LD 864
pg. 2
Page 1 of 2 An Act To Streamline Sewer District and Sanitary District Borrowing LD 864 Title Page
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LR 1633
Item 1

 
1.__Debt limit.__Notwithstanding any provision of its charter
to the contrary, a sewer district may increase its debt limit by
referendum in accordance with this section.__A sewer district is
not required to use the procedure provided by this section and
may seek to increase its debt limit by any other lawful means,
including pursuant to any other means described in its charter or
by seeking legislative amendment to its charter.

 
2.__Referendum.__If a sewer district chooses to increase its
debt limit pursuant to this section, the governing body of the
sewer district shall propose a new debt limit and submit the
proposal for approval at a referendum within the district.__The
referendum must be called, advertised and conducted according to
the law relating to municipal elections, except the registrar of
voters is not required to prepare or the clerk to post a new list
of voters.__For the purpose of registering voters, the registrar
of voters must be in session on the regular work day preceding
the election.__The question presented must be in substantially
the following form:

 
"Do you favor changing the debt limit of the (insert name of
district) from (insert current debt limit) to (insert
proposed debt limit)?"

 
The voters shall indicate by a cross or check mark placed against
the word "Yes" or "No" their opinion on the question.

 
The results must be declared by the governing body of the
district and entered upon the district's records.__Due
certificate of the results must be filed by the clerk with the
Secretary of State.

 
3.__Approval.__A debt limit proposal becomes effective upon
its acceptance by a majority of the legal voters within the
district voting at the referendum.__Failure of approval by the
majority of voters voting at the referendum does not prevent
subsequent referenda from being held for the same purpose.__The
costs of referenda are borne by the district.

 
SUMMARY

 
This bill allows sanitary and sewer districts to increase
their debt limit with a local referendum instead of having to go
through the legislative process to change their charter.


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