The Vermont Statutes Online
Subchapter 004 : FISCAL AFFAIRS(Cite as: 24 App. V.S.A. ch. 417, § 40)
§ 417-40. 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 which must mature within one year. The Board of Supervisors may also borrow money in anticipation of bond proceeds which 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 which 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.)