§ 36-8-15-15.1 — Lease of facilities; financing; hearings; notice; objections

Indiana § 36-8-15-15.1

• Jurisdiction: Indiana
• Title 36: LOCAL GOVERNMENT
• Art. 8: PUBLIC SAFETY
• Ch. 15: Public Safety Communications Systems and Computer

Text

1. (a) A board may enter into a lease of any
facility that may be financed with the proceeds of bonds issued under
this chapter with a lessor for a term not to exceed fifty (50) years. The
lease may provide for payments to be made by the board from special
benefits taxes levied under section 14 of this chapter and any other
revenue available to the board, or any combination of these sources.
(b) A lease may provide that payments by the board to the lessor are
required only to the extent and only for the period that the lessor is able
to provide the leased facilities in accordance with the lease. The terms
of each lease must be based upon the value of the facilities leased and
may not create a debt of the unit or the district for purposes of the
Constitution of the State of Indiana.
(c) A lease may be entered into by the board only after a public
hearing by the board at which all interested parties are given the
opportunity to be heard. Notice of the hearing must be given by
publication in accordance with IC 5-3-1. After the public hearing, the
board may adopt a resolution authorizing the execution of the lease on
behalf of the unit if the board finds that the service to be provided
throughout the term of the lease will serve the public purpose of the
unit and is in the best interests of the unit's residents. A lease approved
by a resolution of the board must be approved by an ordinance of the
fiscal body of the unit.
(d) Upon execution of a lease providing for payments by the board
in whole or in part from the levy of special benefits taxes under section
14 of this chapter and upon approval of the lease by the fiscal body, the
board shall publish notice of the execution of the lease and its approval
in accordance with IC 5-3-1. Fifty (50) or more taxpayers residing in
the district who will be affected by the lease and who may be of the
opinion that no necessity exists for the execution of the lease or that the
payments provided for in the lease are not fair and reasonable may file
a petition in the office of the county auditor within thirty (30) days after
the publication of the notice of execution and approval. The petition
must set forth the petitioners' names, addresses, and objections to the
lease and the facts showing that the execution of the lease is
unnecessary or unwise or that the payments provided for in the lease
are not fair and reasonable, as the case may be. Upon the filing of the
petition, the county auditor shall immediately certify a copy of it,
together with any other data necessary in order to present the questions
involved, to the department of local government finance. Upon receipt
of the certified petition and information, the department of local
government finance shall fix a time for the hearing in the district,
which must be not less than five (5) or more than thirty (30) days after
the time of the hearing is fixed. The department of local government
finance may either hold the hearing in the affected county or through
electronic means. Notice of the hearing shall be given by the
department of local government finance to the members of the fiscal
body, the board, and the first fifty (50) petitioners on the petition by a
letter signed by the commissioner or deputy commissioner of the
department and enclosed with fully prepaid postage sent to those
persons at their usual place of residence, at least five (5) days before
the date of the hearing. The decision of the department of local
government finance on the appeal upon the necessity for the execution
of the lease and as to whether the payments under it are fair and
reasonable, is final.
(e) A board entering into a lease that is payable from revenues or
other available funds of the board may:
(1) pledge the revenue to make payments under the lease as
provided in IC 5-1-14-4; and
(2) establish a special fund to make the payments.
Lease rentals may be limited to money in the special fund so that the
obligations of the board to make the lease rental payments are not
considered a debt of the unit or the district for purposes of the
Constitution of the State of Indiana.
(f) Except as provided in this section, no approvals of a
governmental body or an agency are required before the board enters
into a lease under this section.
(g) An action to contest the validity of the lease or to enjoin the
performance of any of its terms and conditions must be brought within
thirty (30) days after the publication of the notice of the execution and
approval of the lease. However, if the lease is payable in whole or in
part from tax levies and an appeal has been taken to the department of
local government finance, an action to contest the validity or to enjoin
performance must be brought within thirty (30) days after the decision
of the department.
(h) If a board exercises an option to buy a leased facility from a
lessor, the board may subsequently sell the leased facility, without
regard to any other statutes, to the lessor at the end of the lease term at
a price set forth in the lease or at fair market value established at the
time of the sale by the board through an auction, appraisal, or arms
length negotiation. The board shall conduct a hearing after public
notice in accordance with IC 5-3-1 before the sale. An action to contest
the sale must be brought within fifteen (15) days after the hearing.

Legislative History

As added by P.L.2-1989, SEC.52. Amended by P.L.90-2002, SEC.499; P.L.38-2021, SEC.99.