Indiana Code 6-1.1-20.3-13. Petition for termination of distressed status; conditions for termination
(b) In the case of a political subdivision designated as distressed under this chapter, the board shall terminate the political subdivision’s status as a distressed political subdivision if the board finds that the conditions found in section 6.5 of this chapter are no longer applicable to the political subdivision and all the following conditions are met:
Terms Used In Indiana Code 6-1.1-20.3-13
- Balanced budget: A budget in which receipts equal outlays.
- board: refers to the distressed unit appeal board established by section 4 of this chapter. See Indiana Code 6-1.1-20.3-1
- distressed political subdivision: means a political subdivision designated as a distressed political subdivision under this chapter. See Indiana Code 6-1.1-20.3-2
- political subdivision: has the meaning set forth in IC 36-1-2-13. See Indiana Code 6-1.1-20.3-3
- Property: includes personal and real property. See Indiana Code 1-1-4-5
- township assistance property tax rate: means the property tax rate imposed for the payment of township assistance. See Indiana Code 6-1.1-20.3-6.7
- Year: means a calendar year, unless otherwise expressed. See Indiana Code 1-1-4-5
(A) Maintaining a structurally balanced budget for at least two (2) years.
(B) Having no unpaid or past due critical contractual financial obligations or vendor payments.
(2) The political subdivision has a fiscal plan that maintains financial solvency for a period of at least five (5) years after the termination of its distressed status.
(3) The political subdivision meets all other conditions identified by the board.
(4) The board determines that the political subdivision is financially stable.
(c) Notwithstanding subsection (b), in the case of a township designated as distressed under section 6.7 of this chapter, the board shall terminate the township’s status as a distressed political subdivision if the board finds that the township’s township assistance property tax rate (as defined in section 6.7(a) of this chapter) for the current calendar year is not more than the result of:
(1) the statewide average township assistance property tax rate (as determined by the department of local government finance) for property taxes first due and payable in the preceding year; multiplied by
(2) twelve (12).
(d) Notwithstanding any other section of this chapter, not later than ninety (90) days after taking office, a new executive of a distressed political subdivision may petition the board for suspension of the political subdivision’s distressed status. In the case of a political subdivision designated as distressed under section 6.5 of this chapter, the executive must include in its petition a written plan to resolve the applicable issues described in section 6.5 of this chapter. In the case of a township designated as distressed under section 6.7 of this chapter, the executive must include in its petition a written plan to lower the township’s township assistance property tax rate (as defined in section 6.7(a) of this chapter). If the board approves the executive’s written plan, the board may suspend the political subdivision’s distressed status for one hundred eighty (180) days. Suspension under this chapter terminates automatically upon expiration of the one hundred eighty (180) day period. The board may consider a petition to terminate the political subdivision’s distressed status during a period of suspension.
As added by P.L.145-2012, SEC.14. Amended by P.L.257-2013, SEC.27; P.L.234-2013, SEC.7; P.L.2-2014, SEC.25; P.L.249-2015, SEC.16; P.L.241-2017, SEC.15; P.L.213-2018(ss), SEC.12.