Vermont § 40 - Indebtedness

§ 40. 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 in an amount not to exceed 90 percent of the 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. The Board of Supervisors
  may engage in capital asset financing by any other means allowed by law. (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 or other indebtedness 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 resolution
  passed by a vote of a majority of members present and voting that the public interest
  or necessity demands improvements or a long-term contract, it shall order the submission
  of the proposition of incurring bonded debt or other 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 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 terms “long-term contract” and “debt” or “indebtedness” shall not include any
  contract that is subject to annual renewal or extension at the election of the District
  or any contract pursuant to which payment by the District shall be subject to annual
  appropriations in accordance with the annual budget or any contract for services or
  the purchase or lease of equipment, materials, or supplies needed in the ordinary
  course of business of the District. 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 or other indebtedness 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 or other
  indebtedness to pay for the same or similar public improvement or of entering the
  same or similar long-term contract. (2) Sale of evidence of indebtedness. Any bonds, notes, or other evidence of indebtedness of the District may be sold at
  par, premium, or discount at public or private sale or to the Vermont Municipal Bond
  bank as the District, by a two-thirds vote of the Board of Supervisors, shall determine.
  For this action, each member of the Board of Supervisors shall cast one vote. Such
  indebtedness shall constitute a joint and several general obligation of the District
  and its members. (3) 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. (4) 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 the meeting shall also be posted
  in at least two 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. (5) Informational hearing. The Board of Supervisors shall call, notice, and conduct at least one public informational
  hearing preceding the date of the special meeting in the manner provided in section
  46 of this chapter. (6) 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 counted by the election
  officials of each member municipality, preserved and secured with the checklist, and
  thereafter the results shall be certified to the District Clerk within 48 hours, who
  shall then certify the aggregate votes in favor and opposed to the proposition. Subchapter
  5, sections 50 (Australian ballot), 51 (Qualifications and registration of voters),
  52 (Conduct of meetings), 53 (Reconsideration or recession of vote), and 54 (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. (7) 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 sections 36 and 37 of this chapter unless otherwise provided by applicable
  law and in the vote authorizing the same. The applicable provisions 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. (Amended 2011, No. M-11 (Adj. Sess.), § 2, eff. July 12, 2012.)