Sec. 3. (a) The fiscal body of a county, city, or town may issue bonds payable from revenue under IC 6-3.6-6. The bonds must be for economic development projects.

(b) The fiscal body of a county, city, or town may issue bonds payable from revenue described in section 2 of this chapter for any capital project for which the fiscal body is authorized to issue general obligation bonds. The bonds issued under this section may be payable from the tax if the county option income tax (IC 6-3.5-6 repealed), the county adjusted gross income tax (IC 6-3.5-1.1 repealed), or a tax under IC 6-3.6-6 is also in effect in the county at the time the bonds are issued.

(c) If there are bonds outstanding that have been issued under this section, or leases in effect under section 4 of this chapter, the adopting body may not reduce the tax imposed under IC 6-3.6-6, or an allocation under IC 6-3.6-6-9, or certified shares pledged to repay bonds, as appropriate, below a rate that would produce one and twenty-five hundredths (1.25) times the total of the highest annual debt service on the bonds to their final maturity, plus the highest annual lease payments, unless:

(1) the body that imposed a tax under IC 6-3.6-6; or

(2) any city, town, or county;

pledges all or a part of its certified shares for the life of the bonds or the term of the lease, in an amount that is sufficient, when combined with the amount pledged by the city, town, or county that issued the bonds, to produce one and twenty-five hundredths (1.25) times the total of the highest outstanding annual debt service plus the highest annual lease payments.

(d) For purposes of subsection (c), the determination of a tax rate sufficient to produce one and twenty-five hundredths (1.25) times the total of the highest outstanding annual debt service plus the highest annual lease payments must be based on an average of the immediately preceding three (3) years tax collections, if the tax has been imposed for the last preceding three (3) years. If the tax has not been imposed for the last preceding three (3) years, the body that imposed the tax may not reduce the rate below a rate that would produce one and twenty-five hundredths (1.25) times the total of the highest annual debt service, plus the highest annual lease payments, based upon a study by a qualified public accountant or financial advisor.

(e) IC 6-1.1-20 does not apply to the issuance of bonds under this section.

(f) Bonds issued under this section may be sold at a public sale in accordance with IC 5-1-11 or may be sold at a negotiated sale.

(g) After a sale of bonds under this section, the county auditor shall prepare a debt service schedule for the bonds.

(h) The general assembly covenants that it will not repeal or amend this article in a manner that would adversely affect owners of outstanding bonds issued, or payment of any lease rentals due, under this section.

As added by P.L.243-2015, SEC.10.