Citations Affected: IC 36-7.
Synopsis: Public improvement areas. Authorizes counties, cities, and
towns to establish public improvement areas for the purpose of
imposing assessments against real property to provide funding for
infrastructure. Establishes procedures for hearings on the establishment
of a special service area and for computation of assessments against
real property. Establishes procedures for objecting to the establishment
of the area or the initial computation of assessments. Provides that
money raised by the assessments may be used to pay debt service on
bonds or lease rentals under leases.
Effective: Upon passage.
January 15, 2002, read first time and referred to Committee on Local Government.
January 30, 2002, reported _ Do Pass.
February 4, 2002, read second time, amended, ordered engrossed.
A BILL FOR AN ACT to amend the Indiana Code concerning local
government.
ordinance adopted under section 9 of this chapter.
(c) The unit may retain or employ qualified personnel or other
consultants to develop the formula for determining the percentage
of the total benefit accruing to each parcel of real property within
the proposed public improvement area and the method for
apportioning the assessments to be levied on the real property in
the proposed public improvement area.
Sec. 6. Notwithstanding any other law, the unit may negotiate
construction of the infrastructure that serves the public
improvement area.
Sec. 7. (a) The legislative body of a unit:
(1) on its own motion; or
(2) if a verified petition for the establishment of a public
improvement area is filed by fifty-one percent (51%) of the
owners of real property in the proposed public improvement
area;
shall hold a hearing on the establishment of a public improvement
area.
(b) A petition requesting the establishment of a public
improvement area must include the following information:
(1) The boundaries of the proposed public improvement area.
(2) The names and addresses of the owners of real property
within the proposed public improvement area.
(3) A detailed description of the infrastructure to be
developed to serve the proposed public improvement area and
the estimated cost of the infrastructure to be developed.
(4) The plan for the application of assessment revenue to the
cost of the infrastructure to be developed to serve the
proposed public improvement area.
(5) The proposed formula for determining the percentage of
the total benefits accruing to each parcel of real property
within the proposed public improvement area and the method
for apportioning the assessments to be levied on the real
property in the proposed public improvement area.
(6) The estimated number of years that assessments will be
levied.
Sec. 8. (a) After adoption of a motion or receipt of a petition
under section 7 of this chapter, the legislative body shall:
(1) publish notice of a hearing on the proposed public
improvement area, one time, in accordance with IC 5-3-1; and
(2) mail a copy of the notice to each owner of real property
within the proposed public improvement area;
establishment of the proposed public improvement area is filed and
is signed by at least fifty-one percent (51%) of the owners of real
property in the proposed public improvement area:
(1) The proceedings for the establishment of the proposed
public improvement district are terminated.
(2) Beginning one (1) year after the filing of the petition under
this subsection, the legislative body may again begin
proceedings to establish the same proposed public
improvement area. Before establishing the proposed public
improvement area, the legislative body must comply with the
requirements of this section and section 8 of this chapter and
this subsection. Establishment of the proposed public
improvement area is subject to the petition procedure
established by this subsection.
(b) If a petition opposing the establishment of a public
improvement area is not filed within the time specified in
subsection (a), or if a petition filed under subsection (a) is not
signed by at least fifty-one percent (51%) of the owners of real
property in the proposed public improvement area, the legislative
body, after weighing all the evidence, may adopt an ordinance
establishing the public improvement area if it determines that:
(1) the infrastructure to be developed will provide benefit to
the owners of real property in the public improvement area
and will be of public utility and benefit; and
(2) the apportionment of the assessments is appropriate and
bears a reasonable relationship to the benefits to be provided.
(c) An ordinance adopted under this section must include:
(1) the boundaries of the public improvement area;
(2) the formula for determining the percentage of the total
benefits accruing to each parcel of real property within the
public improvement area and for apportioning the
assessments to be levied and collected; and
(3) the estimated number of years that assessments will be
levied.
(d) A copy of an ordinance adopted under this section, certified
by the unit's clerk, shall be recorded in the office of the recorder of
each county in which all or a part of the public improvement area
is located.
Sec. 10. The legislative body must conduct a public hearing
before amending or repealing an ordinance establishing a public
improvement area. The legislative body shall give notice of the
hearing in accordance with IC 5-3-1. The notice must:
add the full annual assessment due in that year to the tax
statements of the person owning the property affected by the
assessment, designating it in a manner distinct from general taxes.
(b) Assessments for benefits under this chapter are a lien upon
each parcel of real property against which the benefits are
assessed. The lien attaches at the time the schedule of assessments
is filed with the county recorder. A lien under this chapter has
equal priority with tax liens and is superior to all other liens. The
lien may be foreclosed upon entry of a judgment on the lien and the
real property sold on execution under IC 34-55-6. Upon the sale,
the proceeds shall be prorated equally among the assessment and
any delinquent taxes. A sale for a delinquent tax or delinquent
assessment does not extinguish the assessment.
(c) Assessments collected under this chapter shall be paid to the
unit's fiscal officer at the same time and in the same manner as the
county treasurer distributes property taxes under IC 6-1.1-27.
Sec. 13. (a) The fiscal officer of the unit shall establish a public
improvement area fund and shall deposit in this fund all revenues
received from assessments levied and collected under this chapter.
(b) All investment earnings from money in the fund shall remain
a part of the fund.
(c) Money in the fund shall be used by the unit for the financing,
acquisition, construction, operation, or maintenance of
infrastructure and for the administration of the public
improvement area.
(d) Any unit adopting assessments under this chapter may
operate the particular type of infrastructure for which an
assessment has been levied and collected under this chapter.
(e) A unit may enter into an agreement with a governmental
entity or other entity or person that has authority to operate the
infrastructure, establishing the terms and conditions under which
the infrastructure will be developed and financed.
Sec. 14. (a) The unit may issue bonds, enter into leases, or incur
other obligations to:
(1) pay any costs associated with the infrastructure to be
developed;
(2) reimburse the unit for any money advanced to pay those
costs;
(3) refund bonds issued or other obligations incurred under
this chapter;
(4) fund a debt service reserve fund;
(5) pay capitalized interest on any bonds issued or obligations
incurred under this chapter; and
(6) pay the cost of issuing the bonds or other obligations
incurred under this chapter.
(b) Bonds or other obligations issued under this section:
(1) are payable solely from money provided by assessments
collected under this chapter or other money legally available
for that purpose;
(2) may, in the discretion of the unit, be sold at a negotiated
sale at a price to be determined by the unit or in accordance
with IC 5-1-11; and
(3) may not constitute a debt of the unit for purposes of the
Constitution of the State of Indiana.
(c) Leases entered into under this section:
(1) may be for a term not to exceed fifty (50) years;
(2) may provide for payments from assessments under this
chapter, any other revenues available to the unit, or any
combination of these sources;
(3) may provide that payments by the unit to the lessor are
required only to the extent and only for the time that the
lessor is able to provide the leased facilities in accordance
with the lease;
(4) must be based upon the value of the infrastructure leased;
and
(5) may not create a debt of the unit for purposes of the
Constitution of the State of Indiana.
(d) A lease may be entered into by the legislative body of the
unit only after a public hearing at which all interested parties are
provided the opportunity to be heard. After the public hearing, the
legislative body may approve the execution of the lease on behalf
of the unit only if the legislative body finds that the service to be
provided throughout the life of the lease will serve the public
purpose of the unit and is in the best interests of its residents.
(e) Upon execution of a lease under this section, the legislative
body shall publish notice of the execution of the lease and the
approval of the lease in accordance with IC 5-3-1.
(f) The legislative body of the unit may pledge money in the fund
to pay bonds issued and lease payments or other obligations
incurred by or on behalf of the unit or a public improvement area
in the unit to provide the infrastructure described in an ordinance
adopted under section 9 of this chapter.
(g) A pledge under subsection (f) is enforceable under
IC 5-1-14-4.