Vermont § 405 - Indebtedness

§ 405. 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 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
  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 herein. Said
  notes shall be issued as provided in 24 V.S.A. chapter 53. (b) Long-term indebtedness. (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 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, 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 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 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
  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, that 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 combined 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. Subchapter 5 of this chapter §§ 507 (Australian ballot), 508 (qualifications and registration of voters), 509 (conduct of meeting), 510 (reconsideration or rescission of vote), and 511 (validation of District meetings) 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 402(c) of this subchapter 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.