§ 8-1.5-2-19.5 — Purchase of equipment requiring lead time before availability; approval of contracts if sufficient funds available

Indiana § 8-1.5-2-19.5

• Jurisdiction: Indiana
• Art. 1.5: MUNICIPAL UTILITIES
• Ch. 2: Transfer, Acquisition, and Improvement of Utilities by

Text

5. If a municipality desires to purchase and
install equipment for its utility which requires more than three (3)
months lead time for the supplier to make such equipment and
installation available, the legislative body may, by ordinance, approve
a contract therefor even though it does not have sufficient funds
appropriated or on hand to pay for such purchase if the utility:
(1) has annual net operating revenues for the immediately
preceding calendar year sufficient to permit the municipality:
(A) to pay the principal of and interest on an issue of its utility
revenue bonds in the principal amount necessary to fund such
purchase (including engineering costs, legal costs, and costs of
bond issuance associated therewith); and
(B) a margin of safety which it deems necessary to market such
bonds on acceptable terms;
(2) if required by section 19 of this chapter, has received approval
from the commission to issue bonds, notes, or other obligations
sufficient to fund such purchase; or
(3) has received approval from the commission to raise its rates
and charges in an amount sufficient to permit the issuance of said
bonds.

Legislative History

As added by P.L.105-1983, SEC.1. Amended by P.L.103-2008, SEC.6.