Vermont § 38 - Indebtedness

§ 38. 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
  assessment to each member municipality in an amount not to exceed 90 percent of the
  amount assessed for that year, and may issue notes of the District, which 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 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) Bonded indebtedness and long-term contracts. (1) Submission to voters. On a petition signed by at least five percent of the voters of the District, the proposition
  of incurring a bonded debt or other indebtedness to pay for public improvements or
  of authorizing a long-term contract in lieu of incurring indebtedness 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 resolution passed by a vote of a majority of members present and voting
  that the public interest on necessity demands improvements or a long-term contract,
  and that the costs 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
  indebtedness 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 over a term of more than three years
  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” includes improvements as defined in 24 V.S.A. chapter 53, whether or
  not publicly owned or operated. Bonded debt or other indebtedness may be authorized
  for any purpose permitted by 24 V.S.A. chapter 53 or 119, and 10 V.S.A. chapter 12,
  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 or other indebtedness to pay for
  the same or similar public improvement or of entering the same or similar long-term
  contract. (2) Warnings of meeting. The warning calling the special meeting of the District to incur bonded debt or other
  indebtedness 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 the improvements or service, the amount of bonds or other evidence
  of indebtedness proposed to be authorized, a summary of the terms of any contract
  proposed to be authorized, and means of raising or apportioning costs entailed thereby
  for debt service or payments under a long-term contract. 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 cooperation 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 at least five 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 other evidence of indebtedness or to authorize a long-term contract, the District
  shall be authorized to issue the bonds or other evidence of indebtedness as provided
  in 24 V.S.A. chapter 53 or other applicable statutes, or to enter into the long-term
  contract. The ballots cast in each member municipality shall be commingled and counted
  by members of the Board of Supervisors together with the town or city clerk from each
  member municipality, or the clerk’s designee. Sections 48 (Australian ballot), 49
  (qualifications and registration of voters), 50 (conduct of meetings), 51 (reconsideration
  or rescission of vote), and 52 (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, and shall be allocated among the member municipalities
  as provided in subsection 35(c) of this chapter unless otherwise provided by applicable
  law and in the vote authorizing the same. The applicable provision of 24 V.S.A. chapter
  53, or other enabling law under which debt is incurred or long-term contracts 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. (6) Special limitation. The Board of Supervisors shall not submit to the legal voters of the District any
  proposition to issue bonds or other long-term indebtedness or to authorize a long-term
  contract less than 18 months after the District has become a body politic and corporate. (Amended 2017, No. M-1, § 1.)