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Senate Bill 0018


Senate Bill 0018

ARCHIVE (2008)

Latest Information

 

DIGEST OF SB18 (Updated January 22, 2008 3:54 pm - DI 84)


Limitations on debt. With respect to bonds payable from property taxes, special benefit taxes, or tax increment revenues, prohibits a local issuing body from: (1) issuing refunding bonds that have a repayment date that is beyond the maximum term of the bonds being refunded; or (2) using savings resulting from refunding bonds or surplus proceeds for any purpose other than to maintain a debt service reserve fund, repay bonds, or reduce levies. Requires the local issuing body to pay interest and principal on bonds on a schedule that provides for substantially equal installment amounts and regular payment intervals, except when interest for a particular period has been paid from bond proceeds or an irregular payment schedule is needed: (1) so that total payments on all bonds issued by the local issuing body will remain substantially equal; (2) to permit accelerated principal payments; or (3) as necessary due to variations in the amount of tax increment finance (TIF) revenues available to pay debt service. Provides that the maximum terms for property tax based obligations are: (1) the maximum applicable period under federal law for obligations issued to evidence loans under a federal program; (2) 25 years for TIF obligations; and (3) 20 years for other property tax based obligations. Provides that a capital project that will cost an amount that is at least equal to 0.5% of the total taxable property within the political subdivision is subject to review by a county board of tax and capital projects review even if the cost of the project is less than $7,000,000. Requires a political subdivision to make certain information available to the public at the public hearing on a preliminary determination to issue bonds or enter into a lease. Provides that when publishing notices of proposed bonds or leases, a political subdivision must include information concerning: (1) the political subdivision's current debt service levy and rate; and (2) the estimated increase to the political subdivision's debt service levy and rate that will result if the political subdivision issues the bonds or enters into the lease. Requires lease rentals or bond issues for a controlled project to be approved at a local referendum if the preliminary determination to enter into the lease or issue bonds is made after June 30, 2008, and a sufficient petition requesting the referendum process is filed by the lesser of: (1) 100 persons who are either owners of real property within the political subdivision or registered voters residing within the political subdivision; or (2) 5% of the registered voters residing within the political subdivision. Provides that the petition and remonstrance process applies if the preliminary determination to enter into the lease or issue bonds is made before July 1, 2008. Authorizes a school corporation that, for the most recently completed five school years, had an average increase of at least 4% in the school corporation's ADM to appeal to the county council for an exception to the referendum requirement. Allows a county council to approve the appeal if the county council finds that: (1) the bonds or lease will be for a project that is necessary to accommodate increased enrollment; or (2) delay in issuing the bonds or entering into the lease will result in a significant shortage of classroom space. Provides that a project is not a controlled project for purposes of the referendum process if the project will not cost the political subdivision more than the lesser of: (1) $7,000,000; or (2) the greater of 0.5% of the total taxable property within the political subdivision or $200,000. Provides that a project that is in response to an emergency or natural disaster in a political subdivision and is approved by the county council is not a controlled project for purposes of the referendum process. Makes conforming amendments.
    Current Status:
     In Committee - 2nd House
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