Vermont § 36 - Indebtedness

§ 36. Indebtedness

• (a) Short-term borrowing. The Board of Supervisors may borrow money through the issuance of notes of the District
  for the purpose of paying current expenses of the District. Such notes must mature
  within one year. The Board of Supervisors may also borrow money in anticipation of
  grants-in-aid from any source and any revenues other than assessments through the
  issuance of notes of the District. Such notes must mature within one year, but may
  be renewed as provided by general law. The Board of Supervisors may also borrow money
  in anticipation of assessments to each member municipality in an amount not to exceed
  90 percent of the total amount assessed for each year and may issue notes of the District
  that must mature within one year. The Board of Supervisors may also borrow money
  in anticipation of bond proceeds that have been authorized as provided in this chapter.
  These notes shall be issued as provided in 24 V.S.A. chapter 53. (b) Long-term indebtedness: long-term contracts. (1) Submission to voters. On a petition signed by at least 10 percent of the voters of the District, the proposition
  of incurring a bonded debt to pay for public improvements or of authorizing a long-term
  contract shall be submitted by the Board of Supervisors to the qualified voters thereof
  at a special meeting to be held for that purpose. In the alternative, when the Board
  of Supervisors, at a regular or special meeting of the Board of Supervisors called
  for such purpose, shall determine by vote, that the public interest or necessity demands
  improvements or entry into a long-term contract, and that the cost of the same will
  be too great to be paid out of the ordinary annual income and revenue, it shall order
  the submission of the proposition of incurring bonded debt or of authorizing a long-term
  contract to the qualified voters of the District at a meeting to be held for that
  purpose. A “long-term contract” means a contract in which the District incurs obligations
  for which the costs are too great to be paid out of the ordinary annual income and
  revenues of the District, in the judgment of the Board of Supervisors. The term “public
  improvements” shall include improvements that may be used for the benefit of the public,
  whether or not publicly owned or operated. Bonded debt may be authorized for any
  purpose permitted by 24 V.S.A. chapter 53, or any other applicable statutes for any
  purpose for which the District is organized. The Board of Supervisors may not submit
  to the voters more than twice in the same calendar year the proposition of incurring
  bonded debt to pay for the same or similar public improvement or of entering the same
  or similar long-term contract. (2) Warning of meeting. The warning calling the special meeting of the District to incur bonded debt or to
  authorize a long-term contract shall state the object and purpose for which the indebtedness
  or long-term contract is proposed to be incurred or authorized, the estimated cost
  of public improvements, the amount of bonds proposed to be authorized, and a summary
  of the terms of any long-term contract proposed to be authorized. The warning shall
  fix the places where and the date on which the meeting shall be held and the hours
  of opening and closing the polls. The Board of Supervisors, in consultation with the
  board of civil authority of each member municipality shall determine the number and
  location of polling places; provided, however, there shall be at least one polling
  place in each member municipality. (3) Notice of meeting. The Clerk of the District shall cause notice of such special meeting to be published
  in a newspaper of known circulation in the District once a week for three consecutive
  weeks on the same day of the week, the last publication to be not less than five nor
  more than 10 days before such meeting. Notice of such meeting shall also be posted
  in a minimum of three public places within each member municipality at least 30 and
  not more than 40 days before the meeting and be filed with the Clerk of each member
  municipality and the Clerk of the District prior to posting. (4) Authorization. When a majority of all the voters present and voting on the question from all the
  member municipalities at such special meeting vote to authorize the issuance of bonds
  or to authorize a long-term contract, the District shall be authorized to issue the
  bonds or to enter into the long-term contract. The ballots cast in each member municipality
  shall be commingled and counted by member of the Board of Supervisors with the town
  clerk from each member municipality or his or her designee. Sections 45 (Australian
  ballot), 46 (qualifications and registration of voters), 47 (conduct of meetings),
  48 (reconsideration or rescission of vote), and 49 (validation of District meetings)
  of this chapter shall apply to any District meeting called to incur long-term debt
  or to authorize a long-term contract. (5) Assessment. The cost of debt service or of payments under a long-term contract shall be included
  in the annual budget of the District. The applicable provisions of 24 V.S.A. chapter
  53 or other enabling law under which debt is incurred or long-term contract authorized
  shall apply to the issuance of bonds or other evidence of indebtedness by the District
  and for that purpose the District shall be deemed a “municipal corporation,” the Board
  of Supervisors shall be deemed a “legislative branch,” and the District Treasurer
  shall be deemed a “municipal Treasurer” within the purview of that chapter. Bonds
  or other evidence of indebtedness and long-term contracts shall be signed by the Treasurer
  and Chair of the Board of Supervisors of the District.