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 property
that is exempt under section 4 of this chapter, constitutes a taxing
district for the purpose of levying special benefit taxes to pay for the
following:
(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 by
constructing 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 providing
water supply, including treatment and distribution for
domestic, industrial, and public use;
(B) it is the election of the petitioners to accomplish the
purpose 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 levy
of a special benefits tax; and
(2) the statements contained in subdivision (1) are incorporated
by the court into the order establishing the district.
(b) The board may not levy a special benefits tax for the purpose
described in section 1(a)(1) of this chapter. All costs of
accomplishing 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 by
the resulting water distribution system for the lesser of the
following:
(A) Seventy-five dollars ($75).
(B) Five percent (5%) of the estimated average project cost
according to the district plan of serving each tract of real
property.
(c) In addition, the district may charge a fair and reasonable tap-in
fee for water service.
(d) An assessment is due within sixty (60) days after notice of the
assessment. 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 special
benefits tax rate may not exceed six and sixty-seven hundredths cents
($0.0667) on each one hundred dollars ($100) of assessed valuation
of 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 property
owned 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 is
used for religious worship.
(4) The land upon which a building that is used for religious
worship is situated.
(5) The land, not exceeding fifteen (15) acres, upon which a
building that is used as a parsonage is situated.
(b) Property is exempt from the special benefits tax that may be
imposed 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 the
construction or improvement of a water impoundment project,
including a lake, pond, or dam.
(c) To obtain an exemption for a parsonage, a church or religious
society must provide the county auditor with an affidavit at the time
the church or religious society applies for the exemption. The
affidavit must:
(1) state:
(A) that all parsonages are being used to house one (1) of the
church's or religious society's rabbis, priests, preachers,
ministers, or pastors; and
(B) that none of the parsonages are being used to make a
profit; and
(2) be signed under oath or affirmation by the church's or
religious 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 be
paid 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 property
produced incident to the accomplishment of a purpose for
which the district is established.
(4) The collection of assessments from land that receives
exceptional benefits from the operation of the district plan.
(5) The collection of assessments for maintenance and
operation 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 the
district;
are payable out of the general money of the county in which the court
is sitting, without an appropriation having been made. The court shall
order 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 the
petitioners; and
(2) repaid to the county.
(c) If the district is established, the board shall repay the county
from the first money collected from the levy of a tax or the collection
of 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, including
general, legal, and administrative costs and costs incident to
preparing the district plan, money may be obtained from one (1) or
a combination of the following methods:
(1) Gifts, loans, or grants from a state or federal agency, or
both.
(2) Gifts from any source.
(3) The collection of the special benefit tax.
(4) Borrowing from private or public sources in anticipation of
the collection of the tax.
(5) Advances from the general fund of the county under section
15 of this chapter.
(6) Borrowing from the economic development fund created by
IC 5-28-8 for any of the purposes in IC 14-33-1-1.
(7) Borrowing from the flood control revolving fund created by
IC 14-28-5 for any of the purposes in IC 14-33-1-1.
(b) All persons, agencies, and departments charged with the
administration and supervision of funds such as those created by
IC 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 same
as provided in the statutes establishing the funds but shall be
modified and supplemented to fit this article to facilitate the
financing of districts.
(c) This section does not preclude the borrowing of money for the
following:
(1) Establishing the district.
(2) General, legal, and administrative costs.
(3) Costs incident to preparing the district plan in conjunction
with 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 this
chapter to defray the expense, which is a proper operating expense.
The board may use for this purpose a current operating surplus
available in the year the board is ordered to amend the district plan.
The board may include the estimated expense of preparing an
amended district plan in the budget for operating expenses in the
next 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 Home
Administration, the United States Department of Housing and Urban
Development, or any other federal agency authorized to make loans
for works of improvement for a long term or short term loan to cover
the following:
(1) Expenses of establishing the district.
(2) General, legal, and administrative expenses.
(3) Costs of engineering or other costs of preparing the district
plan.
(4) Costs of putting the district plan into effect by the necessary
construction, maintenance, and operation of the works of
improvement that have been authorized by the approval of the
district plan.
(5) Refinancing a loan whose proceeds have been used for any
of the purposes described in this subsection.
(b) A loan under this section:
(1) may be evidenced by one (1) installment note or by a series
of notes; and
(2) may be secured by:
(A) revenues; or
(B) the collection of the special benefits tax levied on the
real property in the district.
If a loan is secured by a pledge of collection of the tax, the loan
may be paid in whole or in part by revenues or the collection of
assessments.
(c) If the board decides not to evidence the financing with a
federal agency by an installment note or series of notes and instead
prepares a bond issue, the bond issue may, in whole or in part, be
offered 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 board
and 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 under
section 10 of this chapter with a federal agency, the board must file
a petition for approval of the proposed action in the court. The
petition 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 the
hearing in determining the date. However, the court must allow at
least twenty-one (21) days for interested persons to file exceptions.
The court shall order notice for the hearing as the court considers
necessary, but publication must at least be made in each county
having land in the district in accordance with IC 5-3-1 as if the notice
affected county business. The notice must state in summary form the
contents of the petition.
(c) If at the hearing the court finds that:
(1) the loan as proposed in the petition is necessary for the
accomplishment of the purpose of the district; and
(2) the terms and conditions are reasonable and probably are as
beneficial to the district as would be obtainable in private,
competitive financial markets;
the court shall approve the petition and authorize the board to make
firm commitments for the loan.
(d) Upon approval by the court, the board may levy the special
benefits 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 federal
agency under section 10 of this chapter in the district plan if
agreements have been made at the time of submission of the plan to
the 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 made
although an attempt to formulate a district plan has been abandoned
because 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 any
source, 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 the
following:
(1) A bank or savings association licensed to do business in
Indiana.
(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 is
sitting to issue warrants to the district for money necessary to meet
these expenses.
(b) If at least two (2) counties have land in the district, the court
shall order the auditor of each other county to reimburse the paying
county from the other county's general fund by issuing warrants in
amounts that the court estimates will be reasonable in relation to the
estimated benefits that the land in each county will receive from the
operation 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 district
include the following:
(1) Costs of printing, publication, mailing, surveying, and
abstracting.
(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 to
preparing 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, and
rental 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 is
advanced 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 or
assessment.
As added by P.L.1-1995, SEC.26. Amended by P.L.4-2005, SEC.128.