§ 36-9-25-11.3 — Procedure for setting fees in certain districts

Indiana § 36-9-25-11.3

• Jurisdiction: Indiana
• Title 36: LOCAL GOVERNMENT
• Art. 9: TRANSPORTATION AND PUBLIC WORKS
• Ch. 25: Sanitation Department in Certain Cities

Text

3. (a) This section applies to:
(1) a board and district created under section 3(b)(2) of this
chapter; and
(2) a board and district to which the following apply:
(A) The district is within the jurisdiction of a department
established under section 1(a)(2) of this chapter.
(B) The district is under an order or party to an agreement with
one (1) or more state or federal agencies to remediate
environmental conditions.
(b) For purposes of this section, "commission" refers to the Indiana
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 waste
discharged 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 body
of 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 under
subsection (d)(1), the board may petition the commission to establish
the fees under:
(1) the procedures set forth in IC 8-1-2; and
(2) subsection (f).
(f) The commission shall observe the following requirements when
establishing fees for a district:
(1) Fees must be sufficient to enable the district to furnish
reasonably adequate services and facilities.
(2) Fees for a service must be nondiscriminatory, reasonable, and
just and must produce sufficient revenue, together with taxes
levied under this chapter, to do the following:
(A) Pay all legal and other necessary expenses incident to the
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 or other
obligations, including leases.
(C) Provide a debt service reserve for bonds or other
obligations, including leases, in an amount established by the
board. The amount may not exceed the maximum annual debt
service on the bonds or obligations or the maximum annual
lease rentals, if any.
(D) Provide adequate money for working capital.
(E) Provide adequate money for making extensions and
replacements to the extent not provided for through
depreciation in clause (A).
(F) Provide money for the payment of taxes that may be
assessed against the district.
(3) The fees charged by the district must produce an income
sufficient to maintain district property in a sound physical and
financial 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 the sanitary
district facilities.
(5) Fees other than fees established for a municipally owned
utility taxed under IC 6-1.1-8-3 must be sufficient to compensate
the municipality for taxes that would be due the municipality on
the utility property located in the municipality if the property were
privately owned.
(6) The commission must grant a request by the board to postpone
an increase in fees until after the occurrence of a future event.
(g) The board may transfer fees in lieu of taxes established under
subsection (f)(5) to the general fund of the appropriate municipality.
(h) Fees established by the commission under this section take
effect to the same extent as if the fees were approved by an ordinance
adopted by the legislative body of each municipality in the district.

Legislative History

As added by P.L.175-2006, SEC.24. Amended by P.L.160-2020, SEC.10.