Sec. 19.5. If a municipality desires to purchase and install equipment for its utility which requires more than three (3) months lead time for the supplier to make such equipment and installation available, the legislative body may, by ordinance, approve a contract therefor even though it does not have sufficient funds appropriated or on hand to pay for such purchase if the utility:
(1) has annual net operating revenues for the immediately preceding calendar year sufficient to permit the municipality:
(A) to pay the principal of and interest on an issue of its utility revenue bonds in the principal amount necessary to fund such purchase (including engineering costs, legal costs, and costs of bond issuance associated therewith); and
(B) a margin of safety which it deems necessary to market such bonds on acceptable terms;
(2) if required by section 19 of this chapter, has received approval from the commission to issue bonds, notes, or other obligations sufficient to fund such purchase; or
(3) has received approval from the commission to raise its rates and charges in an amount sufficient to permit the issuance of said bonds.
As added by P.L.105-1983, SEC.1. Amended by P.L.103-2008, SEC.6.