Vermont § 25 - Indebtedness

§ 25. Indebtedness

• (a) The Village shall not incur an indebtedness for public improvements that, together
  with previously contracted indebtedness, shall, in the aggregate, exceed the amounts
  authorized by the provisions of 24 V.S.A. chapter 53, subchapter 1 or any amendments
  thereto, except that indebtedness in the form of bonds for public utility purposes
  that are backed solely by the net revenues of a public utility system or project,
  in accord with the provisions of 24 V.S.A. chapter 53, subchapter 2, shall be subject
  in limitation only as provided in that subchapter. (b) Debt may be incurred and bonds issued pursuant to the provisions of 24 V.S.A. chapter
  53, subchapter 1 or any amendments thereto, for any improvements to the water, electric,
  or sewer systems, or communications plant, but no bonds shall be issued for the purpose
  of providing funds for ordinary expenses of the Village, except as otherwise provided
  by this charter or the laws applicable to municipal corporations. (c) An improvement shall include, apart from its ordinary meaning, the acquisition of
  land for municipal purposes, the construction of, extension of, additions to, or remodeling
  of buildings or other improvement thereto, including furnishings, equipment, or apparatus
  to be used for or in connection with any existing or new improvements, work, department,
  or other corporate purpose. (d) When the trustees, at a regular or special meeting called for that purpose, shall,
  by resolution passed by a vote of a majority of the entire Board of Trustees, determine
  that the public interest or necessity demands such improvements and that the cost
  of the same will be too great to be paid out of the ordinary income and revenue available
  to the Village from the operation of municipal electric, water, communications, and
  sewer plants and facilities, they may order the submission of the proposition of making
  such public improvements and of incurring a bonded debt to pay for the same to the
  qualified voters of such Village at a meeting to be held for that purpose. The warning
  calling such meeting shall state the object and purpose for which the indebtedness
  is proposed to be incurred, the estimated cost of the improvements, the amount of
  bonds proposed to be issued therefor and the maximum rate of interest to be paid,
  and shall fix the time and place when and where the meeting shall be held and the
  hours of opening and closing the polls. (e) The notice of such meeting and the approval of such bond issuance shall be in accord
  with the provisions of 24 V.S.A. chapter 53, subchapter 1 or any amendments thereto. (f) Temporary loans may be made and temporary notes issued in anticipation of money to
  be derived from the sale of bonds pursuant to the provisions of 24 V.S.A. chapter
  53, subchapter 1 or any amendments thereto or, in the case of bonds for public utility
  purposes that are backed by the net revenues of a public utility system or project,
  in accord with the provisions of 24 V.S.A. chapter 53, subchapter 2. (g) The Village may, by action of the Board of Trustees, in lieu of the issuance of bonds
  or levy of taxes, and in addition to any other lawful means or methods of providing
  for the payment of indebtedness, have the power by and through the Board of Trustees
  to provide for and secure the payment of all or a part of the cost of any public utility
  pursuant to the provisions of 24 V.S.A. chapter 53, subchapter 2 or any amendments
  thereto.