Citations Affected: IC 20-5-4-1.8.
Synopsis: School bonds for retirement liability. Permits a school
corporation to issue bonds one time before July 1, 2006, to cover
retirement or severance liability if the school corporation did not issue
bonds for that purpose under a prior statute that has been repealed.
Permits a school corporation that issued bonds under the repealed
statute before December 31, 2004, to issue bonds one additional time
before July 1, 2006, in an amount not to exceed the difference between:
(1) the amount of the prior bond issue (which was limited to 2% of the
school corporation's assessed value); and (2) 2% of the school
corporation's true tax value as of December 31, 2004. Requires a school
corporation that issues bonds for retirement or severance liability to
reduce the property tax levy for certain other funds of the school
corporation in an amount equal to the property tax levy needed for debt
service on the bonds.
Effective: Upon passage.
January 18, 2005, read first time and referred to Committee on Tax and Fiscal Policy.
A BILL FOR AN ACT to amend the Indiana Code concerning
concerning the issuance of bonds under this section to
implement solutions for the school corporation's contractual
retirement or severance liability, and the school corporation
must issue the bonds before July 1, 2006.
(3) The solution to which the bonds are contributing must be reasonably expected to reduce the school corporation's unfunded contractual liability for retirement or severance payments as it existed on June 30, 2001.
(4) The amount of the bonds that may be issued for the purpose described in this section may not exceed:
(A) two percent (2%) of the true tax value of property in the school corporation, for a school corporation that did not issue bonds under IC 20-5-4-1.7 (before its repeal); or
(B) the remainder of:
(i) two percent (2%) of the true tax value of property in the school corporation as of December 31, 2004; minus
(ii) the amount of bonds that the school corporation issued under IC 20-5-4-1.7 (before its repeal);
for a school corporation that issued bonds under IC 20-5-4-1.7 (before its repeal) before December 31, 2004.
(5) Each year that a debt service levy is needed under this section, the school corporation shall reduce the total property tax levy for the school corporation's transportation, school bus replacement, capital projects, or art association and historical society funds in an amount equal to the property tax levy needed for the debt service under this section. The property tax rate for each of these funds shall be reduced each year until the bonds are retired.
(6) The school corporation shall establish a separate debt service fund for repayment of the bonds issued under this section.
(c) Bonds issued for the purpose described in this section shall be issued in the same manner as other bonds of the school corporation.
(d) Bonds issued under this section are not subject to the petition and remonstrance process under IC 6-1.1-20 or to the limitations contained in IC 36-1-15.
(e) This section expires July 1, 2006.
school corporation that issued them, as if IC 20-5-4-1.8, as
added by this act, had not expired.
(2) Each year that a debt service levy is needed for the bonds, the school corporation that issued the bonds shall, in the manner provided by IC 20-5-4-1.8, as added by this act, reduce its total property tax levy in an amount equal to the property tax levy needed for the debt service on the bonds.