Chapter 3.20
MUNICIPAL LOANS AND BORROWING
Sections:
3.20.020 Short term loans limited by five percent of tax levies.
3.20.030 Short term loans – Time warrants (IC 36-5-2-12).
3.20.040 Loans to utilities owned by the municipality.
3.20.050 Loans from the sanitary district to the civil government.
3.20.055 Loans from the water utility to the civil government or the sanitary district.
3.20.060 Loans from the sanitary district to the municipal water utility.
3.20.010 Bonded indebtedness.
(A) The legislative body may issue bonds for the purpose of procuring money to be used in the exercise of the powers of the town and for the payment of town debts. However, the town may not issue bonds to procure money to pay current expenses.
(B) Bonds issued under the authority of IC 36-5-2-11 are payable in the amounts and at the times determined by the legislative body.
(C) Bonds issued under the authority of IC 36-5-2-11 are subject to the provisions of IC 5-1 and 6-1.1-20 relating to the filing of a petition requesting the issuance of bonds and giving notice of the petition, the giving of notice of a hearing on the appropriation of the proceeds of bonds, the right of taxpayers to appear and be heard on the proposed appropriation, the approval of the appropriation by the department of local government finance, the right of taxpayers to remonstrate against the issuance of bonds, and the sale of bonds at public sale for not less than their par value. [Ord. 1364 § 2, 2007. Code 2000 § 31.70].
3.20.020 Short term loans limited by five percent of tax levies.
(A) The legislative body may, by ordinance, make loans of money for not more than five years and issue notes for the purpose of refunding those loans, as provided in IC 36-5-2-11(d).
(B) The loans may be made only for the purpose of procuring money to be used in the exercise of the powers of the town, and the total amount of outstanding loans under this section and IC 36-5-2-11(d) may not exceed five percent of the town’s total tax levy in the current year (excluding amounts levied to pay debt service and lease rentals).
(C) Loans under this section and IC 36-5-2-11(d) shall be made as follows:
(1) The ordinance authorizing the loans must pledge to their payment a sufficient amount of tax revenues over the ensuing five years to provide for refunding the loans.
(2) The loans must be evidenced by notes of the town in terms designating the nature of the consideration, the time and place payable, and the revenues out of which they will be payable.
(3) The interest accruing on the notes to the date of maturity may be added to and included in their face value or be made payable periodically, as provided in the ordinance.
(D) Notes issued under this section and IC 36-5-2-11(d) are not bonded indebtedness for purposes of IC 6-1.1-18.5. [Ord. 1364 § 2, 2007. Code 2000 § 31.71].
3.20.030 Short term loans – Time warrants (IC 36-5-2-12).
(A) The legislative body may, by ordinance, make loans and issue notes for the purpose of refunding those loans in anticipation of revenues of the town that are anticipated to be levied and collected during the term of the loans.
(B) The term of a loan made under this section may not be more than five years.
(C) Loans under this section and IC 36-5-2-12 shall be made in the same manner as loans made under HMC 3.20.020(B) and (C) and IC 36-5-2-11(b) and (c), except that:
(1) The ordinance authorizing the loans must appropriate and pledge to the payment of the loans a sufficient amount of the revenues in anticipation of which the loans are issued and out of which the loans are payable; and
(2) The loans must be evidenced by time warrants of the town in terms designating the nature of the consideration, the time and place payable, and the revenues in anticipation of which the loans are issued and out of which the loans are payable.
(D) An action to contest the validity of a loan made under this section must be brought within 15 days from the day on which the ordinance is adopted. [Ord. 1364 § 2, 2007. Code 2000 § 31.72].
3.20.040 Loans to utilities owned by the municipality.
(A) The town council may authorize by resolution that funds of the civil unit of government may be used to make loans to the department of waterworks (water utility) or the department of public sanitation (waste/storm water utility), provided the following:
(1) The town of Highland has on deposit to the governmental fund or funds from which a loan may be made, unobligated cash balance(s) in the amount necessary for the loan;
(2) The town of Highland has also on deposit to the governmental fund or funds from which a loan may be made the amount necessary to meet current expenses during the year;
(B) A loan made by the civil government to either of its utilities:
(1) Must be evidenced by an obligation of the utility or utilities to which the loan is made, approved;
(2) Must be signed by the executive;
(3) May not be for a period of greater than five years; and
(4) May bear interest at any rate as determined by the legislative body, payable at maturity. [Ord. 1364 § 2, 2007. Code 2000 § 31.73].
3.20.050 Loans from the sanitary district to the civil government.
In addition to its authority for making loans and borrowing as set forth in IC 36-9-25-32, 36-9-25-33 and 36-9-25-39, the board of sanitary commissioners may authorize by resolution that funds of sewage works may be used to make loans to the town of Highland, pursuant to the provisions set forth in HMC 12.10.120. [Ord. 1628 § 2, 2016].
3.20.055 Loans from the water utility to the civil government or the sanitary district.
The board of waterworks directors may by resolution lend money to the municipality and the sanitary district pursuant to the provisions set forth in HMC 12.05.050. [Ord. 1628 § 1, 2016].
3.20.060 Loans from the sanitary district to the municipal water utility.
The board of sanitary commissioners may authorize by resolution that funds of sewage works may be used to make loans to the municipal water utility, pursuant to the provisions set forth in HMC 12.10.130. [Ord. 1628 § 3, 2016].