Special Districts
For additional compliance guidelines issued through SBOA Bulletins, please see this page.
- Conservancy Districts
This section is designed to summarize certain laws and regulations relevant to conservancy districts. Please refer to the Indiana Code and other related documents for a complete listing of laws and regulations governing conservancy districts.
Board of Directors
Compensation and Travel Expense Reimbursement
Budget and Tax Levy Procedures
Exceptional Benefits Assessment
Official Bond - Financial Clerk
Operation and Maintenance Expenses
Sewage Disposal - Rates or Charges as Lien
Tax Statement Processing Charge
A conservancy district may be established for any of the following purposes:
1. Flood prevention and control.
2. Improving drainage.
3. Providing for irrigation.
4. Providing water supply, including treatment and distribution, for domestic, industrial, and public use.
5. Providing for the collection, treatment, and disposal of sewage and other liquid wastes.
6. Developing forests, wildlife areas, parks, and recreational facilities if feasible in connection with beneficial water management.
7. Preventing the loss of topsoil from injurious water erosion.
8. Storage of water for augmentation of stream flow.
9. Operation, maintenance, and improvement of:
A. a work of improvement for water based recreational purposes; or
B. other work of improvement that could have been built for any other purpose authorized by IC 14-33-1-1.
IC 14-33-2 lists the procedures to establish a district through petition of the circuit court.
IC 14-33-3 and IC 14-33-4 contain the regulations over determining the district's boundaries. IC 14-33-3-1 allows for a city or town to be included within such boundaries.
BOARD OF DIRECTORS – COMPENSATION AND TRAVEL EXPENSE REIMBURSEMENTRegarding compensation of members of the board of directors, IC 14-33-5-16 states:
“(a) Except as provided in subsection (b), upon approval of the initial district plan, the directors are entitled to compensation in an amount that the court orders, but not to exceed:
(1) one hundred dollars ($100) for not more than two (2) regular or specially called board meetings per month; and
(2) fifty dollars ($50) for not more than five (5) days per month devoted to the work of the district in addition to any day for which payment is received under subdivision (1). In addition, the directors shall be reimbursed for actual expenses, including traveling expense at a rate equal to the rate paid to state officers and employees. Claims for expense reimbursement must be accompanied by an itemized written statement approved by a recorded motion of the board.
(b) At any time after all directors have been elected to the board, the directors may receive an increase in compensation up to a reasonable amount that is:
(1) approved by a majority vote of the board of directors; and
(2) authorized by a court order.
(c) An increase in compensation authorized under subsection (b) may not be based upon an increase of any tax, assessment, rates, or charges by the district.
(d) In addition to any compensation the directors may receive under subsection (b), the directors shall be reimbursed for actual expenses, including traveling expenses, at a rate equal to the rate paid to state officers and employees. Claims for expense reimbursement must be accompanied by an itemized written statement approved by a recorded motion of the board of directors.”
The current mileage rate allowed to state officers and employees can be found on IDOA's website.
BOARD OF DIRECTORS - APPOINTMENTSThe board may appoint, prescribe the duties, and fix the compensation of the following:
1. A secretary.
2. A financial clerk.
3. An engineer.
4. Employees that are necessary for the discharge of duties and responsibilities of the board. [IC 14-33-5-18(a)]
OFFICIAL BOND - FINANCIAL CLERK
A financial clerk shall execute a surety bond in the manner prescribed by IC 5-4-1. [IC 14-33-5-18(b)]
BOARD OF DIRECTORS - CONTRACTS AND LEASES
The board may make contracts for the following:
1. Special and temporary services, including professional counsel.
2. Leases of land to a provider of commercial mobile service (as defined in 47 U.S.C. 332) that allows for the construction, use, and maintenance of a tower that is used for telecommunications purposes. [IC 14-33-5-18(c)]
The board shall do the following:
1. Exercise general supervision of and make regulations for the administration of the affairs of the district.
2. Prescribe uniform rules pertaining to investigations and hearings.
3. Supervise the fiscal affairs and responsibilities of the district.
4. Prescribe the qualifications of, appoint, remove, and fix the compensation of the employees of the district. The compensation must be reasonable and similar in amount to the compensation allowed employees performing similar service for the state and political subdivisions of the state. The board may delegate to employees authority to perform ministerial acts in all cases except where final action of the board is necessary.
5. Keep an accurate and complete record of all district proceedings and record and file all bonds and contracts, assuming responsibility for the custody and preservation of all papers and documents of the district.
6. Make an annual report to the court of income and expenses. The report must be submitted not later than thirty (30) days after the annual meeting and may include any of the following:
A. A statement of the progress in accomplishing each purpose for which the district is established.
B. Recommendations for amendment to the district plan.
C. Any matter that the board believes should be brought to the attention of the court for instructions or approval.
7. Adopt a seal and certify all official acts.
8. Sue and be sued collectively by the legal name “ Conservancy District,” with service of process made on the chairman of the board. However, costs may not be taxed against the directors individually in an action.
9. Invoke any legal, equitable, or special remedy for the enforcement of this article or of any proper action of the board in a court.
10. If advisable, establish an advisory committee.
11. Exercise the powers granted under IC 14-33 to accomplish each purpose for which the district is established.
12. If a purpose of the district is the construction or maintenance of a levee in cooperation with the United States Secretary of the Army, divide, by resolution, the levee into maintenance sections and make assignment of each section to a director who must be a resident freeholder near the maintenance section. The director shall, upon assignment, supervise and assist in the maintenance of the assigned maintenance section.
13. Protect against encroachment by a stream. The board may, alone or in cooperation with state or federal agencies, do whatever is necessary to provide bank stabilization for the protection of the works of improvement of the district.
14. Insure property, personnel, and operations of the district against risks and in amounts that the board determines necessary to protect the district. [IC 14-33-5-20]
Claims may be paid in advance of allowance by the board of directors under the process established in IC 14-33-5-20.5, which reads as follows:
“(a) A board may adopt a resolution allowing money to be disbursed for lawful district purposes under this section.
(b) Notwithstanding IC 5-11-10, with the prior written approval of the board, the financial clerk of the district may make claim payments in advance of board allowance for the following kinds of expenses if the board has adopted a resolution under subsection (a):
(1) Property or services purchased or leased from the United States government, its agencies, or its political subdivisions.
(2) License or permit fees.
(3) Insurance premiums.
(4) Utility payments or utility connection charges.
(5) General grant programs for which advance funding is not prohibited and the contracting party posts sufficient security to cover the amount advanced.
(6) Grants of state funds authorized by statute.
(7) Maintenance or service agreements.
(8) Leases or rental agreements.
(9) Bond or coupon payments.
(10) Payroll.
(11) State or federal taxes.
(12) Expenses that must be paid because of emergency circumstances.
(13) Expenses described in a resolution.
(c) Each payment of expenses under this section must be supported by a fully itemized invoice or bill and certification by the financial clerk of the district.
(d) The board shall review and allow the claim at its next regular or special meeting following the preapproved payment of the expense.”
If the board issues revenue bonds for the collection, treatment, and disposal of sewage and liquid waste, the board may do the following:
1. Establish just and equitable rates and charges and use the same basis for the rates as provided in IC 36-9-23-25 through IC 36-9-23-29.
2. Collect and enforce the rates, beginning with the commencement of construction as provided in IC 36-9-23.
3. Establish rules and regulations.
4. Require connection to the board's sewer system of any property producing sewage or similar waste and require discontinuance of use of privies, cesspools, septic tanks, and similar structures. The board may enforce this requirement by civil action in circuit or superior court as provided in IC 36-9-23-30.
5. Provide for and collect a connection charge to the board's sewer system as provided in IC 36-9-23-25 through IC 36-9-23-29.
6. Contract for treatment of the board's sewage and pay a fair and reasonable connection fee or rate for treatment, or a combination of both, as provided in IC 36-9-23-16.
7. Secure the bonds by a trust indenture as provided in IC 36-9-23-22.
8. Create a sinking fund for the payment of principal and interest and accumulate reasonable reserves as provided in IC 36-9-23-21.
9. Issue temporary revenue bonds to be exchanged for definite revenue bonds as provided in IC 36-9-23-17 through IC 36-9-23-20.
10. Issue additional revenue bonds as part of the same issue if the issue does not meet the full cost of the project for which the bonds were issued as provided in IC 36-9-23-17 through IC 36-9-23-20.
11. Issue additional revenue bonds for improvements, enlargements, and extensions as provided in IC 36-9-23-18.
12. Covenant with the holders of the revenue bonds for the following:
A. Protection of the holders concerning the use of money derived from the sale of bonds.
B. The collection of necessary rates and charges and segregation of the rates and charges for payment of principal and interest.
C. Remedy if a default occurs.
The covenants may extend to both repayment from revenues and other money available to the district by other statute as provided in IC 36-9-23. [IC 14-33-5-21(a)]
RATES OR CHARGES AS LIEN - SEWAGE DISPOSALIn the same manner as provided by IC 36-9-23, the rates or charges made, assessed, or established by the district are a lien on a lot, parcel of land, or building that is connected with or uses the works by or through any part of the sewage system of the district. The liens:
1. attach;
2. are recorded;
3. are subject to the same penalties, interest, and reasonable attorney's fees on recovery; and
4. shall be collected and enforced; in substantially the same manner as provided in IC 36-9-23-31 through IC 36-9-23-32. [IC 14-33-5-21(b)]
CAMPGROUNDS – RATES FOR SEWAGE SERVICESpecial provisions for sewage service billing to campgrounds are established in IC 14-33-5-21.1, which reads as follows:
“(a) This section applies to a campground that:
(1) is connected with the sewage works of a district established for the purpose described in IC 14-33-1-1(a)(5); or
(2) uses or is served by the sewage works of a district established for the purpose described in IC 14-33-1-1(a)(5).
(b) Beginning September 1, 2009, if a campground is billed for sewage service at a flat rate under section 21(a)(1) of this chapter, the campground may instead elect to be billed for the sewage service under this subsection by installing, at the campground's expense, a meter to measure the actual amount of sewage discharged by the campground into the district's sewers. If a campground elects to be billed by use of a meter:
(1) the rate charged by the district's board for the metered sewage service may not exceed the rate charged to residential customers for equivalent usage; and
(2) the amount charged by the board for the campground's monthly sewage service for the period beginning September 1 and ending May 31 must be equal to the greater of:
(A) the actual amount that would be charged for the sewage discharged during the month by the campground as measured by the meter; or
(B) the lowest monthly charge paid by the campground for sewage service during the previous period beginning June 1 and ending August 31.
(c) If a campground does not install a meter under subsection (b) and is billed for sewage service at a flat rate under section 21(a)(1) of this chapter, for a calendar year beginning after December 31, 2009, each campsite at the campground may not equal more than one-third (1/3) of one (1) resident equivalent unit. The basic monthly charge for the campground's sewage service must be equal to the number of the campground's resident equivalent units multiplied by the rate charged by the board for a resident unit.
(d) The board may impose additional charges on a campground under subsections (b) and (c) if the board incurs additional costs that are caused by any unique factors that apply to providing sewage service for the campground, including, but not limited to:
(1) the installation of
(A) oversized pipe; or
(B) any other unique equipment; necessary to provide sewage service for the campground; and
(2) concentrations of biochemical oxygen demand (BOD) that exceed federal pollutant standards.”
IC 14-33-5-21.2 establishes the process by which the owner or operator of a campground may file a request for a review of rates charged with the Indiana Utility Regulatory Commission.
IC 14-33-6 requires a conservancy district to file a district plan with the court. Any amendments to the plan must be approved by the court.
The board shall place the district plan in operation by constructing all works and maintaining the works in accordance with the district plan. If necessary to discharge these responsibilities, the board may do the following:
1. Levy taxes on the real property in the district.
2. Make assessments on the real property in the district, except the property that is exempt under IC 14-33-7-4, for exceptional benefits to the property and further assessments pro rata for maintenance and operation of the works of improvement.
3. Issue bonds and short and long term notes.
4. Incur other debts and liabilities.
5. Exercise the power of eminent domain, both inside and outside the boundaries of the district, in accordance with this article or another eminent domain statute. In the exercise of this power, due care shall be taken to minimize interference with other public interests involved.
6. Make payments for the fair value of all property taken under eminent domain proceedings, and in cases that are appealed, make the payments into court and proceed promptly in placing the district plan in operation.
7. Institute any type of civil legal proceedings in a court having jurisdiction over the person or property in question.
8. Purchase or rent property.
9. Sell services or property that are produced incident to the district plan at a fair and reasonable price.
10 Make contracts or otherwise enter into agreements with persons or federal, state, or local governmental agencies for construction, maintenance, operation, or security of any part of the district.
11. Receive and disburse money.
12. Lease land and other assets to municipalities, counties, and park boards of municipalities or counties, with the term and annual rental adequate to meet the district's repayment schedule for financing, if any, of the land and other assets leased. Municipalities, counties, and park boards of municipalities or counties may enter into leases without limitations of other statutes regarding the receipt of petitions, the duration of the term of the lease, or the distance of the land and other assets from the corporate boundaries. The municipalities, counties, and park boards may enter into leases:
A. for terms as long as fifty (50) years;
B. at locations that the municipalities, counties, and park boards determine would benefit the municipalities or counties; and
C. upon terms, conditions, and covenants that are fair and reasonable. The board may pledge the rental income from the lease as revenue for services or property produced incident to the operation of the district.
13. Perform necessary construction and maintenance work as follows:
A. Outside the district.
B. Outside Indiana if:
(i) there is voluntary agreement on the part of persons outside Indiana; and
(ii) the work will confer benefits to the real property in the district in excess of costs and damages to be paid by the district. [IC 14-33-6-13]
All the real property in the district, except the property that is exempt under IC 14-33-7-4, constitutes a taxing district for the purpose of levying special benefit taxes to pay for the following:
1. The expenses of establishing the district.
2. General preliminary and administrative expenses.
3. The expenses of preparing the district plan.
4. The expenses of putting the district plan into operation by constructing the necessary works.
5. The expenses of operating and maintaining the district.
The special tax must equal the amount of benefits received and must be based on return for the benefits. [IC 14-33-7-1] The special benefits tax rate may not exceed six and sixty-seven hundredths cents ($0.0667) on each one hundred dollars ($100) of assessed valuation of property in the taxing district. [IC 14-33-7-3]
The following property owned by or held in trust for the use of a church or religious society is generally exempt from a special benefits tax:
1. A building that is used for religious worship.
2. A building that is used as a parsonage.
3. The pews and furniture contained within a building that is used for religious worship.
4. The land upon which a building that is used for religious worship is situated.
5. The land, not exceeding fifteen (15) acres, upon which a building that is used as a parsonage is situated. [IC 14-33-7-4]
The expenses and obligations of the district may also be paid from any of the following:
1. The receipt of gifts from any source.
2. The receipt of money from the federal or state government.
3. The receipt of revenue from the sale of services or property produced incident to the accomplishment of a purpose for which the district is established.
4. The collection of assessments from land that receives exceptional benefits from the operation of the district plan.
5. The collection of assessments for maintenance and operation of the works of improvement. [IC 14-33-7-5]
COSTS OF ESTABLISHING DISTRICTTo pay the costs of establishing a district, including general, legal, and administrative costs and costs incident to preparing the district plan, money may be obtained from one (1) or a combination of the following methods:
1. Gifts, loans, or grants from a state or federal agency, or both.
2. Gifts from any source.
3. The collection of the special benefit tax.
4. Borrowing from private or public sources in anticipation of the collection of the tax.
5. Advances from the general fund of the county under section 15 of this chapter.
6. Borrowing from the economic development fund created by IC 5-28-8 for any of the purposes in IC 14-33-1-1.
7. Borrowing from the flood control revolving fund created by IC 14-28-5 for any of the purposes in IC 14-33-1-1.
All persons, agencies, and departments charged with the administration and supervision of funds such as those created by IC 5-28-8 and IC 14-28-5 may make loans and advances to a district. The procedures, terms, and conditions of the loans must be the same as provided in the statutes establishing the funds but shall be modified and supplemented to fit this article to facilitate the financing of districts.
This section does not preclude the borrowing of money for the following:
1. Establishing the district.
2. General, legal, and administrative costs.
3. Costs incident to preparing the district plan in conjunction with borrowing of money to pay construction costs. [IC 14-33-7-7]
In anticipation of the money to be received from any source, a board may borrow money by issuing notes. The notes must mature in not more than two (2) years and may be renewed for periods of not more than two (2) years. The borrowing may be by direct negotiation with a bank or savings association licensed to do business in Indiana or an agent of the state or federal government. [IC 14-33-7-14]
BUDGET AND TAX LEVY PROCEDURESExcept as provided in IC 6-1.1-17-20, the budget of a district:
1. must be prepared and submitted:
A. at the same time;
B. in the same manner; and
C. with notice; as is required by statute for the preparation of budgets by municipalities; and
2. is subject to the same review by:
A. the county board of tax adjustment; and
B. the department of local government finance; as is required by statute for the budgets of municipalities.
If a district is established in more than one (1) county:
1. except as provided in subsection (c), the budget shall be certified to the auditor of the county in which is located the court that had exclusive jurisdiction over the establishment of the district; and
2. notice must be published in each county having land in the district. Any taxpayer in the district is entitled to be heard before the county board of tax adjustment and, after December 31, 2008, the fiscal body of each county having jurisdiction.
If one (1) of the counties in a district contains either a first or second class city located in whole or in part in the district, the budget:
1. shall be certified to the auditor of that county; and
2. is subject to review at the county level only by the county board of tax adjustment and, after December 31, 2008, the fiscal body of that county.
IC 6-1.1-17-20 states:
“(a) This section applies to each governing body of a taxing unit that is not comprised of a majority of officials who are elected to serve on the governing body. For purposes of this section, an individual who qualifies to be appointed to a governing body or serves on a governing body because of the individual's status as an elected official of another taxing unit shall be treated as an official who was not elected to serve on the governing body.
(b) As used in this section, “taxing unit” has the meaning set forth in IC 6-1.1-1-21, except that the term does not include a public library or an entity whose tax levies are subject to review and modification by a city-county legislative body under IC 36-3-6-9.
(c) If:
(1) the assessed valuation of a taxing unit is entirely contained within a city or town; or
(2) the assessed valuation of a taxing unit is not entirely contained within a city or town but the taxing unit was originally established by the city or town; the governing body shall submit its proposed budget and property tax levy to the city or town fiscal body. The proposed budget and levy shall be submitted to the city or town fiscal body in the manner prescribed by the department of local government finance before September 2 of a year. However, in the case of a public library that is subject to this section and is described in subdivision (2), the public library shall submit its proposed budget and property tax levy to the county fiscal body in the manner provided in subsection (d), rather than to the city or town fiscal body, if more than fifty percent (50%) of the parcels of real property within the jurisdiction of the public library are located outside the city or town.
(d) If subsection (c) does not apply, the governing body of the taxing unit shall submit its proposed budget and property tax levy to the county fiscal body in the county where the taxing unit has the most assessed valuation. The proposed budget and levy shall be submitted to the county fiscal body in the manner prescribed by the department of local government finance before September 2 of a year.
(e) The fiscal body of the city, town, or county (whichever applies) shall review each budget and proposed tax levy and adopt a final budget and tax levy for the taxing unit. The fiscal body may reduce or modify but not increase the proposed budget or tax levy.
(f) If a taxing unit fails to file the information required in subsection (c) or (d), whichever applies, with the appropriate fiscal body by the time prescribed by this section, the most recent annual appropriations and annual tax levy of that taxing unit are continued for the ensuing budget year.
(g) If the appropriate fiscal body fails to complete the requirements of subsection (e) before the adoption deadline in section 5 of this chapter for any taxing unit subject to this section, the most recent annual appropriations and annual tax levy of the city, town, or county, whichever applies, are continued for the ensuing budget year.”
OPERATION AND MAINTENANCE EXPENSESThe board shall budget annually the necessary money to meet the probable expenses of operation and maintenance of the district, including the following:
1. Repairs.
2. Fees.
3. Salaries.
4. Depreciation on all depreciable assets.
5. Rents.
6. Supplies.
Subject to any budget review and approval required under this chapter, the board may add not more than ten percent (10%) of the total for contingencies. [IC 14-33-9-2]
The county auditor of each county containing land in a district shall enter the tax levy on the tax records of the county treasurer for collection. The tax shall be collected and distributed in the same manner as property taxes. [IC 14-33-9-5]
The board may issue bonds to pay for:
1. the cost of the works that are provided in the district plan;
2. necessary engineering, legal, and administrative fees; or
3. the repayment or refinancing of a loan. [IC 14-33-11-1]
The total amount of bonds issued may not exceed the cost less:
1. money on hand from the collection of assessments; or
2. money on hand or obligated to the district by the state or federal government. [IC 14-33-11-2]
Bonds may be issued solely against the revenues expected to be produced by the operation of the district or against the real property of the district in anticipation of the collection of special benefits taxes. Bonds issued against the real property of the district may be paid in part by revenues derived from reasonable charges for services or property produced incident to the operation of the district or from the collection of assessments for exceptional benefits. [IC 14-33-11-3]
Revenue bonds issued for the payment of works of improvement for the collection, treatment, and disposal of sewage and other liquid wastes may provide that the principal and interest shall be paid solely from the net revenue of the sewage works, which is gross revenues after deduction only for the reasonable expenses of operation and maintenance, or from a combination of net revenue and other money available to a district by levy, special benefits taxes or assessment of exceptional benefits. The board may covenant with the holders of the bonds to pay:
1. a certain percentage of principal and interest from the revenue;
2. a certain percentage from the other money to maintain a reasonable reserve from the other money that may be used for payment of principal and interest if the revenue is not sufficient; or 3) both. [IC 14-33-11-4]
IC 14-33-11-5 through IC 14-33-11-9 establishes guidelines for the form of bonds, specifics regarding issuance of bonds and a process for remonstrance against the issuance of bonds.
TAX STATEMENT PROCESSING CHARGEA district may require a statement processing charge on a special benefits tax statement. A special benefits tax liability assessed of less than ten dollars ($10) on a parcel may be increased to not more than ten dollars ($10). The difference between the actual liability and the amount that appears on the statement is a statement processing charge that is considered part of the tax liability. [IC 14-33-9-10]
EXCEPTIONAL BENEFITS ASSESSMENTS
If the appraisers described in IC 14-33-8 have determined that there are exceptional benefits to real property, the board of directors shall prepare an assessment roll from the appraisers' report as approved by the court. The assessment roll shall consist of a description of each parcel of real property exceptionally benefited, the name of the owner thereof, as is listed on the tax duplicate or described in the appraisers' report as approved by the court, and the amount of the assessment. One (1) copy of the assessment roll shall be recorded in the office of the recorder of each county wherein real property exceptionally benefited is located, one (1) copy shall be filed with the auditor of each county in which land of a district exceptionally benefited is located, and another copy shall be kept on file in the office of the conservancy district. Assessments for exceptional benefits shall be a lien upon each parcel of real property against which they are assessed from the date that such assessment is approved by the court. [IC 14-33-10-1]
The board of directors shall publish notice, at least two times at weekly intervals, that the assessments are due and payable within sixty (60) days after the date of the last publication. Payment shall be made at the office of the board of directors or, if the court shall so order, at the office of the treasurer of each affected county.
The owners of real property assessed for exceptional benefits are entitled to make payment in full unless exceptional benefits are assessed annually and paid with special benefits taxes to the county treasurer. If payment is made in full, the board of directors shall note such payment on the assessment roll in its office, give a receipt to the landowner paying the assessment, and also enter satisfaction of the lien of such assessment in the appropriate record in the office of the recorder where such assessment is recorded. The payment of the assessment does not relieve the real property from being subject to any special benefits tax and from being subjected to an annual assessment for maintenance and operation based upon the original exceptional benefit assessment. [IC 14-33-10-2]
IC 14-33-10-4 lists provisions for enforcing payment of delinquent assessments through the real estate tax sale statutes.
A district having channel improvements, levees and water retarding or impoundment structures shall establish a cumulative maintenance fund in the year following commencement of construction or assumption or maintenance of the channel improvements, levees, and water retarding or impoundment structures so that the works of improvement are adequately maintained. The requirement to establish a cumulative maintenance fund does not apply to a water supply structure or the water supply part of a multiple purpose structure if provision has been made for maintenance from revenues of a water system, nor does it apply to sewage works.
The board shall budget and appropriate annually to the fund an amount equivalent to ten percent (10%) of the annual cost of maintenance for the works of improvement as the cost is stated in the district plan or adjusted under IC 14-33-14-8. Money accumulated in the fund may be used for emergency or unusually expensive maintenance of the works of improvement.
If an amount equivalent to two (2) times the annual cost of maintenance of the works of improvement, as stated in the district plan or as the cost is adjusted under IC 14-33-14-8, has accumulated in the fund, appropriations to the fund shall be suspended until the year that the amount in the fund is not more than equal to the annual cost of maintenance of the works of improvement as stated in the plan or the adjusted annual cost. The money may be invested and reinvested in whole or in part in accordance with IC 5-13-9.
The appropriation to the fund does not relieve the board of the duty to budget annually the normal maintenance work anticipated during the next fiscal year. [IC 14-33-14]
IC 14-33-14-8, which became effective July 1, 2003, states:
“(a) As used in this section, “cost index source” refers to the Engineering News Record Construction Cost Index, as published by McGraw Hill Construction or its successor.
(b) Before January 1, 2006, the board of a district may elect to adjust the annual cost of maintenance of the works of improvement as stated in the plan, as calculated in subsection (d), if the following conditions are met:
(1) The board has at a meeting adopted a resolution that sets forth:
(A) the annual cost of maintenance of the works of improvement as stated in the plan, and the year when the annual cost was stated in the plan; and
(B) the new, adjusted annual cost of maintenance of the works of improvement.
(2) The calculation under subsection (d) has been verified by either the state conservation engineer for the Natural Resources Conservation Service of the United States Department of Agriculture or a professional engineer licensed under IC 25-31-1.
(3) The board has provided a copy of the resolution to the department of local government finance (established by IC 6-1.1-30-1.1) within sixty (60) days of adoption.
(c) If the board of a district adopts a resolution under section (b)(1), a copy of the resolution must be included in the district's annual report, and a copy of the annual report must be provided to the local circuit court and the department of natural resources.
(d) The annual cost of maintenance of the works of improvement as stated in the plan of a district may be adjusted to an amount not to exceed the amount determined a follows:
STEP ONE: Determine the cost index from the cost index source for the most recent year.
STEP TWO: Determine the cost index from the cost index source for the year that the annual cost of maintenance of the works of improvement was stated in the plan.
STEP THREE: Divide the number determined in STEP ONE by the number determined in STEP TWO.
STEP FOUR: Multiply the result of STEP THREE by the annual cost of maintenance of the works of improvement that is stated in the plan.”
IC 14-33-21 allows a district to establish a cumulative improvement fund to provide money for the construction, additional construction, or repair of the works of improvement the district is authorized to construct. The purpose of the fund must be stated in the district plan or amendment to the plan.
To provide money for the fund, the board may place in the fund the following:
1. Gifts or grants from a person or state or federal agency.
2. Receipts of revenue from the sale of services or property produced incident to the accomplishment of the purpose for which the district is organized.
3. Any other form of miscellaneous receipt, including tap-in fees and connection fees.
4. Levy of a special benefits tax in accordance with IC 14-33-21-5 through IC 14-33-21-10.
5. Collection of the exceptional benefits assessments or installments of the assessments, but only in accordance with IC 14-33-21-11.
The board shall state in the district plan or part of an amendment to the plan the source or combination of sources that will finance the fund.
The board may levy a special benefits tax in compliance with IC 6-1.1-41 in an amount not to exceed three and thirty-three hundredths cents ($0.0333) on each one hundred dollars ($100) of real property in the district, except the property that is exempt under IC 14-33-7-4. The board shall file with the district plan or part of or amendment to the plan:
1. the approval of the Indiana Department of Local Government Finance; and
2. any action taken to reduce or rescind the tax levy.
The approval of the Indiana Department of Local Government Finance:
1. does not have to be filed with the district plan or part of or amendment to the plan at the time of the submission to the commission; and
2. only has to be filed with the court having jurisdiction of the district.
A tax levy may be reduced or rescinded by an approved amendment to the district plan.
IC 14-33-20 allows a district to be established for the purpose of furnishing a water supply or to add such purpose to its district plan. For districts that elect to furnish water under IC 14-33-20, the Indiana Utility Regulatory Commission has jurisdiction over increases to original rates and charges and over the granting to a district of territorial authority to serve additional water users. Financial accounting and reporting requirements for such systems would be the same as prescribed for municipally owned water utilities.
A district shall file an annual financial report with the State Examiner, not later than 60 days after the close of each fiscal year. The report is to be filed electronically in the manner prescribed under IC 5- 14-3.8-7. The Department of Local Government Finance may not approve a district's budget or a supplemental appropriation until the report is filed for the preceding calendar year. [IC 5-11-1-4]
A district shall file a personnel report, as required by IC 5-11-13, in the office of the State Examiner during the month of January of each year. The report must be filed electronically in the manner prescribed under IC 5-14-3.8-7. [IC 5-11-13]
The Department of Local Government Finance may not approve a district's budget or a supplemental appropriation until the report required by IC 5-11-13 is filed for the preceding calendar year. IC 6-1.1-17-16.2]
- Regional Water, Sewage and Solid Waste Districts
This section is designed to summarize certain laws, regulations and uniform compliance guidelines relevant to regional water, sewage and solid waste districts. Please refer to the Indiana Code and other related documents for a complete listing of laws and regulations governing regional water, sewage and solid waste districts.
Adoption and Enforcement of Rules
Advancement of Money and Repayment of Money Advanced
Establishment of Rates and Charges
Exemption from Requirement to Connect to Sewer System
Just and Equitable Rates and Charges
Payment of Claims in Advance of Board Allowance
Rates and Charges - Uniformity Not Required
Regional Sewage District Authority
Rules, Resolutions and Ordinances
Sewage Works Rates and Charges
Solid Waste Disposal - Rates and Charges
IC 13-26-1-1 states:
“Any area may be established as a regional water, sewage, or solid waste district under this article for one (1) or more of the following purposes:
(1) To provide a water supply for domestic, industrial, and public use to users inside and outside the district.
(2) To provide for the collection, treatment, and disposal of sewage inside and outside the district.
(3) To provide for the collection, treatment, and disposal of solid waste and refuse inside and outside the district.”
IC 13-26-4-1 states:
“The board of trustees of a district is the governing body of the district. A board may consist of: (1) three (3); (2) five (5); (3) seven (7); (4) nine (9); (5) eleven (11); or (6) thirteen (13); trustees.”
IC 13-26-4-2 through IC 13-26-4-6.1 provide for methods of electing and/or appointing the members of the board.
IC 13-26-4-7(a) states:
“The board of a district may provide for the payment of not more than fifty dollars ($50) per day to members of the board for each day or major part of a day devoted to the work of the district.” Further, IC 13-26-4-7(b) states: “Members of the board are entitled to receive an amount for travel expenses equal to the amount paid to state employees for expenses incurred in the performance of their duties.”
When the board of a district conducts a public hearing or meeting, the board shall allow any person an opportunity to be heard:
1. in the presence of others who are present to testify; and
2. in accordance with subsection (b).
The board may limit testimony at a public hearing or meeting to a reasonable time stated at the opening of the public hearing or meeting. [IC 13-26-4-8]
A district may do the following:
1. Sue or be sued.
2. Make contracts in the exercise of the rights, powers, and duties conferred upon the district.
3. Adopt and alter a seal and use the seal by causing the seal to be impressed, affixed, reproduced, or otherwise used. However, the failure to affix a seal does not affect the validity of an instrument.
4. Adopt, amend, and repeal the following:
A. Bylaws for the administration of the district's affairs.
B. Rules and regulations for the following:
i. The control of the administration and operation of the district's service and facilities.
ii. The exercise of all of the district's rights of ownership.
5. Construct, acquire, lease, operate, or manage works and obtain rights, easements, licenses, money, contracts, accounts, liens, books, records, maps, or other property, whether real, personal, or mixed, of a person or an eligible entity.
6. Assume in whole or in part any liability or obligation of:
A. a person;
B. a nonprofit water, sewage, or solid waste project system; or
C. an eligible entity; including a pledge of part or all of the net revenues of a works to the debt service on out- standing bonds of an entity in whole or in part in the district and including a right on the part of the district to indemnify and protect a contracting party from loss or liability by reason of the failure of the district to perform an agreement assumed by the district or to act or discharge an obligation.
7. Fix, alter, charge, and collect reasonable rates and other charges in the area served by the district's facilities to every person whose premises are, whether directly or indirectly, supplied with water or provided with sewage or solid waste services by the facilities for the purpose or providing for the following:
A. The payment of the expenses of the district.
B. The construction, acquisition, improvement, extension, repair, maintenance, and operation of the district's facilities and properties.
C. The payment of principal or interest on the district's obligations.
D. To fulfill the terms of agreements made with:
i. the purchasers or holders of any obligations; or
ii. a person or an eligible entity.
8. Except as provided in IC 13-26-5-2.5 and IC 13-26-5-2.6, require connection to the district's sewer system of property producing sewage or similar waste and require the discontinuance of use of privies, cesspools, septic tanks, and similar structures if:
A. there is an available sanitary sewer within three hundred (300) feet of the property line; and
B. the district has given written notice by certified mail to the property owner at the address of the property at least ninety (90) days before a date for connection to be stated in the notice; and
C. if the property is located outside the district's territory:
i. the district has obtained and provided to the property owner (along with the notice required by clause (B)) a letter of recommendation from the local health department that there is a possible threat to the public's health; and
ii. if the property is also located within the extraterritorial jurisdiction of a municipal sewage works under IC 36-9-23 or a public sanitation department under IC 36-9- 25, the municipal works board or department of public sanitation has acknowledged in writing that the property is within the municipal sewage works or department of public sanitation's extraterritorial jurisdiction, but the municipal works board or department of public sanitation is unable to provide sewer service.
However, a district may not require the owner of a property described in this subdivision to connect to the district's sewer system if the property is already connected to a sewer system that has received an NPDES permit and has been determined to be functioning satisfactorily.
9. Provide by ordinance for a reasonable penalty, not to exceed one hundred dollars ($100) per day, for failure to connect and also apply to the circuit or superior court of the county in which the property is located for an order to force connection, with the cost of the action, including reasonable attorney's fees of the district, to be assessed by the court against the property owner in the action.
10. Refuse the services of the district's facilities if the rates or other charges are not paid by the user.
11. Control and supervise all property, works, easements, licenses, money, contracts, accounts, liens, books, records, maps, or other property rights and interests conveyed, delivered, transferred, or assigned to the district.
12. Construct, acquire by purchase or otherwise, operate, lease, preserve, and maintain works considered necessary to accomplish the purposes of the district's establishment within or outside the district and enter into contracts for the operation of works owned, leased, or held by another entity, whether public or private.
13. Hold, encumber, control, acquire by donation, purchase, or condemnation, construct, own, lease as lessee or lessor, use, and sell interests in real and personal property or franchises within or outside the district for:
A. the location or protection of works;
B. the relocation of buildings, structures, and improvements situated on land required by the district or for any other necessary purpose; or
C. obtaining or storing material to be used in constructing and maintaining the works.
14. Upon consent of two-thirds (2/3) of the members of the board, merge or combine with another district into a single district on terms so that the surviving district:
A. is possessed of all rights, franchises, and authority of the constituent districts; and
B. is subject to all the liabilities, obligations, and duties of each of the constituent districts, with all rights of creditors of the constituent districts being preserved unimpaired.
15. Provide by agreement with another eligible entity for the joint construction of works the district is authorized to construct if the construction is for the district's own benefit and that of the other entity. For this purpose the cooperating entities may jointly appropriate land either within or outside their respective borders if all subsequent proceedings, actions, powers, liabilities, rights, and duties are those set forth by statute.
16. Enter into contracts with a person, an eligible entity, the state, or the United States to provide services to the contracting party for any of the following:
A. The distribution or purification of water.
B. The collection or treatment of sanitary sewage.
C. The collection, disposal, or recovery of solid waste.
17. Make provisions for, contract for, or sell the district's byproducts or waste.
18. Exercise the power of eminent domain, including for purposes of siting sewer or water utility infrastructure, but only after the district's attempts to use existing public rights-of- way or easements.
19. Remove or change the location of a fence, building, railroad, canal, or other structure or improvement located within or outside the district. If:
A. it is not feasible or economical to move the building, structure, or improvement situated in or upon land acquired; and
B. the cost is determined by the board to be less than that of purchase or condemnation; the district may acquire land and construct, acquire, or install buildings, structures, or improvements similar in purpose to be exchanged for the buildings, structures, or improvements under contracts entered into between the owner and the district.
20. Employ consulting engineers, superintendents, managers, and other engineering, construction, and accounting experts, attorneys, bond counsel, employees, and agents that are necessary for the accomplishment of the district's purpose and fix their compensation.
21. Procure insurance against loss to the district by reason of damages to the district's properties, works, or improvements resulting from fire, theft, accident, or other casualty or because of the liability of the district for damages to persons or property occurring in the operations of the district's works and improvements or the conduct of the district's activities.
22. Exercise the powers of the district without obtaining the consent of other eligible entities. However, the district shall:
A. restore or repair all public or private property damaged in carrying out the powers of the district and place the property in the property's original condition as nearly as practicable; or
B. pay adequate compensation for the property.
23. Dispose of, by public or private sale or lease, real or personal property determined by the board to be no longer necessary or needed for the operation or purposes of the district. [IC 13-26-5-2]
EXEMPTION FROM REQUIREMENT TO CONNECT TO SEWER SYSTEMIC 13-26-5-2.5 states:
“(a) As used in this section, 'septic tank soil absorption system' has the meaning set forth in IC 13-11-2-199.5.
(b) Subject to subsection (d), a property owner is exempt from the requirement to connect to a district's sewer system and to discontinue use of a septic tank soil absorption system if the following conditions are met:
(1) The property owner's septic tank soil absorption system was new at the time of installation and was approved in writing by the local health department.
(2) The property owner, at the property owner's own expense, obtains and provides to the district a certification from the local health department or the department's designee that the septic tank soil absorption system is functioning satisfactorily. If the local health department or the department's designee denies the issuance of a certificate to the property owner, the property owner may appeal the denial to the board of the local health department. The decision of the board is final and binding.
(3) The property owner provides the district with:
(A) the written notification of potential qualification for the exemption described in subsection (f); and
(B) the certification described in subdivision (2); within the time limits set forth in subsection (f).
(c) If a property owner, within the time allowed under subsection (f), notifies a district in writing that the property owner qualifies for the exemption under this section, the district shall, until the property owner's eligibility for an exemption under this section is determined, suspend the requirement that the property owner discontinue use of a septic tank soil absorption system and connect to the district's sewer system.
(d) A property owner who qualifies for the exemption provided under this section may not be required to connect to the district's sewer system for a period of ten (10) years beginning on the date the new septic tank soil absorption system was installed. A property owner may apply for two (2) five (5) year extensions of the exemption provided under this section by following the procedures set forth in subsections (b) and (c). If ownership of an exempt property is transferred during a valid exemption period, including during an extension of an initial exemption:
(1) the exemption applies to the subsequent owner of the property for the remainder of the exemption period during which the transfer occurred; and
(2) the subsequent owner may apply for any remaining extensions.
However, the total period during which a property may be exempt from the requirement to connect to a district's sewer system under this section may not exceed twenty (20) years, regardless of ownership of the property.
(e) A district that has filed plans with the department to create or expand a sewage district shall, within ten (10) days after filing the plans, provide written notice to affected property owners:
(1) that the property owner may be required to discontinue the use of a septic tank soil absorption system;
(2) that the property owner may qualify for an exemption from the requirement to discontinue the use of the septic tank soil absorption system; and
(3) of the procedures to claim an exemption.
(f) To qualify for an exemption under this section, a property owner must:
(1) within sixty (60) days after the date of the written notice given to the property owner under subsection (e), notify the district in writing that the property owner qualifies for the exemption under this section; and
(2) within sixty (60) days after the district receives the written notice provided under subdivision (1), provide the district with the certification required under subsection (b)(2).
(g) When a property owner who qualifies for an exemption under this section subsequently discontinues use of the property owner's septic tank soil absorption system and connects to the district's sewer system, the property owner may be required to pay only the following to connect to the sewer system:
(1) The connection fee the property owner would have paid if the property owner connected to the sewer system on the first date the property owner could have connected to the sewer system.
(2) Any additional costs:
(A) considered necessary by; and
(B) supported by documentary evidence provided by; the district.
(h) A property owner who connects to a district's sewer system may provide, at the owner's expense, labor, equipment, materials, or any combination of labor, equipment, and materials from any source to accomplish the connection to the sewer system, subject to inspection and approval by the board or a designee of the board.
(i) This section does not affect the authority of the state department of health, a local health department, or a county health officer with respect to a septic tank soil absorption system.”
RULES, RESOLUTIONS AND ORDINANCESThe board may by rules and resolutions provide the following:
1. The procedure for the board's actions.
2. The manner of selection of the board's president, treasurer, and secretary and other officers or employees of the district, including the titles, terms of office, compensation, duties, number, and qualifications.
3. Any other lawful subject necessary to the operation of the district and the exercise of the power granted.
The board must adopt an ordinance by a majority vote to take action of a legislative nature. Proposed ordinances may be read by title only unless a trustee requests a reading in full.
A majority of the board or the officers of the board or employees of the district that are authorized by the board may take action of an administrative or executive nature. [IC 13-26-5-3]
ADOPTION AND ENFORCEMENT OF RULESThe board may adopt and enforce rules for the following purposes:
1. To accomplish the purpose of a district.
2. To protect the works, improvements, and properties, both real and personal, that the district owns.
3. To secure the best results from the construction, operation, and maintenance of works, improvements, and properties.
4. To prevent damage by the misuse of the works, improvements, or properties by:
A. the pollution or misuse of the waters in the district or of the sewerage system; or
B. the improper disposal of solid waste.
The board may adopt and enforce rules under IC 13-26-5-4(a) that are necessary and advisable to do the following:
1. Protect and preserve the works, improvements, and properties owned or controlled by the district, prescribe the manner of use by any person, and preserve order in and adjacent to the works.
2. Prescribe the manner:
A. in which ditches, sewers, pipelines, or other works should be adjusted to or connected with the works of the district; and
B. of waste disposal in the district.
3. Prescribe the permissible uses of the water supply and the manner of distribution and prevent the pollution or unnecessary waste of the water supply.
4. Prohibit or regulate the discharge into the sewers of the district of liquid or solid waste detrimental to the works and improvements.
Rules must be:
1. consistent with:
A. statutes; and
B. the rules of the solid waste management board or the water pollution control board; and
2. maintained and open to inspection in the office of the district.
The board may enforce by injunction or other legal remedy rules adopted under IC 13-26-5-4. The board may remove a harmful or improper construction or obstruction or may close an opening or connection made improperly or in violation of the rules. A person that willfully fails to comply with the rules is liable for damage caused by the failure and for the cost of restoring or replacing construction damaged. [IC 13-26-5-4]
IC 13-26-5-9 states in part:
“(a) As used in this section, “electronic funds transfer” means a transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, that is initiated through an electronic terminal, a telephone, a computer, magnetic tape, or other electronic means to order, instruct, or authorize a financial institution to debit or credit an account.
(b) A board may adopt an ordinance allowing money to be disbursed for lawful district purposes under this section.
(c) As part of an ordinance adopted under subsection (b), or by a separate ordinance adopted by the board, the board may authorize the district to do one (1) or both of the following through an electronic funds transfer method of payment:
(1) Pay claims owed by the district.
(2) Receive payments owed to the district.
If the board adopts an ordinance to grant the district the authority described in subdivision (1), the district may pay money from its funds by electronic funds transfer. However, the authority granted to a district by this subsection does not affect the rights, liabilities, or responsibilities of participants in an electronic fund transfer under the federal Electronic Fund Transfer Act (15 U.S.C. 1693 et seq.), and a regional district that pays a claim by electronic funds transfer shall comply with all other requirements for the payment of claims by the regional district.”
PAYMENT OF CLAIMS IN ADVANCE OF BOARD ALLOWANCEWith the prior written approval of the board, the fiscal officer of the district may make claim payments in advance of board allowance for the following kinds of expenses if the board has adopted an ordinance under IC 13-26-5-9(b):
1. Property or services purchased or leased from the United States government, its agencies, or its political subdivisions.
2. License or permit fees.
3. Insurance premiums.
4. Utility payments or utility connection charges.
5 General grant programs for which advance funding is not prohibited and the contracting party posts sufficient security to cover the amount advanced.
6. Grants of state funds authorized by statute.
7. Maintenance or service agreements.
8. Leases or rental agreements.
9. Bond or coupon payments.
10. Payroll.
11. State or federal taxes.
12. Expenses that must be paid because of emergency circumstances.
13. Expenses described in an ordinance.
Each payment of expenses must be supported by a fully itemized invoice or bill and certification by the fiscal officer of the district.
The board shall review and allow a claim paid in advance of board allowance at the board's next regular or special meeting following the preapproved payment of the expense. [IC 13-26-5-9(d)]
IC 13-26-7-1 states:
“Each district must keep proper records showing the district's finances.”
The district is encouraged to use the chart of accounts and accounting system prescribed by the State Board of Accounts for use by municipal utilities.
ADVANCEMENT OF MONEY AND REPAYMENT OF MONEY ADVANCED
A local, state, or federal agency or person may advance or give a district money to be used by the district for the following purposes:
1. The preparation of a plan for the operation of the district.
2 Other purposes of the district until the district is in receipt of revenue from its operations or proceeds from the sale of bonds. [IC 13-26-7-2]
When a district receives revenue for its operations or proceeds from the sale of bonds, the district shall repay any money advanced to the advancing agency in the manner agreed. [IC 13-26-7-3]
A district may obtain money for the payment of the costs of the works or an improvement, enlargement, or extension of the works by the issuance of revenue bonds of the district. The principal and interest of the revenue bonds must be paid solely from the net revenues of the works. [IC 13-26-10-1]
The rates and charges for a waterworks may be determined based on the following:
1. A flat charge for each connection.
2. The amount of water consumed.
3. The size of the meter or connection.
4 Whether the property served has been or will be required to pay separately for the cost of any of the facilities of the works.
5. A combination of these or other factors that the board determines is necessary to establish just and equitable rates and charges. [IC 13-26-11-1]
SEWAGE WORKS RATES AND CHARGESIC 13-26-11-2 states:
“(a) Except as provided in subsection (b), the rates or charges for a sewage works may be determined based on a combination of the following factors:
(1) A flat charge for each connection. If a board uses a flat charge as a factor to determine a rate or charge for a sewage works, the board must:
(A) prepare a concise written statement that summarizes the calculations and processes used to determine the amount of the flat charge; and
(B) provide a copy of the written statement to each person who:
(i) is required to pay the rate or charge; and
(ii) requests a paper copy of the summary.
(2) The amount of water used on the premises.
(3) The number and size of water outlets on the premises.
(4) The amount, strength, or character of sewage discharged into the sewers.
(5) The size of sewer connections.
(6) Whether the property served has been or will be required to pay separately for the cost of any of the facilities of the works.
(7) A combination of these or other factors that the board determines is necessary to establish nondiscriminatory, just, and equitable rates or charges.
(b) A campground or youth camp may be billed for sewage service at a flat rate or by installing, at the campground's or youth camp's expense, a meter to measure the actual amount of sewage discharged by the campground or youth camp into the sewers. If a campground or youth camp elects to be billed by use of a meter:
(1) the rate charged by a board for the metered sewage service may not exceed the rate charged to residential customers for equivalent usage; and
(2) the amount charged by a board for the campground's or youth camp's monthly sewage service for the period beginning September 1 and ending May 31 must be equal to the actual amount that would be charged for the sewage discharged during the month by the campground or youth camp as measured by the meter.
(c) If a campground or youth camp does not install a meter under subsection (b) and is billed for sewage service at a flat rate, for a calendar year beginning after December 31, 2004:
(1) each campsite at the campground may not equal more than one-third (1/3) of one (1) resident equivalent unit; and
(2) each bed at the youth camp may not equal more than one-eighth (1/8) of one (1) residential equivalent unit.
The basic monthly charge for the campground's or youth camp's sewage service must be equal to the number of the campground's or youth camp's resident equivalent units multiplied by the rate charged by the board for a resident unit.
(d) The board may impose additional charges on a campground or youth camp under subsections (b) and (c) if the board incurs additional costs that are caused by any unique factors that apply to providing sewage service for the campground or youth camp, including, but not limited to:
(1) the installation of:
(A) oversized pipe; or
(B) any other unique equipment; necessary to provide sewage service for the campground or youth camp; and
(2) concentrations of biochemical oxygen demand (BOD) that exceed federal pollutant standards.”
A district may bill and collect rates and charges for the services to be provided after the contract for construction of a sewage works has been let and actual work commenced in an amount sufficient to meet the interest on the revenue bonds and other expenses payable before the completion of the works. [IC 13-26-11-5]
Unless the board finds and directs otherwise, the sewage works are considered to benefit every:
1. lot;
2. parcel of land; or
3. building; connected or to be connected under the terms of an ordinance requiring connections with the sewer system of the district as a result of construction work under the contract. The rates or charges shall be billed and collected accordingly. [IC 13-26-11-6]
IC 13-26-11-2.1 establishes the process by which the owner or operator of a campground may file a request for a review of rates charged with the Indiana Utility Regulatory Commission.
SOLID WASTE DISPOSAL – RATES AND CHARGESThe rates or charges for solid waste disposal and recovery systems may be determined based on the following:
1. A flat charge for each residence or building in use in the district.
2. On the weight of the refuse received.
3. On the hazardous character of the waste received.
4. On a combination of the weight and hazardous character of the waste received. [IC 13-26-11-4]
RATES AND CHARGES – UNIFORMITY NOT REQUIREDThe rates and charges for services of a water, sewer, or solid waste disposal or recovery system do not have to be uniform throughout the district or for all users. The board may exercise reasonable discretion in:
1. adopting different schedules of rates and charges; or
2. making classifications in schedules of rates and charges:
A. based upon variations in the costs of furnishing the services, including capital expenditures required, to various classes of users or to various locations in the district; or
B. where there are variations in the number of users in various locations in the district. [IC 13-26-11-4]
If a district constructs sewers or water mains as a part of the construction of the works that are suitable for use as a local or lateral sewer or main by abutting or adjoining property, the district may charge for the connection on the basis of the pro rata cost of construction of a local or lateral sewer or water main sufficient to serve the property.
Each property owner must agree to pay for the connection in making an application for service. If payment is not made as agreed, the payment constitutes a lien on the property for which the connection is made.
The proceeds of the connection charges may be handled as:
1. net revenues of the works; or
2. payments toward the cost of construction or future improvements. [IC 13-26-11-7]
JUST AND EQUITABLE RATES AND CHARGESThe board shall, by ordinance, establish just and equitable rates or charges for the use of and the service provided by a works. The rates or charges are payable by the owner of each lot, parcel of land, or building that:
1. is connected with and uses a works; or
2. in any way uses or is served by a works.
Subject to section 15 of this chapter, the board may periodically change and readjust the rates or charges as provided in this article. [IC 13-26-11-8]
Just and equitable rates and charges are those that produce sufficient revenue to:
1. pay all expenses incident to the operation of the works, including maintenance cost, operating charges, upkeep, repairs, and interest charges on bonds or other obligations;
2. provide the sinking fund for the liquidation of bonds or other evidence of indebtedness and reserves against default in the payment of interest and principal of bonds; and
3. provide adequate money to be used as working capital, as well as money for making improvements, additions, extensions, and replacements.
Rates and charges too low to meet these financial requirements are unlawful. The initial rates and charges established after notice and hearing under this article are prima facie just and equitable. [IC 13- 26-11-9]
Revenue collected under IC 13-26-11-8 through IC 13-26-11-14 is revenue of the works. [IC 13-26-11-10]
ESTABLISHMENT OF RATES AND CHARGESThe initial rates or charges may be established only after a public hearing at which all:
1. the users of the works and owners of property served or to be served; and
2. others interested; have an opportunity to be heard concerning the proposed rates or charges. [IC 13-26-11-11]
After introduction of the ordinance initially fixing rates or charges but before the ordinance is finally adopted, notice of the hearing setting forth the proposed schedule of the rates or charges must be given by publication one (1) time each week for two (2) weeks in a newspaper of general circulation in each of the counties with territory in the district. The last publication must be at least seven (7) days before the date fixed in the notice for the hearing. The hearing may be adjourned as necessary. [IC 13-26-11-12]
The ordinance establishing the initial rates or charges, either as:
1. originally introduced; or
2. modified and amended; shall be passed and put into effect after the hearing
A copy of the schedule of the rates and charges established must be:
1. kept on file in the office of the district; and
2. open to public inspection.
Whenever the board acts under IC 13-26-11-8(b) to change or readjust the rates and charges, the board shall mail, either separately or along with a periodic billing statement, a notice of the new rates and charges to each user affected by the change or readjustment. In the case of a sewage district, if the change or readjustment increases the rates and charges by the amount specified in section 15(c) of this chapter, the notice required by this subsection:
1. must include a statement of a ratepayer's rights under section 15 of this chapter; and
2. shall be mailed within the time specified in section 15(c) of this chapter.
Following the passage of an ordinance under subsection (a), the lesser of fifty (50) or ten percent (10%) of the ratepayers of the district may file a written petition objecting to the initial rates and charges of the district. A petition filed under this subsection must:
1. contain the name and address of each petitioner;
2. be filed with a member of the district authority, in the county where at least one (1) petitioner resides, not later than thirty (30) days after the district adopts the ordinance; and (3) set forth the grounds for the ratepayers' objection.
The district authority shall set the matter for public hearing not less than ten (10) business days but not later than twenty (20) business days after the petition has been filed. The district authority shall send notice of the hearing by certified mail to the district and the first listed petitioner and publish the notice of the hearing in a newspaper of general circulation in each county in the district.
Upon the date fixed in the notice, the district authority shall hear the evidence produced and determine the following:
1. Whether the board of trustees of the district, in adopting the ordinance establishing sewer rates and charges, followed the procedure required by this chapter.
Whether the sewer rates and charges established by the board by ordinance are just and equitable rates and charges, according to the standards set forth in section 9 of this chapter. After the district authority hears the evidence produced and makes the determinations set forth in subsection (f), the district authority, by a majority vote, shall:
1. sustain the ordinance establishing the rates and charges;
2. sustain the petition; or
3. make any other ruling appropriate in the matter, subject to the standards set forth in section 9 of this chapter.
The order of the district authority may be appealed by the district or a petitioner to the circuit court of the county in which the district is located. The court shall try the appeal without a jury and shall determine one (1) or both of the following:
1. Whether the board of trustees of the district, in adopting the ordinance establishing sewer rates and charges, followed the procedure required by this chapter.
2. Whether the sewer rates and charges established by the board by ordinance are just and equitable rates and charges, according to the standards set forth in section 9 of this chapter.
Either party may appeal the circuit court's decision in the same manner that other civil cases may be appealed. [IC 13-26-11-13]
The rates or charges established for a class of users of property served shall be extended to cover any additional premises served after the rates or charges are established that are in the same class, without the necessity of hearing or notice.
Subject to IC 13-26-11-15, a change or readjustment of the rates or charges may be made in the same manner as the rates or charges were originally established. [IC 13-26-11-14]
REGIONAL SEWAGE DISTRICT AUTHORITYIC 13-26-11-15 states:
“(a) A district authority is established in each regional sewage district established under this article. A district authority:
(1) must consist of an odd number of members;
(2) must consist of at least three (3) members; and
(3) may not include as a member any person who serves on the board of trustees of the district.
(b) The district authority of a regional sewage district consists of the following members:
(1) In the case of a regional sewage district located in one (1) county, the following members:
(A) If no members of the county executive are trustees of the regional sewage district, the county executive of the county.
(B) If:
(i) one (1) or more members of the county executive are trustees of the regional sewage district; and
(ii) no members of the county fiscal body are trustees of the regional sewage district; the members of the county fiscal body.
(C) If the regional sewage district's board of trustees consists of one (1) or more members of the county executive and one (1) or more members of the county fiscal body, three (3) members appointed as follows:
(i) Two (2) members appointed by the county executive. If not all of the members of the county executive are trustees of the district, the county executive may appoint either or both of the two (2) members required by this item from among the county executive's own membership, subject to subsection (a)(3).
(ii) One (1) member appointed by the county fiscal body.
If not all of the members of the county fiscal body are trustees of the district, the county fiscal body may appoint the member required by this item from among the county fiscal body's own membership, subject to subsection (a)(3).
(2) In the case of a regional sewage district located in more than one (1) county, the following members:
(A) If:
(i) an odd number of counties are part of the regional sewage district; and
(ii) each county in the district has at least one (1) county executive member who is not a trustee of the regional sewage district; one (1) county executive member, appointed by that member's county executive, from each county in which the district is located, subject to subsection (a)(3).
(B) If an even number of counties are part of the regional sewage district, the following members:
(i) Two (2) county executive members, appointed by those members' county executive, from the county that has the largest number of customers served by the district's sewer system. However, if the county that has the largest number of customers served by the district's sewer system does not have at least two (2) members of its executive who are not also trustees of the district, the county executive of that county may appoint one (1) or more of the members required by this item from outside the county executive's own membership in order to comply with subsection (a)(3).
(ii) One (1) county executive member, appointed by that member's county executive, from each county, other than the county described in item (i), in which the district is located. However, if a county described in this item does not have at least one (1) member of its executive who is not also a trustee of the district, the county executive of that county may appoint the member required by this item from outside the county executive's own membership in order to comply with subsection (a)(3).
(C) If an odd number of counties are part of the regional sewage district and an odd number of those counties in the district do not have at least one (1) county executive member who is not also a trustee of the district, the following members:
(i) One (1) county executive member, appointed by that member's county executive, from each county that has at least one (1) county executive member who is not also a trustee of the district, subject to subsection (a)(3).
(ii) One (1) member appointed by the county executive of each county that does not have at least one (1) county executive member who is not also a trustee of the district.
A member appointed under this item must be appointed from outside the appointing county executive's own membership, subject to subsection (a)(3).
(c) If a district adopts an ordinance increasing sewer rates and charges at a rate that is greater than five percent (5%) per year, as calculated from the rates and charges in effect from the date of the district's last rate increase, the district shall mail, either separately or along with a periodic billing statement, a notice of the new rates and charges to each user of the sewer system who is affected by the increase. The notice:
(1) shall be mailed not later than seven (7) days after the district adopts the ordinance increasing the rates and charges; and
(2) must include a statement of a ratepayer's rights under this section.
(d) If subsection (c) applies, fifty (50) ratepayers of the district or ten percent (10%) of the district's ratepayers, whichever is fewer, may file a written petition objecting to the rates and charges of the district. A petition filed under this subsection must:
(1) contain the name and address of each petitioner;
(2) be filed with a member of the district authority, in the county where at least one (1) petitioner resides, not later than thirty (30) days after the district adopts the ordinance establishing the rates and charges; and
(3) set forth the grounds for the ratepayers' objection.
If a petition meeting the requirements of this subsection is filed, the district authority shall investigate and conduct a public hearing on the petition. If more than one (1) petition concerning a particular increase in rates and charges is filed, the district authority shall consider the objections set forth in all the petitions at the same public hearing.
(e) The district authority shall set the matter for public hearing not less than ten (10) business days but not later than twenty (20) business days after the petition has been filed. The district authority shall send notice of the hearing by certified mail to the district and the first listed petitioner and publish the notice of the hearing in a newspaper of general circulation in each county in the district.
(f) Upon the date fixed in the notice, the district authority shall hear the evidence produced and determine the following:
(1) Whether the board of trustees of the district, in adopting the ordinance increasing sewer rates and charges, followed the procedure required by this chapter.
(2) Whether the increased sewer rates and charges established by the board by ordinance are just and equitable rates and charges, according to the standards set forth in section 9 of this chapter.
(g) After the district authority hears the evidence produced and makes the determinations set forth in subsection (f), the district authority, by a majority vote, shall:
(1) sustain the ordinance establishing the rates and charges;
(2) sustain the petition; or
(3) make any other ruling appropriate in the matter, subject to the standards set forth in section 9 of this chapter.
(h) The order of the district authority may be appealed by the district or a petitioner to the circuit court of the county in which the district is located. The court shall try the appeal without a jury and shall determine one (1) or both of the following:
(1) Whether the board of trustees of the district, in adopting the ordinance increasing sewer rates and charges, followed the procedure required by this chapter.
(2) Whether the increased sewer rates and charges established by the board by ordinance are just and equitable rates and charges, according to the standards set forth in section 9 of this chapter.
Either party may appeal the circuit court's decision in the same manner that other civil cases may be appealed.”
A district may, as an additional or alternative remedy, foreclose a lien established by this article as a means of collection of rates or charges, including the penalty on the rates or charges. [IC 13-26-14-1]
In all actions brought to foreclose the liens, the district is entitled to recover the following:
1. The amount of the rates or charges.
2. The penalty on the rates or charges.
3. A reasonable attorney's fee.
The court shall order that the sale be made without relief from valuation or appraisement statutes. [IC 13-26-14-2]
Except as otherwise provided by this article, in all actions to foreclose the liens:
1. the laws concerning municipal public improvement assessments; and
2. the rights, remedies, procedure, and relief granted the parties to the action; apply. [IC 13-26-14-3]
Rates, fees, or charges made, assessed, or established by the district are a lien, in the same manner established under IC 36-9-23 for municipal sewage works, on a lot, parcel of land, or building that is connected with or uses the works of the district. Liens under this chapter:
1. attach;
2. are recorded;
3. are subject to the same penalties, interest, and reasonable attorney's fees on recovery; and
4. shall be collected and enforced; in substantially the same manner as provided in IC 36-9-23-31 through IC 36-9-23-34. A lien under this chapter that is the only lien on a property may not be foreclosed. [IC 13-26-14-4]
A district shall file an annual financial report with the State Examiner, not later than 60 days after the close of each fiscal year. The report is to be filed electronically in the manner prescribed under IC 5-14-3.8-7. [IC 5-11-1-4]
A district shall file a personnel report, as required by IC 5-11-13, in the office of the State Examiner during the month of January of each year. The report must be filed electronically in the manner prescribed under IC 5-14-3.8-7. [5-11-13]
The order establishing the district, issued by the Commissioner of the Department of Environmental Management, must provide the requirements for sufficient bond for all officers, trustees, or employees having power to dispense money of the district. [IC 13-26-2-10]
- Solid Waste Management Districts
This section is designed to summarize certain laws, regulations and uniform compliance guidelines relevant to solid waste management districts. Please refer to the Indiana Code and other related documents for a complete listing of laws and regulations governing solid waste management districts.
Board Members
Conferences, Seminars and Training
Contracts and Agreements for Construction or Operation of Solid Waste Management Facilities
Controller
Fees
Fees not Permitted on Transfer Station
Penalty for Failure to Pay Fee
Payment of Claim Before Board Approval
Withdrawal of County From Joint District
IC 13-21-3-1 states:
“(a) Except as provided in subsection (b), each county shall, by ordinance of the county executive:
(1) join with one (1) or more other counties in establishing a joint solid waste management district that includes the entire area of all the acting counties; or
(2) designate itself as a county solid waste management district.
(b) Notwithstanding subsection (a)(1), if a county withdraws from a joint solid waste management district under IC 13-21-4, the county executive of the county may adopt an ordinance to join another or establish another joint solid waste management district with one (1) or more other counties: (1) not earlier than fifteen (15) days; or (2) not later than forty-five (45) days; after the date the ordinance is introduced.
(c) An ordinance adopted under subsection (a)(1) or (b) must include the approval of an agreement governing the operation of the joint district.
(d) If a county fails to comply with this section, the Commissioner of the Indiana Department of Environmental Management shall designate the county as a solid waste management district.”
All of the incorporated and unincorporated territory of a county must be included in the designated county solid waste management district or the joint solid waste management district to which the county belongs. [IC 13-21-3-2]
Within thirty (30) days after adopting an ordinance establishing a joint district and approving an agreement governing the operation of the joint district, a county shall provide the Commissioner of the Indiana Department of Environmental Management with a copy of the agreement. [IC 13-21-3-3]
WITHDRAWAL OF COUNTY FROM JOINT DISTRICTIf:
1 a county seeks to withdraw from a joint district; or
2. joint district seeks to remove a county from the joint district;
the county or the joint district must follow the procedures set forth in IC 13-21-4. [IC 13-21-4-1]
BOARD MEMBERSHIP - COUNTY DISTRICTSExcept in Lake, Marion and St. Joseph Counties, the board of a county district consists of the following members:
1. Two (2) members appointed by the county executive from the membership of the county executive.
2. One (1) member appointed by the county fiscal body from the membership of the fiscal body.
3. One (1) member:
A. who is the executive of the municipality having the largest population in the county if that municipality is a city; or
B. appointed from the membership of the legislative body of a town if the town is the municipality having the largest population in the county.
4. One (1) member of the legislative body of the municipality with the largest population in the county appointed by the legislative body of that municipality.
5. One (1) member:
A. who is the executive of the city in the county that is not the municipality having the largest population in the county; or
B. who is a member of the legislative body of a town that is not the municipality having the largest population in the county; and who is appointed by the executive of that county to represent the municipalities in the county other than the municipality having the largest population.
6. One (1) additional member appointed by the county executive from the membership of the county executive.
If Lake County is designated as a county district, the executives of the three (3) cities in the county having the largest populations each serve as a member of the board or may appoint a member of the legislative body of their city to serve as a member of the board. If St. Joseph County is designated as a county district, the executives of the two (2) cities in the county having the largest populations each serve as a member of the board. If St. Joseph County is designated as a county district, the board of that county district must include the following:
1. One (1) member of the legislative body of the city having the second largest population in the county, appointed by the president of the city legislative body.
2. One (1) member of the legislative body of a town located in the county, appointed by the judge of the circuit court in the county.
If Marion County is designated a county district, the board of public works established under IC 36-3-5-6 constitutes the board of the county district.
If Lake County is designated as a county district, the board of the district consists of the following members:
1. One (1) member appointed by the county executive from the membership of the county executive.
2. Two (2) members appointed from the county fiscal body appointed from the membership of the county fiscal body.
3. The executive of each second or third class city or a member of the legislative body of their city appointed by the executive.
4. One (1) member of the legislative body of each town appointed by the legislative body.
5. One (1) member of the legislative body of the municipality with the largest population in the county appointed by the legislative body of that municipality.
6. If a local government unit in the county has an operating final disposal facility located within the unit's jurisdiction, one (1) member of the unit's board of public works appointed by the board of public works.
If a county designated as a county district does not contain a city, and if the county executive and the county fiscal body agree, the board of district shall consist of the following nine (9) or ten (10) members:
1. The three (3) members of the county executive.
2. Two (2) members of the county fiscal body, chosen by the county fiscal body.
3. One (1) member of each of the town legislative bodies of the four (4) or five (5) towns in the county having the largest population, chosen by each town legislative body.
BOARD MEMBERSHIP - JOINT DISTRICTSExcept in Lake County and St. Joseph County, the board of a joint district consists of the following:
1. One (1) member of the county executive of each participating county.
2. One (1) member of the county fiscal body of each participating county.
3. One (1) member:
A. who is the executive of the municipality having the largest population in the county if that municipality is a city; or
B. if a town is the municipality having the largest population in the county, who is appointed from the membership of the fiscal body of that town.
4. One (1) member of the legislative body of the municipality having the largest population in each participating county, appointed by the legislative body of that municipality.
5. One (1) or more members who are the executives of cities under subsection B., if applicable.
6. Additional members appointed by the executive of each participating county from the mem- bership of the executive, as permitted under IC 13-21-3-6(c).
7. One (1) additional member appointed by the executive of the participating county having the largest population from the membership of the executive if the appointments made under subdivisions (1) through (6) result in an even number of members.
If Lake County has joined in a joint district, the executive of the three (3) cities in the county having the largest populations each serve as a member of the board. If St. Joseph County has joined in a joint district, the executive of the two (2) cities in the county having the largest populations each serve as a member of the board.
An agreement between two (2) or more counties establishing a joint district may allow the executive of each county to appoint a certain number of additional members from the membership of the executive based upon the proportion of each county's population to the population of the entire district.
An agreement among three (3) or more counties establishing a joint district may provide that:
1. the membership; and
2. the terms of office of members; of the board will be determined by the terms of an agreement entered into by the executive of each county governing the operation of the district. All members of a board appointed must be elected officials of a county or a municipality.
The board of a joint district established under IC 13-21-3-6(d) or IC 13-9.5-2-6(d) (before its repeal) after March 1, 1991:
1. must include representation from the largest municipality in each county included in the joint district as recommended by the executive of the largest municipality and approved by the legislative body of the largest municipality; and
2. may include representation from other municipalities in each county included in the joint district as recommended by the executive of a municipality and approved by the legislative body of the municipality.
The board of a joint district may allow a member who is appointed from:
1. the county executive;
2. a county fiscal body; or
3. a municipal legislative body; to have the body on which the member serves designate an alternate member from that body to participate and exercise the right to vote with the board if the member is unable to attend a meeting. [IC 13-21-3-6]
The term of office of a member of the board of a district who is appointed from the membership of an executive, legislative, or fiscal body under this chapter is coextensive with the member's term of office on that body. The term of office of other appointed members of the board is two (2) years.
All members of the board serve at the pleasure of the appointing authority. [IC 13-21-3-8]
The board shall select the following:
1. A chairperson and vice chairperson from the board's membership.
2. A controller who is not a member of the board.
If a controller selected by a board is the fiscal officer of a county or municipality, the duties of the controller under a statute or an ordinance are in addition to the duties the controller has while serving as the fiscal officer of the county or municipality. [IC 13-21-3-9]
A controller selected under IC 13-21-3-9 shall do the following:
1. Be the official custodian of all district money and, subject to the terms of any resolution or trust indenture under which bonds are issued under IC 13-21, deposit and invest all district money in the same manner as other county money is deposited and invested under IC 5- 13.
2. Be responsible to the board for the fiscal management of the district.
3. Be responsible for the proper safeguarding and accounting of the district's money.
4. Issue warrants approved by the board after a properly itemized and verified claim has been presented to the board on a claim docket.
5. Make financial reports of district money and present the reports to the board for the board's approval.
6. Prepare the district's annual budget.
7. Perform any other duties:
A. prescribed by the board; and
B. consistent with IC 13-21-3.
A controller selected under IC 13-21-3-9:
1. does not exercise any sovereign authority of the state; and
2. does not hold a lucrative office for purposes of Article 2, Section 9 of the Constitution of the State of Indiana. [IC 13-21-3-10]
PAYMENT OF CLAIMS BEFORE BOARD APPROVALThe board may, by resolution, authorize the controller to make claim payments for:
1. payroll;
2. the state solid waste management fee imposed by IC 13-20-22-1; and
3. certain specific vendors identified in the resolution; without the claims being first approved by the board if before payment the claims are approved in writing by the chairperson of the board or in the absence of the chairperson another member of the board designated by the chairperson. The claims shall be reviewed and allowed by the board at the board's next regular or special meeting. [IC 13-21-3-10(c)]
Only the chairperson or the chairperson's designee is required to sign claim forms. [IC 5-11-10-2]
The board of each district shall appoint and convene a solid waste management advisory committee of citizens not later than thirty (30) days after the board has been established. The committee must include the following:
1. Representatives of the solid waste management industry operating in the district.
2. Representatives of the environmental community and other citizens who are:
A. knowledgeable about and interested in environmental issues; and
B. not employed directly or indirectly by the solid waste management industry.
At least fifty percent (50%) of the members of an advisory committee must be made up of the representatives of the environmental community and other citizens. All members of the committee must be residents of the district. [IC 13-21-3-11]
The powers of a district include the following:
1. The power to develop and implement a district solid waste management plan under IC 13-21-5.
2. The power to impose district fees on the final disposal of solid waste within the district under IC 13-21-13.
3. The power to receive and disburse money, if the primary purpose of activities undertaken under this subdivision is to carry out the provisions of this article.
4. The power to sue and be sued.
5. The power to plan, design, construct, finance, manage, own, lease, operate, and maintain facilities for solid waste management.
6. The power to enter with any person into a contract or an agreement that is necessary or incidental to the management of solid waste. Contracts or agreements that may be entered into under this subdivision include those for the following:
A. The design, construction, operation, financing, ownership, or maintenance of facilities by the district or any other person.
B. The managing or disposal of solid waste.
C. The sale or other disposition of materials or products generated by the facility.
Notwithstanding any other statute, the maximum term of a contract or an agreement described in this subdivision may not exceed forty (40) years.
7. The power to enter into agreements for the leasing of facilities in accordance with IC 36-1-10 or IC 36-9-30.
8. The power to purchase, lease, or otherwise acquire real or personal property for the management or disposal of solid waste.
9. The power to sell or lease any facility or part of a facility to any person.
10. The power to make and contract for plans, surveys, studies, and investigations necessary for the management or disposal of solid waste.
11. The power to enter upon property to make surveys, soundings, borings, and examinations.
12. The power to:
A. accept gifts, grants, loans of money, other property, or services from any source, public or private; and
B. comply with the terms of the gift, grant, or loan.
13. The power to levy a tax within the district to pay costs of operation in connection with solid waste management, subject to the following:
A. Regular budget and tax levy procedures.
B. IC 13-21-3-16.
However, except as provided in IC 13-21-3-15 and IC 13-21-3-15.5, a property tax rate imposed under this article may not exceed eight and thirty-three hundredths cents ($0.0833) on each one hundred dollars ($100) of assessed valuation of property in the district.
14. The power to borrow in anticipation of taxes.
15. The power to hire the personnel necessary for the management or disposal of solid waste in accordance with an approved budget and to contract for professional services.
16. The power to otherwise do all things necessary for the:
A. reduction, management, and disposal of solid waste; and
B. recovery of waste products from the solid waste stream, if the primary purpose of activities undertaken under this subdivision is to carry out the provisions of IC 13-21.
17. The power to adopt resolutions that have the force of law. However, a resolution is not effective in a municipality unless the municipality adopts the language of the resolution by ordinance or resolution.
18. The power to do the following:
A. Implement a household hazardous waste and conditionally exempt small quantity generator (as described in 40 CFR 261.5(a)) collection and disposal project.
B. Apply for a household hazardous waste collection and disposal project grant under IC 13-20-20 and carry out all commitments contained in a grant application.
C. Establish and maintain a program of self-insurance for a household hazardous waste and conditionally exempt small quantity generator (as described in 40 CFR 261.5(a)) collection and disposal project, so that at the end of the district's fiscal year the unused and unencumbered balance of appropriated money reverts to the district's general fund only if the district's board specifically provides by resolution to discontinue the self-insurance fund.
D. Apply for a household hazardous waste project grant as described in IC 13-20-22-2 and carry out all commitments contained in a grant application.
19. The power to enter into an interlocal cooperation agreement under IC 36-1-7 to obtain:
A. fiscal;
B administrative;
C. managerial; or
D. operational; services from a county or municipality.
20. The power to compensate advisory committee members for attending meetings at a rate determined by the board.
21. The power to reimburse board and advisory committee members for travel and related expenses at a rate determined by the board.
22. In a joint district, the power to pay a fee from district money to the counties in the district in which a final disposal facility is located.
23 The power to make grants or loans of:
A. money;
B. property; or C services; to public or private recycling programs, composting programs, or any other programs that reuse any component of the waste stream as a material component of another product, if the primary purpose of activities undertaken under this subdivision is to carry out the provisions of IC 13-21.
24. The power to establish by resolution a nonreverting capital fund. A district's board may appropriate money in the fund for:
A. equipping;
B. expanding;
C. modifying; or
D. remodeling;an existing facility.
Expenditures from a capital fund established under this subdivision must further the goals and objectives contained in a district's solid waste management plan. Not more than five percent (5%) of the district's total annual budget for the year may be transferred to the capital fund that year. The balance in the capital fund may not exceed twenty-five percent (25%) of the district's total annual budget. If a district's board determines by resolution that a part of a capital fund will not be needed to further the goals and objectives contained in the district's solid waste management plan, that part of the capital fund may be transferred to the district's general fund, to be used to offset tipping fees, property tax revenues, or both tipping fees and property tax revenues.
25. The power to conduct promotional or educational programs that include giving awards and incentives that further the district's solid waste management plan and the objectives of minimum educational standards established by the Indiana Department of Environmental Management
26. The power to conduct educational programs under IC 13-20-17.5 to provide information to the public concerning:
A. the reuse and recycling of mercury in:
i. mercury commodities; and
ii. mercury-added products; and
B. collection programs available to the public for:
i. mercury commodities; and
ii. mercury-added products.
27. The power to implement mercury collection programs under IC 13-20-17.5 for the public and small businesses. [IC 13-21-3-12]
In addition to the powers granted in IC 13-21-3-12, in Vanderburgh County, a district may make grants or loans of money, property, or services to a public or private program to plant or maintain trees in an area of the district that is a right-of-way, public property, or vacant property. [IC 13-21-3-12.2]
A board may do the following:
1. Enter into agreements concerning and acquire by any lawful means real property or interests in real and personal property needed for the purposes of IC 13-21-3-13 or IC 13-21-9.
2. Enter into financing agreements to purchase, lease as lessee, construct, remodel, rebuild, enlarge, or substantially improve facilities.
3. Lease facilities to users or developers with or without an option to purchase.
4. Sell facilities to users or developers for consideration, which may be paid in installments or otherwise.
5. Make direct loans to users or developers for the cost of acquisition, construction, or installation of facilities, including real property, machinery, or equipment. If loans are made, the development bonds must be secured by the pledge of one (1) or more bonds or other secured or unsecured debt obligations of the users or developers.
6. Enter into agreements with users or developers to allow the users or developers to wholly or partially acquire, construct, or modify facilities to be acquired by the district.
7. Issue waste management development bonds under IC 13-21-9 to do the following:
A. Accomplish the purposes of this section and IC 13-21-9.
B. Secure payment of the development bonds as provided in IC 13-21-9.
IC 13-21-3-13 or IC 13-21-9 does not authorize the district's financing of facilities for a developer unless any agreement that exists between a developer and a user is fully disclosed to and approved by the board. [IC13-21-3-13]
The powers of a district do not include the following:
1. The power of eminent domain.
2. The power to exclusively control the collection or disposal of any solid waste or recyclables within the district by means that include the following:
A. Franchising.
B. Establishing a territory or territories within the district in which a person may provide service.
3. The power to establish the type of service that a person must provide for the collection or disposal of solid waste or recyclables within the district.
4. The power to establish fees that a person must charge for the collection or disposal of solid waste or recyclables within the district.
5. The power to issue permits for an activity that is already permitted by a state agency, except as expressly granted by statute.
If one (1) or more of the governmental entities in a district, at the time of the formation of the district, is a party to a contract providing that the persons contracted with have the exclusive right to collect or dispose of solid waste within the jurisdiction of the governmental entity, the district may enter into an extension of that contract. These restrictions do not apply to activities conducted as part of a household hazardous waste collection and disposal project. [IC 13-21-3-14]
CONTRACTS AND AGREEMENTS FOR CONSTRUCTION OR OPERATION OF SOLID WASTE MANAGEMENT FACILITIESNotwithstanding any other statute concerning the length, duration, and terms of contracts and agreements, a board may enter into a contract or an agreement with a person, upon terms and conditions as agreed upon, for the:
1. design;
2. construction;
3. operation;
4. financing;
5. ownership; or
6. maintenance; of a facility for solid waste management in accordance with the requirements and conditions of this chapter.
Before or after the expiration or termination of the term or duration of a contract or an agreement entered into under this chapter or IC 13-9.5-8 (before its repeal), the board, in accordance with the requirements and conditions of this chapter, may periodically enter into amended, extended, supplemental, new, or further contracts or agreements with the same person or any other person for any purpose referred to in this chapter.
A contract, including all amendments, extensions, and supplements, may not exceed a term of forty (40) years. [IC 13-21-6-1]
Notwithstanding any other statute, a contract entered into between a board and any person under this chapter may be awarded by the board by:
1. public bidding in compliance with IC 36-1-12; or
2. compliance with IC 13-21-6-3 through 13-21-6-8. [IC 13-21-6-2]
An action to contest:
1. the validity of a contract awarded; or
2. the procedure by which the contract was awarded; must be brought within thirty (30) days following the final contract award. After that date, the contract is incontestable for any cause. [IC 13-21-6-10]
CONFERENCES, SEMINARS AND TRAININGIf a board determines that it is desirable or necessary for employees or members of the board or advisory committee to attend a conference, seminar, or training session that concerns solid waste management or related issues, the board may pay:
1. applicable registration fees; and
2. all actual expenses; of the employees or members who attend the conference, seminar, or training session.
A board may appropriate money necessary to provide membership for the district in state and national:
1. civic;
2. educational;
3. professional; or
4. governmental; organizations that are concerned with the betterment and improvement of solid waste management planning and practices. [IC 13-21-3-17]
At the end of each year the district shall prepare the report required by IC 13-21-3-13.5 and provide the report to the Department of Environmental Management, the Department of Local Government Finance and the Legislative Council, by February 1 of the year following the year for which the report is made. The district shall publish the annual report on an Internet web site maintained by the district or on the Internet web sites maintained by the counties that are members of the district. [IC 13-21-3-13.5]
A district shall file an annual financial report with the State Examiner, not later than 60 days after the close of each fiscal year. The report is to be filed electronically in the manner prescribed under IC 5- 14-3.8-7. The Department of Local Government Finance may not approve a district's budget or a supplemental appropriation until the report is filed for the preceding calendar year. [IC 5-11-1-4]
A district shall file a personnel report, as required by IC 5-11-13, in the office of the State Examiner during the month of January of each year. The report must be filed electronically in the manner prescribed under IC 5-14-3.8-7. [IC 5-11-13]
The Department of Local Government Finance may not approve a district's budget or a supplemental appropriation until the report required by IC 5-11-13 is filed for the preceding calendar year. [IC 6-1.1-17-16.2]
The executive of a county or municipality located in a district may, with the approval of the fiscal body of the county or municipality:
1. grant or loan public money to the district; and
2. establish procedures:
A. for awarding grants; and
B. for the repayment of loans. [IC 13-21-3-18]
Before the board of a district may adopt an annual budget, the budget must be:
1. approved by the Indiana Department of Local Government Finance; and
2. sent to:
A. the executive; and
B. the fiscal body; of each county and municipality located within the district as a matter of record. [IC 13-21-3-21]
The board of directors of a solid waste management district established under IC 13-21 or IC 13-9.5-2 (before its repeal) may conduct the public hearing regarding the district's proposed budget and its proposed tax rate and levy required under IC 6-1.1-17-3(a):
1. in any county of the solid waste management district; and
2. in accordance with the annual notice of meetings published under IC 13-21-5-2. [IC 6-1.1-17-3(b)]
COLLECTION OF FEES AND REVENUES BY COUNTYThe board of a district may contract with a county to collect fees and revenue for a board. A contract must do all of the following:
1. Describe the fees and revenue that will be collected.
2. Describe the responsibilities of the district and the county.
3. Describe any collection charges that a county will impose to reimburse the county for the administrative expenses of collecting fees and revenue.
4. Establish the date or conditions under which the agreement expires.
5 Be in writing.
A contract may include other necessary or appropriate terms. Before a contract under this section becomes effective:
1. the county auditor and the county treasurer must consent to the terms of the contract; and
2. the board of the district and the executive body for the county must approve the contract by resolution in a public meeting.
The written consent of the county auditor and county treasurer must be incorporated by reference into the resolution adopted by the county executive body.
To carry out a contact, a county executive body may establish a collection charge. The charge may not exceed the direct costs of collecting fees and revenue, including an allowance for computer reprogramming and other costs incurred to establish and maintain the collection program. Collection charges received by a county shall be deposited in the county general fund.Revenue and fees collected by a county shall be deposited in a separate fund and distributed to the district, without an appropriation or a claim, under the terms of the contract.
A county may include a notice of the amount of fees, charges, or other revenue in a property tax notice sent to a taxpayer.
A county or the district may collect a delinquent payment in the same manner as any general debt may be collected. [IC 13-21-3-22]
A board may impose fees on the disposal of solid waste in a final disposal facility located within the district. In LaPorte County, this fee may not exceed two dollars and fifty cents ($2.50) a ton. A fee imposed by a board in other counties may not exceed:
1. two dollars and fifty cents ($2.50) a ton; or
2. the amount of a fee imposed by the board;
A. under IC 13-21-13-1; and
B. in effect on January 1, 1993; whichever is greater.
The board shall do the following:
1. Set the amount of fees imposed under IC 13-21-13-1 after a public hearing.
2. Give public notice of the hearing.
If solid waste has been subject to a district fee, the total amount of the fee that was paid shall be credited against a district fee to which the solid waste may later be subject.
Except as provided in IC 13-21-13-4, fees imposed shall be imposed uniformly on public facilities and on privately owned or operated facilities throughout the district.
A resolution adopted by a board that establishes fees may contain a provision that authorizes the board to impose a penalty of not more than five hundred dollars ($500) per day because of:
1. nonpayment of fees; or
2. noncompliance with a condition in the resolution.
A board may not impose fees for material used as alternate daily cover pursuant to a permit issued by the Indiana Department of Environmental Management under 329 IAC 10-20-13. [IC 13-21-13-1]
A board that has imposed fees under IC 13-21-13-1 shall establish and continuously maintain a separate fund to be known as the “ district solid waste management fund.”
All fees remitted to the district shall be deposited in the fund. Money in the fund may be used only for the following purposes:
1. To pay expenses of administering the fund.
2. To pay costs associated with the development and implementation of the district plan.
The controller of the district shall administer the fund. Money in the fund that is not currently needed for the purposes set forth in subsection (c) shall be deposited and invested in the same manner as other county money is deposited and invested under IC 5-13. Interest that accrues from these investments shall be deposited in the fund. Money in the fund at the end of a district's fiscal year does not revert to:
1. a county general fund; or
2. any other fund.
The controller of a district shall:
1. file an individual surety bond; or
2. revise an existing bond; in a sufficient amount determined under IC 5-4-1-18 to reflect the liability associated with the handling of the district's money. [IC 13-21-13-2]
If a board imposes a fee under IC 13-21-13-1, the owner or operator of a final disposal facility located within the district is responsible for collecting fees from persons delivering solid waste to the facility. Each owner or operator may do the following:
1. Deduct from the fees an amount equal to one percent (1%) of the fees collected.
2. Retain this amount as compensation for collecting and remitting the fees.
The owner or operator shall remit the remainder of the fees the owner or operator collects during a month to the controller not later than ten (10) days after the last day of the month in which the fees are collected.
Each owner or operator of a final disposal facility shall, at the time the collected fees are remitted, furnish to the controller a fee collection report. [IC 13-21-13-3]
SOLID WASTE MANAGEMENT FEES - ESTABLISHMENTA board:
1. may; and
2. if necessary to pay principal or interest on any bonds issued under IC 13-21 or IC 13-9.5-9 (repealed), shall; establish solid waste management fees in addition to fees imposed under IC 13-21-13 or IC 13-9.5-7 (before its repeal) that apply to all persons owning real property or generating solid waste within the district who are benefited by solid waste management, solid waste collection, a facility for solid waste disposal, or a facility for solid waste processing.The board may change and readjust fees as necessary.
The board may fix the solid waste management fees on the basis of the following:
1. A flat charge for each residence or building in use in the waste management district.
2. The weight or volume of the refuse received.
3. The average number of containers or bags of refuse received.
4. The relative difficulty associated with the collection or management of the solid waste received.
5. Any other criteria that the board determines to be logically related to the service.
6. Any combination of these criteria.
The collection of the fees may be effectuated through a periodic billing system.
The board may exercise reasonable discretion in adopting differing schedules of fees based upon variations in the following:
1. The cost of furnishing the services included within this chapter to various classes of owners of property or of generators of solid waste within the district.
2. The distance of the property benefited from the facility.
3. Any other variations the board determines to be logically related to the cost of the service.
Fees shall be established only after public notice and a public hearing before the board at which:
1. all persons using facilities, owning property, or generating solid waste within the district who are benefited by solid waste management; and
2. other interested persons; have an opportunity to be heard concerning the proposed fees.
After introduction of a resolution fixing fees and before the resolution is adopted, public notice of the hearing, setting forth the schedule of fees, shall be given. The hearing may be adjourned as necessary.
After the hearing the resolution establishing fees, either as originally introduced or as amended, shall be passed and put into effect.
A copy of the schedule of fees established shall be kept:
1. on file in the office of the board or the controller, secretary, or other recordkeeping officer of the district; and
2. open to inspection by all interested persons.
The fees established extend to cover any additional territory later served that falls within the same class without the necessity of a hearing or notice.
A change or readjustment of fees may be made in the same manner as the fees were originally established.
An action to contest:
1. the validity of the fees adopted; or
2 the procedure by which the fees were adopted; must be brought within thirty (30) days following the adoption of the fees under IC 13-21-14-5. [IC 13-21-14-1 through 6]
Fees imposed under IC 13-21-14 may be used, together with any other revenues, to pay any of the following:
1. The cost of facilities for solid waste management.
2. The operation and maintenance of facilities.
3. The charges that may be pledged to the payment of principal of and interest on waste management district or revenue bonds.
4. The costs of implementing the district's district plan. [IC 13-21-14-7]
PENALTY FOR FAILURE TO PAY FEEIf a fee established is not paid within the time fixed by the board, the amount, together with:
1. a penalty of twenty-five dollars ($25); and
2. a reasonable attorney's fee; may be recovered in a civil action in the name of the district. [IC 13-21-14-8]
FEES NOT PERMITTED ON TRANSFER STATIONSA district may not exercise its authority to impose a fee on the:
1. owner of real or personal property that is used solely as a transfer station; or
2 operation of a transfer station. [IC 13-21-14-9]
A controller of a solid waste management district established under IC 13-21 or IC 13-9.5 (before its repeal) shall file an individual surety bond in an amount:
1. fixed by the board of directors of the solid waste management district; and
2. that is at least thirty thousand dollars ($30,000). [IC 5-4-1-18(d)]
Except as provided under IC 5-4-1-18(d), a person who is required to file an individual surety bond by the board of directors of a solid waste management district established under IC 13-21 or IC 13-9.5 (before its repeal) shall file a bond in an amount fixed by the board of directors. [IC 5-4-1-18(e)]
- Fire Protection Districts
This section is designed to summarize certain laws, regulations and uniform compliance guidelines relevant to fire protection districts. Please refer to the Indiana Code and other related documents for a more complete listing of laws and regulations governing fire protection districts.
Meetings - Officers - Compensation
Powers and Duties of the Board
Taxing District Status - Bonds
A county legislative body may establish fire protection districts for any of the following purposes:
1. Fire protection, including the capability for extinguishing all fires that might be reasonably expected because of the types of improvements, personal property, and real property within the boundaries of the district.
2. Fire prevention, including identification and elimination of all potential and actual sources of fire hazard.
3. Other purposes or functions related to fire protection and fire prevention.
Any area may be established as a fire protection district, but one (1) part of a district may not be completely separate from another part. A municipality may be included in a district, but only if it consents by ordinance, unless a majority of the freeholders of the municipality have petitioned to be included in the district. The territory of a district may consist of:
1. one (1) or more townships and parts of one (1) or more townships in the same county; or
2. all of the townships in the same county.
The boundaries of a district need not coincide with those of other political subdivisions.
The territory of a district may consist of a municipality that is located in more than one (1) county. [IC 36-8-11-4]
IC 36-8-11-5 through IC 36-8-11-10 list the procedures to follow in establishing a district.
A petition must be signed by freeholders who desire establishment with the county auditor. The county auditor then presents the petition to the county legislative body who shall set a date for public hearing on the establishment of a district.
Within thirty (30) days after the ordinance or resolution establishing the district becomes final, the county legislative body shall appoint a board of fire trustees. The trustees must be qualified by knowledge and experience in matters pertaining to fire protection and related activities in the district. A person who:
1. is a party to a contract with the district; or
2. is a member, an employee, a director, or a shareholder of any corporation or association that has a contract with the district; may not be appointed or serve as a trustee.
The legislative body shall appoint one (1) trustee from each township or part of a township contained in the district and one (1) trustee from each municipality contained in the district. If the number of trustees selected by this method is an even number, the legislative body shall appoint one (1) additional trustee so that the number of trustees is always an odd number. If at least three (3) trustees are not provided, the legislative body shall make additional appointments so that there is a minimum of three (3) trustees.
The original trustees shall be appointed as follows:
1. One (1) for a term of one (1) year.
2. One (1) for a term of two (2) years.
3. One (1) for a term of three (3) years.
4. All others for a term of four (4) years.
The terms expire on the first Monday of January of the year their appointments expire. As the terms expire, each new appointment is for a term of four (4) years.
If a vacancy occurs on the board, the county legislative body shall appoint a trustee with the qualifications specified in IC 36-8-11-12(a) for the unexpired term. [IC 36-8-11-12]
MEETINGS - OFFICERS - COMPENSATIONThe board shall fix the time for holding regular meetings, but it shall meet at least once in the months of January, April, July, and October. The county legislative body may order that regular meetings be held more frequently.
Special meetings of the board may be called by the chairman or by two (2) trustees, upon written request to the secretary. At least three (3) days before a special meeting, the secretary shall send to all trustees a written notice fixing the time and place of the meeting. Written notice of a special meeting is not required if:
1. the time of the special meeting has been fixed in a regular meeting; or
2. all trustees were present at a meeting at which a special meeting was called.
At the first regular meeting each year, the trustees of the board shall elect a chairman and vice- chairman from their number. The vice-chairman shall act as chairman during the absence or disability of the chairman.
A majority of the trustees constitutes a quorum. An action of the board is official, however, only if it is authorized by a majority of the trustees at a regular or properly called special meeting.
Each trustee may receive not more than twenty dollars ($20) a day for each day devoted to the work of the district. In addition, each trustee may be reimbursed for actual expenses, including traveling expense at a rate equivalent to that provided by statute for state employees. The current mileage rate allowed to state officers and employees is forty-four cents (44¢) per mile. Claims for expense reimbursement must be accompanied by an itemized written statement and approved by a recorded motion of the board.
At the time the county legislative body initially appoints the board, it shall order where the board will maintain its offices. The offices may not be changed without approval of the legislative body. The board shall arrange for office space and keep a record of all transactions and minutes of all meetings in the office. All records and minutes shall be kept available for public inspection. [IC 36-8-11-13 and IC 36-8-11-14]
POWERS AND DUTIES OF THE BOARDIC 36-8-11-15 states that:
“(a) The board:
(1) has the same powers and duties as a township executive with respect to fire protection functions, including those duties and powers prescribed by IC 36-8-13, although all cooperative and joint actions permitted by that chapter must be undertaken according to this chapter;
(2) has the same powers and duties as a township executive relative to contracting with volunteer firefighting companies, as prescribed by IC 36-8-12 and IC 36-8-13;
(3) shall appoint, fix the compensation, and prescribe the duties of a fiscal officer, secretarial staff, persons performing special and temporary services or providing legal counsel, and other personnel considered necessary for the proper functioning of the district; however, a person appointed as fiscal officer must be bonded by good and sufficient sureties in an amount ordered by the county legislative body to protect the district from financial loss;
(4) shall exercise general supervision of and make regulations for the administration of the district's affairs;
(5) shall prescribe uniform rules pertaining to investigations and hearings;
(6) shall supervise the fiscal affairs and responsibilities of the district;
(7) may delegate to employees of the district the authority to perform ministerial acts, except in cases in which final action of the board is necessary;
(8) shall keep accurate and complete records of all departmental proceedings, record and file all bonds and contracts, and assume responsibility for the custody and preservation of all papers and documents of the district;
(9) shall make an annual report to the executive and the fiscal body of the county that at least lists the financial transactions of the district and a statement of the progress in accomplishing the purposes for which the district has been established;
(10) shall adopt a seal and certify all official acts;
(11) may sue and be sued collectively by its legal name (“Board of Fire Trustees, Fire Protection District”), with service of process made on the chairman of the board, but costs may not be taxed against the members individually in an action;
(12) may invoke any legal, equitable, or special remedy for the enforcement of this chapter or of proper action of the board taken in a court;
(13) shall prepare and submit to the fiscal body of the county an annual budget for operation and maintenance expenses and for the retirement of obligations of the district, subject to review and approval by the fiscal body;
(14) may, if advisable, establish one (1) or more advisory committees;
(15) may enter into agreements with and accept money from a federal or state agency and enter into agreements with a municipality located within or outside the district, whether or not the municipality is a part of the district, for a purpose compatible with the purposes for which the district exists and with the interests of the municipality;
(16) may accept gifts of money or other property to be used for the purposes for which the district is established;
(17) may levy taxes at a uniform rate on the real and personal property within the district;
(18) may issue bonds and tax anticipation warrants;
(19) may incur other debts and liabilities;
(20) may purchase or rent property;
(21) may sell services or property that are produced incident to the operations of the district making a fair and reasonable charge for it;
(22) may make contracts or otherwise enter into agreements with public or private persons and federal or state agencies for construction, maintenance, or operations of or in part of the district;
(23) may receive and disburse money; and
(24) may impose a false alarm fee or service charge under IC 36-8-13-4.
(b) Powers granted by this chapter may be used only to accomplish the purpose or purposes as stated in the ordinance or resolution establishing the district. However, an act of the board necessary and proper to accomplish the purposes for which the district is established is not invalid because it incidentally accomplishes a purpose other than one for which the district is established.”
TAXING DISTRICT STATUS - BONDSAll the real property within a fire protection district constitutes a taxing district for the purpose of levying taxes to pay for the construction, operation, and maintenance of district programs and facilities. A tax levied must be levied at a uniform rate upon all taxable property within the district. A fire protection district is a municipal corporation within the meaning of the Constitution of Indiana and all general statutes. [IC 36-8-11-16]
Bonds may be issued only against the taxable property of a fire protection district and may be paid in part by revenues derived from reasonable charges for services or property produced incident to the operation of the district. Bonds shall be issued in the same manner as conservancy district bonds are issued under IC 14-33-11. [IC 36-8-11-17]
The board shall annually budget the necessary money to meet the expenses of operation and maintenance of the district, including repairs, fees, salaries, depreciation on all depreciable assets, rents, supplies, contingencies, bond redemption, and all other expenses lawfully incurred by the district. After estimating expenses and receipts of money, the board shall establish the tax levy required to fund the estimated budget.
The budget must be approved by the fiscal body of the county, the county board of tax adjustment, and the Indiana Department of Local Government Finance.
Upon approval by the Indiana Department of Local Government Finance, the board shall certify the approved tax levy to the auditor of the county having land within the district. The auditor shall have the levy entered on the county treasurer's tax records for collection. After collection of the taxes the auditor shall issue a warrant on the treasurer to transfer the revenues collected to the board, as provided by statute. [IC 36-8-11-18]A district shall file an annual financial report with the State Examiner, not later than 60 days after the close of each fiscal year. The report is to be filed electronically in the manner prescribed under IC 5- 14-3.8-7. The Department of Local Government Finance may not approve a district's budget or a supplemental appropriation until the report is filed for the preceding calendar year. [IC 5-11-1-4]
A district shall file a personnel report, as required by IC 5-11-13, in the office of the State Examiner during the month of January of each year. The report must be filed electronically in the manner prescribed under IC 5-14-3.8-7. [5-11-13]
The Department of Local Government Finance may not approve a district's budget or a supplemental appropriation until the report required by IC 5-11-13 is filed for the preceding calendar year. [IC 6-1.1-17-16.2]
- Airport Authorities
This section is designed to summarize certain laws, regulations and uniform compliance guidelines relevant to airport authorities. Please refer to the Indiana Code and other related documents for a complete listing of laws and regulations governing airport authorities.
Officers' and Employees' Bonds
Paying Expenses Prior to Collection of Taxes
Whenever the fiscal body of one or more eligible entities, acting individually or jointly, adopts an ordinance or a resolution in favor of the establishment of an airport authority, there is established an airport authority. [IC 8-22-3-1]
Notwithstanding IC 8-22-3-1, an airport authority is established in Allen County.
For the purposes of this chapter, an authority established under this section shall be treated as if it had been established by an ordinance of the fiscal body of the county. However, section 2 of this chapter does not apply to such an authority.
The name of an authority established under this section is the "Fort Wayne-Allen County Airport Authority". [IC 8-22-3-1.1]
The authority has jurisdiction over a district with boundaries coterminous with the jurisdictional boundaries of the entity or entities adopting the ordinance or resolution. The authority must have a name including the words “airport authority.” [IC 8-22-3-1]
The board of an authority shall exercise the executive and legislative powers of the authority. [IC 8-22-3-3]
IC 8-22-3-4 through IC 8-22-3-6.1 establish the manner in which authority board members are to be appointed, the terms of appointment, and the qualifications that individuals must possess as a prerequisite to appointment.
A member of the board is ineligible to hold an appointive office or employment for the authority. A member of the board may not become personally interested in any contract with or claim against the authority. [IC 8-22-3-7]
Except as provided in the following two paragraphs, the members of the board shall serve without compensation, but shall be paid their actual expenses for travel conducted in the interest of the board.
The fiscal body of the entity may provide a per diem for the members of the board in an amount that does not exceed thirty-five dollars ($35) for each whole or part day a member is engaged in board activities. The members of the board shall also be paid their actual expenses for travel conducted in the interest of the board.If the authority is established by more than one (1) entity, the fiscal bodies of the entities, acting jointly, may provide a per diem for the members of the board in an amount that does not exceed thirty-five dollars ($35) for each whole or part day a member is engaged in board activities. The members of the board shall also be paid their actual expenses for travel conducted in the interest of the board. [IC 8-22-3-8]
The board shall elect, at its first regular meeting to be conducted on the first July 1 or January 1 after appointment of the board members, and annually thereafter, one (1) of its members president, and another of its members vice-president, who performs the duties of the president during the absence of or disability of the president. The board shall keep a suitable office at the airport where its maps, plans, documents, records, and accounts shall be kept, subject to public inspection at all reasonable times.
The board shall provide by rule for regular meetings to be held not less than at monthly intervals throughout the year.
The board shall convene in a special meeting when one is called. The president or a majority of the members of the board may call a special meeting. The board shall establish by rule a procedure for calling special meetings.
Meetings shall be held at the office of the board, except that public hearings and similar meetings for which the office facilities are inadequate may be held at another public place in the district that is designated by the board. The board may adjourn any regular or special meeting to a specific day designated at the time of adjournment, and that meeting is a continuation of the meeting so adjourned.
A majority of the members of the board constitutes a quorum for a meeting. The board may act officially by an affirmative vote of a majority of those present at the meeting at which the action is taken.
The board shall keep a written record of its proceedings, which shall be available for public inspection in the office of the board. The board shall record the aye and nay tally of the vote for each ordinance or resolution.
The board shall adopt a system of rules of procedure under which its meetings are to be held. The board may suspend the rules of procedure by unanimous vote of the members of the board who are present at the meeting. The board may not suspend the rules of procedure beyond the duration of the meeting at which the suspension of rules occurs.
The board may supervise its internal affairs as do local legislative and administrative bodies. [IC 8-22-3-9]
A member of the board may introduce a draft of a proposed ordinance at a meeting of the board. A person who introduces a draft shall provide at the time of introduction a written copy of the draft. The board shall assign to each draft a distinguishing number and the date when introduced.
Not more than seven (7) days after the introduction of a draft of an ordinance nor less than seven (7) days before the final passage of a draft of an ordinance, the board shall publish a notice that the proposed ordinance is pending final action by the board. The notice shall be published in each county within the jurisdiction of the board in accordance with IC 5-3-1. Notice of an ordinance establishing a budget must be in accordance with IC 6-1.1-17.
The board shall include in the notice reference to the subject matter of the proposed ordinance and the time and place a hearing will be had and shall indicate that the proposed ordinance is available for public inspection at the office of the board. The board may include in one (1) notice a reference to the subject matter of each draft that is pending and for which notice has not already been given.
An ordinance is not invalid because the reference to the subject matter of the draft was inadequate if it was sufficient to advise the public of the general subject matter of the proposed ordinance.
The board shall, not later than the date of notice, place five (5) copies of the proposed draft on file in the office of the board for public inspection.
At a meeting for which notice has been given as required by this section, the board may take final action on the proposed ordinance or may postpone final consideration of it to a designated meeting in the future without giving additional notice.
Before adopting an ordinance, the board must give an opportunity to persons present at the meeting to give testimony, evidence, or argument for or against the proposed ordinance in person or by counsel, under reasonable rules as to the number of persons who may be heard and time limits that the board adopts.
When an ordinance is adopted, the board shall also designate the effective date of the ordinance. If the board fails to designate the effective date of the ordinance in the record of the proceedings of the board, the ordinance takes effect on the fourteenth day after its passage.
When the board adopts an ordinance, the board shall have copies of it made available to the public.
The board may provide for the printing of the ordinances of the authority in pamphlet form or for bound volumes and may distribute them without charge, or may charge the cost of printing and distribution. [IC 8-22-3-10]
The board may do all acts necessary or reasonably incident to carrying out the purposes of IC 8-22-3, including the following:
1. As a municipal corporation, to sue and be sued in its own name.
2. To have all the powers and duties conferred by statute upon boards of aviation commissioners. The board supersedes all boards of aviation commissioners within the district. The board has exclusive jurisdiction within the district.
3. To protect all property owned or managed by the board.
4. To adopt an annual budget and levy taxes in accordance with IC 8-22-3.
A. The board may not levy taxes on property in excess of the following rate schedule, except as provided in IC 8-22-3-17 and IC 8-22-3-25:
Total Assessed Property Valuation Rate Per $100 Of Assessed Valuation $300 million or less $0.10 More than $300 million
but not more than $450 million$0.0833 More than $450 million
but not more than $600 million$0.0667 More than $600 million
but not more than $900 million$0.05 More than $900 million $0.0333 B. Clause A. does not apply to an authority that was established under IC 19-6-2 or IC 19-6-3 (before their repeal on April 1, 1980).
C. The board of an authority that was established under IC 19-6-3 (before its repeal on April 1, 1980) may levy taxes on property not in excess of six and sixty-seven hundredths cents ($0.0667) on each one hundred dollars ($100) of assessed valuation.
5. To incur indebtedness in the name of the authority.
6. To adopt administrative procedures, rules, and regulations.
7. To acquire property, real, personal or mixed, by deed, purchase, lease, condemnation, or otherwise and dispose of it for use or in connection with or for administrative purposes of the airport; to receive gifts, donations, bequests, and public trusts and to agree to conditions and terms accompanying them and to bind the authority to carry them out; to receive and administer federal or state aid; and to erect buildings or structures that may be needed.
8. To determine matters of policy regarding internal organization and operating procedures not specifically provided for otherwise.
9. To adopt a schedule of reasonable charges and to collect them from all users of facilities and services within the district.
10. To purchase supplies, materials, and equipment to carry out the duties and functions of the board, in accordance with procedures adopted by the board.
11. To employ personnel that are necessary to carry out the duties, functions, and powers of the board.
12. To establish an employee pension plan. The board may, upon due investigation, authorize and begin a fair and reasonable pension or retirement plan and program for personnel, the cost to be borne by either the authority or by the employee or by both, as the board determines. If the authority was established under IC 19-6-2 (before its repeal on April 1, 1980), the entire cost must be borne by the authority, and ordinances creating the plan or making changes in it must be approved by the mayor of the city. The plan may be administered and funded by a trust fund or by insurance purchased from an insurance company licensed to do business in Indiana or by a combination of them. The board may also include in the plan provisions for life insurance, disability insurance, or both.
13. To sell surplus real or personal property in accordance with law. If the board negotiates an agreement to sell trees situated in woods or forest areas owned by the board, the trees are considered to be personal property of the board for severance or sale.
14. To adopt and use a seal.
15. To acquire, establish, construct, improve, equip, maintain, control, lease, and regulate municipal airports, landing fields, and other air navigation facilities, either inside or outside the district; to acquire by lease (with or without the option to purchase) airports, landing fields, or navigation facilities, and any structures, equipment, or related improvements; and to erect, install, construct, and maintain at the airport or airports facilities for the servicing of aircraft and for the comfort and accommodation of air travelers and the public. The Indiana Department of Transportation must grant its approval before land may be purchased for the establishment of an airport or landing field and before an airport or landing field may be established.
16. To fix and determine exclusively the uses to which the airport lands may be put. All uses must be necessary or desirable to the airport or the aviation industry and must be compatible with the uses of the surrounding lands as far as practicable.
17. To elect a secretary from its membership, or to employ a secretary, an airport director, superintendents, managers, a treasurer, engineers, surveyors, attorneys, clerks, guards, mechanics, laborers, and all employees the board considers expedient, and to prescribe and assign their respective duties and authorities and to fix and regulate the compensation to be paid to the persons employed by it, in accordance with the authority's appropriations. All employees shall be selected irrespective of their political affiliations.
18. To make all rules and regulations, consistent with laws regarding air commerce, for the management and control of its airports, landing fields, air navigation facilities, and other property under its control.
19. To acquire by lease the use of an airport or landing field for aircraft pending the acquisition and improvement of an airport or landing field.
To manage and operate airports, landing fields, and other air navigation facilities acquired or maintained by an authority; to lease all or part of an airport, landing field, or any buildings or other structures, and to fix, charge, and collect rentals, tolls, fees, and charges to be paid for the use of the whole or a part of the airports, landing fields, or other air navigation facilities by aircraft landing there and for the servicing of the aircraft; to construct public recreational facilities that will not interfere with air operational facilities; to fix, charge, and collect fees for public admissions and privileges; and to make contracts for the operation and management of the airports, landing fields, and other air navigation facilities; and to provide for the use, management, and operation of the air navigation facilities through lessees, its own employees, or otherwise. Contracts or leases for the maintenance, operation, or use of the airport or any part of it may be made for a term not exceeding fifteen (15) years and may be extended for similar terms of years, except that any parcels of the land of the airport may be leased for any use connected with the operation and convenience of the airport for an initial term not exceeding forty (40) years and may be extended for a period not to exceed ten (10) years. If a person whose character, experience, and financial responsibility have been determined satisfactory by the board offers to erect a permanent structure that facilitates and is consistent with the operation, use, and purpose of the airport on land belonging to the airport, a lease may be entered into for a period not to exceed ninety-nine (99) years. However, the board must pass an ordinance to enter into such a lease. The board may not grant an exclusive right for the use of a landing area under its jurisdiction. However, this does not prevent the making of leases in accordance with other provisions of this chapter. All contracts, and leases, are subject to restrictions and conditions that the board prescribes. The authority may lease its property and facilities for any commercial or industrial use it considers necessary and proper, including the use of providing airport motel facilities. For the airport authority established by the city of Gary, the board may approve a lease, management agreement, or other contract:
A. with a person:
i. who is selected by the board using the procedures under IC 36-1-9.5; and
ii. whose character, experience, and financial responsibility have been determined satisfactory by the board; and
B. to use, plan, design, acquire, construct, reconstruct, improve, extend, expand, lease, operate, repair, manage, maintain, or finance all or any part of the airport and its landing fields, air navigation facilities, and other buildings and structures for a period not to exceed ninety-nine (99) years. However, the board must pass an ordinance to enter into such a lease, management agreement, or other contract. All contracts, leases, and management agreements are subject to restrictions and conditions that the board prescribes. The authority may lease its property and facilities for any commercial or industrial use it considers necessary and proper, including the use of providing airport motel facilities. A lease, management agreement, or other contract entered into under this section or any other provision of this chapter may be entered into without complying with IC 5-23.
21. To sell machinery, equipment, or material that is not required for aviation purposes. The proceeds shall be deposited with the treasurer of the authority.
22. To negotiate and execute contracts for sale or purchase, lease, personal services, materials, supplies, equipment, or any other transaction or business relative to an airport under the board's control and operation. However, whenever the board determines to sell part or all of aviation lands, buildings, or improvements owned by the authority, the sale must be in accordance with law.
23. To vacate all or parts of roads, highways, streets, or alleys, whether inside or outside the district, in the manner provided by statute.
24. To annex lands to itself if the lands are owned by the authority or are streets, roads, or other public ways.
25. To approve any state, county, city, or other highway, road, street or other public way, railroad, power line, or other right-of-way to be laid out or opened across an airport or in such proximity as to affect the safe operation of the airport.
26. To construct drainage and sanitary sewers with connections and outlets as are necessary for the proper drainage and maintenance of an airport or landing field acquired or maintained, including the necessary buildings and improvements and for the public use of them in the same manner that the authority may construct sewers and drains. However, with respect to the construction of drains and sanitary sewers beyond the boundaries of the airport or landing field, the board shall proceed in the same manner as private owners of property and may institute proceedings and negotiate with the departments, bodies, and officers of an eligible entity to secure the proper orders and approvals; and to order a public utility or public service corporation or other person to remove or to install in underground conduits wires, cables, and power lines passing through or over the airport or landing field or along the borders or within a reasonable distance that may be determined to be necessary for the safety of operations, upon payment to the utility or other person of due compensation for the expense of the removal or reinstallation. The board must consent before any franchise may be granted by state or local authorities for the construction of or maintenance of railway, telephone, telegraph, electric power, pipe, or conduit line upon, over, or through land under the control of the board or within a reasonable distance of land that is necessary for the safety of operation. The board must also consent before overhead electric power lines carrying a voltage of more than four thousand four hundred (4,400) volts and having poles, standards, or supports over thirty (30) feet in height within one-half (½) mile of a landing area acquired or maintained under this chapter may be installed.
27. To contract with any other state agency or instrumentality or any political subdivision for the rendition of services, the rental or use of equipment or facilities, or the joint purchase and use of equipment or facilities that are necessary for the operation, maintenance, or construction of an airport.
28. To provide air transportation in furtherance of the duties and responsibilities of the board.
29. To promote or encourage aviation-related trade or commerce at the airports that it operates.
30. To provide aviation services to public use airports within or outside Indiana either directly or through an affiliate entity established by the board. [IC 8-22-3-11]
For all contracts for improvements and purchases, other than those for professional services and those for the acquisition of land, easements, and rights-of-way, IC 5-22, IC 36-1-9.5, and IC 36-1-12 apply. [IC 8-22-3-12]
IC 8-22-3-16 authorizes the airport authority to issue general obligation bonds and IC 8-22-3-17 authorizes the board to levy a special tax to pay the principal and interest on such bonds.
IC 8-22-3-18.1 authorizes the board to issue revenue bonds to finance capital improvements, refund any bonds or pay any loan contract.
Temporary loans may be made by the board in anticipation of the collection of taxes of the authority actually levied and in course of collection for the fiscal year in which the loans are made. The loans must be authorized by ordinance and evidenced by warrants in the form provided by the authorizing ordinance. The warrants must state the total amount of the issue, the denomination of the warrant, the time and place payable, the rate of interest, the funds in anticipation of which they are issued and out of which they are payable, and a reference to the ordinance authorizing them and the date of its adoption. The ordinance authorizing temporary loans must appropriate and pledge a sufficient amount of the current revenue in anticipation of which they are issued and out of which they are payable. The warrants evidencing the temporary loans must be executed, sold, and delivered as are bonds of the authority.
The board may negotiate terms and borrow money from any source under a local contract, subject to the following requirements:
1. The loan contract must be approved by resolution of the board.
2. The loan contract must provide for the repayment of the loan in not more than forty (40) years.
3. The loan contract must state that the indebtedness is that of the authority, is payable solely from revenues of the authority that are derived from either airport operations or from revenue bonds, and may not be paid by a tax levied on property located within the district.
4. The loan contract must be submitted to the Indiana Department of Local Government Finance, which may approve, disapprove, or reduce the amount of the proposed loan contract. The Indiana Department of Local Government Finance must make a decision on the loan contract within thirty (30) days after it is submitted for review. The action taken by the Indiana Department of Local Government Finance on the proposed loan contract is final.
Any loan contract issued is issued for essential public and governmental purposes. A loan contract, the interest on it, the proceeds received by a holder from the sale of a loan contract to the extent of the holder's cost of acquisition, proceeds received upon redemption before maturity, proceeds received at maturity, and the receipt of the interest and proceeds are exempt from taxation as provided in IC 6-8-5.
After the board of an authority enters into a loan contract, the board may use funds received from state or federal grants to satisfy the repayment of part or all of the loan contract. [IC 8-22-3-19]
The board shall appoint a person to act as treasurer of the authority, who shall give bond in the sum and with conditions that the board prescribes and with surety that the board approves. The treasurer is appointed for a term of one (1) year unless sooner removed for cause, but may be appointed for additional terms of one (1) year. All money payable to the authority shall be paid to the treasurer, who shall deposit it under IC 5-13-6. Money so deposited may be invested in accordance with IC 5-13-9.
The treasurer shall keep an accurate account of all appropriations made and all taxes levied by the authority, of all money owing or due the authority, and of all money received and disbursed. He shall preserve all vouchers for payment and disbursements made, in accordance with the statutes relative to the preservation of public records. The treasurer shall issue all warrants for the payment of money from the funds of the authority, but a warrant may be issued for the payment of a claim only if the claim has been allowed in accordance with the procedure prescribed by the regulations of the board. All warrants must be countersigned by the president or vice president.
Payroll and similar warrants may be executed with facsimile signatures.
Whenever the treasurer is requested to issue a warrant, he may require evidence that the amount claimed is justly due and in conformity with law and for that purpose may summon before him any officer, agent or employee of the district, or other person, and examine him under similar oath or affirmation, which oath or affirmation the treasurer may administer. [IC 8-22-3-20]
The treasurer shall submit to the board annually, and more often if required by the board, a report of the accounts exhibiting the revenues, receipts, and disbursements and the sources from which the revenues and funds are derived and in what manner they have been disbursed. [IC 8-22-3-21]
The State Board of Accounts shall audit the records of the authority and shall prescribe or approve all accounting forms and records used by the authority.
In addition, the treasurer shall, if required by the board, submit his records of account as treasurer of the authority to a certified public accountant or firm of certified public accountants, as selected by the board, for audit. That person shall prepare and submit a certified account of the records of account to the board exhibiting the revenues, receipts, and disbursements and the sources from which the revenues, and funds are derived and in what manner they have been disbursed. [IC 8-22-3-22]
An authority shall file an annual financial report with the State Examiner, not later than 60 days after the close of each fiscal year. The report is to be filed electronically in the manner prescribed under IC 5-14-3.8-7. The Department of Local Government Finance may not approve an authority's budget or a supplemental appropriation until the report is filed for the preceding calendar year. [IC 5-11-1-4]
An authority shall file a personnel report, as required by IC 5-11-13, in the office of the State Examiner during the month of January of each year. The report must be filed electronically in the manner prescribed under IC 5-14-3.8-7. [5-11-13]
The Department of Local Government Finance may not approve an authority's budget or a supplemental appropriation until the report required by IC 5-11-13 is filed for the preceding calendar year. [IC 6-1.1-17-16.2]
The board shall annually prepare a budget for the purpose of operating and maintenance expenditures of the authority and shall calculate the tax levy necessary to provide funds for the operating expenditures necessary to carry out the powers, duties, and functions of the authority. The budget must be prepared and submitted:
1. before or at the same time;
2. in the same manner; and
3. with notice; as provided by the statutes relating to the preparation of budgets by eligible entities. The budget is subject to the same review by the county tax adjustment board and the Indiana Department of Local Government Finance as exists under the general statutes relating to budgets of eligible entities.
If the eligible entity that established the authority is a county, city, or town, the fiscal body of that entity may review and modify the authority's operating and maintenance budget and the tax levy to meet it, in the same manner as the budgets and tax levies of executive departments of that entity are reviewed and modified. This power includes the power to reduce any item of salary.
Whenever a tax levy is required to finance the budget of an authority that was established by a city or town, the fiscal body of the county may also review the budget and tax levy of the authority, unless the district:
1. lies wholly within, or coincides with, the boundaries of a city or town;
2. is not the recipient of funds from a county-wide tax levy made specifically for the operating and maintenance budget for that authority; and
3. was established by the fiscal body of the city or town, acting independently.
However, the budget and tax levy of the authority are subject to review or modification by the fiscal body of the city or town with which it shares territory, in the same manner as the budgets and tax levies of the executive departments of that city or town are reviewed or modified.
If an authority was established by another eligible entity or by two (2) or more eligible entities acting jointly, its operating and maintenance budget and the tax levy to meet it is subject to review and modification by the same body that reviews and modifies the budget of each of those entities in the same manner as the budgets and tax levies of those entities, including reduction of any item of salary. [IC 8-22-3-23]
The board may provide a cumulative building fund in compliance with IC 6-1.1-41 to provide for the acquisition of real property, and the construction, enlarging, improving, remodeling, repairing, or equipping of buildings, structures, runways, or other facilities for use in connection with the airport needed to carry out this chapter and to facilitate and support commercial intrastate air transportation.
The board may levy in compliance with IC 6-1.1-41 a tax not to exceed:
1. thirty-three hundredths of one cent ($0.0033) on each one hundred dollars ($100) of assessed value of taxable property within the district, if an eligible entity other than a city established the district or if the district was established jointly with an eligible entity that is not a city;
2. one and thirty-three hundredths cents ($0.0133) on each one hundred dollars ($100) of assessed value of taxable property within the district, if the authority was established under IC 19-6-3 (before its repeal on April 1, 1980); and
3. for any other district not described in subdivision 1. or 2., the following:
Total Assessed Property Valuation Rate Per $100 Of Assessed Valuation $300 million or less $0.0167 More than $300 million
but not more than $450 million$0.0133 More than $450 million
but not more than $600 million$0.01 More than $600 million
but not more than $900 million$0.0067 More than $900 million $0.0033
As the tax is collected it may be invested in negotiable United States bonds or other securities that the federal government has the direct obligation to pay. Any of the funds collected that are not invested in government obligations shall be deposited in accordance with IC 5-13-6 and shall be withdrawn in the same manner as money is regularly withdrawn from the general fund but without further or additional appropriation. The levy authorized by this section is in addition to the levies authorized by IC 8-22-3-11 and IC 8-22-3-23. [IC 8-22-3-25]The board shall act as a board of finance under IC 5-13. [IC 8-22-3-26]
OFFICERS' AND EMPLOYEES' BONDSThe board may require a bond from any of the officers or employees of the authority in an amount, upon terms and conditions, and with surety that the board designates. [IC 8-22-3-27]
PAYING EXPENSES PRIOR TO COLLECTION OF TAXESAll expenses incurred by the board that must be paid prior to the collection of taxes levied under this chapter shall be met and paid in the following manner. The board shall from time to time certify the items of expense to the controller of the city, clerk-treasurer of the town, or auditor of the county in which the district is located, directing him to pay the amounts, and the fiscal officer shall draw his warrant or warrants upon the treasurer of the city, town, or county, as applicable, which warrant or warrants shall be paid out of the general funds of the city, town, or county not already appropriated, without special appropriations being made by the fiscal body or approval by any other body.
In case there are no unappropriated general funds of the city, town, or county, the fiscal officer shall recommend to the fiscal body the temporary transfer, from other funds of the city, town, or county, of a sufficient amount to meet the items of expense or the making of a temporary loan for the purpose. The fiscal body affected shall immediately make the transfer of funds or authorize the temporary loans in the same manner that other transfers and temporary loans are made by the city, town, or county. The total amount to be advanced may not exceed fifty thousand dollars ($50,000) and the fund or funds of the city, town, county, or other entity from which the advancement is made shall be fully reimbursed and repaid by the authority out of the first proceeds of the special taxes levied under this chapter. No part of the funds advanced may be used in the acquisition of real property. [IC 8-22-3-30]
The authority, acting by and through its board under IC 8-21-8, may accept, receive, and receipt for federal, other public, or private monies for the acquisition, construction, enlargement, improvement, maintenance, equipment, or operation of airports, other air navigation facilities, and sites for them, and comply with federal laws made for the expenditure of federal monies upon airports and other air navigation facilities.
Subject to IC 8-21-8, the board has exclusive power to submit to the proper state and federal agencies applications for grants of funds for airport development and to make or execute representations, assurances and contracts, to enter into covenants and agreements with state or federal agency or agencies relative to the development of an airport, and to comply with all federal and state laws pertaining to the acquisition, development, operation, or administration of airports and properties by the authority. [IC 8-22-3-31]
- Public Transportation Corporations
This section is designed to summarize certain laws, regulations and uniform compliance guidelines relevant to public transportation corporations. Please refer to the Indiana Code and other related documents for a complete listing of laws and regulations governing public transportation corporations.
Audit and Supervision of Records by Board of Accounts - Alternative Record System
Authority of Indiana Department of Revenue
Cumulative Transportation Fund
Expansion of Services Outside Operational Boundaries
Operation, Maintenance and Use of System
A public transportation corporation is under the control of a board of directors, which shall exercise the executive and legislative powers of the corporation.
The board of directors of a public transportation corporation in a city consists of either five (5) or seven (7) directors, as determined by the city legislative body.
The board of directors of a public transportation corporation in a town consists of either five (5) or seven (7) directors, as determined by the town legislative body. All the directors shall be appointed by the legislative body.
The appointing authorities shall make appointments to the board of directors under IC 36-9-4-15 or 36-9-4-16 so that the number of directors belonging to either of the two (2) major political parties does not exceed the number belonging to the other by more than one (1). If the appointing authorities cannot agree on the manner in which this will be done, the municipal executive shall make the appointment that results in one (1) party having more directors than the other. [IC 36-9-4-14 through IC 36-9-4-17]
A director of a public transportation corporation is entitled to:
1. compensation of not more than one thousand two hundred dollars ($1,200) annually, as determined in the budget; and
2. reimbursement for any expenses incurred in the interest of the board of directors. [IC 36-9-4-20]
The board of directors of a public transportation corporation shall, by rule, provide for regular meetings to be held at designated intervals throughout the year.
The board shall convene in a special meeting whenever such a meeting is called by the chairman or by a majority of the directors. Notice of a special meeting must be given by publication in accordance with IC 5-3-1.
The board shall keep its meetings open to the public.
A majority of the board of directors of a public transportation corporation constitutes a quorum for a meeting.
The board may act officially by affirmative vote of a majority of those present at the meeting at which the action is taken.The board shall keep a written record of its proceedings available for public inspection in its office.
The record must include the aye and nay vote on the passage of each item of business.The board shall adopt rules of procedure under which its meetings are to be held. The board may suspend these rules by unanimous vote of the members present at any meeting, but it may not suspend them beyond the meeting at which the suspension occurs.
The board has the same power to supervise its internal affairs as other municipal administrative bodies. [IC 36-9-4-22 and 36-9-4-23]
A director of a public transportation corporation may introduce a proposed draft of an ordinance at a meeting of the board of directors. A director who introduces a proposed draft of an ordinance must provide, at the time of introduction, a written copy of the proposed draft. The board must place the date of introduction and a distinguishing number on each proposed draft of an ordinance.
The board must publish a notice that the proposed ordinance is pending final action by the board. The notice must be published in accordance with IC 5-3-1. However, notice of an ordinance establishing a budget must be given in accordance with the statutes governing budgets of the municipality served by the corporation.
The board must include in the notice reference to the subject matter of the proposed ordinance and the time and place a hearing on it will be held, and must indicate that the proposed draft of an ordinance is available for public inspection at the office of the board. The board may include in one (1) notice a reference to the subject matter of each draft of an ordinance that is pending and for which notice has not previously been given. The reference to the subject matter is adequate if it is sufficient to advise the public of the general subject matter of the proposed ordinance.
The board must, not later than the date of notice of the introduction of a proposed ordinance, place five (5) copies of the proposed draft on file in the office of the board for public inspection. [IC 36-9-4-24]
At a meeting for which notice has been given under IC 36-9-4-24, the board of directors of a public transportation corporation may take final action on the proposed ordinance or may postpone final consideration of it to a designated meeting in the future without giving additional notice. Before adopting an ordinance, the board must give an opportunity to any person present at the meeting to give testimony or evidence for or against the proposed ordinance, under the rules as to the number of persons who may be heard and the time limits adopted by the board.
Whenever the board adopts an ordinance, it shall designate the effective date of the ordinance at the same meeting. If the board fails to designate the effective date of the ordinance in the record of the proceedings of the board, the ordinance takes effect fourteen (14) days after its passage.
Whenever the board adopts an ordinance, it shall cause copies of the ordinance to be made available to the public. [IC 36-9-4-25]
The board of directors of a public transportation corporation shall appoint a qualified person to serve as controller. The controller is the chief fiscal officer of the corporation, and he must give bond in the sum and with the conditions prescribed by the board and with surety to the approval of the board.
All money payable to the public transportation corporation shall be paid to the controller, and he shall deposit it under IC 5-13-6. The controller shall deposit this money in the depositories and in the accounts that the board designates by ordinance.
The controller shall keep an accurate account of all appropriations made and all taxes levied by the public transportation corporation, all money owing or due to the corporation, and all money received and disbursed by the corporation, and he shall preserve all vouchers for payments and disbursements.
The controller shall issue all warrants for the payment of money from the funds of the public transportation corporation, but he may not issue a warrant for the payment of a claim until the claim has been allowed in accordance with the procedure prescribed by the rules of the board. All warrants must be countersigned by the chairman of the board.
If the controller is called upon to issue a warrant, he may require evidence that the amount claimed is justly due, and for that purpose he may summon before him any officer, agent, or employee of the public transportation corporation and examine him on oath or affirmation relating to the warrant. The controller may administer the oath or affirmation.
The board may authorize the controller to pay a per diem in advance to a public transportation employee or board member who will attend a training session or other special business meeting required as a duty of the public transportation employee or board member.
Each year, and more often if required by the board, the controller shall submit his records of account as controller for audit to the certified public accountant or firm of certified public accountants designated by the board. The certified public accountant or firm of certified public accountants shall submit to the board a certified report of the records of account, exhibiting the revenues, receipts, and disbursements, the sources from which the revenues and funds are derived, and the manner in which they have been disbursed. [IC 36-9-4-27]
OPERATION, MAINTENANCE AND USE OF SYSTEMUpon acquisition of the necessary property by a public transportation corporation, the board of directors of the corporation may:
1. operate and maintain the system;
2. lease the system to any operator; or
3. contract for the use of the system by any operator.
The board may also contract with any organization that has executive personnel with experience and skill applicable to the superintendence of the operation and maintenance of an urban mass transportation system. The contract must require the organization to furnish its services and the services of its personnel for the superintendence of the system.
The maximum term of a contract or lease executed under this section is twenty-five (25) years.
A contract or lease executed under this section must be confirmed by ordinance of the board. [IC 36-9-4-29]
EXPANSION OF SERVICES OUTSIDE OPERATIONAL BOUNDARIES
A public transportation corporation located in any county but Marion County may provide regularly scheduled passenger service to specifically designated locations outside the system's operational boundaries as described in IC 36-9-1-9 if all of the following conditions are met:
1. The legislative body of the municipality approves any expansion of the service outside the municipality's corporate boundaries.
2 The expanded service is reasonably required to do any of the following:
A. Enhance employment opportunities in the new service area or the existing service area.
B. Serve persons who are elderly, persons with a disability, or other persons who are in need of public transportation.
3. Except as provided in subsection (e), the expanded service does not extend beyond the boundary of the county in which the corporation is located.
Notwithstanding IC 36-9-4-39, a public transportation corporation may provide demand responsive service outside of the system's operational boundaries as described in IC 36-9-1-9 if the conditions listed above [IC 36-9-4-29.4(b)] are met.
The board may contract with a private operator for the operation of an expanded service under this
section.IC 36-9-4-29.4(b)(3) does not apply to a special purpose bus (as defined in IC 20-27-2-10) or a school bus (as defined in IC 20-27-2-8) that provides expanded service for a purpose permitted under IC 20-27-9. [IC 36-9-4-29.4]
The board of directors of a public transportation corporation may:
1. acquire by grant, purchase, gift, lease, or otherwise; and
2. hold, use, sell, lease, or dispose of; real and personal property, licenses, patents, rights, and interests necessary or convenient for the exercise of its powers.
The board of directors of a public transportation corporation may exercise the power of eminent domain for the condemnation of any interest in real or personal property for use within the taxing district of the corporation. Proceedings for the condemnation of property by the board are governed by IC 32-24-1 to the extent it is not in conflict with IC 36-9-4. The board may not institute such proceedings until it has adopted an ordinance generally describing the property to be acquired, declaring that the public interest and necessity require the acquisition by the corporation of the property involved, and declaring that the acquisition is necessary for the establishment, development, extension, or improvement of the system. The ordinance is conclusive evidence of the public necessity of the proposed acquisition and that the proposed acquisition is planned in a manner most compatible with the greatest public good and the least private injury.
The board of directors of a public transportation corporation may contract with any person upon the terms and conditions the board considers best for the corporation including the following:1. Contracting for self-insurance protection of its property or liability under IC 34-13-3.
2. Engaging in commissions or entering into agreements for the mutual insurance or sharing of risks for liability or property damage.
3. Agreeing to join with other municipal corporations for the mutual risk sharing of losses due to casualty or acts of God.
The board of directors of a public transportation corporation shall, by ordinance, make rules governing the use, operation, and maintenance of the urban mass transportation system. The board may determine all rates, routings, and hours and standards of service and may change them whenever the board considers a change advisable. However, the board's powers under this section are subject to regulation by the Department of State Revenue as provided by IC 36-9-4-58.The board of directors of a public transportation corporation may, in the name of the corporation, sue or be sued in court. Service of process shall be made by service upon the secretary of the board, and notice must be served upon the secretary in the manner and form required by IC 34-13-3.
The board of directors of a public transportation corporation may appoint or employ a general manager, accountants, attorneys, traffic engineers, drivers, clerks, secretaries, guards, laborers, and other employees, and may prescribe and define their duties, regulate their compensation, discharge them, and appoint or employ their successors. Employees shall be selected without regard to race, religion, or any personal affiliation. The board shall select the general manager on the basis of his fitness for the position, taking into account his executive ability and his knowledge of and experience in the field of mass public transportation.
The board shall bargain collectively and enter into written contracts with authorized labor organizations representing employees other than executive, administrative, or professional personnel. These contracts may provide for the binding arbitration of disputes, wages, salaries, hours, working conditions, health and welfare, insurance, vacations, holidays, sick leave, seniority, pensions, retirement, and other benefits.
The board of directors of a public transportation corporation may make traffic surveys, population surveys, and any other surveys and studies it considers useful in the operation of urban mass transportation systems. [IC 36-9-4-30 through IC 36-9-4-38]
A municipality or a public transportation corporation that expends money for the establishment or maintenance of an urban mass transportation system may acquire the money for these expenditures:
1. by issuing bonds under IC 36-9-4-43 or 36-9-4-44;
2. by borrowing money made available for such purposes by any source;
3. by accepting grants or contributions made available for such purposes by any source;
4. in the case of a municipality, by appropriation from the general fund of the municipality, or from a special fund that the municipal legislative body includes in the municipality's budget; or
5. in the case of a public transportation corporation, by levying a tax under IC 36-9-4-49 or, for a transportation corporation located in Marion County, by recommending an election to use revenue from the county option income taxes.
Money may be acquired for the purpose of exercising any of the powers granted by or incidental to IC 36-9-4, including:
1. studies under IC 36-9-4-4, 36-9-4-9, or 36-9-4-11;
2. grants in aid;
3. the purchase of buses or real property by a municipality for lease to an urban mass transportation system, including the payment of any amount outstanding under a mortgage, contract of sale, or other security device that may attach to the buses or real property;
4. the acquisition by a public transportation corporation of property of an urban mass transportation system, including the payment of any amount outstanding under a mortgage, contract of sale, or other security device that may attach to the property;
5. the operation of an urban mass transportation system by a public transportation corporation, including the acquisition of additional property for such a system; and
6. the retirement of bonds issued and outstanding. [IC 36-9-4-42]
If the legislative body of a municipality decides to issue bonds to obtain all or part of the money to be expended for the establishment and maintenance of an urban mass transportation system under this chapter, the legislative body may issue the bonds of the municipality in the same manner as bonds for the general purposes of the municipality. However, the bonds may be sold to the federal government at private sale and without a public offering. [IC 36-9-4-43]
If the board of directors of a public transportation corporation decides to issue bonds to obtain all or part of the money to be expended for the establishment and maintenance of an urban mass transportation system under this chapter, the board shall adopt an ordinance directing the issuance of the bonds. The board shall certify a copy of the ordinance to the controller of the corporation, who shall then prepare the bonds.
The bonds must be executed by the chairman of the board and attested by the controller of the corporation.
The controller is responsible for the sale of the bonds.
Except as otherwise provided in this section, the bonds shall be issued in the same manner as bonds for the general purposes of the municipality served by the public transportation corporation. However, the bonds may be sold to the federal government at private sale and without a public offering.
In addition to the general power to issue bonds for the establishment and maintenance of a system, the board may issue bonds specifically:
1. for the payment of any judgment against the corporation; and
2. to establish or maintain a program of self-insurance or mutual insurance. [IC 36-9-4-44]
Bonds issued under IC 36-9-4:
1. shall be issued in the denomination;
2. are payable over a period not to exceed thirty (30) years from the date of the bonds; and
3. mature; as determined by the ordinance authorizing the bond issue.
All bonds issued under this chapter, the interest on them, and the income from them are exempt from taxation to the extent provided by IC 6-8-5-1.
The provisions of IC 6-1.1-20 relating to:
1. filing petitions requesting the issuance of bonds and giving notice of those petitions;
2. giving notice of a hearing on the appropriation of the proceeds of the bonds;
3. the right of taxpayers to appear and be heard on the proposed appropriation;
4. the approval of the appropriation by the department of local government finance; and
5. the right of:
A. taxpayers and voters to remonstrate against the issuance of bonds in the case of a proposed bond issue described by IC 6-1.1-20-3.1(a); or
B. voters to vote on the issuance of bonds in the case of a proposed bond issue described by IC 6-1.1-20-3.5(a); apply to the issuance of bonds under this chapter.
A suit to question the validity of bonds issued under this chapter or to prevent their issue and sale may not be instituted after the date set for the sale of the bonds, and the bonds are incontestable after that date. [IC 36-9-4-45]
The board of directors of a public transportation corporation that issues bonds under this chapter shall levy a special tax each year upon all the property within the taxing district of the corporation. The tax shall be levied in such a manner as to meet and pay the principal of the bonds as they mature, together with all accruing interest.
The county treasurer shall collect the tax in the same manner as other taxes are collected. As the treasurer collects the tax, he shall remit it to the controller of the public transportation corporation.
In determining the amount of the levy, the board of directors shall consider any surplus of accumulated revenue derived from the operation of the urban mass transportation system, above the sum considered necessary to be applied upon or reserved for the payment of the operating and capital expenditures of the system, including expenditures for the replacement of and additions to the property of the system and reserves established for the depreciation of the property of the system. If the board finds that this surplus is sufficient, it may apply all or part of the surplus to the payment of the principal of the bonds, together with the interest on them. [IC 36-9-4-46]
The board of directors of a public transportation corporation may:
1. borrow money in anticipation of receipt of the proceeds of taxes that have been levied by the board and have not yet been collected; and
2. evidence this borrowing by issuing warrants of the corporation.
The money that is borrowed may be used by the corporation for payment of principal and interest on its bonds or for payment of current operating expenses.
The warrants:
1. bear the date or dates;
2. mature at the time or times on or before December 31 following the year in which the taxes in anticipation of which the warrants are issued are due and payable;
3. bear interest at the rate or rates and are payable at the time or times;
4. may be in the denominations;
5. may be in the forms, either registered or payable to bearer;
6. are payable at the place or places, either inside or outside Indiana;
7. are payable in the medium of payment;
8. are subject to redemption upon the terms, including a price not exceeding par and accrued interest; and
9. may be executed by the officers of the corporation in the manner; provided by resolution of the board of directors. The resolution may also authorize the board to pay from the proceeds of the warrants all costs incurred in connection with the issuance of the warrants.
The warrants may be authorized and issued at any time after the board of directors levies the tax or taxes in anticipation of which the warrants are issued.
The warrants may be sold for not less than par value after notice inviting bids has been published in accordance with IC 5-3-1. The board of directors may also publish the notice inviting bids in other newspapers or financial journals.
After the warrants are sold, they may be delivered and paid for at one (1) time or in installments.
The aggregate principal amount of warrants issued in anticipation of and payable from the same tax levy or levies may not exceed eighty percent (80%) of the levy or levies, as the amount of the levy or levies is certified by the Indiana Department of Local Government Finance, or as is determined by multiplying the rate of tax as finally approved by the total assessed valuation of taxable property within the taxing district of the public transportation corporation as most recently certified by the county auditor.
For purposes of IC 36-9-4-47, taxes for any year are considered to be levied when the board of directors adopts the ordinance prescribing the tax levies for the year. However, warrants may not be delivered and paid for before final approval of a tax levy or levies by the County Board of Tax Adjustment (or, if appealed, by the Indiana Department of Local Government Finance) unless the issuance of the warrants has been approved by the Indiana Department of Local Government Finance.The warrants and the interest on them are not subject to IC 36-9-4-43 and 36-9-4-44 and are payable solely from the proceeds of the tax levy or levies in anticipation of which the warrants were issued. The authorizing resolution must pledge a sufficient amount of the proceeds of the tax levy or levies to the payment of the warrants and the interest.
All actions of the board of directors under this section may be taken by resolution, which need not be published or posted. The resolution takes effect immediately upon its adoption by a majority of the members of the board of directors.
An action to contest the validity of any tax anticipation warrants may not be brought later than ten
(10) days after the sale date. [IC 36-9-4-47]
CUMULATIVE TRANSPORTATION FUNDA cumulative transportation fund to provide money for the acquisition of buses and for the planning, establishment, and maintenance of routes and schedules to assist in implementing IC 36-9-4 may be established under IC 6-1.1-41 by:
1. the legislative body of a municipality that:
A. is making grants to an urban mass transportation system; or
B. has purchased buses for operation under lease by an urban mass transportation system; or
2. the board of directors of a public transportation corporation.
In addition to other notices required under IC 6-1.1-41, notices of hearings under IC 6-1.1-41 must be given to the following:
1. the municipal executive, for a tax levy by a municipality; and
2. the chairman of the board of directors, for a tax levy by a public transportation corporation.
A tax levy to finance the cumulative transportation fund may be levied in compliance with IC 6-1.1-41. The tax levied under this section may not exceed six and sixty-seven hundredths cents ($0.0667) on each one hundred dollars ($100) of taxable property within the corporation boundaries of the municipality or the taxing district of the public transportation corporation, as the case may be. [IC 36-9-4-48]
For each year in which it is anticipated that the total amount available to a public transportation corporation will be insufficient to defray the expenses incurred by the corporation, the board of directors of the corporation shall levy a special tax upon all the property within the taxing district of the corporation at the rate required to defray such expenses. The tax must be based upon the budget formulated and filed by the board under IC 36-9-4.
The county treasurer shall collect the tax levied under this section in the same manner as other taxes are collected. As the treasurer collects the tax, he shall remit it to the controller of the public transportation corporation. [IC 36-9-4-49]The board of directors of a public transportation corporation shall prepare an annual budget for the expenditures of the corporation.
For instances in which a municipality, having operated an urban mass transportation system under a department of municipal government, establishes a public transportation corporation under IC 36-4-9-10 to maintain that system, the annual operating and maintenance budget for the corporation shall be subject to review and modification by the legislative body of the municipality.
A public transportation corporation may not impose a property tax levy on property that it has not taxed before January 1, 1982, and that lies outside the corporate boundaries of the municipality without the approval of the fiscal body or county council of the county in which the municipality is located.
The budget and any tax levies prepared by the board shall be prepared and submitted at the same time, in the same manner, and with the same notice as is prescribed by IC 6-1.1-17 for the annual budget of the municipality. The County Tax Adjustment Board and the Indiana Department of Local Government Finance may review the budget and tax levies in the same manner by which they review budgets and tax levies of the municipality. [IC 36-9-4-51]
AUDIT AND SUPERVISION OF RECORDS BY BOARD OF ACCOUNTS - ALTERNATIVE RECORD SYSTEMThe books, accounts, records, and transactions of a public transportation corporation are subject to examination, audit, and supervision by the State Board of Accounts to the same extent as the books, accounts, records, and transactions of other municipal corporations and their officers and departments. However, in lieu of the system of accounts prescribed by the State Board of Accounts, a public transportation corporation may maintain its books, accounts, records, and transactions according to the financial accounting and reporting elements system, known as “Project Fare,” that is established by the federal Urban Mass Transportation Administration. [IC 36-9-4-53]
The board of directors of a public transportation corporation may, by resolution, establish an improvement reserve fund for the purpose of accumulating money over two (2) or more fiscal years for the following:
1. The purchase of specified real property.
2. The purchase of specified major equipment, including buses.
3. The making of improvements to real property owned by the public transportation corporation.
Transfers that are placed in an improvement reserve fund established under this section must be included in the annual budget of the public transportation corporation.
The board of directors of a public transportation corporation may make an expenditure of money from an improvement reserve fund only after:
1. holding a public meeting in accordance with IC 36-9-4-22;
2. the adoption by the board of a resolution under IC 36-9-4-57(d); and
3. approval by the Indiana Department of Local Government Finance.
A resolution for expenditure from an improvement reserve fund established under this section must include the following:
1. The specific amount of the expenditure.
2. The specific use of the expenditure.
3. A finding by the board of directors that the proposed use of funds complied with the restrictions under IC 36-9-4-57(a).
The money in the improvement reserve fund may not be considered in determining the corporation's property tax levy under IC 36-9-4 or IC 6-1.1.
The money in the improvement reserve fund at the end of the fiscal year does not revert to the general fund. [IC 36-9-4-57]
AUTHORITY OF INDIANA DEPARTMENT OF REVENUEAn urban mass transportation system operating under IC 36-9-4 is considered a common carrier not operating under a franchise or contract granted by a municipality and not regulated by ordinance, and is subject to the authority of the Indiana Department of Revenue under IC 8-2.1 to the same extent as any other common carrier. However, in determining the reasonableness of the fares and charges of such a system, the Indiana Department of Revenue shall consider, among other factors, the policy to foster and assure the development and maintenance of urban mass transportation systems, and it is not necessary that the operating revenues of the system be sufficient to cover the cost to the system of providing adequate service. [IC 36-9-4-58]
- Regional Planning Commissions
This section is designed to summarize certain laws, regulations and uniform compliance guidelines relevant to regional planning commissions. Please refer to the Indiana Code and other related documents for a complete listing of laws and regulations governing regional planning commissions.
Agreements With Other States - Contracts Among Subregions
Appointment and Duties of Executive Director
Change in Participation of County From One Commission to Another
Election of Officers and Meetings
Preventing Implementation of Program by Petition
IC 36-7-7-1 states:
“This chapter applies to any area consisting of two (2) or more counties (referred to as 'region' in this chapter).”
The legislative bodies of all the counties in a region may, by concurrent resolutions, request the establishment of a regional planning commission (referred to as a “commission”). Official copies of the resolutions must be forwarded to the Governor, who shall then appoint himself or a member of his staff to immediately notify the other members of the commission and to act as temporary chairman for the election of officers. The commission shall, by resolution, designate a name for itself that reflects the commission's role and function and that may include the words “Regional Planning Commission.”
A county participating in a commission, established after July 1, 1978, is not subject to the tax imposed under IC 36-7-7-12, unless all the concurrent resolutions establishing the commission accept the application of the tax. [IC 36-7-7-2]
CHANGE IN PARTICIPATION OF COUNTY FROM ONE COMMISSION TO ANOTHERA county may request a change in its participation from one commission to another, or request to join a commission if it is not participating, under IC 36-7-7-3(b).
The legislative body of the county must, by resolution, request the inclusion of the county in the commission. The county auditor shall transmit a copy of the resolution to the Governor, the chairman of the commission, and, if applicable, the chairman of the commission that the county is requesting to leave.
The commission to be joined may consider a request under IC 36-7-7-3(b). It may, by a majority vote of all its members, adopt a resolution including the requesting county in the commission.
Whenever a resolution is adopted under IC 36-7-7-3(c), the chairman of the commission shall call a meeting to organize the enlarged commission. He shall call to this meeting all members of the commission plus:
1. if the new county is changing its participation from one (1) commission to another, the persons from that county who served on the commission that the county is leaving; or
2. if the new county has not been participating, a representative of the executive of that county. [IC 36-7-7-3]
The following members of the commission shall be appointed from each county in the region:
1. A representative of the county executive, who may be either a member of the executive or a person appointed by it.
2. A representative of the county fiscal body, who must be a member of the fiscal body.
The following members of the commission shall be appointed from each county in the region having a population of more than fifty thousand (50,000):
1. The county surveyor or a person appointed by the surveyor.
2. Two (2) persons appointed by the executive of each municipality having a population of more than fifty thousand (50,000).
3. One (1) person appointed by the executive of each of the seven (7) largest municipalities having a population of less than fifty thousand (50,000). If there are fewer than seven (7) municipalities, enough additional persons appointed by the county executive to bring the total appointed under IC 36-7-7-4(b) to seven (7).
The following members of the commission shall be appointed from each county in the region having a population of less than fifty thousand (50,000):
1. One (1) person appointed by the executive of each of the five (5) largest municipalities, or of each municipality if there are fewer than five (5).
2. If there are fewer than five (5) municipalities, enough additional persons appointed by the county executive to bring the total appointed under IC 36-7-7-4(c) to five (5).
One (1) voting member of the commission shall be appointed by the Governor.
At least two-thirds (2/3) of the commission members must be elected officials. All persons appointed to the commission must be:
1. knowledgeable in matters of physical, social, or economic development of the region; and
2. residents of the municipality, county, or region that they represent.
A member of the commission may also serve as a member of a plan commission in the region.
Members of the commission shall serve without salary but may be reimbursed for expenses incurred in the performance of their duties.
The respective appointing authorities shall certify their appointments, and the certification shall be retained as a part of the records of the commission.
If a vacancy occurs by resignation or otherwise, the respective appointing authority shall appoint a member for the unexpired term. Members shall be certified annually, and their terms expire on December 31 of each year. [IC 36-7-7-4]
ELECTION OF OFFICERS AND MEETINGSAt its first regular meeting in each year the commission shall elect from its members a chairman, vice-chairman, secretary, and a treasurer, not more than two (2) of whom may be from the same county. If the region is divided into subregions under IC 36-7-7-10, there must be at least one (1) officer from each subregion. The vice-chairman may act as chairman during the absence or disability of the chairman.
The commission shall fix the time and place for holding regular meetings, but it shall meet at least quarterly and at such other times as may be established by the commission or the executive board. Special meetings of the commission may be called by the chairman or by five (5) members of the commission upon written request to the secretary. The secretary shall send to all the members at least forty-eight (48) hours in advance of a special meeting a written notice fixing the time and place of the meeting. Written notice of a special meeting is not required if the time of the special meeting has been fixed in a regular meeting, or if all the members are present at the special meeting. Notice of any meeting may be waived by a member by a written waiver filed with the secretary.
The commission shall adopt rules for the transaction of business and shall keep a record of its resolutions, transactions, findings, and determinations, which is a public record.
A majority of members constitutes a quorum. An action of the commission is official, however, only if it is authorized by a majority of the commission at a regular or properly called special meeting with at least one (1) member from each county in the region present. [IC 36-7-7-5]
The commission shall elect from among its members an executive board consisting of:
1. the four (4) officers of the commission;
2. one (1) member of the commission from each county in the region;
3. one (1) additional member of the commission from each county in the region having a population of more than fifty thousand (50,000); and
4. the nonvoting member of the commission appointed by the Governor.
All members shall be elected by a vote of the full membership of the commission.
If a vacancy occurs in the executive board a successor shall be elected from among the members in the same manner as the member whose position has been vacated.
The executive board shall conduct the business of the commission, except for:
1. the adoption and amendment of bylaws, rules, and procedures for the operation of the commission;
2. the election of officers and members of the executive board as provided in IC 36-7-7; and
3. the adoption of the annual appropriation budget after review by the executive board.
The executive board shall meet regularly at least once each month, unless otherwise determined by its members. The executive board shall notify the full membership of the commission of all its meetings with copies of its preliminary or final agendas and shall report all its actions and determinations to the full membership of the commission.
A majority of members constitutes a quorum. An action of the executive board is official, however, only if it is authorized by a majority of the board at a regular or properly called special meeting. Any action of the executive board shall be reviewed at the next regular meeting of the commission following the executive board's action, and upon the written request of a member of the commission, the action shall be brought to a vote of the full commission. [IC 36-7-7-6]The commission shall institute and maintain a comprehensive policy planning and programming and coordinative management process for the region. It shall coordinate its activities with all units in the region and shall coordinate the planning programs of all units and the state. Except when a commission exercises powers under IC 36-7-7-7(j), the commission shall act in an advisory capacity only.
The commission may provide technical assistance to any unit in the region that requests it. This technical assistance includes the provision of skills and knowledge for planning, developing, administering, improving, and securing:
1. public and private grants-in-aid;
2. cooperative arrangements between governments; and
3. the performance of governmental powers and duties.
The commission may divide its jurisdiction into subregions under IC 36-7-7-10 for purposes appropriate to the study, analysis, or coordination of specific problems or concerns. The commission may conduct all necessary studies for the accomplishment of its duties. It may publicize and advertise its purposes, objectives, and findings and may distribute reports on them. It may provide recommendations when requested to the participating units and to other public and private agencies in matters relative to its functions and objectives and may act when requested as a coordinating agency for programs and activities of such agencies as they relate to its objectives. The commission may not implement, enter into an agreement for, or propose a program that includes interstate wastewater management or disposal.
The commission may adopt by resolution any regional comprehensive or functional plan, program, or policy as its official recommendation for the development of the region, subject to the power of a county to exempt itself under IC 36-7-7-9. The commission shall make an annual report of its activities to the legislative bodies of the counties and municipalities in the region.
The commission may receive grants from federal, state, or local governmental entities or from individuals or foundations, and may enter into agreements or contracts regarding the acceptance or use of those grants and appropriations for the purpose of carrying out any of the activities of the commission. A county or municipality may, from time to time upon the request of the commission, assign or detail to the commission any employees to make special surveys or studies requested by the commission.
For the sole purpose of providing adequate public services, the commission may acquire by grant, gift, purchase, lease, devise, or otherwise and hold, use, improve, maintain, operate, own, manage, or lease (as lessor or lessee) such real or personal property as the commission considers necessary for that purpose. The commission may apply for, receive, and expend grants, loans, or any other form of financial assistance available under any federal grant program.
The commission may enter into coordinative arrangements with any adjacent county or municipality in Indiana or an adjoining state, or with an overlapping multicounty or interstate planning or development agency, state agency, or federal agency, as are appropriate to the achievement of its objectives or to address a common issue. However, the commission may not delegate any of its powers or duties.
The commission may appoint advisory committees to assist in the achievement of its objectives. Members of advisory committees are not entitled to compensation for their services but may be reimbursed for expenses incurred in the performance of their duties.
The commission shall act at the designated review agency and as the clearinghouse as described in federal Office of Management and Budget Circular A-95.
The commission may provide administrative, management, or technical services to a unit that requests the services. The unit and the commission may enter into a contract concerning the commission's provision of administrative, management, or technical services and the cost to the unit for the services. [IC 36-7-7-7]
AGREEMENTS WITH OTHER STATES - CONTRACTS AMONG SUBREGIONSCounties in the region may enter into agreements with other states, but these agreements do not affect other counties, subregions, or the region. One subregion may also contract with other subregions for services or programs. [IC 36-7-7-8]
PREVENTING IMPLEMENTATION OF PROGRAM BY PETITIONWhenever the commission receives a petition signed by a majority of the commission members representing a county affected by a particular program, objecting to the establishment of the program within that county, the commission may not implement the program in that county. [IC 36-7-7-9]
A commission may organize into not more than two (2) subregions and provide for the organization of two (2) subregional planning committees, and for meetings and rules of procedure of those committees. These rules of procedure shall be adopted as a part of the rules and bylaws of the commission.
The actions of each subregional committee shall be referred to the other for review. The executive director and staff of the commission shall serve both subregional committees. Each subregional committee shall consider problems that do not directly affect the other subregion. Each subregional committee may hold meetings and elect a chairman and secretary from among its own members. [IC 36-7-7-10]
APPOINTMENT AND DUTIES OF EXECUTIVE DIRECTORThe commission shall appoint an executive director who shall serve at the pleasure of the commission as reviewed and recommended by the executive board. The executive director must be qualified by training and experience in the management of public agencies and knowledgeable in planning.
The executive director is the chief administrative officer and regular technical advisor of the commission. Subject to supervision by the commission, the executive director:
1. shall execute the commission functions;
2. shall appoint and remove the staff of the commission;
3. shall submit to the commission annually, or more often if required, a status report on the operation of the agency;
4. may, with the approval of the executive board, execute contracts, leases, or agreements on behalf of the commission with other persons;
5. is entitled, upon his written request, to be given access by all governmental agencies to all studies, reports, surveys, records, and other information and material in their possession that are required by him for the accomplishment of the activities and objectives of the commission;
6. shall propose annually a budget for the operation of the commission and administer the budget as approved by the commission;
7. shall keep the records and care for and preserve all papers and documents of the commission; and
8. shall perform other duties and may exercise other powers that the commission or the executive board delegates to him. [IC 36-7-7-11]
The commission shall prepare and adopt an annual appropriation budget for its operation, which shall be apportioned to each participating county on a pro rata per capita basis. After adoption, any amount that does not exceed an amount for each participating county equal to thirty cents ($.30) per capita shall be certified to the respective county auditor who shall advertise the amount and establish the rate in the same manner as other county budgets. Any amount of the adopted budget that exceeds an amount equal to thirty cents ($.30) per capita for each participating county is subject to review by the county fiscal body in the usual manner of budget review. The tax so levied and certified shall be estimated and entered upon the tax duplicates by the county auditor and shall be collected and enforced by the county treasurer in the same manner as other county taxes are estimated, entered, collected, and enforced. The tax, as collected by the county treasurer, shall be transferred to the commission.
In fixing and determining the amount of the necessary levy for the purpose provided in this section, the commission shall take into consideration the amount of revenue, if any, to be derived from the federal grants, contractual services, and miscellaneous revenues above the amount of those revenues considered necessary to be applied upon or reserved upon the operation, maintenance, and administrative expenses for working capital throughout the year.
After approval no sums may be expended except as budgeted unless the commission authorizes their expenditure. Before the expenditure of sums appropriated as provided in this section, a claim must be filed and processed as other claims for allowance or disallowance, for payment as provided by law.
Any two (2) of the following officers may allow claims:
1. Chairman.
2. Vice-Chairman.
3. Secretary.
4. Treasurer.
The treasurer of the commission may receive, disburse, and otherwise handle funds of the commission subject to applicable statutes and procedures established by the commission.
The commission shall act as a board of finance under the statutes relating to the deposit of public funds by political subdivisions.
Any appropriated money remaining unexpended or unencumbered at the end of the year becomes part of a nonreverting cumulative fund to be held in the name of the commission. Unbudgeted expenditures from this fund may be authorized by vote of the commission and upon other approval as required by statute. The commission is responsible for the safekeeping and deposit of such sums, and the State Board of Accounts shall prescribe the methods and forms for keeping the accounts, records, and books to be used by the commission. The books, records, and accounts of the commission shall be periodically audited by the State Board of Accounts, and these audits shall be paid for as provided by statute. [IC 36-7-7-12]An economic development district is a group of adjacent counties that:
1. contains at least two (2) redevelopment counties;
2. includes an economic development growth center; and
3. has been officially designated as an economic development district by the federal government under title 42, U.S.C. section 3171, on the recommendation of the state.
Counties may make payments to officially designated economic development districts. The board of directors of the economic development district shall determine the amount of the payments, which may be based on the assessed valuation or the population of each county, and the method of making the payments, subject to appropriations by the fiscal bodies of the counties comprising the economic development district.
The economic development district may receive and expend all sums appropriated or granted to it for purposes and activities authorized by law, and shall deposit these sums in its own name and follow all accounting, bonding, and auditing procedures required by law.
The economic development district is responsible for the administration, safekeeping, and deposit of any monies appropriated or granted to it, and may delegate all or part of that responsibility to a designated financial officer.
The economic development district may receive grants from federal, state, or local governments for the purpose of carrying out any of the planning and development activities of the district.
Any sums appropriated to an economic development district that remain uncommitted at the end of the budget year revert on a pro rata basis to the general funds of the counties comprising the district. [IC 36-7-7-13]
A commission shall file an annual financial report with the State Examiner, not later than 60 days after the close of each fiscal year. The report is to be filed electronically in the manner prescribed under IC 5-14-3.8-7. [IC 5-11-1-4]
A district shall file a personnel report, as required by IC 5-11-13, in the office of the State Examiner during the month of January of each year. The report must be filed electronically in the manner prescribed under IC 5-14-3.8-7. [5-11-13]
- Soil and Water Conservation Districts
This section is designed to summarize certain laws, regulations and uniform compliance guidelines relevant to soil and water conservation districts. Please refer to the Indiana Code and other related documents for a complete listing of laws and regulations governing soil and water conservation districts.
Appointment of Associate Supervisors
Authority for County to Appropriate Money to District
Board of Supervisors
Composition and Qualificiations
Districts
Duties of (State) Soil Conservation Board
Regulations and Guidelines of State, Federal and Local Agencies
Restrictions on Powers and Duties of Districts
- Department = Department of Agriculture [IC 15-11-2]
- Division = Division of Soil Conservation [IC 15-11-4]
- Board = State Soil Conservation Board [IC 14-32-2]
- District = Soil and Water Conservation District [IC 14-8-2-72(2)]
- Supervisor = one (1) of the members of the governing body of a soil and water conservation district [IC 14-8-2-271]
It is the policy of the general assembly to provide for the proper management of soil and water resources, the control and prevention of soil erosion, the prevention of flood water and sediment damage, the prevention of water quality impairment, and the conservation development, use, and disposal of water in the watersheds of Indiana to accomplish the following:
1. Conserve the natural resources, including wildlife.
2. Control floods.
3. Prevent impairment of dams and reservoirs.
4. Assist in maintaining the navigability of rivers and harbors.
5. Protect the water quality of lakes and streams.
6. Protect the tax base.
7. Protect public land.
8. Protect and promote the health, safety, and general welfare of the people of Indiana.
9. Protect a high quality water resource.
10. Protect and improve soil quality. [IC 14-32-1-2]
DUTIES OF (STATE) SOIL CONSERVATION BOARDAmong other duties, the board shall:
- Offer appropriate assistance to the supervisors of soil and water conservation districts to carry out district powers and programs.
- Keep the supervisors of districts informed of the activities and experience of all other districts and facilitate cooperation and an interchange of advice and experience among districts.
- Coordinate the programs of the districts as far as this may be done by advice and consultation.
- Disseminate information throughout Indiana concerning the activities and programs of the districts and encourage the formation of districts in areas where organization is desirable.
- Adopt rules under IC 4-22-2 to implement this article. [IC 14-32-2-12]
BOARD OF SUPERVISORS - COMPOSITION AND QUALIFICATIONS
The governing body of a district consists of five (5) supervisors as follows:
1. Two (2) who are appointed.
2. Three (3) who are elected.
To hold the position of elected supervisor, an individual:
1. must be an occupier of a tract of land that is located within the district;
2. must maintain the individual's permanent residence within the district; and
3. must be qualified by training and experience to perform the duties that this article imposes on supervisors.
To hold the position of appointed supervisor, an individual:
1. must be of voting age;
2. must maintain the individual's permanent residence within the district; and
3. must be qualified by training and experience to perform the duties that this article imposes on supervisors. [IC 14-32-4-1]
BOARD OF SUPERVISORS - ANNUAL MEETING
During the first quarter of each calendar year, each district shall hold an annual meeting of all land occupiers in the district. The meeting shall be held on a date designated by the supervisors. The supervisors shall give due notice of the time and place of the meeting.
At the meeting:
1. the supervisors shall make a full and an accurate report of the activities and financial affairs of the district since the previous annual meeting; and
2. an election shall be conducted by the land occupiers present to elect one (1) supervisor to a three (3) year term of office beginning on the date of the meeting.
The supervisors shall provide a copy of the annual report presented at the meeting to the board and, upon request, to:
1. other cooperating agencies;
2. residents of the district; and
3. any other individual or entity that requests a copy of the annual report. [IC 14-32-4-6]
APPOINTED SUPERVISORS - TERM OF OFFICE AND SELECTIONThe term of an appointed supervisor is three (3) years.
Before the term of an appointed supervisor expires, the supervisor's position shall be filled as follows:
1. Not later than November 1, the district supervisors shall recommend to the board in writing one (1) or more individuals qualified to fill the position.
2. At the first board meeting held after the board receives a recommendation under subdivision (1), the board shall act upon the recommendation.
3. The board shall notify the supervisors of the appointment made by the board. [IC 14-32-4-10]
APPOINTMENT OF ASSOCIATE SUPERVISORSThe board may appoint associate supervisors to assist in performing duties in each district. Associate supervisors are nonvoting members of the board and may not hold officer positions on the board. Associate supervisors may be reimbursed for approved expenses but are not entitled to per diem. [IC 14- 32-4-10.5]
The supervisors shall designate a chairman and may change the designation. [IC 14-32-4-14]
A majority of the supervisors constitutes a quorum and the concurrence of a majority of the supervisors is required for the determination of any matter. [IC 14-32-4-16]
BOARD OF SUPERVISORS - COMPENSATIONA supervisor may be paid a salary per diem for any part of a day that the supervisor is engaged in the official business of the district in any amount not to exceed the salary per diem that may be paid by the state under IC 4-10-11-2.1(b).
A supervisor may also receive for travel, lodging, meals, and other expenses any amount not to exceed the amount a county employee of the county in which the supervisor resides is entitled to receive under the policies and procedures established by the county.
All amounts under this section shall be fixed by the supervisors of each district and paid from money of the district. [IC 14-32-4-17]
The salary per diem rate established by IC 4-10-11-2.1(b) is currently thirty-five dollars ($35) per
day.
BOARD OF SUPERVISORS - DUTIES AND RESPONSIBILITIESThe supervisors may delegate the powers and duties that the supervisors consider proper to any of the following:
1. The chairman.
2. Any number of supervisors.
3. Any number of agents or employees. [IC 14-32-4-20]
The supervisors of a district shall do the following:
1. Provide for the execution of surety bonds for all district employees and officers who are entrusted with money or property.
2. Provide for the keeping of a full and accurate record of all district proceedings and of all district resolutions and orders issued or adopted.
3. Provide for an annual audit of the accounts of receipts and disbursements of the district.
4. Provide a copy of each annual financial statement of the district to the board not later than March 31. [IC 14-32-4-22]
The supervisors of a district shall furnish to the board (state soil conservation board), upon request, copies of rules, contracts, forms, and other information concerning the activities of the supervisors that the board requires in the performance of duties under this article. [IC 14-32-4-21]
The supervisors of a district:
1. may employ necessary personnel, subject to IC 36-2-5-3 and IC 36-2-5-7; and
2. shall determine the qualifications and duties of the personnel and provide supervision to personnel.
In any district except a district containing a consolidated city, an employee of the district:
1. is considered to be an employee of the county in which the employee works, except as provided in subsection (c); and
2. is eligible for and shall be included in all fringe benefit programs provided for employees of the county.
An employee of a district whose position is funded entirely from sources outside the county in which the employee works solely on the basis of the funding of the employee's position is not considered an employee of the county. [IC 14-32-4-18]
Claims against a district must be allowed and approved by the governing body of the district before payment by the district's fiscal officer. However, the governing body may, subject to review and approval at the governing body's next regular meeting, authorize the following:
1. Payroll.
2. Insurance premiums.
3. Utility payments.
4. Bulk mailing fees.
5. Maintenance agreements and service agreements.
6. Lease agreements and rental agreements.
7. Expenses that must be paid because of emergency circumstances.
8. Recurring or periodic expenses specifically authorized by a resolution adopted at a governing body meeting.
Each payment under this section must be certified by the district's fiscal officer. The certification must be on a form prescribed by the state board of accounts. [IC 14-32-4-24]
POWERS AND DUTIES OF DISTRICTS
A district constitutes a governmental subdivision of the state and a public body corporate and politic exercising public powers.
A district may do the following:
1. Carry out soil erosion and water runoff preventive and control measures within the district, including engineering operations, methods of cultivation, the growing of vegetation, changes in use of land, and the measures listed in IC 14-32-1-1(7) and IC 14-32-1-1(8), on the following:
A. Land owned or controlled by the state with the consent and cooperation of the agency administering and having jurisdiction of the land.
B. Any other land within the district upon obtaining the consent of the occupier of the land or the necessary rights or interests in the land.
2. Construct, improve, operate, and maintain the structures that are necessary or convenient for the performance of any of the operations authorized in this article.
3. Cooperate or enter into agreements with, and within the limits of appropriations made available to the district by law to furnish financial or other aid to, a federal, state, or other agency or an occupier of land within the district in the carrying on of conservation operations within the district, subject to the conditions that the supervisors consider necessary to advance the purpose of this article.
4. Obtain options upon and acquire, by purchase, exchange, lease, gift, grant, bequest, devise, or otherwise, real or personal property or rights or interests in property.
5. Maintain, administer, and improve property acquired, receive income from the property, and expend the income in carrying out this article.
6. Sell, lease, or otherwise dispose of property or interests in property in furtherance of this article.7. Make available to land occupiers within the district, on terms that the district prescribes:
A. agricultural and engineering machinery and equipment;
B. fertilizer;
C. seeds;
D. seedlings;
E. other material or equipment; and
F. services from the district; that will assist in conserving the soil and water resources of the land occupiers.
8. Develop or participate in the development of comprehensive plans for the proper management of soil and water resources within the district that specify the acts, procedures, performances, and avoidances necessary or desirable for the effectuation of the plans.
9. Publish plans and information developed under subdivision 8. and bring the plans and information to the attention of land occupiers within the district.
10. Takeover, with the consent of the United States or the state, by purchase, lease, or otherwise, and administer any soil and water conservation, erosion control, water quality protection, or flood prevention project of the entity located within the district's boundaries.
11. Manage, as agent of the United States or the state, any soil and water conservation, erosion control, water quality protection, flood prevention, or outdoor recreation project within the district's boundaries.
12. Act as agent for the United States or the state in connection with the acquisition, construction, operation, or administration of any soil and water conservation, erosion control, water quality protection, flood prevention, or outdoor recreation project within the district's boundaries.
13. Accept donations, gifts, and contributions in money, services, materials, or otherwise from the United States and use or expend the services, materials, or other contributions in carrying on the district's operations.
14. Sue and be sued in the name of the district.
15. Have perpetual succession unless terminated as provided in this article.
16. Make and execute contracts and other instruments necessary or convenient to the exercise of the district's powers.
17. Adopt rules and regulations consistent with this article to carry into effect the purposes and powers of this article.
18. Require an occupier of land not owned or controlled by the state, as a condition to extending benefits under this article to or the performance of work upon the land, to do either or both of the following:
A. Make contributions in money, services, materials, or otherwise to an operation conferring benefits.
B Enter into agreements or covenants concerning the use and treatment of the land that will tend to:
i. prevent or control soil erosion;
ii. achieve water conservation and water quality protection; and
iii. reduce flooding; on the land.
19. Cooperate with the state in the following:
A. Conducting surveys, investigations, and research relating to the character of soil erosion and water losses and the preventive and control measures needed.
B. Publishing the results of the surveys, investigations, or research.
C. Disseminating information concerning the preventive and control measures.
D. The management of watersheds.
20. Cooperate with the state in conducting, within the district, soil and water conservation, erosion control, water quality protection, and flood prevention demonstration projects:
A. on land owned or controlled by the state with the agency administering and having jurisdiction of the land; and
B. on any other land upon obtaining the consent of the occupier of the land or the necessary rights or interests in the land.
21. Serve as the management agency for:
A. the erosion and sediment part of 33 U.S.C. 1288 (P.L. 92-500, section 208); and
B. other erosion and sediment reduction programs that affect water quality in each county. [IC 14-32-5-1]
RESTRICTIONS ON POWERS AND DUTIES OF DISTRICTSA district may not do any of the following:
1. Exercise the right of eminent domain.
2. Incur indebtedness beyond available money.
3. Issue bonds.
4. Take contributions by exactions or persuasions. However, the district may accept voluntary contributions from any source if the following conditions are met:
A. The donations are offered for the sole and exclusive purpose of promoting soil and water conservation within the district.
B. The district satisfactorily guarantees to the donors the faithful use of the donations for that purpose.
5. Engage in:
A. the marketing of farm products; or
B. the buying and selling of farm supplies; other than those products or supplies used or needed directly or indirectly in soil and water conservation work.
6. Engage in agricultural research or agricultural extension teaching except in cooperation with Purdue University.
7. Levy taxes.
8. Make or levy benefit assessments or any other kind of assessments. [IC 14-32-5-5]
Districts organized under this article or IC 13-3-1 (before its repeal) may cooperate with each other in carrying on the work of the districts. However, this section does not permit the transfer of authority or powers from one (1) district to another. [IC 14-32-5-6]
AUTHORITY FOR COUNTY TO APPROPRIATE MONEY TO DISTRICTThe fiscal body of each county that contains a district in whole or in part may appropriate money for the use of the district serving the county from which the appropriation is to be made. [IC 14-32-5-8]
The division of soil conservation:
1. shall administer and coordinate the duties and responsibilities of the Indiana state department of agriculture under the land resource programs authorized by this chapter; and
2. in carrying out its duties under subdivision (1), may work in cooperation with the following:
A. Federal and state agencies.
B. Local governmental agencies involved in land use planning and zoning.
C. Any person, firm, institution, or agency, public or private, having an interest in land conservation.
The Indiana state department of agriculture may employ the personnel and provide facilities and services that are necessary to carry out the Indiana state department of agriculture's duties and responsibilities under this chapter.
The Indiana state department of agriculture shall prepare an annual report of the division of soil conservation's expenditures and accomplishments and that contains a proposed business plan. [IC 14-32-7-6]
The Indiana state department of agriculture shall provide more support and assistance to the local soil and water conservation districts by:
1. granting to the districts the additional money that is appropriated by the general assembly; and
2. increased coordination and consultative services; to obtain increased participation by the districts in the development of improved local land use practices and decisions. [IC 14-32-7-9]
The Indiana state department of agriculture shall administer this article subject to the direction of the board (State Soil Conservation Board). [IC 14-32-7-13]
“Due notice,” for purposes of IC 14-32, means a notice given through publication at least two (2) times, with an interval of at least six (6) days between the two (2) publication dates, in a newspaper or other publication of general circulation within the appropriate area. [IC 14-8-2-80]
“Land occupier” or “occupier of land,” for purposes of IC 14-32, means a firm, an individual of voting age, a limited liability company, or a corporation that:
1. owns:
A. a life estate; or
B. an interest greater than a life estate; in; or
2. is in legal possession, under an express or implied rental lease, of; a tract of land that is located within a district (as defined in IC 14-8-2-72(2)) or proposed for inclusion within a district under IC 14-32-6.5. [IC 14-8-2-143]
REGULATIONS AND GUIDELINES OF STATE, FEDERAL, AND LOCAL AGENCIESSoil and Water Conservations Districts should follow the regulations and guidelines of state, federal and local agencies, including, but not limited to, policies as developed and adopted by the State Soil Conservation Board and the Operations Manual For Indiana Soil and Water Conservation Districts prepared by the Division of Soil Conservation, Indiana Department of Agriculture.
The following is the State Board of Accounts audit position related to meals and/or refreshments provided by a Soil and Water Conservation District.
In general, a governmental unit would be precluded from providing meals and/or refreshments to individuals who are not employed by the government. A governmental unit would also generally be precluded from providing meals, refreshments, or other personal items to their employees or officials, unless specifically provided for by statute or duly authorized written policy of the government.
Some governments authorize reimbursement of meals and similar expenses to their employees and officers while on travel status through a properly adopted travel policy. In the case of a Soil and Water Conservation District, such reimbursements would be made in accordance with the County's travel policy. In general, other meals or similar expenses provided to employees or members of the governing body are not authorized.
Likewise, meals and similar expenses for individuals who are not employees or officers of the District would not be allowable expenditures of District funds; however, the State Board of Accounts would not take exception to the following:Meals or refreshments provided to volunteers who are in the process of performing services for the benefit of the District, provided such expenditures are reasonable and allowed by a duly authorized policy adopted by the Board of Supervisors of the District.
Light refreshments provided to the general public during field days and similar public events promoting soil and water conservation, provided such expenditures are reasonable and related to the event hosted or sponsored by the District.
Meals provided at less than the District's actual cost at the District Annual Meeting. We recognize the Annual Meeting is an integral part of the activities of the District, and as such, part or all of the costs related to the Annual Meeting are generally duly authorized expenditures of District funds. The Board of Supervisors should adopt a written policy describing costs or fees for its various activities, including the cost, if any, of the meal provided at the District Annual Meeting. If the District provides meals at no cost to certain participants, or if different rates are charged to different classes of participants, the written policy referred to above should include the methodology used to determine which participants are provided meals at no cost, or are charged different rates for meals.
- Other Special Districts
Other Special Districts, such as Port Authorities, Flood Control Districts, Building Authorities, Military Reuse Authorities or any other districts subject to following state statutes and which are subject to audit by the State Board of Accounts, shall follow the applicable provisions of this manual.
- Miscellaneous Guidelines
Appropriations
Transfer Between Major Budget Classifications
Bankcard / Credit Card and Other Methods of Payment
Bonds
Disposition of Surplus Proceeds of Bond Issues or Investment Earnings
Cancellation of Warrants - Old Outstanding Checks
Claims
Penalties When Not Paid Timely
Collection of Delinquent Sewage Charges
Property Taxes - Request for Advances
Public Notice Advertising - Claims by Publisher
Salaries - Computing for Partial Pay Periods
Signature on Accounts Payable Vouchers and Warrants
IC 1-1-9-1 lists legal holidays within the State of Indiana.
- New Year's Day January 1
- Martin Luther King, Jr.’s Birthday Third Monday in January
- Lincoln's Birthday February 12
- Washington's Birthday Third Monday in February
- Good Friday Friday Before Easter Sunday
- Any General, National, State or City Primary First Tuesday After First Monday in May
- Memorial Day Last Monday in May
- Independence Day July 4
- Labor Day First Monday in September
- Columbus Day Second Monday in October
- Any General, National, State or City Election First Tuesday After First Monday in November
- Veteran's Day November 11
- Thanksgiving Day Fourth Thursday in November
- Christmas Day December 25
and “the first day of the week” commonly called “Sunday.” IC 1-1-9-1(b) states:
“When any of these holidays, other than Sunday, comes on Sunday, the following Monday shall be the legal holiday. When any of these holidays comes on Saturday, the preceding Friday shall be the legal holiday.”
IC 1-1-9-1(c) states:
“This section does not affect any action taken by the state, the general assembly, or a political subdivision (as defined in IC 36-1-2-13). Any action taken by the state, the general assembly, or a political subdivision on any such holiday shall be valid for all purposes.”
SALARIES - COMPUTING FOR PARTIAL PAY PERIODSAn employee on a specified salary, whose employment begins or terminates in the middle of a pay period should be paid only for that part of the period that he has worked. If on a monthly basis and the employee's work is terminated at the end of the day on January 15, for example, he should receive 15/31 of his regular monthly salary for the month of January. If his employment terminates at the end of the day on February 15, he would be entitled to 15/28 or 15/29 (leap year) of his regular monthly salary for the month of February. Partial semi-monthly and bi-weekly pay periods would be computed in a similar manner.
Liability for Collection of Sales Tax
Collections by a political subdivision from the retail sale of tangible personal property, utility services, or commodities in the performance of private or proprietary activities are subject to sales tax.
Sales to all governmental agencies, manufacturers for production purposes, farmers for agricultural purposes, religious, charitable, and educational organizations are exempt from the gross retail sales tax when tangible personal property, utility service or commodities are used predominantly for the purpose for which exempt. However, in order to qualify for exemption any governmental agency or any other exempt purchaser must file an exemption certificate with the political subdivision. Also, receipts from installing, constructing, servicing, or removing tangible personal property used in connection with the furnishing of utility services are exempt.
All questions concerning the law or procedure for paying and collecting sales tax should be directed to the Indiana Department of Revenue, Sales Tax Division, Indiana Government Center North, Indianapolis, Indiana, 46204, telephone number (317) 233-4015.
SIGNATURE ON ACCOUNTS PAYABLE VOUCHERS AND WARRANTSThe decision as to whether or not the number of items to be signed justifies the use of a rubber stamp or other device for affixing his signature must be made by each public official responsible for signing accounts payable vouchers, warrants and other official documents.
A rubber stamp or other signing device should be used only under the personal direction of the public official and should be properly safeguarded when not in use since each official is responsible for his signature.
The establishment of a cash change fund is recommended for each political subdivision collecting licenses, fees, utility service charges or any other cash revenues. The authority for such fund is IC 36-1-8-2. The fiscal body of the political subdivision must authorize the establishment of the cash change fund.
An accounts payable voucher should be filed by the officer or employee who is charged with the duty of collecting the cash revenues for the amount deemed necessary for presentation to the proper board. The amount of the fund must be established by the fiscal body. The accounts payable voucher should contain a statement regarding the necessity for such fund together with the statutory reference authorizing its establishment.
Upon approval of the accounts payable voucher by the proper board, the fiscal officer would draw a warrant on the operating fund of the political subdivision (without appropriation, if applicable).
The warrant is to be converted to cash and retained by the officer or employee in whose favor it is drawn, who shall be held individually responsible for the custody and safekeeping of such cash.
The entire cash change fund is to be returned to the fund from which it was advanced if and when it is no longer needed, and must be returned at the conclusion of each term served by the person drawing same.
As further provided by IC 36-1-8-3, the fiscal body of a political subdivision may also establish a petty cash fund for the purpose of paying small or emergency items of operating expense. A receipt shall be taken for each and every expenditure from such fund and an accounts payable voucher shall be filed by the custodian of the fund, to reimburse such fund for expenditures so made. No reimbursement shall be made unless there are attached to the accounts payable voucher receipts totaling the amount so claimed. Such reimbursement shall be approved, allowed, and paid in the same manner as other accounts payable vouchers. The amount of the fund shall be established by the fiscal body of the political subdivision.
IC 5-19-1 authorizes any political subdivision of the state to cooperate with the federal government (in any manner necessary not prohibited by law) for the purpose of accepting federal aid.
CANCELLATION OF WARRANTS - OLD OUTSTANDING CHECKSPursuant to IC 5-11-10.5, all checks outstanding and unpaid for a period of two years as of December 31 of each year shall be declared void.
Not later than March 1 of each year, the treasurer of each political subdivision shall prepare or cause to be prepared a list in duplicate of all checks outstanding for two or more years as of December 31 last preceding. The original copy shall be filed with the board of finance of the political subdivision and the duplicate copy maintained by the disbursing officer of the political subdivision. The treasurer shall enter the amounts so listed as a receipt to the fund or funds upon which they were originally drawn and remove the checks from the list of outstanding checks.
IC 5-10-8 is the authority for a political subdivision to contract for group insurance in relation to its employees, to pay part of the cost of such insurance, and to provide for withholding from participating employees. Retirement annuities and pensions are not included within the definition of “insurance” as used in the law. Qualified retired employees may be included in the group insurance.
Employee is defined: an elected or appointed officer or official, or a full-time employee; for a local unit public employer, a full-time or part-time employee or a person who provides personal services to the unit under contract during the contract period; whose services have continued without interruption at least thirty (30) days. [IC 5-10-8-1]
In Official Opinion No. 21, issued on June 17, 1957, the Attorney General held that under the terms of the law governmental units may participate in paying for group insurance to any extent short of full payment so long as the requirement regarding the appropriation of funds is met.
A public employer may provide programs of group insurance for its employees and retired employees through either or both of the following methods:
1. By purchasing policies of group insurance.
2. By establishing self-insurance programs.
3. By electing to participate in the local unit group of local units that offer the state employer health plan under IC 5-10-8-6.6.
However, the establishment of a self-insurance program is subject to the approval of the unit's fiscal body. [IC 5-10-8-2.6]
Insurance coverage does not appear to be included within the definitions contained in the Public Purchases Law, IC 5-22, or Public Works Law, IC 36-1-12. Therefore, there is no specific statutory requirement for advertising and soliciting bids for such service. Advertising for quotations or bids for insurance is a matter for local determination.
APPROPRIATIONS - TRANSFER BETWEEN MAJOR BUDGET CLASSIFICATIONSPolitical Subdivisions With Departmentalized Budgets
IC 6-1.1-18-6 states:
“(a) The proper officers of a political subdivision may transfer money from one major budget classification to another within a department or office if:
(1) they determine that the transfer is necessary;
(2) the transfer does not require the expenditure of more money than the total amount set out in the budget as finally determined under this article; and
(3) the transfer is made at a regular public meeting and by proper ordinance or resolution.
(b) A transfer may be made under this section without notice and without the approval of the department of local government finance.”
Political Subdivisions Without Departmentalized Budget
As you will note, IC 6-1.1-18-6 restricts transfers to those “from one major budget classification to another within a department or office. ”
Your attention is further directed to the provisions of Attorney General Official Opinion No. 11, dated June 28, 1976, written in response to a question from a public school corporation regarding transferring “money from one account of its general fund to another account within its general fund without additional prior notice to the public and without prior approval of the state board of tax commissioners.” The Attorney General, in Official Opinion No. 11, concludes:
“It is therefore, my official opinion that by enacting Indiana Code, section 6-1.1-18-6, the General Assembly intended to authorize a public school corporation, on the same basis as other political subdivisions of government, to transfer money from one major budget classification of its general fund to another classification within that same fund without additional public notice and prior approval of the State Board of Tax Commissioners; but such a transfer could only be made by ordinance adopted at a public meeting of the school board, and the ordinance could not authorize expenditure of money in excess of the total appropriation for the school corporation. This opinion, however, relates only to the intended applicability of Code section 6-1.1-18-6. Doubts remain as to the constitutionality of the provisions of that section which permit transfer of funds without notice.”
The State Board of Accounts recognizes the provisions of this statute and official opinion and recommends the political subdivision’s attorney review this information. With his written approval, the State Board of Accounts will take no audit exception in future audits of a political subdivision if transfers of appropriations are made within the General or Operating Fund, pursuant to the requirements of IC 6-1.1-18-6.IC 6-1.1-18-5 states, in part:
“(a) If the proper officers of a political subdivision desire to appropriate more money for a particular year than the amount prescribed in the budget for that year as finally determined under this article, they shall give notice of their proposed additional appropriation. The notice shall state the time and place at which a public hearing will be held on the proposal. The notice shall be given once in accordance with IC 5-3-1-2(b).
(b) If the additional appropriation by the political subdivision is made from a fund that receives:
(1) distributions from the motor vehicle highway account established under IC 8-14-1-1 or the local road and street account established under IC 8-14-2-4; or
(2) revenue from property taxes levied under IC 6-1.1; the political subdivision must report the additional appropriation to the department of local government finance. If the additional appropriation is made from a fund described under this subsection, subsections (f), (g), (h), and (i) apply to the political subdivision.
(c) However, if the additional appropriation is not made from a fund described under subsection (b), subsections (f), (g), (h), and (i) do not apply to the political subdivision. Subsections (f), (g), (h), and (i) do not apply to an additional appropriation made from the cumulative bridge fund if the appropriation meets the requirements under IC 8-16-3-3(c).
(d) A political subdivision may make an additional appropriation without approval of the department of local government finance if the additional appropriation is made from a fund that is not described under subsection (b). However, the fiscal officer of the political subdivision shall report the additional appropriation to the department of local government finance.
(e) After the public hearing, the proper officers of the political subdivision shall file a certified copy of their final proposal and any other relevant information to the department of local government finance.
(f) When the department of local government finance receives a certified copy of a proposal for an additional appropriation under subsection (e), the department shall determine whether sufficient funds are available or will be available for the proposal. The determination shall be made in writing and sent to the political subdivision not more than fifteen (15) days after the board receives the proposal.
(g) In making the determination under subsection (f), the board shall limit the amount of the additional appropriation to revenues available, or to be made available, which have not been previously appropriated.
(h) If the department of local government finance disapproves an additional appropriation under subsection (f), the department shall specify the reason for its disapproval on the determination sent to the political subdivision.
(i) A political subdivision may request a reconsideration of a determination of the department of local government finance under this section by filing a written request for reconsideration. A request for reconsideration must:(1) Be filed with the department of local government finance within fifteen (15) days of the receipt to the determination by the political subdivision; and
(2) State with reasonable specificity the reason for the request.
The department of local government finance must act on a request for reconsideration within fifteen (15) days of receiving the request.
(j) This subsection applies to an additional appropriation by a political subdivision that must have the political subdivision's annual appropriations and annual tax levy adopted by a city, town, or county fiscal body under IC 6-1.1-17-20 or by a legislative or fiscal body under IC 36- 3-6-9. The fiscal or legislative body of the city, town, or county that adopted the political subdivision's annual appropriation and annual tax levy must adopt the additional appropriation by ordinance before the department of local government finance may approve the additional appropriation.”
Any questions relating to additional appropriations should be directed to the Department of Local Government Finance, Indiana Government Center North, Room N 1058, 100 North Senate Avenue, Indianapolis, Indiana, 46204, telephone (317) 232-3773.
APPROPRIATIONS - INSURANCE CLAIM PROCEEDSIC 6-1.1-18-7 sets forth the procedure that shall be observed when appropriating insurance claim proceeds to replace property, as follows:
“Notwithstanding the other provisions of this chapter [6-1.1-18-1 -- 6-1.1-18-11], the fiscal officer of a political subdivision may appropriate funds received from an insurance company if:
(1) the funds are received as a result of damage to property of the political subdivision; and
(2) the funds are appropriated for the purpose of repairing or replacing the damaged property.
However, this section applies only if the funds are in fact expended to repair or replace the property within the twelve (12) month period after they are received.”
Where appropriations are made for insurance claim proceeds, this need not be advertised nor approved by the Department of Local Government Finance. The amount appropriated would be added to the current appropriation account from which the expense will be paid.
APPROPRIATION OF STATE AND FEDERAL GRANT FUNDSIC 6-1.1-18-7.5 states:
“Notwithstanding any other law, the appropriating body of a political subdivision may appropriate any funds received as a grant from the state or the federal government without using the additional appropriation procedures under section 5 of this chapter [IC 6-1.1-18-5], if the funds are provided or designated by the state or the federal government as a reimbursement of an expenditure made by the political subdivision.”
PUBLIC NOTICE ADVERTISING - CLAIMS BY PUBLISHER
By the provisions of IC 5-3-1-1, the cost of all public notice advertising paid for from public funds shall be by the line and shall be computed bases on a square of two hundred fifty (250) ems at the following rates:
Before January 1, 1996, Three Dollars and Thirty Cents ($3.30) per square for the first insertion and One Dollar and Sixty-Five Cents ($1.65) per square for each additional insertion required. [IC 5-3-1-1 (b)(1)(2)]
After December 31, 1995, and before December 31, 2005, a newspaper or qualified publication may, effective January 1 of any year, increase the basic charges by 5% more than the basic charges in effect the previous year.
After December 31, 2009, a newspaper or qualified publication may, effective January 1 of any year, increase the basic charges by not more than two and three quarters percent (2.75%) more than the basic charges that were in effect during the previous year.
If the public notice advertisement contains rule or tabular work, an additional charge of fifty percent (50%) shall be allowed.
An advertisement in tabular form would include any notice in which a column of figures is consecutively compiled in alignment. Examples of tabular work include:
- Notices to Taxpayers of Tax Levies (Budget Notice)
- Annual Reports
- Notice of Additional Appropriations
Each newspaper publishing public notice advertising shall submit proof of publication and claim for payment on General Form Number. 99P in duplicate on each public notice advertisement published. If more than two proofs of publication are required by any official, the newspaper shall be allowed to charge
$1.00 for each additional copy so furnished. [IC 5-3-1-1 (d)]If a newspaper maintains an internet web site, a notice that is published in the newspaper must also be posted in the newspaper’s web site on the same day the notice appears in the newspaper. A newspaper may not charge a fee for posting a notice on the newspaper web site.
In auditing claims for publication of such notices all that is necessary is to actually count the number of lines and multiply this by the number of columns to secure the number of equivalent lines, which should be multiplied by the price per line.
PROPERTY TAXES - REQUEST FOR ADVANCESIC 5-13-6-3 (b) requires the county auditor to advance property taxes to any political subdivision prior to the semi-annual distribution of taxes, where the funds are needed, upon receipt of a written request from the proper officer of the political subdivision. The county auditor shall advance such taxes not later than thirty (30) days after receipt by the county treasurer of the written request for funds from the political subdivision. Any such advances may not exceed 95% of the total taxes already collected at the time of advance which are due the governmental unit. Upon notice from the county treasurer of the amount to be advanced, the county auditor shall draw a warrant upon the county treasurer from the amount. The amount of the advance must be available immediately for the use of the political subdivision.
If a county auditor fails to make an advance by the deadline, the political subdivision may recover interest on the undistributed tax collections under IC 6-1.1-27.1.IC 5-11-10-2 states, in part:
“(a) Claims against a political subdivision of the state must be approved by the officer or person receiving the goods or services, be audited for correctness and approved by the disbursing officer of the political subdivision, and, where applicable, be allowed by the governing body having jurisdiction over allowance of such claims before they are paid. If the claim is against a governmental entity (as defined in section 1.6 of this chapter), the claim must be certified by the fiscal officer.
(b) The state board of accounts shall prescribe a form which will permit claims from two (2) or more claimants to be listed on a single document and, when such list is signed by members of the governing body showing the claims and amounts allowed each claimant and the total claimed and allowed as listed on such document, it shall not be necessary for the members to sign each claim.
(c) Notwithstanding subsection (b), only:
(1) the chairperson of the board of directors of a solid waste management district established under IC 13-21 or IC 13-9.5 (before its repeal); or
(2) the chairperson's designee; is required to sign the claim form described under this section.
(d) The form prescribed under this section shall be prepared by or filed with the disbursing officer of the political subdivision, together with:
(1) the supporting claims if payment is made under section 1 of this chapter; or
(2) the supporting invoices or bills if payment is made under section 1.6 of this chapter.
All such documents shall be carefully preserved by the disbursing officer as a part of the official records of the office.
(e) Where under any law it is provided that each claim be allowed over the signatures of members of a governing body, or a claim docket or accounts payable voucher register be prepared listing claims to be considered for allowance, the form and procedure prescribed in this section shall be in lieu of the provisions of the other law.”
IC 5-11-10-1.6 states, in part:
“(a) As used in this section, "governmental entity" refers to any of the following: . . .
(4) A regional water or sewer district organized under IC 13-26 or under IC 13-3-2 (before its repeal). . .
(6) A board of an airport authority under IC 8-22-3. . .
(8) A conservancy district.
(9) A public transportation corporation under IC 36-9-4.
(10) A commuter transportation district under IC 8-5-15. . .(12) A solid waste management district established under IC 13-21 or IC 13-9.5 (before its repeal).
(13) A levee authority established under IC 14-27-6.
(14) A county building authority under IC 36-9-13.
(15) A soil and water conservation district established under IC 14-32.
(16) The northwestern Indiana regional planning commission established by IC 36-7-7.6- 3.
(17) The commuter rail service board established under IC.8-24-5.
(18) The regional demand and scheduled bus service board established under IC 8-24-6.
(b) As used in this section, “claim” means a bill or an invoice submitted to a governmental entity for goods and services.
(c) The fiscal officer of a governmental entity may not draw a warrant or check for payment of a claim unless:
(1) there is a fully itemized invoice or bill for the claim;
(2) the invoice or bill is approved by the officer or person receiving the goods and services;
(3) the invoice or bill is filed with the governmental entity's fiscal officer;
(4) the fiscal officer audits and certifies before payment that the invoice or bill is true and correct; and
(5) payment of the claim is allowed by the governmental entity’s legislative body or the board having jurisdiction over allowance of payment of the claim . . .
(d) The fiscal officer of a governmental entity shall issue checks or warrants for claims by the governmental entity that meet all of the requirements of this section. The fiscal officer does not incur personal liability for disbursements:
(1) processed in accordance with this section; and
(2) for which funds are appropriated and available.
(e) The certification provided for in subsection (c)(4) must be on a form prescribed by the state board of accounts”
Because the term “itemized” has not been defined in the Indiana Code, we have recommended the following as a guide to local officials responsible for the approval and payment of claims:
A claim to be properly itemized should show the kind of service, where performed, date service rendered, by whom, rate per day, number of hours, rate per hour, price per foot, per yard, per hundred, per pound, per ton, etc.
BONDS-DISPOSITION OF SURPLUS PROCEEDS OF BOND ISSUES OR INVESTMENT EARNINGSIC 5-1-13-2 states:
(a) Notwithstanding any other law, whenever:
(1) bonds are issued by any local issuing body in the state of Indiana for any lawful purpose or project;
(2) the purpose or project for which the bonds were issued has been accomplished or abandoned; and
(3) a surplus remains from the proceeds of the bonds or investment earnings derived from the proceeds of those bonds; the local issuing body may use the surplus only in the manner prescribed by subsection (b), (c), or (d).
(b) The legislative body or other governing body of any such local issuing body may by an order, ordinance, or resolution entered of record direct the disbursing officer of such local issuing body to transfer the surplus bond proceeds or investment earnings to the fund of the local issuing body pledged to the payment of principal and interest on those bonds, and upon such order, ordinance, or resolution being made, the disbursing officer shall make such transfer. Thereafter such funds transferred shall be used for the payment of the bonds to which the surplus bond proceeds or investment earnings are attributable or interest due for such bonds.(c) Surplus bond proceeds or investment earnings may be used by a local issuing body for the following purposes:
(1) To maintain a debt service reserve fund for the bonds to which the surplus bond proceeds or investment earnings are attributable, at the level required under the terms of the bonds, if the local issuing body adopts an ordinance, resolution, or order authorizing that use of the proceeds or earnings.
(2) To pay the principal or interest, or both, on any other bonds of the local issuing body, if the local issuing body adopts an ordinance, a resolution, or an order authorizing the use of the surplus proceeds to pay principal or interest on the bonds.
(3) To reduce the rate or amount of ad valorem property taxes, special benefit taxes on property, or tax increment revenues imposed by or allocated to the local issuing body.
(d) This section applies to bonds that are not payable from ad valorem property taxes, special benefit taxes on property, or tax increment revenues derived from property taxes. Surplus bond proceeds or investment earnings may be used by a local issuing body for the same purpose or type of project for which the bonds were originally issued, if:
(1) the fiscal officer of the local issuing body certifies before or at the time of that use that the surplus was not anticipated at the time of issuance of the bonds; and
(2) the board or legislative body responsible for issuing the bonds takes action approving the use of surplus bond proceeds or investment earnings for the same purpose or type of project for which the bonds were originally issued.
IC 5-1-13-3 states:
“Notwithstanding any other law, income from the investment of proceeds of the sale of bonds issued by any political subdivision that are payable from property taxes shall be applied to the improvement or the public purpose for which the bonds were issued or shall be used to pay interest on the bonds and in no event may such income be used for any other purpose except as provided in section 2 of this chapter.”
CLAIMS - PENALTIES WHEN NOT PAID TIMELY
IC 5-17-5 provides every “political subdivision shall pay a late payment penalty at a rate of one percent (1%) per month on amounts due on written contracts for public works, personal services, goods and services, equipment, and travel, whenever the . . . political subdivision fails to make timely payment.” This statute does not include contracts for road and street work. IC 36-1-12-17 provides for interest payments on late payments for road work.
Timely payment is defined, with some exceptions, to occur if “. . . a check or warrant is mailed or delivered on the date specified for the amount specified in the applicable contract documents, or, if no date is specified, within thirty-five (35) days of receipt of goods or services, or receipt of a properly completed claim. . . “
For the purpose of this statute, payment by a political subdivision is timely if:
1. a date for payment is not specified in an applicable contract;
2. a claim:
(a) for payment for goods or services; and
(b) that must be approved by a local legislative body or boards is submitted to the body or board; and
3. the political subdivision pays the claim within thirty-five (35) days following the first regularly scheduled meeting of the body or board that is held at least ten (10) days after the body or board receives the claim.
Pursuant to IC 5-17-5-2, the interest requirement does not apply to the following:
“(1) Interagency or intergovernmental transactions.
(2) Amounts payable to employees . . . of . . . political subdivisions as reimbursements for expenses.
(3) Claims subject to a good faith dispute, if before the date of timely payment notice of the dispute is:
(a) sent by certified mail;
(b) personally delivered; or
(c) sent in accordance with procedure in the contract.
(4) Contracts entered into before September 1, 1983.
(5) Contracts related to highway or road construction, reconstruction, or maintenance. . . .
(6) Claims, contracts, or projects that are to be paid exclusively with federal funds.”
A contractor who is receiving late payment penalties from a government who is unable to make timely payments to a subcontractor because of a state agency or political subdivision's failure to make timely payment to the contractor shall pay interest to the subcontractor at the rate of one percent (1%) per month on the amount due the subcontractor after the contractor receives payment and any penalty paid under this statute. Any interest that remains unpaid to the subcontractor at the end of any thirty (30) day period shall be added to the principal amount of the debt. After that time, interest accrues on the aggregate of the principal and unpaid interest.” [IC 5-17-5-4]
It is noted, existing statutes require the funds and appropriations must be available prior to entering into a contract. (Past court decisions have rendered contracts invalid when funds and appropriations were not provided prior to signing the contracts.) With this in mind, why should contractual payments ever need to be delayed? The Attorney General will have to provide the State Board of Accounts with legal guidance regarding the fiscal officer's responsibility for making interest payments on delayed contractual payments if the contract was entered into without regard to these statutes. Another unanswered question is the position of the fiscal officer when claims and/or receiving information are delayed by the receiving department personnel or department head. To prevent this situation, please do not be late in making such payments.
The State Board of Accounts' official position concerning payment by governmental officials of late charges, penalties, and interest is as follows:
For many years, the audit position of the State Board of Accounts was that under conditions where negligent nonfeasance or misfeasance in office by a public official resulted in the public entity accruing penalty and interest charges for failure to file or deposit state or federal taxes or pay other valid claims, the amount of the penalty and interest was deemed the personal responsibility of the official.
At the present time when payment of penalty and interest from public funds is found in an audit, the field examiners are instructed to write up in complete detail the facts concerning the payments, including the official's explanation along with any mitigating circumstances. The information is sent to the State Examiner for review and resolution. A formal response will be returned to the field examiner(s) and incorporated in the audit working papers prior to the exit conference with the local officials. This provides the public official opportunity for response if needed.
COLLECTION OF DELINQUENT SEWAGE CHARGESAs referenced in separate sections of this manual, conservancy districts and regional districts are required to follow the process found in IC 36-9-23-31 through 33 with respect to the collection of delinquent sewage accounts.
IC 36-9-23-31 states as follows:“Except as otherwise provided in a provision included in an ordinance under section 25(f)(3) of this chapter, fees assessed against real property under this chapter or any statute repealed by IC 19-2-5-30 (repealed September 1, 1981) are not paid within the time fixed by the municipal legislative body, they are delinquent. A penalty of ten percent (10%) of the amount of the fees attaches to the delinquent fees. The amount of the fee, the penalty, and a reasonable attorney's fee may be recovered by the board in a civil action in the name of the municipality.”
IC 36-9-23-32 states:
“(a) Fees assessed against real property under this chapter or under any statute repealed by IC 19-2-5-30 constitute a lien against the property assessed. The lien is superior to all other liens except tax liens. Except as provided in subsections (b) and (c), the lien attaches when notice of the lien is filed in the county recorder's office under section 33 [IC 36-9-23-33] of this chapter.
(b) A fee is not enforceable as a lien against a subsequent owner of property unless the lien for the fee was recorded with the county recorder before the conveyance to the subsequent owner. If the property is conveyed before the lien can be filed, the municipality shall notify the person who owned the property at the time the fee became payable. The notice must inform the person that payment, including penalty fees for delinquencies, is due not more than fifteen
(15) days after the date of the notice. If payment is not received within one hundred eighty (180) days after the date of the notice, the amount due may be expensed as a bad debt loss.(c) Except as otherwise provided in a provision included in an ordinance under section 25(f)(3) of this chapter, a lien attaches against real property occupied by someone other than the owner only if the utility notifies the owner not later than twenty (20) days after the time the utility fees become sixty (60) days delinquent. A notice sent to the owner under this subsection must be sent by first class mail, return receipt requested (or an equivalent service permitted under IC 1-1-7-1) to:
(1) the owner of record of real property with a single owner; or
(2) at least one (1) of the owners of real property with multiple owners; at the last address of the owner for the property as indicated in the records of the county auditor on the date of the notice of the delinquency or to another address specified by the owner, in a written notice to the utility, at which the owner requests to receive a notice of delinquency under this subsection. The cost of sending notice under this subsection is an administrative cost that may be billed to the owner.
(d) The municipality shall release:
(1) liens filed with the county recorder after the recorded date of conveyance of the property; and
(2) delinquent fees incurred by the seller; upon receipt of a verified demand in writing from the purchaser. The demand must state that the delinquent fees were not incurred by the purchaser as a user, lessee, or previous owner, and that the purchaser has not been paid by the seller for the delinquent fees.”
IC 36-9-23-33 states:
“(a) Subsections (c) through (l) do not apply to unpaid fees and penalties assessed against property occupied by someone other than the property owner if:
(1) the municipal legislative body has adopted an ordinance provision described in section 25(f) of this chapter concerning property occupied by someone other than the property owner;
(2) the ordinance provision described in section 25(f) of this chapter provides that fees assessed against the property for services rendered by the sewage works to the property do not constitute a lien against the property, as described in section 25(f)(3) of this chapter; and
(3) any requirements or conditions:
(A) described in section 25(f)(1) or 25(f)(2) of this chapter; and
(B) included in the ordinance; have been satisfied.
(b) An officer described in subsection (c) may defer enforcing the collection of unpaid fees and penalties assessed under this chapter until the unpaid fees and penalties have been due and unpaid for at least ninety (90) days. However, in the case of property that is occupied by someone other than the owner, this subsection does not relieve the utility of its duty under subsection 32(c) of this chapter to notify the owner not later than twenty (20) days after the time user fees become sixty (60) days delinquent.
(c) Except as provided in subsection (m), the officer charged with the collection of fees and penalties assessed under this chapter shall enforce their payment. As often as the officer determines is necessary in a calendar year, the officer shall prepare either of the following:
(1) A list of the delinquent fees and penalties that are enforceable under this section, which must include the following:
(A) The name or names of the owner or owners of each lot or parcel of real property on which fees are delinquent.
(B) A description of the premises, as shown by the records of the county auditor.
(C) The amount of the delinquent fees, together with the penalty.
(2) An individual instrument for each lot or parcel of real property on which the fees are delinquent.
(d) The officer shall record a copy of each list or each individual instrument with the county recorder who shall charge a fee for recording the list or each individual instrument in accordance with the fee schedule established in IC 36-2-7-10. The officer shall then mail to each property owner on the list or on an individual instrument a notice stating that a lien against the owner's property has been recorded. Except for a county having a consolidated city, a service charge of five dollars ($5), which is in addition to the recording fee charged under this subsection and under subsection (f), shall be added to each delinquent fee that is recorded.
(e) [Applies to Indianapolis only.]
(f) This subsection applies to a county not described in subsection (e). Using the lists and instruments prepared under subsection (c) and recorded under subsection (d), the officer shall, not later than ten (10) days after the list or each individual instrument is recorded under subsection (d), certify to the county auditor a list of the unpaid liens for collection with the next May installment of property taxes. The county and its officers and employees are not liable for any material error in the information on this list.(g) The officer shall release any recorded lien when the delinquent fees, penalties, service charges, and recording fees have been fully paid. The county recorder shall charge a fee for releasing the lien in accordance with IC 36-2-7-10.
(h) On receipt of the list under subsection (e) or (f), the county auditor of each county shall add a fifteen dollar ($15) certification fee for each lot or parcel of real property on which fees are delinquent, which fee is in addition to all other fees and charges. The county auditor shall immediately enter on the tax duplicate for the municipality the delinquent fees, penalties, service charges, recording fees, and certification fees, which are due not later than the due date of the next May installment of property taxes. In a county having a consolidated city the delinquent fees, penalties, service charges, and recording fees are due not later than the due date of the next cycle's installment of property taxes. The county treasurer shall then include any unpaid charges for the delinquent fee, penalty, service charge, recording fee, and certification fee to the owner or owners of each lot or parcel of property, at the time the next cycle's property tax installment is billed.
(i) After certification of liens under subsection (f), the officer may not collect or accept delinquent fees, penalties, service charges, recording fees, or certification fees from property owners whose property has been certified to the county auditor. This subsection does not apply to a county containing a consolidated city [Marion County].
(j) If a delinquent fee, penalty, service charge, recording fee, and certification fee are not paid, they shall be collected by the county treasurer in the same way that delinquent property taxes are collected.
(k) At the time of each semiannual tax settlement, the county treasurer shall certify to the county auditor all fees, charges, and penalties that have been collected. The county auditor shall deduct the service charges and certification fees collected by the county treasurer and pay over to the officer the remaining fees and penalties due the municipality. The county treasurer shall retain the service charges and certification fees that have been collected, and shall deposit them in the county general fund.
(l) Fees, penalties, and service charges that were not recorded before a recorded conveyance shall be removed from the tax roll for a purchaser who, in the manner prescribed by section 32(d) of this chapter, files a verified demand with the county auditor.
(m) A board may write off a fee or penalty under subsection (b) that is for less than forty dollars ($40).”
Special attention should be given to making proper entries for recording bad debt expense when the properly verified documents are presented by a real estate purchaser pursuant to IC 36-9-23-32(d). The verified demands shall be retained for subsequent review during audit of the records.
Whether the records are maintained on a cash or accrual basis, the individual consumer's ledger will be credited for the amount written off as a bad debt. The amounts written off should be noted in the governing board's minutes. (This would also apply to bad debts of a water, electric, or gas utility.)
For those sewage service providers who maintain records on an accrual basis, the following is a suggested general journal entry for recording the bad debt expense:Debit Credit Bad Debt Expense $ xxx.xx Accounts Receivable - Consumers $ xxx.xx To record bad debt expense due to purchaser's verified demand pursuant to IC 36-9-23-32(d). (This entry would also be used where a board wrote off an account under IC 36-9-23-33(l).)
IC 5-1-15 authorizes political subdivisions to issue “bonds, notes, evidences of indebtedness, or other written obligations” in fully registered or book entry form.
The entity may employ any bank or trust company as paying agent or registrar, co-registrar, or depository institution. The bank or trust company need not be a depository bank under IC 5-12, and need not be located within the State of Indiana. [IC 5-1-15-4]
Notwithstanding any other provision of law, registrars or registration books or transfer records for bonds, notes, evidences of indebtedness, or other written obligations of any entity are not public records, but are only for the use of the entity, any trustee, fiduciary, paying agent, registrar, co-registrar, or transfer agent. A trust department of a bank having possession of these records shall not disclose them to a bond department, commercial department, subsidiary of the bank, or a subsidiary of the parent corporation of the bank. [IC 5-1-15-5]
Registrars of bond issues shall keep a register of ownership of bonds. [IC 5-1-15-6]
In an effort to facilitate accounting procedures, the State Board of Accounts has issued the following instructions:
1. If a bank, trust company, or other financial institution has been employed as a paying agent or registrar, a properly certified listing of bondholders from the paying agent or registrar along with a signed claim [IC 5-11-10-1] shall serve as mailing list for the fiscal officer. There is no requirement for each individual bondholder to file a claim.
2. The mailing of the funds for bonds and coupons coming due must be mailed in such a manner to ensure receipt by the bondholder by the due date specified. (Personnel of financial institutions state they usually make such mailings by first class mail one to three business days in advance of the due date. They do not mail by certified or registered mail due to costs involved. We suggest you review this with your political subdivision’s attorney.)
3. Since the paying agency or registrar shall keep a register to ownership of bonds and all bonds and coupons shall be paid when becoming due, we see no reason for the municipality to duplicate those same records maintained by the paying agent or registrar by keeping a bond register. There should be no unpaid outstanding matured bonds or coupons.
4. In all instances when employing a bank, trust company, or other financial institution, be sure to protect the municipality from any liability arising due to any possible errors relating to names and addresses of current bondholders. This protection may be obtained by the financial institution furnishing a bond or insurance in favor of the political subdivision.Please consult your political subdivision’s attorney regarding instructions for handling registered bonds.
BANKCARD / CREDIT CARD AND OTHER METHODS OF PAYMENTIC 36-1-8-11 authorizes the fiscal body of a political subdivision to accept payments by cash, check, bank draft, money order, bank card or credit card, electronic funds transfer or any other financial instrument authorized by the fiscal body. If there is a charge to the political subdivision for the use of the financial instrument, the political subdivision may collect a sum equal to the amount of the charge from the person who used the financial instrument
If authorized by the fiscal body of the political subdivision, the political subdivision may accept payments with a bank card or credit card under the procedures set forth in IC 36-1-8-11. However, the procedure authorized for a particular type of payment must be uniformly applied to all payments of the same type.
The political subdivision may contract with a bank card or credit card vendor for acceptance of bank cards or credit cards. However, if there is a vendor transaction charge or discount fee, whether billed to the political subdivision or municipally owned utility or charged directly to the political subdivision's account, the political subdivision may collect from the person using the card either or both of the following:
1. An official fee that may not exceed the transaction charge or discount fee charged to the political subdivision or municipally owned utility by bank or credit card vendors.
2. A reasonable convenience fee:
A. that may not exceed three dollars ($3); and
B. that must be uniform regardless of the bank card or credit card used.
The fees described in subdivisions (1.) and (2.) may be collected regardless of retail merchant agreements between the bank and credit card vendors that may prohibit such fees. These fees are permitted additional charges under IC 24-4.5-3-202.
IC 35-44.1-1-3 states:
“(a) A public servant who knowingly or intentionally:
(1) hires an employee for the governmental entity that the public servant serves; and
(2) fails to assign to the employee any duties, or assigns to the employee any duties not related to the operation of the governmental entity; commits ghost employment, a Class D felony.
(b) A public servant who knowingly or intentionally assigns to an employee under the public servant's supervision any duties not related to the operation of the governmental entity that the public servant serves commits ghost employment, a Class D felony.
(c) A person employed by a governmental entity who, knowing that the person has not been assigned any duties to perform for the entity, accepts property from the entity commits ghost employment, a Class D felony.
(d) A person employed by a governmental entity who knowingly or intentionally accepts property from the entity for the performance of duties not related to the operation of the entity commits ghost employment, a Class D felony.
(e) Any person who accepts property from a governmental entity in violation of this section and any public servant who permits the payment of property in violation of this section are jointly and severally liable to the governmental entity for that property. The attorney general may bring a civil action to recover that property in the county where the governmental entity is located or the person or public servant resides.
(f) For the purposes of this section, an employee of a governmental entity who voluntarily performs services:
(1) that do not:
(A) promote religion;
(B) attempt to influence legislation or governmental policy; or
(C) attempt to influence elections to public office;
(2) for the benefit of:
(A) another governmental entity; or
(B) an organization that is exempt from federal income taxation under Section 501(c)(3)of the Internal Revenue Code;
(3) with the approval of the employee's supervisor; and
(4) in compliance with a policy or regulation that:
(A) is in writing;
(B) is issued by the executive officer of the governmental entity; and
(C) contains a limitation on the total time during any calendar year that the employee may spend performing the services during normal hours of employment; is considered to be performing duties related to the operation of the governmental entity.”
IC 36-1-8-5.1 authorizes political subdivisions to establish a Rainy Day Fund and states, in part:
“(a) A political subdivision may establish a rainy day fund by the adoption of: . . .
(2) a resolution, in the case of any other political subdivision.
(b) An ordinance or a resolution adopted under this section must specify the following:
(1) The purposes of the rainy day fund.
(2) The sources of funding for the rainy day fund, which may include the following:
(A) unused and unencumbered funds under: (i) section 5 of this chapter; (ii) IC 6-3.5-1.1-21.1; (iii) IC 6-3.5-6-17.3; or (iv) IC 6-3.5-7-17.3.
(B) Any other funding source: (i) specified in the ordinance or resolution adopted under this section; and (ii) not otherwise prohibited by law.
(c) The rainy day fund is subject to the same appropriation process as other funds that receive tax money.
(d) In any fiscal year, a political subdivision may transfer under section 5 of this chapter not more than ten percent (10%) of the political subdivision's total annual budget for that fiscal year, adopted under IC 6-1.1-17, to the rainy day fund.
(e) A political subdivision may use only the funding sources specified in subsection (b)(2)(A) or in the ordinance or resolution establishing the rainy day fund. The political subdivision may adopt a subsequent ordinance or resolution authorizing the use of another funding source.
(f) The department of local government finance may not reduce the actual or maximum permissible levy of a political subdivision as a result of a balance in the rainy day fund of the political subdivision.”
IC 36-1-8-5 states, in part:
“(a) This section applies to all funds raised by a general or special tax levy on all the taxable property of a political subdivision.
(b) Whenever the purposes of a tax levy have been fulfilled and an unused and unencumbered balance remains in the fund, the fiscal body of the political subdivision shall order the balance of that fund to be transferred as follows, unless a statute provides that it be transferred otherwise: . . .
(4) Funds of any other political subdivision, to the general fund or rainy day fund of the political subdivision, as provided in section 5.1 of this chapter. However, if the political subdivision is dissolved or does not have a general fund or rainy day fund, then to the general fund of each of the units located in the political subdivision in the same proportion that the assessed valuation of the unit bears to the total assessed valuation of the political subdivision. . . .
(f) Transfers to a political subdivision's rainy day fund may be made at any time during the political subdivision's fiscal year."
- Forms
Description and Use of Ledger Forms
Description and Use of Other Forms
The following General Forms prescribed by the State Board of Accounts shall be used unless specific approval has been given to use an alternate form in lieu of the prescribed form:
Form - Number - Description
- 352 (Rev. 1997) Receipt
- 353 (1966) Check (Other Than Payroll)
- 357 (1967) Payroll Check
- 356 (1967) Combination Payroll and Expense Check
- 358 (1967) Ledger of Receipts, Disbursements and Balances
- 359 (1967) Ledger of Appropriations, Encumbrances, Disbursements and Balances
- 354 (1966) Claim (General Expense)
- 369 (2003) Capital Assets Ledger
- 99 (Rev. 1993) Payroll Schedule and Voucher
- 99P (Rev. 1995) Publisher's Claim
- 101 (1955) Mileage Claim
- 98 (Rev. 1998) Purchase Order
- 99A (Rev. 1998) Employee's Service Record
- 99B (Rev. 1993) Employee's Earnings Record
- 99C (Rev 1985) Employee's Weekly (work period) Earnings Record
- 100R (Rev. 2001) Certified Report of Names, Addresses, Duties and Compensation of Public Employees
NOTE: It is optional to use Check Forms Numbers 353 and 357 or, in lieu of these two forms, to use the combination Check Form Number 356. Form Number 99P is usually supplied by publishers in submitting their claims.
In addition to the foregoing, the following prescribed General Forms are also available and may be required to meet the needs of the unit:
Form - Number - Description
- 315 (1937) General Ledger Sheet
- 361 (Rev. 1975) Treasurer's Daily Balance of Cash and Depositories
- 360 (Rev. 1975) Monthly Financial Statement, Depository Statement
- and Cash Reconcilement
- 362 (Rev. 1987) Report of Collections
- 53 (1955) Bond Register
- 86 (Rev. 1947) Contractor's Combination Bid Bond and Bond for Construction
- 86A (1947) Contractor's Bond for Construction
- 96 (Rev. 2005) Contractor's Bid for Public work
- 315A (1953) Inventory Sheet
- 350 (1964) Register of Investments
- 351 (1964) Register of Insurance
Form - Number - Description- 364 (Rev. 1997) Accounts Payable Voucher Register
Budget Form Number (Prescribed by Indiana Department of Local Government Finance) and Filed on the Gateway
- 1 (Rev. 2002) Budget Estimate
- 2 (Rev. 2002) Estimate of Miscellaneous Revenue (City and Town)
- 3 (Rev. 2005) Notice to Taxpayers of Budget Estimates and Tax Levies
- 4 (Rev. 2002) Ordinance for Appropriations and Tax Rates
- 4A (Rev. 2002) Budget Report
If a water or wastewater utility is established, the following forms must also be used. Please contact our office to determine which of the forms would be applicable to your utility.
Utility - Form Number - Title
- 301 (Rev. 1995) ** Municipal Water Utility Accounts Payable Voucher
- 301S (Rev. 1995) Municipal Sewage Utility Accounts Payable Voucher
- 304 (Rev. 1997) Water Utility Journal (Class C)
- 309 (1998) Wastewater Utility Journal
- 310 (1937) ** Guarantee Deposit Receipt
- 311 (Rev. 1975) ** Water and Sewage Receipt
- 313A (Rev. 1966) ** Register of Daily Cash Receipts - Consumers (Water or Sewage Utility)
- 313C (Rev. 1966) Register of Daily Cash Receipts - Consumers
- (Water and Sewage Utility Combined)
- 314 (1937) ** Guarantee Deposit Register
- 316 (1937) Cash Record - Municipal Utility Board of Trustees
- (Class C - Simplified)
- 317 (1937) Cash Record - Municipal Utility Board of Trustees (Class A and B)
- 319 (Rev. 1997) ** Simplified Cash Journal Water Utility - (Class C)
- 321 (1955) ** Consumer's Ledger - Water Utility
- 322 (Rev. 1966) Consumer's Ledger - Municipal Water and Sewage Utility Combined
- 323 (Rev. 1997) Simplified Cash Journal - Municipal Sewage Utility
- 324 (Rev. 1966) Consumer's Ledger - Municipal Wastewater Utility
** These forms are illustrated in the appendix.
All of the forms listed herein should be obtainable from printing firms supplying printed forms to local governmental agencies.
DESCRIPTION AND USE OF LEDGER FORMSFund and Appropriation Ledgers
The basic accounting ledgers required to be kept consist of the following two forms:
1. Ledger of Receipts, Disbursements and Balances. (Form Number 358)
2. Ledger of Appropriations, Encumbrances, Disbursements and Balances. (Form Number 359)
To clearly understand the use and application of the above forms it is first necessary to distinguish between a "fund" and an "appropriation," as these terms are used in this chapter.
The term "fund" means the General Fund, Cumulative Improvement Fund, Cumulative Maintenance Fund, Construction Fund, Bond and Interest Fund, or such other fund required to be separately accounted for in the records. The term is also associated with the word "cash," since the balance in any such fund represents the cash balance available for expenditure.
The term "appropriation" represents only the authority to spend money for the purpose for which appropriated. It does not represent "cash," since that term is associated only with the particular "fund" from which the appropriation (or authority to spend) is made.
Opening Ledgers - At the beginning of the year the following ledger sheets should be set up for each fund carried in the records of the district:
1. A ledger sheet on Form 358, to account for "cash" receipts, disbursements and balances.
2. A ledger sheet on Form 359 for each appropriation, or major budget classification, as shown by the Resolution of Appropriations.
3. A ledger sheet on Form 359 for each detail expenditure account listed in the Budget Estimate.
The above ledger sheets should be placed in a binder and arranged so that the fund (cash) ledger sheet under 1. appears first, followed by the appropriation for each major budget classification 2. and immediately following each such major budget account the detail expenditure accounts under 3.
The account (appropriation) numbers appearing in the Budget Estimate, Budget Form 1, shall be used in accounting for appropriations and disbursements and these numbers, as well as the description of the account, should be entered in the appropriate headings provided on Form 359.
As stated, this procedure should be followed for each fund, with the ledger sheets for each fund being separated by divider sheets and index tabs, for ease in posting the accounts.
Posting Ledgers - The cash balance in each fund at the close of the prior year will be brought forward on January 1 and entered in the "Balance" column of Form 358. At the same time the appropriations appearing in the Resolution of Appropriations, or as modified as a result of action thereon by the county tax adjustment board or Indiana Department of Local Government Finance, shall be entered in the "appropriation" column of the applicable ledger sheets controlling the expenditures for each major budget classification. All entries in the ledger should be made in permanent ink.
Receipts - The posting media for receipts will be the copies of receipts issued on Form 352. The date, receipt number, source and amount shall be entered on the applicable fund ledger sheet (Form 358) and the "balance" columns increased accordingly. Consecutively numbered receipts for the same date and from the same source may be group posted, if desired.
Disbursements - The posting media for disbursements will be the carbon copies of checks issued which should show thereon the account number and fund on which drawn. Disbursements will be posted to both the applicable appropriation ledger sheet (Form 359) controlling the major budget classification and to the detail expenditure accounts (Form 359) under each such classification. Consecutively numbered checks bearing the same date and issued for the same purpose may be group posted, if desired. After posting disbursements and at least at the close of each month the appropriation control accounts (major budget classifications) shall be totaled and proved and the appropriation balance extended to the "balance" column. The detail expenditure accounts will contain entries only in the columns provided for:
1. date,2. warrant number and
3. amount disbursed, and a total to date entered at the close of each month for proof to the appropriation control.
Purchase Orders - Where a purchase order is issued, the applicable appropriation (major budget classification) should be encumbered by posting in the columns provided for that purpose on Form 359. When the purchase order is paid and at the same time as posting the check issued in payment, the amount for which the order was issued shall be entered in the column headed "paid" and the "balance" of unpaid orders reduced accordingly. At the same time a check mark (√) should be entered in the column provided for that purpose opposite the date and purchase order number when originally issued. The columns for "purchase orders" are only to provide a memorandum record of obligations incurred and not yet paid to insure that appropriations are not overdrawn. To determine the balance available for expenditure, the balance of unpaid purchase orders shall be deducted from the "appropriation balance."
Payroll Deductions - In posting payrolls the "gross" amounts of the payroll checks should be posted to the applicable appropriations and expenditure accounts and the "net" amounts posted to the fund account. At the end of the payroll writing, or at the close of each month, checks should then be written for the amounts of such deductions (for transfer to the applicable payroll deduction "fund" or for payment to the proper agency) which latter checks will be posted only to the fund account. In this manner, the appropriations are immediately charged with the actual total of the payroll, with the fund account being charged only with the amounts for which the checks were written. When the checks written to cover the deductions are posted to the fund account, the totals posted to all accounts will then agree.
To facilitate handling payroll deductions it is usually desirable to establish separate payroll funds for each type of deduction, to be identified as:
1. Federal Withholding Tax
2. State Withholding Tax
3. Social Security (OASI) or such other funds as might be applicable.
The check or checks written to transfer payroll deductions should be receipted to the applicable fund or funds by the issuance of an official receipt, Form 352, and the checks deposited in the depository in the same manner as other receipts.
When checks are issued to remit payroll deductions to the proper agencies, under the foregoing procedure, the checks are then posted to the applicable payroll deduction funds. The district's share of social security, however, must be paid from the applicable fund and appropriation accounts and not charged to the Social Security deductions withheld from employees.
Proof of Posting At the close of each month the ledgers should be footed by entering totals (in pencil) in the applicable columns of receipts and disbursements, as well as in the columns reserved for purchase orders, and the ledger accounts proved as follows:1. Add duplicate copies of receipts issued (Form 352) and verify with total of receipts posted to the fund accounts.
2. Add duplicate copies of checks issued and verify with total of disbursements posted to the fund accounts.
3. Add totals of disbursements posted to appropriation ledger sheets (major budget classifications) and verify with total disbursements posted to fund account.
4. Add total of disbursements posted to detail expenditure accounts under each major budget classification and verify with the total disbursements posted to the account of each major budget account.
5. Extend and prove the balance in each fund and appropriation account.
At the close of each month the ledger balances in the respective funds shall be reconciled with the bank balance and a record thereof maintained on the reverse side of the bank statement or in a separate record. The following is an illustration of a bank reconcilement.
Bank Balance, Citizens National Bank
(Per Bank Statement), April 30, 20XX$ 5,265.00 Deduct Outstanding Checks: Date Number Amount 12-27-XX 162 $ 10.00 03-04-XX 193 52.00 04-27-XX 221 86.00 Total 148.00 Net Depository Balance 5,117.00 Add: Cash on Hand (Deposited 5-1-XX) 180.00 Record Balance, April 30, 2003 $ 5,297.00* * This figure should agree with the sum total of the balances in the respective funds, including payroll deduction funds.
DESCRIPTION AND USE OF OTHER FORMSIn addition to the ledger forms described in the foregoing pages, the accounting procedures also require the use of certain other forms, as listed on Page 22-1. A description of such forms is set out below and on the following pages.
Receipt - Form 352
This form consists of an original and a duplicate, prenumbered by the printer, five to a page, the original perforated and the duplicate punched for posting binding.
A receipt is to be issued for each cash collection. The duplicate serves as a posting medium to the Ledger of Receipts, Disbursements and Balances, Form 358.
Checks - Forms 353, 356 and 357
There are three (3) types of checks. Form 353 is designed to be used for payment of expenses other than payrolls, with Form 357 to be used for payrolls. Form 356 is designed to serve a dual purpose in that it may be used for payment of both payrolls and other expenses. Where Form 356 is used, Forms 353 and 357 will not be used.
Forms 353 and 356 consist of an original and duplicate; Form 357 (Payroll) is in triplicate to provide an employee's earnings statement. All such forms are printed five checks to the sheet, prenumbered by the printer, the original (and duplicate of Form 357) perforated, and the duplicate of Forms 353 and 356 and the triplicate of 357 punched for post binding.
The use of Form 356 in lieu of Forms 353 and 357 is recommended where a district has only a few employees. This form contains a perforated strip for showing earnings and deductions when used for payroll purposes, to be detached by the employee before cashing the check; when used for purposes other than payroll, the fiscal officer is to detach the strip before delivering the check to the payee.
All checks shall provide for signature of the "fiscal officer." Claim Forms - Numbers 99, 99P, 101 and 354.
The above numbered claim forms are prescribed for use in supporting disbursements.
Form 99, Payroll Schedule and Voucher, shall be used for salaries and wages; Form 99P for public notice advertising; Form 101 for mileage, and Form 354 for other expenses.
All claims or accounts payable vouchers must be itemized and allowed by a majority of the members of the board before payment by the fiscal officer. Payment of invoices not supported by a duly certified claim or accounts payable voucher is not permissible. Also, claims and accounts payable vouchers are not required to support the following:
1. Payments due state or federal agencies for withholdings, social security contributions, etc., which are statutory payments supported by reports to such agencies.
2. Bonds, notes and other indebtedness, including the interest thereon, upon payment under the term of the written obligation.
After payment, the check numbers are to be entered in the space provided on the claims or accounts payable vouchers, and the claims filed numerically for future reference and audit.
Purchase Order - Form 98
The name of this form denotes its purpose. Effective use of a purchase order requires that it be issued at the time of order. It is acceptable to confirm an emergency purchase by issuance of a purchase order, but no useful purpose is served by issuance of a purchase order at the time a claim is submitted for payment since one of the purposes of the Purchase Order is to provide a medium for entry of an encumbrance against an appropriation. When a claim or accounts payable voucher is in position for payment, posting of an encumbrance at the time is of no consequence and any other purpose served by a purchase order has been fulfilled, except for an acknowledgment of the receipt of materials which can be endorsed on the claim or accounts payable voucher itself.
Employee's Service Record - Form 99A
This form provides a record for each employee of hours or days worked, sick leave, vacation and days lost. The record provides the information for preparation of Payroll Schedule and Voucher, Form 99.
These forms are to be kept in binders, arranged to best serve the user, preferably in alphabetical
order.
Employees' Earnings Record - Form 99BThis form serves as a permanent record of compensation paid each employee and the authorized deductions from such pay.
A separate sheet is to be used for each employee for each year. Alphabetical arrangement in use of this form is recommended.
All compensation paid to an employee must be recorded on this form regardless of whether any deductions are made. Posting to this record is from the Payroll Schedule and Voucher, Form 99.
In heading each sheet be careful to see that no pertinent information, such as Social Security Number, is omitted.
Quarterly and at the end of each calendar year, using information recorded on Form 99B, the disbursing officer is required to make necessary returns and payments of taxes withheld to the Internal Revenue Service and to the Indiana Department of Revenue on forms supplied by those agencies. This record will also provide information to support remittances of social security to the Public Employees' Retirement Fund.
Monthly Financial Statement, Depository Statement and Cash Reconcilement - Form 360
This form consists of two sides and is designed to enable the treasurer to make an abstract statement of receipts, disbursements and balances for all funds and a reconcilement of such balances with the depository balance. The front side is prepared from figures taken directly from the Ledger of Receipts, Disbursements and Balances - Form 358. The reverse side provides a reconcilement of the record balances with the depository balance.
This form may be used conveniently in making monthly reports to the board of directors.
Treasurer's Daily Balance of Cash and Depositories - Form 361
This form provides for a daily accounting of total cash activities, both as to receipts and disbursements. It provides for a daily proof between record balances and cash in the bank plus cash on hand.
Report of Collections - Form 362
This form is designed to be used by any officer or employee authorized to make collections for or on behalf of the district in reporting and turning over such collections to the financial clerk. Upon receipt of the collections, the financial clerk must in turn issue to such officer or employee an official receipt on Form 352.
For example, where a water utility is established and collections made by a person other than the financial clerk, the form should be used in reporting and remitting such collections.
Bond Register - Form 53This form provides a record of the sale of bonds and a record of payment of bonds and the interest coupons on an individual bond and coupon basis. No other form serves this purpose; its use is imperative and it must be installed at the time bonds are issued and sold. The form is a bound record.
Contractor's Combination Bid Bond and Bond for Construction - Form 86
The name of this form denotes its use and purpose. It is to be used by bidders in instances where the district requests bids for construction or improvements and the specifications require bidders to accompany bids with this type of bond.
This form of bond is not for use in the purchase of supplies, materials and equipment.
Contractor's Bond for Construction - Form 86A
The name of this form also denotes its use and purpose. It is to be used by the successful bidder in furnishing a bond to guarantee the performance of work covered in a contract for construction or improvements.
This form is not for use in the purchase of supplies, materials and equipment.
General Bid for Public Work - Form 96
This form is for use of bidders in submitting bids or proposals for construction or other public work.
Inventory Sheet - Form 315A
This form is for use in taking an inventory of supplies, materials and equipment. It may also be used as a perpetual inventory record of equipment and other property.
Register of Investments - Form 350
This form is designed to record investment transactions as they occur. A separate line should be used for recording each security and a separate sheet should be used for each fund from which investments are made. Entries will be made chronologically as investments are purchased or as they mature or are sold.
Register of Insurance - Form 351
This form is designed to provide a perpetual record of all insurance policies. The register is valuable in programming insurance coverages and in budgeting for payment of insurance premiums.
Accounts Payable Voucher Register (General Form Number 364)
This form shall be prepared by, or filed with, the fiscal officer together with the supporting account payable vouchers and all such documents shall be carefully preserved by the disbursing officer as a part of the official records of the office. It will be optional with each fiscal officer and each governing board having jurisdiction over the allowance of accounts payable vouchers as to whether to sign each voucher or to sign only General Form Number 364, Accounts Payable Voucher Register. [IC 5-11-10-2 (c)]
Where a mechanized or computerized accounting system is in use, it is permissible to prepare the Accounts Payable Voucher Register on an alternate form. The alternate form must contain the same headings and information shown on the prescribed form and, if accounts payable vouchers are not individually allowed, the form must contain the certification and signatures of the governing body as shown on the prescribed form.
When utility records are kept on a cash or single-entry basis, a separate control account should be carried on General Ledger Sheet, General Form Number 315, in the front of the Consumer's Ledger. This account will be debited with the total monthly billing to all customers for utility services including penalties and sales tax. This account will be credited with the total accounts receivable collections, penalties and sales tax shown by the Register of Daily Cash Receipts - Consumers.
Under normal conditions the individual active accounts of customers should at all times show debit balances and at the end of each month the individual active accounts should be added and the total so obtained checks against the balance of the control account. If any adjustments are necessary to be made either to the control or to the individual active accounts, proper explanation should be recorded in the records.
When any adjustment is made to a customer's account in order to correct an error in a previous charge or credit, a like entry should be made to the control account; debiting the control to increase the charge and crediting the control to decrease the charge in order to keep the total of the individual active accounts in agreement with the control.
After all efforts have been exhausted to effect collection of delinquent accounts, and after service has been discontinued and meter deposits applied, a list of uncollectible accounts should be submitted to the board for approval before being written off and transferred to an uncollectible accounts file. After approval has been made a matter of record the total of these accounts, including the sales tax thereon, will be credited to the control account.
The foregoing procedure for handling uncollectible accounts is not applicable to delinquent sewage disposal charges assessed by a Conservancy District, discussed on page 1-4, or to delinquent charges assessed by a Regional District, discussed on page 2-10.
When utility records are kept on an accrual or double-entry basis the Accounts Receivable account in the General Ledger serves as a control of all individual accounts in the Consumer's Ledger and the foregoing procedure would not be applicable.
- Illustrated Forms
The following forms can be found in the the Appendix at this link.
- Claim (General Form Number 354)
- Accounts Payable Voucher (Town Form Number 39)
- Report of Collections (General Form Number 362)
- Payroll Schedule and Voucher (General Payroll Form Number 99)
- Monthly Financial Statement (General Form Number 360)
- Depository Statement and Cash Reconcilement (General Form Number 360)
- Treasurers Daily Balance of Cash, Depositories and Investments (General Form Number 361)
- Purchase Order (General Form Number 98)
- Employee's Service Record (General Payroll Form Number 99A)
- Mileage Claim (General Form Number 101)
- Register of Investments (General Form Number 350)
- Receipt (General Form Number 352)
- Employee's Earnings Record (General Payroll Form Number 99B)
- Accounts Payable Voucher Register (General Form Number 364)
- Water and Sewage Receipt (Utility Form Number 311)
- Accounts Receivable Control
- Register of Daily Cash Receipts (Utility Form Number 313A)
- Guarantee Deposit Register (Utility Form Number 314)
- Consumer's Ledger (Utility Form Number 321)
- General Ledger Sheet (Utility Form Number 315)
- Water Utility Simplified Cash Journal (Class C) Form Number 319
- Capital Asset Ledger (General Form Number 369)
- Uniform System of Accounts for Water and Wastewater
Classification of Water and Wastewater Utilities
Chart of Accounts for Class A or B Water Utility
Chart of Accounts for Class C Water Utilities
Chart of Accounts for Class A or B Wastewater Utility
Chart of Accounts for Class C Wastewater Utilities
CLASSIFICATION OF WATER AND WASTEWATER UTILITIES
Water and Wastewater Utility Classes (based on annual revenues):
- Class A: $1,000,000 and more
- Class B: $200,000 to $999,999
- Class C: Less than $200,000
Generally, Class A & B utilities maintain their records on the accrual basis and Class C utilities maintain their records on the cash basis.
CHART OF ACCOUNTS FOR CLASS A OR B WATER UTILITY:BALANCE SHEET ACCOUNTS:
ASSETS AND OTHER DEBITS
Utility Plant
101 Utility Plant in Service
102 Utility Plant Leased to Others
103 Property Held for Future Use
104 Utility Plant Purchased or Sold
105 Construction Work in Progress
108 Accumulated Depreciation of Utility Plant in Service
110 Accumulated Amortization of Utility Plant in Service
114 Utility Plant Acquisition Adjustments
115 Accumulated Amortization of Utility Plant Acquisition AdjustmentsOther Property and Investments
121 Nonutility Property
122 Accumulated Depreciation and Amortization of Nonutility Property
123 Investment in Associated Companies
124 Utility Investments
125 Other Investments
127 Other Special FundsCurrent and Accrued Assets
131 Cash
131.1 Cash on Hand
131.2 Cash in Bank
132 Special Deposits
134 Working Funds
135 Temporary Cash Investments
141 Customer Accounts Receivable
142 Other Accounts Receivable
143 Allowance for Uncollectible Accounts (Credit)
144 Notes Receivable
145 Accounts Receivable from Associated Companies
146 Notes Receivable from Associated Companies
151 Plant Materials and Supplies
162 Prepayments
171 Accrued Interest Receivable
174 Miscellaneous Current and Accrued AssetsDeferred Debits
181 Unamortized Debt Discount and Expense
182 Extraordinary Property Losses
186 Miscellaneous Deferred DebitsLIABILITIES AND EQUITY
Equity
215 Net AssetsLong-Term Debt
221 Bonds
223 Advances from Associated Companies
224 Other Long-Term DebtCurrent and Accrued Liabilities
231 Accounts Payable
232 Notes Payable
233 Accounts Payable to Associated Companies
234 Notes Payable to Associated Companies
235 Customer Deposits
236 Accrued Taxes
237 Accrued Interest
239 Matured Long-Term Debt
240 Matured Interest
241 Miscellaneous Current and Accrued LiabilitiesDeferred Credits
251 Unamortized Premium on Debt
252 Advances for Construction
253 Other Deferred CreditsOperating Reserves
261 Property Insurance Reserve
262 Injuries and Damages Reserve
263 Pensions and Benefits Reserve
265 Miscellaneous Operating ReservesContributions in Aid of Construction
271 Contributions in Aid of Construction(Account for use by utilities under the jurisdiction of the Indiana Utility Regulatory Commission. This account will be combined with Net Assets for financial reporting purposes.)
WATER UTILITY PLANT ACCOUNTS
301 Organization
302 Franchises
303 Land and Land Rights
304 Structures and Improvements
305 Collecting and Impounding Reservoirs
306 Lakes, River and Other Intakes
307 Wells and Springs
308 Infiltration Galleries and Tunnels
309 Supply Mains
310 Power Generation Equipment
311 Pumping Equipment
320 Water Treatment Equipment
330 Distribution Reservoirs and Standpipes
331 Transmission and Distribution Mains
333 Services
334 Meters and Meter Installations
335 Hydrants
336 Backflow Prevention Devices
339 Other Plant and Miscellaneous Equipment
340 Office Furniture and Equipment
341 Transportation Equipment
342 Stores Equipment
343 Tools, Shop and Garage Equipment
344 Laboratory Equipment
345 Power Operated Equipment
346 Communication Equipment
347 Miscellaneous Equipment
348 Other Tangible Plant
CLASS A AND B WATER OPERATING REVENUE ACCOUNTS460 Unmetered Water Revenue
461 Metered Water Revenue
461.1 Metered Sales to Residential Customers
461.2 Metered Sales to Commercial Customers
461.3 Metered Sales to Industrial Customers
461.4 Metered Sales to Public Authorities
461.5 Metered Sales to Multiple Family Dwellings
462 Fire Protection Revenue
462.1 Public Fire Protection
462.2 Private Fire Protection
464 Other Sales to Public Authorities
465 Sales to Irrigation Customers
466 Sales for Resale
467 Interdepartmental Sales
469 Guaranteed Revenues
470 Forfeited Discounts
471 Miscellaneous Service Revenues
472 Rents From Water Property
473 Interdepartmental Rents
474 Other Water Revenues
CLASS A AND B WATER OPERATION AND MAINTENANCE EXPENSE ACCOUNTSSource of Supply and Expenses - Operations
601.1 Salaries and Wages - Employees
603.1 Salaries and Wages - Officers, Directors and Majority Stockholders
604.1 Employee Pensions and Benefits
610.1 Purchased Water
615.1 Purchased Power
616.1 Fuel for Power Production
618.1 Chemicals
620.1 Materials and Supplies
631.1 Contractual Services - Engineering
632.1 Contractual Services - Accounting
633.1 Contractual Services - Legal
634.1 Contractual Services - Management Fees
635.1 Contractual Services - Testing
636.1 Contractual Services - Other
641.1 Rental of Building/Real Property
642.1 Rental of Equipment
650.1 Transportation Expenses
656.1 Insurance - Vehicle
657.1 Insurance - General Liability
658.1 Insurance - Workman’s Compensation
659.1 Insurance - Other
667.1 Regulatory Commission Expense - Other
668.1 Water Resource Conservation Expense
675.1 Miscellaneous ExpensesSource of Supply and Expenses - Maintenance
601.2 Salaries and Wages - Employees
603.2 Salaries and Wages - Officers, Directors and Majority Stockholders
604.2 Employee Pensions and Benefits
618.2 Chemicals
620.2 Materials and Supplies
631.2 Contractual Services - Engineering
632.2 Contractual Services - Accounting
633.2 Contractual Services - Legal
634.2 Contractual Services - Management Fees
635.2 Contractual Services - Testing
636.2 Contractual Services - Other
641.2 Rental of Building/Real Property
642.2 Rental of Equipment
650.2 Transportation Expenses
656.2 Insurance - Vehicle
657.2 Insurance - General Liability
658.2 Insurance - Workman’s Compensation
659.2 Insurance - Other
667.2 Regulatory Commission Expense - Other
675.2 Miscellaneous ExpensesWater Treatment Expenses - Operations
601.3 Salaries and Wages - Employees
603.3 Salaries and Wages - Officers, Directors and Majority Stockholders
604.3 Employee Pensions and Benefits
615.3 Purchased Power
616.3 Fuel for Power Production
618.3 Chemicals
620.3 Materials and Supplies
631.3 Contractual Services - Engineering
632.3 Contractual Services - Accounting
633.3 Contractual Services - Legal
634.3 Contractual Services - Management Fees
635.3 Contractual Services - Testing
636.3 Contractual Services - Other
641.3 Rental of Building/Real Property
642.3 Rental of Equipment
650.3 Transportation Expenses
656.3 Insurance - Vehicle
657.3 Insurance - General Liability
658.3 Insurance - Workman’s Compensation
659.3 Insurance - Other
667.3 Regulatory Commission Expense - Other
675.3 Miscellaneous ExpensesWater Treatment Expenses - Maintenance
601.4 Salaries and Wages - Employees
603.4 Salaries and Wages - Officers, Directors and Majority Stockholders
604.4 Employee Pensions and Benefits
618.4 Chemicals
620.4 Materials and Supplies
631.4 Contractual Services - Engineering
632.4 Contractual Services - Accounting
633.4 Contractual Services - Legal
634.4 Contractual Services - Management Fees
635.4 Contractual Services - Testing
636.4 Contractual Services - Other
641.4 Rental of Building/Real Property
642.4 Rental of Equipment
650.4 Transportation Expenses
656.4 Insurance - Vehicle
657.4 Insurance - General Liability
658.4 Insurance - Workman’s Compensation
659.4 Insurance - Other
667.4 Regulatory Commission Expense - Other
675.4 Miscellaneous ExpensesTransmission and Distribution Expenses - Operations
601.5 Salaries and Wages - Employees
603.5 Salaries and Wages - Officers, Directors and Majority Stockholders
604.5 Employee Pensions and Benefits
615.5 Purchased Power
616.5 Fuel for Power Production
618.5 Chemicals
620.5 Materials and Supplies
631.5 Contractual Services - Engineering
632.5 Contractual Services - Accounting
633.5 Contractual Services - Legal
634.5 Contractual Services - Management Fees
635.5 Contractual Services - Testing
636.5 Contractual Services - Other
641.5 Rental of Building/Real Property
642.5 Rental of Equipment
650.5 Transportation Expenses
656.5 Insurance - Vehicle
657.5 Insurance - General Liability
658.5 Insurance - Workman’s Compensation
659.5 Insurance - Other
667.5 Regulatory Commission Expense - Other
675.5 Miscellaneous ExpensesTransmission and Distribution Expenses - Maintenance
601.6 Salaries and Wages - Employees
603.6 Salaries and Wages - Officers, Directors and Majority Stockholders
604.6 Employee Pensions and Benefits
618.6 Chemicals
620.6 Materials and Supplies
631.6 Contractual Services - Engineering
632.6 Contractual Services - Accounting
633.6 Contractual Services - Legal
634.6 Contractual Services - Management Fees
635.6 Contractual Services - Testing
636.6 Contractual Services - Other
641.6 Rental of Building/Real Property
642.6 Rental of Equipment
650.6 Transportation Expenses
656.6 Insurance - Vehicle
657.6 Insurance - General Liability
658.6 Insurance - Workman’s Compensation
659.6 Insurance - Other
667.6 Regulatory Commission Expense - Other
675.6 Miscellaneous ExpensesCustomer Accounts Expenses
601.7 Salaries and Wages - Employees
603.7 Salaries and Wages - Officers, Directors and Majority Stockholders
604.7 Employee Pensions and Benefits
615.7 Purchased Power
616.7 Fuel for Power Production
620.7 Materials and Supplies
631.7 Contractual Services - Engineering
632.7 Contractual Services - Accounting
633.7 Contractual Services - Legal
634.7 Contractual Services - Management Fees
635.7 Contractual Services - Testing
636.7 Contractual Services - Other
641.7 Rental of Building/Real Property
642.7 Rental of Equipment
650.7 Transportation Expenses
656.7 Insurance - Vehicle
657.7 Insurance - General Liability
658.7 Insurance - Workman’s Compensation
659.7 Insurance - Other
667.7 Regulatory Commission Expense - Other
670.7 Bad Debt Expense
675.7 Miscellaneous ExpensesAdministrative and General Expenses
601.8 Salaries and Wages - Employees
603.8 Salaries and Wages - Officers, Directors and Majority Stockholders
604.8 Employee Pensions and Benefits
615.8 Purchased Power
616.8 Fuel for Power Production
620.8 Materials and Supplies
631.8 Contractual Services - Engineering
632.8 Contractual Services - Accounting
633.8 Contractual Services - Legal
634.8 Contractual Services - Management Fees
635.8 Contractual Services - Testing
636.8 Contractual Services - Other
641.8 Rental of Building/Real Property
642.8 Rental of Equipment
650.8 Transportation Expenses
656.8 Insurance - Vehicle
657.8 Insurance - General Liability
658.8 Insurance - Workman’s Compensation
659.8 Insurance - Other
666.8 Regulatory Commission Expense - Amortization of Rate Case Expense
667.8 Regulatory Commission Expense - Other
675.8 Miscellaneous Expenses
CHART OF ACCOUNTS FOR CLASS C WATER UTILITY:
CLASS C WATER OPERATING REVENUE ACCOUNTS460 Unmetered Water Revenue
460.1 Unmetered Sales to Residential Customers
460.2 Unmetered Sales to Commercial Customers
460.3 Unmetered Sales to Industrial Customers
460.4 Unmetered Sales to Public Authorities
460.5 Unmetered Sales to Multiple Family Dwellings
460.6 Unmetered Sales - Other
461 Metered Water Revenue
461.1 Metered Sales to Residential Customers
461.2 Metered Sales to Commercial Customers
461.3 Metered Sales to Industrial Customers
461.4 Metered Sales to Public Authorities
461.5 Metered Sales to Multiple Family Dwellings
462 Fire Protection Revenue
465 Sales to Irrigation Customers
466 Sales for Resale
469 Guaranteed Revenues
474 Other Water Revenues
CLASS C WATER OPERATION AND MAINTENANCE EXPENSE ACCOUNTS601 Salaries and Wages - Employees
603 Salaries and Wages - Officers, Directors and Majority Stockholders
604 Employee Pensions and Benefits
610 Purchased Water
615 Purchased Power
616 Fuel for Power Production
618 Chemicals
620 Materials and Supplies
630 Contractual Services - Billing
631 Contractual Services - Professional
635 Contractual Services - Testing
636 Contractual Services - Other
640 Rents
650 Transportation Expenses
655 Insurance Expense
665 Regulatory Commission Expenses
670 Bad Debt Expense
671 Depreciation and Amortization
675 Miscellaneous Expenses
CHART OF ACCOUNTS FOR CLASS A OR B WASTEWATER (SEWER) UTILITY:
BALANCE SHEET ACCOUNTS:ASSETS AND OTHER DEBITS
Utility Plant
101 Utility Plant in Service
102 Utility Plant Leased to Others
103 Property Held for Future Use
104 Utility Plant Purchased or Sold
105 Construction Work in Progress
108 Accumulated Depreciation of Utility Plant in Service
110 Accumulated Amortization of Utility Plant in Service
114 Utility Plant Acquisition Adjustments
115 Accumulated Amortization of Utility Plant Acquisition AdjustmentsOther Property and Investments
121 Nonutility Property
122 Accumulated Depreciation and Amortization of Nonutility Property
123 Investment in Associated Companies
124 Utility Investments
125 Other Investments
127 Other Special FundsCurrent and Accrued Assets
131 Cash
131.1 Cash on Hand
131.2 Cash in Bank
132 Special Deposits
134 Working Funds
135 Temporary Cash Investments
141 Customer Accounts Receivable
142 Other Accounts Receivable
143 Allowance for Uncollectible Accounts (Credit)
144 Notes Receivable
145 Accounts Receivable from Associated Companies
146 Notes Receivable from Associated Companies
151 Plant Materials and Supplies
162 Prepayments
171 Accrued Interest Receivable
174 Miscellaneous Current and Accrued AssetsDeferred Debits
181 Unamortized Debt Discount and Expense
182 Extraordinary Property Losses
186 Miscellaneous Deferred DebitsLIABILITIES AND EQUITY
Equity
215 Net AssetsLong-Term Debt
221 Bonds
223 Advances from Associated Companies
224 Other Long-Term DebtCurrent and Accrued Liabilities
231 Accounts Payable
232 Notes Payable
233 Accounts Payable to Associated Companies
234 Notes Payable to Associated Companies
235 Customer Deposits
236 Accrued Taxes
237 Accrued Interest
239 Matured Long-Term Debt
240 Matured Interest
241 Miscellaneous Current and Accrued LiabilitiesDeferred Credits
251 Unamortized Premium on Debt
252 Advances for Construction
253 Other Deferred CreditsOperating Reserves
261 Property Insurance Reserve
262 Injuries and Damages Reserve
263 Pensions and Benefits Reserve
265 Miscellaneous Operating ReservesWASTEWATER UTILITY PLANT ACCOUNTS
351 Organization
352 Franchises
353 Land and Land Rights
354 Structures and Improvements
355 Power Generating Equipment
360 Collection Sewers - Force
361 Collection Sewers - Gravity
362 Special Collecting Structures
363 Services to Customers
364 Flow Measuring Devices
365 Flow Measuring Installations
366 Reuse Systems
367 Reuse Meters and Meter Installations
370 Receiving Wells
371 Pumping Equipment
374 Reuse Distribution Reservoirs
375 Reuse Transmission and Distribution System
380 Treatment and Disposal Equipment
381 Plant Sewers
382 Outfall Sewer Lines
389 Other Plant and Miscellaneous Equipment
390 Office Furniture and Equipment
391 Transportation Equipment
392 Stores Equipment
393 Tools, Shop and Garage Equipment
394 Laboratory Equipment
395 Power Operated Equipment
396 Communication Equipment
397 Miscellaneous Equipment
398 Other Tangible Plant
CLASS A AND B WASTEWATER OPERATING REVENUE ACCOUNTS521 Flat Rate Revenues
521.1 Residential Revenues
521.2 Commercial Revenues
521.3 Industrial Revenues
521.4 Revenues From Public Authorities
521.5 Multiple Family Dwelling Revenues
521.6 Other Revenues
522 Measured Revenue
522.1 Residential Revenues
522.2 Commercial Revenues
522.3 Industrial Revenues
522.4 Revenues From Public Authorities
522.5 Multiple Family Dwelling Revenues
523 Revenues From Public Authorities
524 Revenues From Other Systems
525 Interdepartmental Revenues
530 Guaranteed Revenues
531 Sale of Sludge
532 Forfeited Discounts
534 Rents From Wastewater Property
535 Interdepartmental Rents
536 Other Wastewater Revenues
540 Flat Rate Reuse Revenues
540.1 Residential Reuse Revenues
540.2 Commercial Reuse Revenues
540.3 Industrial Reuse Revenues
540.4 Reuse Revenues From Public Authorities
540.5 Other Revenues
541 Measured Reuse Revenue
541.1 Residential Reuse Revenues
541.2 Commercial Reuse Revenues
541.3 Industrial Reuse Revenues
541.4 Reuse Revenues From Public Authorities
544 Reuse Revenues From Other Systems
CLASS A AND B WASTEWATER UTILITIES OPERATION AND MAINTENANCE EXPENSE ACCOUNTSCollection Expenses - Operations
701.1 Salaries and Wages - Employees
703.1 Salaries and Wages - Officers, Directors and Majority Stockholders
704.1 Employee Pensions and Benefits
715.1 Purchased Power
716.1 Fuel for Power Production
718.1 Chemicals
720.1 Materials and Supplies
731.1 Contractual Services - Engineering
732.1 Contractual Services - Accounting
733.1 Contractual Services - Legal
734.1 Contractual Services - Management Fees
735.1 Contractual Services - Testing
736.1 Contractual Services - Other
741.1 Rental of Building/Real Property
742.1 Rental of Equipment
750.1 Transportation Expenses
756.1 Insurance - Vehicle
757.1 Insurance - General Liability
758.1 Insurance - Workman’s Compensation
759.1 Insurance - Other
775.1 Miscellaneous ExpensesCollection Expenses - Maintenance
701.2 Salaries and Wages - Employees
703.2 Salaries and Wages - Officers, Directors and Majority Stockholders
704.2 Employee Pensions and Benefits
718.2 Chemicals
720.2 Materials and Supplies
731.2 Contractual Services - Engineering
732.2 Contractual Services - Accounting
733.2 Contractual Services - Legal
734.2 Contractual Services - Management Fees
735.2 Contractual Services - Testing
736.2 Contractual Services - Other
741.2 Rental of Building/Real Property
742.2 Rental of Equipment
750.2 Transportation Expenses
756.2 Insurance - Vehicle
757.2 Insurance - General Liability
758.2 Insurance - Workman’s Compensation
759.2 Insurance - Other
775.2 Miscellaneous ExpensesPumping Expenses - Operations
701.3 Salaries and Wages - Employees
703.3 Salaries and Wages - Officers, Directors and Majority Stockholders
704.3 Employee Pensions and Benefits
715.3 Purchased Power
716.3 Fuel for Power Production
718.3 Chemicals
720.3 Materials and Supplies
731.3 Contractual Services - Engineering
732.3 Contractual Services - Accounting
733.3 Contractual Services - Legal
734.3 Contractual Services - Management Fees
735.3 Contractual Services - Testing
736.3 Contractual Services - Other
741.3 Rental of Building/Real Property
742.3 Rental of Equipment
750.3 Transportation Expenses
756.3 Insurance - Vehicle
757.3 Insurance - General Liability
758.3 Insurance - Workman’s Compensation
759.3 Insurance - Other
775.3 Miscellaneous Expenses Pumping Expenses - MaintenanceTreatment and Disposal Expenses - Operations
701.5 Salaries and Wages - Employees
703.5 Salaries and Wages - Officers, Directors and Majority Stockholders
704.5 Employee Pensions and Benefits
710.5 Purchased Wastewater Treatment
711.5 Sludge Removal Expense
715.5 Purchased Power
716.5 Fuel for Power Production
718.5 Chemicals
720.5 Materials and Supplies
731.5 Contractual Services - Engineering
732.5 Contractual Services - Accounting
733.5 Contractual Services - Legal
734.5 Contractual Services - Management Fees
735.5 Contractual Services - Testing
736.5 Contractual Services - Other
741.5 Rental of Building/Real Property
742.5 Rental of Equipment
750.5 Transportation Expenses
756.5 Insurance - Vehicle
757.5 Insurance - General Liability
758.5 Insurance - Workman’s Compensation
759.5 Insurance - Other
775.5 Miscellaneous ExpensesTreatment and Disposal Expenses - Maintenance
701.6 Salaries and Wages - Employees
703.6 Salaries and Wages - Officers, Directors and Majority Stockholders
704.6 Employee Pensions and Benefits
711.6 Sludge Removal Expense
718.6 Chemicals
720.6 Materials and Supplies
731.6 Contractual Services - Engineering
732.6 Contractual Services - Accounting
733.6 Contractual Services - Legal
734.6 Contractual Services - Management Fees
735.6 Contractual Services - Testing
736.6 Contractual Services - Other
741.6 Rental of Building/Real Property
742.6 Rental of Equipment
750.6 Transportation Expenses
756.6 Insurance - Vehicle
757.6 Insurance - General Liability
758.6 Insurance - Workman’s Compensation
759.6 Insurance - Other
775.6 Miscellaneous ExpensesCustomer Accounts Expenses
701.7 Salaries and Wages - Employees
703.7 Salaries and Wages - Officers, Directors and Majority Stockholders
704.7 Employee Pensions and Benefits
715.7 Purchased Power
716.7 Fuel for Power Production
720.7 Materials and Supplies
731.7 Contractual Services - Engineering
732.7 Contractual Services - Accounting
733.7 Contractual Services - Legal
734.7 Contractual Services - Management Fees
735.7 Contractual Services - Testing
736.7 Contractual Services - Other
741.7 Rental of Building/Real Property
742.7 Rental of Equipment
750.7 Transportation Expenses
756.7 Insurance - Vehicle
757.7 Insurance - General Liability
758.7 Insurance - Workman’s Compensation
759.7 Insurance - Other
770.7 Bad Debt Expense
771.7 Depreciation and Amortization
775.7 Miscellaneous ExpensesAdministrative and General Expenses
701.8 Salaries and Wages - Employees
703.8 Salaries and Wages - Officers, Directors and Majority Stockholders
704.8 Employee Pensions and Benefits
715.8 Purchased Power
716.8 Fuel for Power Production
720.8 Materials and Supplies
731.8 Contractual Services - Engineering
732.8 Contractual Services - Accounting
733.8 Contractual Services - Legal
734.8 Contractual Services - Management Fees
735.8 Contractual Services - Testing
736.8 Contractual Services - Other
741.8 Rental of Building/Real Property
742.8 Rental of Equipment
750.8 Transportation Expenses
756.8 Insurance - Vehicle
757.8 Insurance - General Liability
758.8 Insurance - Workman’s Compensation
759.8 Insurance - Other
775.8 Miscellaneous ExpensesReclaimed Water Treatment Expenses - Operations
701.9 Salaries and Wages - Employees
703.9 Salaries and Wages - Officers, Directors and Majority Stockholders
704.9 Employee Pensions and Benefits
715.9 Purchased Power
716.9 Fuel for Power Production
718.9 Chemicals
720.9 Materials and Supplies
731.9 Contractual Services - Engineering
732.9 Contractual Services - Accounting
733.9 Contractual Services - Legal
734.9 Contractual Services - Management Fees
735.9 Contractual Services - Testing
736.9 Contractual Services - Other
741.9 Rental of Building/Real Property
742.9 Rental of Equipment
750.9 Transportation Expenses
756.9 Insurance - Vehicle
757.9 Insurance - General Liability
758.9 Insurance - Workman’s Compensation
759.9 Insurance - Other
775.9 Miscellaneous ExpensesReclaimed Water Treatment Expenses - Maintenance
701.10 Salaries and Wages - Employees
703.10 Salaries and Wages - Officers, Directors and Majority Stockholders
704.10 Employee Pensions and Benefits
718.10 Chemicals
720.10 Materials and Supplies
731.10 Contractual Services - Engineering
732.10 Contractual Services - Accounting
733.10 Contractual Services - Legal
734.10 Contractual Services - Management Fees
735.10 Contractual Services - Testing
736.10 Contractual Services - Other
741.10 Rental of Building/Real Property
742.10 Rental of Equipment
750.10 Transportation Expenses
756.10 Insurance - Vehicle
757.10 Insurance - General Liability
758.10 Insurance - Workman’s Compensation
759.10 Insurance - Other
775.10 Miscellaneous ExpensesReclaimed Water Distribution Expenses - Operations
701.11 Salaries and Wages - Employees
703.11 Salaries and Wages - Officers, Directors and Majority Stockholders
704.11 Employee Pensions and Benefits
715.11 Purchased Power
716.11 Fuel for Power Production
718.11 Chemicals
720.11 Materials and Supplies
731.11 Contractual Services - Engineering
732.11 Contractual Services - Accounting
733.11 Contractual Services - Legal
734.11 Contractual Services - Management Fees
735.11 Contractual Services - Testing
736.11 Contractual Services - Other
741.11 Rental of Building/Real Property
742.11 Rental of Equipment
750.11 Transportation Expenses
756.11 Insurance - Vehicle
757.11 Insurance - General Liability
758.11 Insurance - Workman’s Compensation
759.11 Insurance - Other
775.11 Miscellaneous ExpensesReclaimed Water Distribution Expenses - Maintenance
701.12 Salaries and Wages - Employees
703.12 Salaries and Wages - Officers, Directors and Majority Stockholders
704.12 Employee Pensions and Benefits
718.12 Chemicals
720.12 Materials and Supplies
731.12 Contractual Services - Engineering
732.12 Contractual Services - Accounting
733.12 Contractual Services - Legal
734.12 Contractual Services - Management Fees
735.12 Contractual Services - Testing
736.12 Contractual Services - Other
741.12 Rental of Building/Real Property
742.12 Rental of Equipment
750.12 Transportation Expenses
756.12 Insurance - Vehicle
757.12 Insurance - General Liability
758.12 Insurance - Workman’s Compensation
759.12 Insurance - Other
775.12 Miscellaneous Expenses
CHART OF ACCOUNTS FOR CLASS C WASTEWATER UTILITY:
CLASS C WASTEWATER OPERATING REVENUE ACCOUNTS521 Flat Rate Revenues
521.1 Residential Revenues
521.2 Commercial Revenues
521.3 Industrial Revenues
521.4 Revenues From Public Authorities
521.5 Multiple Family Dwelling Revenues
521.6 Other Revenues
522 Measured Revenue
522.1 Residential Revenues
522.2 Commercial Revenues
522.3 Industrial Revenues
522.4 Revenues From Public Authorities
522.5 Multiple Family Dwelling Revenues
524 Revenues From Other Systems
530 Guaranteed Revenues
536 Other Wastewater Revenues
CLASS C WASTEWATER OPERATION AND MAINTENANCE EXPENSE ACCOUNTS701 Salaries and Wages - Employees
703 Salaries and Wages - Officers, Directors and Majority Stockholders
704 Employee Pensions and Benefits
710 Purchased Wastewater Treatment
711 Sludge Removal Expense
715 Purchased Power
716 Fuel for Power Production
718 Chemicals
720 Materials and Supplies
730 Contractual Services - Billing
731 Contractual Services - Professional
735 Contractual Services - Testing
736 Contractual Services - Other
740 Rents
750 Transportation Expenses
755 Insurance Expenses
770 Bad Debt Expense
771 Depreciation and Amortization
775 Miscellaneous Expenses