§ 5-1-6-4 — Authorization by ordinance or resolution; municipally owned public utility; any enterprise

Indiana § 5-1-6-4

• Jurisdiction: Indiana
• Title 5: STATE AND LOCAL ADMINISTRATION
• Art. 1: BONDS AND OTHER OBLIGATIONS
• Ch. 6: Revenue Bond Refinancing

Text

(a) The refunding bonds shall be authorized by
ordinance or resolution of the governing body. Such ordinance or
resolution may be adopted at a regular or special meeting, and at the
same meeting at which they are introduced in the manner now provided
by law.
(b) Whenever refunding bonds are to be authorized and issued under
this chapter for the purpose of refinancing and improving any
municipally owned public utility (other than a sewage treatment works
or a municipally owned public utility originally constructed pursuant
to IC 8-1-2) the issuing body desiring to issue such refunding bonds
shall file its petition in the office of the utility regulatory commission
setting forth the facts showing the necessity for refinancing and
improving such municipally owned utility and praying for the approval
thereof by said commission. The petitioner shall give notice of the
filing of such petition and hearing thereon to the citizens and taxpayers
of said issuing body by publication once each week for two (2) weeks
prior to such hearing in a newspaper published in such issuing body, or
in case no newspaper is there published, then in a newspaper published
in the county in which such issuing body is situated, and if there be no
newspaper published in such county, notice shall be posted for fifteen
(15) days in three (3) public places therein. On the hearing of such
petition, if it appears that a necessity exists for the relief prayed for, the
utility regulatory commission shall approve the issuance of the
refunding bonds, either as prayed for or with such modifications or on
such conditions as may be deemed just and proper. Such approval shall
contain a certification that the income and revenues of said utility, in
addition to providing for operation and maintenance, and depreciation,
are sufficient to pay the principal and interest of said bonds, together
with a margin of ten percent (10%) in excess thereof. All such bonds
so issued under the order of such commission shall be incontestable
except for fraud, forgery, or violation of constitutional limitations. If on
such hearing it shall appear that such relief should not be granted, the
utility regulatory commission shall so declare and such bonds shall not
be issued; however, in case any petition for the approval of the issuance
of such bonds has been denied by the commission, the governing body
affected by such denial may within ten (10) days from the date of such
denial, file a petition with the commission praying for submission of
the question of whether such bonds shall be issued, to the legal voters
of such issuing body affected thereby. If such commission be satisfied
that said last mentioned petition is in due form, it shall grant the prayer
thereof within ten (10) days from the filing of such petition and order
such election at a time to be fixed in such order. The county auditor
shall give notice for such election and all proceedings for the holding
of such election shall be governed by the law regulating general
elections in such issuing body. The county auditor shall certify the
result of such election to the utility regulatory commission, and if such
result be in favor of the issuance of such bonds, said commission
within ten (10) days after the filing of such certificate of result shall
enter an order approving the issuance of said bonds. All cost and
expenses for the holding of such election shall be paid by the issuing
body proposing to issue such bonds.
(c) Whenever refunding bonds are to be authorized and issued,
under this chapter, for the purpose of refinancing any enterprise, or for
the purpose of refinancing and improving any enterprise except those
mentioned in subsection (b), no proceedings or procedure of any
character whatever, other than the adoption of the ordinance or
resolution authorizing the issuance of such refunding bonds, shall be
required for the issuance of such refunding bonds by the issuing body.
(d) Notwithstanding subsection (b) or any other law, refunding
bonds may be issued under this chapter by an issuing body without
approval of the utility regulatory commission if the governing body of
the issuing body finds that the refunding will either provide a savings
to the issuing body or will not, by itself, result in a rate increase.
[Pre-Local Government Recodification Citation:
19-8-7-4.]
As added by Acts 1980, P.L.8, SEC.10. Amended by
P.L.44-1987, SEC.3; P.L.23-1988, SEC.4.