§ 20-46-7-15 — Use of savings resulting from refunding bonds

(a) As used in this section, "debt service
fund" includes the separate debt service fund for the payment of debt
service on bonds used to implement solutions to a contractual
retirement or severance liability.
(b) As used in this section, "eligible school corporation" has the
meaning set forth in IC 5-1-5-2.5.
(c) As used in this section, "increment" refers to the annual
increment computed under IC 5-1-5-2.5 with respect to bonds issued
to retire or otherwise refund other bonds for each year that the bonds
that are being retired or refunded would have been outstanding.
(d) A school corporation may make a request to continue to impose
a debt service fund levy in the amount that the school corporation
would have been able to impose to pay debt service on bonds that were
retired or refunded by the issuance of refunding bonds. A school
corporation must include in its request a copy of the ordinance adopted
under IC 5-1-5-2.5.
(e) The department of local government finance shall grant the
school corporation permission to continue to impose such a debt
service fund levy if the department finds that the school corporation
qualifies to issue refunding bonds under IC 5-1-5-2.5.
(f) An eligible school corporation that is granted permission to
impose a debt service fund levy as described in this section may
transfer the lesser of the amount of credits granted under IC 6-1.1-20.6
against the school corporation's combined levy for all the school
corporation's funds or the amount of the increment from the debt
service fund to the operations fund.

Legislative History

As added by P.L.229-2011, SEC.221. Amended by P.L.244-2017, SEC.105.