CHAPTER 19. LOCAL INFRASTRUCTURE REVOLVING FUND
IC 4-10-19
Chapter 19. Local Infrastructure Revolving Fund
IC 4-10-19-1
"Fund" defined
Sec. 1. As used in this chapter, "fund" refers to the localinfrastructure revolving fund established by this chapter.
As added by P.L.13-1996, SEC.1.
IC 4-10-19-2
"Political subdivision" defined
Sec. 2. As used in this chapter, "political subdivision" has themeaning set forth in IC 36-1-2-13.
As added by P.L.13-1996, SEC.1.
IC 4-10-19-3
Purpose; administration by budget agency
Sec. 3. The local infrastructure revolving fund is established forthe purpose of providing funds to local governments forinfrastructure projects. The fund shall be administered by the budgetagency.
As added by P.L.13-1996, SEC.1.
IC 4-10-19-4
Administration of fund; methods for financing infrastructure;annual report on projects funded
Sec. 4. (a) In administering the fund, the budget agency shall dothe following:
(1) Monitor infrastructure finance needs and the availability andcost of capital.
(2) Provide financial management of investment pools andfinancial services associated with loans.
(3) Explore and evaluate capital financing techniques.
(4) Explore methods for the state to enhance the credit qualityof municipal bond issues at a minimum cost to the state.
(b) The Indiana department of transportation, Indiana departmentof environmental management, and any other appropriate stateagency, in consultation with the budget agency, shall advise politicalsubdivisions on methods for financing infrastructure.
(c) The budget agency shall annually present a report to thebudget committee that describes the projects funded under thischapter.
As added by P.L.13-1996, SEC.1.
IC 4-10-19-5
Powers of budget agency
Sec. 5. Subject to the written procedures developed under section6 of this chapter, the budget agency may do the following:
(1) Loan money from the fund to a political subdivision.
(2) Use the money in the fund: (A) for debt financing;
(B) for grants;
(C) for loan guarantees;
(D) to manage leverage loan programs for new constructionthrough recapitalization of funds;
(E) to refinance and purchase political subdivision debt;
(F) to guarantee political subdivision loans;
(G) to make bond and debt service reserve insurancepayments; and
(H) to guarantee debt service reserve funds;
for a political subdivision.
As added by P.L.13-1996, SEC.1.
IC 4-10-19-6
Procedures for allocation of money to projects; application
Sec. 6. (a) The budget agency shall establish a written procedurefor allocating money to projects described in section 7 of thischapter.
(b) The procedure established under this section must include atleast the following:
(1) An application procedure to identify projects that qualify forfunding.
(2) Criteria for establishing priority of projects.
(3) Procedures for selecting projects.
(4) Procedures for reporting the results of the selection processand the status of projects to the budget committee.
(c) To apply for a loan or grant from the fund, a politicalsubdivision must submit an application that contains at least thefollowing information:
(1) A description of the infrastructure for which the loan orgrant is sought;
(2) An estimate of the cost of constructing or improving theinfrastructure, including the cost of designing the infrastructure;
(3) Any other information required by the budget agency inaccordance with the procedure established under this section.
As added by P.L.13-1996, SEC.1.
IC 4-10-19-7
Use of loan or grant; requirements for grant
Sec. 7. (a) A loan or grant from the fund must be used by apolitical subdivision to establish or improve only the followinginfrastructure needs:
(1) Wastewater treatment projects, sewer systems, and drinkingwater systems, and extending water lines and installing hydrantsfor fire protection.
(2) Cargo, reliever, and general aviation airports, as classifiedby the Federal Aviation Administration on January 1, 1996.
(3) Juvenile detention centers.
(4) Infrastructure or local public improvements needed for therehabilitation, redevelopment, economic development, and
reuse of military base property acquired from the federalgovernment by a reuse authority established under IC 36-7-30or a redevelopment authority operating underIC 36-7-14.5-12.5.
(5) Highways, roads, streets, and public mass transportationsystems for communities.
(b) A grant from the fund must:
(1) not exceed ten percent (10%) of the total project cost or fivemillion dollars ($5,000,000), whichever is less; and
(2) be made in conjunction with the adoption of a resolution bya political subdivision that sets forth the political subdivision'scommitment of revenues to the infrastructure project for whichthe grant is made.
As added by P.L.13-1996, SEC.1.
IC 4-10-19-8
Requirements for loan; loan agreement; exceptions to loan amountlimitations
Sec. 8. (a) A loan from the fund must:
(1) have an interest rate of not more than a rate that the stateboard of finance determines does not exceed current marketrates for that type of loan;
(2) have a term of not more than twenty (20) years;
(3) except as provided in subsection (c), not exceed ten percent(10%) of the total project cost or five million dollars($5,000,000), whichever is less;
(4) be made in conjunction with the adoption of a resolution bya political subdivision that sets forth the political subdivision'scommitment of revenues to the infrastructure project for whichthe loan is made;
(5) provide for amortization to begin not later than one (1) yearafter construction of the project ends;
(6) be accompanied by:
(A) all papers and opinions required by the budget agency;
(B) an opinion of a bond counsel;
(C) a certification and guarantee of signatures; and
(D) a certification that, as of the date of the loan, nolitigation is pending challenging the validity of, or entry into,the loan or any security for the loan; and
(7) be repaid.
(b) Unless otherwise provided by the procedure established undersection 6 of this chapter, a political subdivision that receives a loanfrom the fund shall enter into a loan agreement. A loan agreement isa valid, binding, and enforceable agreement of the politicalsubdivision.
(c) A loan from the fund that is associated with a project underSection 350 of the National Highway System Act of 1995, PublicLaw 104-59, or subsequent laws authorizing the state infrastructurebank program may exceed the loan amount limitations described insubsection (a)(3).As added by P.L.13-1996, SEC.1. Amended by P.L.20-1997, SEC.1.
IC 4-10-19-9
Expenses
Sec. 9. The expenses of administering the fund shall be paid frommoney in the fund.
As added by P.L.13-1996, SEC.1.
IC 4-10-19-10
Investment of money in fund
Sec. 10. The treasurer of state shall invest the money in the fundnot currently needed to meet the obligations of the fund in the samemanner as other public funds may be invested. Interest that accruesfrom these investments shall be deposited in the fund.
As added by P.L.13-1996, SEC.1.
IC 4-10-19-11
No reversion to state general fund
Sec. 11. Money in the fund at the end of a state fiscal year doesnot revert to the state general fund.
As added by P.L.13-1996, SEC.1.