section if a localboard of health has found and certified to the municipality that thetermination of water service will endanger the health of the user andothers in the municipality.
(e) The water utility that discontinues water service in accordancewith an order from the board or its designee does not incur anyliability except to the extent of its own negligence or improperconduct.
(f) If the water utility does not discontinue service within thirty(30) days after receiving notice from the municipality, the utility isliable for any user fees incurred thirty (30) days after receipt ofnotice to discontinue water service and that are not collected fromthe 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 aprocedure to expense as bad debt overdue user fees, together withany penalties provided under this chapter, if the amount of fees andpenalties 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 maybe 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 intothe sewers;
(5) the size of sewer connections; or
(6) any combination of these factors or other factors that theboard determines necessary in order to establish just andequitable rates and charges.
(b) The board may enter into contracts with a water utilityfurnishing water service to users or property served in the districtrelative to:
(1) ascertaining the amount of water consumed;
(2) the computation of the amount of charge to be billed to eachuser or property served;
(3) the billing and collection of the amounts; and
(4) the discontinuance of water service to delinquent users asprovided in section 11.5 of this chapter.
(c) As an alternative to subsection (b), the board may require awater utility furnishing water service to users or property served inthe district to perform the functions listed in subsection (b). If thewater utility and the board do not agree upon the reasonablecompensation to be paid to the water utility for the services describedin subsection (b), the board or the water utility may apply to theutility regulatory commission to establish the reasonablecompensation for the services. Upon receipt of an application, theutility regulatory commission, after notice to the water utility and theboard and after a hearing, shall establish the reasonablecompensation to be paid for the services. The water utility shall thenrender the services described in return for the compensation fixed.
(d) If a person owns or occupies real property that is connected tothe sewage works and either directly or indirectly uses waterobtained from a source other than a water utility that is not measuredby a water meter acceptable to the board, then the board may requirethe person, at his own expense, to furnish, install, and maintain awater 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 chemicalsand strengths of waste and other substances detrimental to sewageworks
Sec. 13. (a) The board, in the name of the municipality, may bringan action to recover damages for:
(1) the breach of an agreement, express or implied, relating tothe construction, management, or repair of sewage works underits control, including real property; or
(2) injury to the personal or real property used in the sanitarydisposal of sewage in a municipality located within the district. (b) The board may recover possession of property, may bring anaction for the specific performance of an agreement, and may use, inthe name of the municipality, any legal or equitable remedynecessary to protect and enforce the rights and perform the duties ofthe department.
(c) The board may establish limits on the kinds or amounts ofchemicals and the strength of the waste or other substances the boardconsiders detrimental to the sewage works. If a person dischargessewage into the sewage works that exceeds limits set by the board,the board may order the person to cease using the sewage worksupon a hearing with notice. However, if evidence indicates a publichealth hazard is being created, the board may summarily order theperson to cease without notice or hearing. Orders of the board maybe enforced by bringing an action to enjoin discharges into the sewerworks in any court in the county having jurisdiction to hear equityactions. A person aggrieved by an order of the board is entitled toappeal the order to the circuit or superior court of the county inwhich the city is located. If an order is given without notice, anappeal must be perfected within ten (10) days after receipt of theorder or the right to appeal is considered waived.
(d) The board of a department in a district described in section3(b)(2) of this chapter may bring an action in the name of:
(1) a municipality in the district with the approval of theexecutive 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 ofthe municipality; and
(2) any territory, town, addition, platted subdivision, orunplatted land lying outside the corporate boundaries of themunicipality that has been taken into the district in accordancewith a prior statute, the sewage or drainage of which dischargesinto or through the sewage system of the municipality;
constitutes a special taxing district for the purpose of providing forthe sanitary disposal of the sewage of the district in a manner thatprotects the public health and prevents the undue pollution ofwatercourses of the district.
(b) Upon request by:
(1) a resolution adopted by the legislative body of anothermunicipality in the same county; or
(2) a petition of the majority of the resident freeholders in aplatted subdivision or of the owners of unplatted land outsidethe boundaries of a municipality, if the platted subdivision orunplatted land is in the same county;the board may adopt a resolution incorporating all or any part of thearea of the municipality, platted subdivision, or unplatted land intothe district.
(c) A request under subsection (b) must be signed and certified ascorrect by the secretary of the legislative body, resident freeholders,or landowners. The original shall be preserved in the records of theboard. The resolution of the board incorporating an area in thedistrict must be in writing and must contain an accurate descriptionof the area incorporated into the district. A certified copy of theresolution, signed by the president and secretary of the board,together with a map showing the boundaries of the district and thelocation of additional areas, shall be delivered to the auditor of thecounty within which the district is located. It shall be properlyindexed and kept in the permanent records of the offices of theauditor.
(d) In addition, upon request by ten (10) or more interestedresident freeholders in a platted or unplatted territory, the board maydefine the limits of an area within the county and including theproperty of the freeholders that is to be considered for inclusion intothe district. Notice of the defining of the area by the board, andnotice of the location and limits of the area, shall be given bypublication in accordance with IC 5-3-1. Upon request by a majorityof the resident freeholders of the area, the area may be incorporatedinto the district in the manner provided in this section. The resolutionof the board incorporating the area into the district and a map of thearea shall be made and filed in the same manner.
(e) In addition, a person owning or occupying real propertyoutside the district may enter into a sewer service agreement with theboard for connection to the sewage works of the district. If theagreement provides for connection at a later time, the date or theevent upon which the service commences shall be stated in theagreement. The agreement may impose any conditions for connectionthat the board determines. The agreement must also provide theamount of service charge to be charged for connection if the personsare not covered under section 11 of this chapter, with the amount tobe fixed by the board in its discretion and without a hearing.
(f) All sewer service agreements made under subsection (e) shallbe recorded in the office of the recorder of the county where theproperty is located. The agreements run with the property describedand are binding upon the persons owning or occupying the property,their personal representatives, heirs, devisees, grantees, successors,and assigns. Each recorded agreement that provides for the propertybeing served to be placed on the tax rolls shall be certified by theboard to the auditor of the county where the property is located. Thecertification must state the date the property is to be placed on the taxrolls, and upon receipt of the certification together with a copy of theagreement, the auditor shall immediately place the property certifiedupon the rolls of property subject to the levy and collection of taxesfor the district. An agreement may provide for the collection of aservice charge for the period services are rendered before the levy
and collection of the tax.
(g) Except as provided in subsection (i), sewer service agreementsmade under subsection (e) must contain a provision that persons(other than municipalities) who own or occupy property agree forthemselves, their executors, administrators, heirs, devisees, grantees,successors, and assigns that they will:
(1) neither object to nor file a remonstrance against theproposed annexation of the property by a municipality withinthe boundaries of the district;
(2) not appeal from an order or a judgment annexing theproperty to a municipality; and
(3) not file a complaint or an action against annexationproceedings.
(h) This section does not affect any sewer service agreementsentered into before March 13, 1953.
(i) Subsection (g) does not apply to a landowner if all of thefollowing conditions apply:
(1) The landowner is required to connect to a sewer servicebecause a person other than the landowner has polluted orcontaminated the area.
(2) The costs of extension of service or connection to the sewerservice are paid by a person other than the landowner or themunicipality.
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.
IC 36-9-25-15
Special taxing districts; incorporation of territory by board
Sec. 15. (a) The board, on its own initiative, whenever anyterritory, by its contour and watershed, or because of the extensionof sewers by the municipality, is capable of draining sewage into orconnecting with the sanitary system, may incorporate any territory,whether platted or unplatted, into the district by adopting a resolutionto that effect describing the reason it is to be included. A certifiedcopy of the resolution is conclusive evidence in any proceeding thatthe territory described was properly incorporated and constitutes apart 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 theresolution shall be published in accordance with IC 5-3-1. By thedate and time of the hearing any affected person may file in theoffice of the board a written remonstrance to having his landsincluded. The board shall either confirm, modify, or rescind theresolution after the hearing. An appeal may be taken from thedecision by one (1) or more persons considering themselvesaggrieved or injuriously affected, as long as those appealing havefiled written remonstrances, as provided in this subsection, by filingtheir complaint within thirty (30) days after the final decision of theboard. 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 personsowning property in the territory sought to be incorporated in thedistrict have remonstrated; and
(2) that the incorporation of the territory into the district will befor its interest and will cause no manifest injury to the personsowning property in the territory;
the court shall so find and the incorporation shall be ordered. If thecourt is satisfied that seventy-five percent (75%) or more of thepersons owning property in the territory sought to be incorporatedhave remonstrated, then the incorporation may not be ordered unlessthe court further finds from the evidence that unless it isincorporated, the health and welfare of residents of the territory or ofthe adjoining lands will be materially affected and that the safety andwelfare of the inhabitants and property of other persons and propertywill be endangered.
(d) Pending an appeal under subsection (b) and during the timewithin which the appeal may be taken, the territory sought to beincorporated is not a part of the district. Upon the determination ofthe appeal, the judgment must particularly describe the resolutionupon which the appeal is based. The clerk of the court shall delivera certified copy of the judgment to the secretary of the board, whoshall record it in the minute book of the board and make across-reference to the page upon the margin where the originalresolution was recorded. If a decision is adverse to an incorporation,further proceedings may not be taken by the board to incorporate thatterritory within the district for a period of one (1) year after therendition 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 untilthey are fully paid, all property included within the district at thetime the bonds were issued and sold remains subject to taxes leviedand for its proportion of the indebtedness, notwithstanding that theproperty and territory may have been disannexed from the district.
(b) Any property in territory added to the district, as a conditionof the special benefits it receives, becomes liable for its proportionof all taxes levied to pay all bonds of the special taxing district thatare either outstanding or are later issued and sold. The proportion oftaxation shall be determined in the same manner as when territory isannexed 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 theboard 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 ofthe bonds under section 27 of this chapter, and before the collectionof taxes levied under section 32 of this chapter, shall be met and paidaccording to this section. The board shall, from time to time, certifyitems of expense to the municipal fiscal officer, directing him to paythose amounts. The fiscal officer shall at once draw his warrant, withthe warrant to be paid out of the unappropriated part of the generalfund of the municipality, without a special appropriation being madeby the municipal legislative body.
(b) If there is no unappropriated money in the general fund, thefiscal officer shall recommend to the legislative body either thetemporary transfer from other funds of the municipality of asufficient amount to meet the items of expense, or the making of atemporary loan for this purpose. The legislative body shall, at once,make the transfer or authorize the temporary loan in the same mannerthat other temporary loans are made by the municipality. However,the fund or funds of the municipality from which payments are mademust be fully reimbursed and repaid by the board:
(1) out of the first proceeds of the sale of bonds to the extentthat expenses paid are chargeable to the cost of acquiring landor the construction of a work under a resolution adopted andconfirmed under section 18 of this chapter; or
(2) out of the fund raised by taxation under section 32 of thischapter to the extent that expenses paid are in the nature of ageneral 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 andappeals
Sec. 18. (a) If upon investigation it is found by the board of amunicipality located on or near a watercourse that:
(1) the watercourse is being polluted by the discharge ofsewage, drainage, or other harmful matter from the sewage ordrainage systems of the municipality;
(2) a system of sewage disposal is necessary for the publichealth and welfare; and
(3) the construction of a system for the disposal of the sewageand 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 andbounds of all real property then considered necessary to be acquiredor removed, or that would be injuriously affected, in connection withthe project. It shall also have prepared separate descriptions of allreal property and of all personal property affected, and shalldetermine the estimated cost of all the work, including the estimateddamages to be awarded to the owners of the real and personalproperty. The adoption or filing of any specifications covering all or
parts of the project and details of other matters is optional with theboard, and it may also receive and file alternate plans andspecifications, submitted by any person for all or any part of theproject. The board may, at the final hearing, adopt all or any of thesematerials in place of the board's plans and specifications.
(b) When general plans under subsection (a) have been preparedby the board, it shall adopt a resolution declaring that, uponinvestigation, it has been found:
(1) that the watercourse particularly described in the resolutionis being polluted by the discharge of sewage, drainage, or otherharmful matter accumulating within the boundaries of thedistrict; and
(2) that it is necessary for the public health and welfare and willbe of public utility and benefit to construct and maintain sewageworks to prevent the pollution of the watercourse, and, for thatpurpose, to appropriate the property described.
The board shall adopt all general plans and estimates in theresolution, which must be open to inspection by all personsinterested in or affected by the appropriation of property or theconstruction of the work.
(c) Upon the adoption of the resolution, the board shall, inaccordance with IC 5-3-1, publish notice of:
(1) the adoption; and
(2) the fact that general plans and estimates have been preparedand can be inspected.
The notice must name a date on which the board will receive or hearremonstrances from persons interested in or affected by theproceedings and when it will determine the public utility and benefitof the project. A similar notice shall be mailed to each owner of landto be appropriated under the resolution. If a nonresident owner'sresidence is unknown to the board, then he is considered to havebeen notified of the pendency of the proceedings by the publicationof notice. All persons affected in any manner by the proceeding,including all taxpayers in the district, are considered to be notifiedof the pendency of the proceedings and of all subsequent acts,hearings, adjournments, and orders of the board by the originalnotice by publication.
(d) In the resolution and notice, separate descriptions of eachpiece or parcel of land are not required, but it is a sufficientdescription of the property purchased, to be purchased, or to beappropriated or damaged to give a description of the entire tract bymetes and bounds whether the property is composed of one (1) ormore lots or parcels and whether it is owned by one (1) or morepersons. If the land or a part of it is to be acquired by purchase, theresolution must also state the maximum proposed cost.
(e) The board may, at any time before the adoption of theresolution, obtain from the owner or owners of the land an option forits purchase or may enter into a contract for its purchase upon termsand conditions that the board considers best. The option or contractis subject to the final action of the board confirming, modifying, or
rescinding the resolution and to the condition that the land may bepaid for only out of the special fund resulting from the sale ofsanitary district bonds as provided in this chapter.