Citations Affected: IC 36-7-32 .
Synopsis: Consolidated service districts. Allows two or more political
subdivisions to create a consolidated service district to provide certain
consolidated services for the area within the district. Allows the district
to impose a uniform tax rate levy on all property within the district.
Provides that in the first year the district is created, the political
subdivision retains 20% of the property taxes that would have been
used for the service. Reduces the service district's tax levy to 80% of
the amount collected in the political subdivision.
Effective: July 1, 2002.
January 14, 2002, read first time and referred to Committee on Rules and Legislative
A BILL FOR AN ACT to amend the Indiana Code concerning local
IS ADDED TO THE INDIANA CODE AS
A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
Chapter 32. Consolidated Service District
Sec. 1. This chapter applies to a geographic area that is established as a consolidated service district.
Sec. 2. As used in this chapter, "authorizing instrument" means:
(1) an ordinance for a county, city, or town; and
(2) a resolution for all other political subdivisions.
Sec. 3. As used in this chapter, "district" refers to a consolidated service district established under this chapter.
Sec. 4. As used in this chapter, "participating unit" refers to a political subdivision that adopts an authorizing instrument under section 7 of this chapter.
Sec. 5. As used in this chapter, "service" means any municipal service that a political subdivision is authorized to provide.
Sec. 6. The fiscal bodies of at least two (2) political subdivisions
may establish a district to provide any service provided through at
least one (1) of the political subdivisions.
Sec. 7. (a) To establish a district, the fiscal bodies of each political subdivision desiring to become a part of the proposed district must adopt identical authorizing instruments after January 1 but before April 1 to become a party to an agreement for the establishment of a district. The authorizing instrument must include at least the following:
(1) The boundaries of the proposed district.
(2) The identity of all participating units desiring to be included within the territory.
(3) An agreement to impose a uniform tax rate upon all the taxable property within the district.
(4) The contents of the agreement to establish the district.
(5) A procedure for the dissolution of the district.
(6) A procedure to transfer to the district any political subdivision property that is used in providing the service.
(b) An authorizing instrument adopted under this section takes effect July 1 of the year the authorizing instrument is adopted.
Sec. 8. (a) A consolidated service district board is established in each district established under this chapter.
(b) The members of the district board consist of:
(1) two (2) residents from each participating political subdivision, appointed by the fiscal body; and
(2) one (1) member of the fiscal body from each participating political subdivision, serving as an ex officio member.
(c) Members of the board serve a term of four (4) years.
(d) If a vacancy occurs on the board, the appointing authority shall appoint a replacement member to serve the remainder of the unexpired term.
Sec. 9. (a) The board shall fix the time for holding regular meetings.
(b) Special meetings of the board may be called by the chairperson or by at least two (2) members upon written request to the secretary. At least three (3) days before a special meeting, the secretary shall send to all members a written notice fixing the date, time, and place of the meeting. However, written notice of a special meeting is not required if:
(1) the date and time of the special meeting has been fixed in a regular meeting; or
(2) all members were present at a meeting at which a special meeting was called.
the financial transactions of the district and a statement of the
progress in accomplishing the purposes for which the district
has been established.
(8) The board shall adopt a seal and certify all official acts.
(9) The board may sue and be sued collectively by its legal name ("Consolidated Service District Board, __________ Consolidated Service District"), with service of process made on the chairperson of the board. However, costs may not be taxed against the members individually in an action.
(10) The board 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.
(11) The board shall prepare and submit to the fiscal body of each participating unit an annual budget for operation and maintenance expenses and for the retirement of obligations of the district.
(12) The board may enter into agreements with and accept money from a federal or state agency and enter into agreements with a municipality located inside 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.
(13) The board may accept gifts of money or other property to be used for the purposes for which the district is established.
(14) The board may levy taxes at a uniform rate on the real and personal property within the district.
(15) The board may issue bonds and tax anticipation warrants.
(16) The board may incur other debts and liabilities.
(17) The board may purchase or rent property.
(18) The board may sell property or provide services for compensation if the property is produced or the services are provided incident to the operations of the district, making a fair and reasonable charge for the property or services.
(19) The board 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.
(20) The board may receive and disburse money.
(21) The board may engage in any other activity, purpose, or function related to the provision of correctional services for
(b) Powers granted by this chapter may be used only to accomplish the purpose or purposes as stated in the authorizing instrument 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 a purpose for which the district is established.
(c) If the amount levied in a particular year exceeds the amount necessary to cover the costs incurred in providing services within the district, the levy in the following year shall be reduced by the amount of surplus money.
Sec. 12. (a) Except as provided in subsection (b), the department of local government finance, when approving a rate and levy fixed by each participating unit, shall verify that a duplication of tax levies does not exist within participating units so that taxpayers do not bear two (2) levies for the same service.
(b) A unit that incurred indebtedness for services before becoming a participating unit under this chapter shall continue to repay that indebtedness by levies within the boundaries of the unit until the indebtedness is paid in full.
Sec. 13. (a) In the year that a tax levy is imposed under section 11(a)(14) of this chapter, each respective participating unit's tax levies attributable to providing the services within the unit that will be provided by the district shall be reduced by an amount equal to eighty percent (80%) of the amount levied for services in the year immediately preceding the year in which each respective unit became a participating unit. In the year that a tax levy is imposed under section 11(a)(14) of this chapter, twenty percent (20%) of each respective participating unit's tax levies attributable to providing the services within the unit that will be provided by the district shall be distributed to the participating unit's general fund.
(b) In the second year that a tax levy is imposed under section 11(a)(14) of this chapter, each respective participating unit's tax levies attributable to providing the services within the unit that will be provided by the district shall be reduced by an amount equal to the amount levied in the immediately preceding year.
(c) The initial tax levy imposed under section 11(a)(14) of this section may not exceed the amount in STEP THREE of the following formula:
STEP ONE. Determine each political subdivision's tax levy for the services that will be performed by the district that
were performed by the political subdivision in the year before
the tax levy is imposed under section 11(a)(14) of this chapter.
STEP TWO. Add the amount determined for each political subdivision under STEP ONE.
STEP THREE. Multiply the result of STEP TWO by eighty percent (80%).
Sec. 14. (a) If a participating unit elects to withdraw from a district established under this chapter, the participating unit must, after January 1 but before April 1, adopt an authorizing instrument providing for the withdrawal. If not provided otherwise in the procedure for dissolution, an authorizing instrument adopted under this section takes effect January 1 of the second year after the authorizing instrument is adopted.
(b) If an authorizing instrument is adopted under subsection (a):
(1) the unit's maximum permissible ad valorem property tax levy with respect to services formerly provided by the district shall be initially increased by the amount of the particular unit's previous year levy under this chapter; and
(2) additional increases with respect to services levy amounts are subject to the tax levy limitations under IC 6-1.1-18.5 , except for the part of the unit's levy that is necessary to retire the unit's share of any debt incurred while the unit was a participating unit.
Sec. 15. Participating unit property that is used to provide a service that will be performed by the district must be transferred to the district under the procedure established in the authorizing instrument.