HOUSE BILL No. 1290
DIGEST OF INTRODUCED BILL
Citations Affected: IC 36-9-39.1.
Synopsis: Sewer improvement and extension fund. Authorizes a
municipality to establish a sewer improvement and extension fund and
impose assessments to finance the construction, repair, or improvement
of a sewage works. Provides that assessments are imposed and
collected in the same manner as Barrett Law assessments.
Effective: July 1, 2006.
January 10, 2006, read first time and referred to Committee on Local Government.
Second Regular Session 114th General Assembly (2006)
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HOUSE BILL No. 1290
A BILL FOR AN ACT to amend the Indiana Code concerning local
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 36-9-39.1; (06)IN1290.1.1. -->
SECTION 1. IC 36-9-39.1 IS ADDED TO THE INDIANA CODE
AS A NEW
CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2006]:
Chapter 39.1. Alternative Assessment Financing for Municipal
Sec. 1. This chapter applies to all municipalities.
Sec. 2. As used in this chapter, "board" has the meaning set
forth in IC 36-9-23-5.
Sec. 3. As used in this chapter, "fund" refers to a sewer
improvement and extension fund established under section 5 of this
Sec. 4. If a board wants to construct, repair, extend, or improve
a sewage works, the board may adopt a resolution providing that
the construction, repair, extension, or improvement will be
financed under this chapter.
Sec. 5. (a) A municipality may adopt an ordinance establishing
a sewer improvement and extension fund to finance the
construction, repair, extension, or improvement of a sewage works.
(b) A fund consists of the following:
(1) A special assessment imposed and collected under section
7 of this chapter. However, a special assessment imposed and
collected under any other statute may not be deposited in the
(2) An appropriation to the fund, including an appropriation
made from taxes levied by a municipal legislative body for the
construction, repair, extension, or improvement of a sewage
Sec. 6. (a) The legislative body of a municipality that establishes
a fund may appropriate money from the municipal general fund
and transfer the money to the fund.
(b) During the fiscal year in which a municipality establishes a
fund, the legislative body of the municipality may make an
emergency appropriation from the municipal general fund and
transfer the money to the fund.
Sec. 7. (a) A board may adopt an ordinance or a resolution to
appropriate money from funds under the board's control to pay for
all or part of the cost of the construction, repair, extension, or
improvement of a sewage works.
(b) Any costs not paid under subsection (a) must be paid by:
(1) an assessment imposed under subsection (c) against the
benefited properties; or
(2) a contract under IC 36-9-22.
Any interest or penalties attributable to an assessment under this
section must be deposited in the fund.
(c) The board may adopt a resolution to impose an assessment
to finance the construction, repair, extension, or improvement of
a sewage works. The assessment must be imposed and collected as
provided by the street and sewer improvement statutes.
Sec. 8. (a) A contract for the construction, repair, extension, or
improvement of a sewage works is subject to the statutes
authorizing municipalities to make and finance public
(b) Upon awarding a contract for the construction, repair,
extension, or improvement of a sewage works under this chapter,
a board shall:
(1) carefully compute the entire cost of the construction,
repair, extension, or improvement, including payments to the
contractor and all incidental costs, expenses, and damages
paid and incurred according to law; and
(2) prepare and make out an assessment roll listing the
assessments against the properties benefited.
In determining and fixing the amount of assessments, the giving of
notice of assessments, the holding of public hearings, and the
making of final determinations, subject to the right of appeal from
those determinations, the board is governed by the street and sewer
(c) An assessment under this chapter is a lien against the
benefited property from the time of the letting of the contract and
shall be collected in the manner provided for collection of Barrett
(d) The board shall fix a period of not more than twenty (20)
years within which the assessments shall be paid.
(e) A property owner liable for an assessment may execute a
waiver in the manner provided by the street and sewer
improvement statutes to pay the assessment in annual installments
over a period fixed by the board.
(f) All payments under this chapter are deposited into the fund.