Section 15.10. Allocation of indebtedness

a. Several indebtedness and joint
  indebtedness  contracted  or  incurred  for  a  joint service or a joint
  water,  sewage  or  drainage  project  shall  be   included   as   gross
  indebtedness  in  the  debt  statement  of  the municipal corporation or
  municipality which has contracted or incurred such indebtedness,  except
  that  such  indebtedness  contracted  or  incurred by a school district,
  other than a school district in a city, shall not be included unless  it
  is  evidenced  by  bonds  or  bond  anticipation notes or is included as
  indebtedness of a merged or annexed school district pursuant to  section
  121.00 of this chapter.
    b.  The  amount of joint indebtedness which is to be included as gross
  indebtedness  in  the  debt  statement  of  a  participating   municipal
  corporation  or  municipality  shall  not  exceed  the  amount  of  such
  indebtedness allocated and apportioned to such municipal corporation  in
  the  bond resolution or note resolution authorizing such indebtedness to
  be contracted. In the case of other joint indebtedness for such a  joint
  service  or  joint water, sewage or drainage project arising out of real
  property liabilities and contract liabilities, the amount thereof to  be
  included  as  gross  indebtedness in a debt statement of a participating
  municipal corporation or municipality shall not  exceed  the  amount  of
  such  indebtedness  required  to  be  allocated  and apportioned to such
  municipal corporation in the agreement of  the  participating  municipal
  corporations in relation to such joint service. Where the agreement does
  not provide for any such allocation and apportionment, or in the case of
  involuntary   joint   indebtedness,  the  amount  to  be  allocated  and
  apportioned to a participating  municipal  corporation  or  municipality
  shall be in the same proportion as the full valuation of the real estate
  subject to taxation or assessment for such joint service or joint water,
  sewage or drainage project by such municipal corporation or municipality
  bears  to  the  full valuation of the real estate subject to taxation or
  assessment  by  all  of  the  participating  municipal  corporations  or
  municipalities  for such joint service or project. Full valuations shall
  be  determined  by  applying  to  the  latest  assessed  valuation   the
  appropriate state equalization rate established on the same period price
  level. Where such rate has not been established on the same period price
  level  for all participants, application may be made to the state office
  of real property services for the establishment of  a  special  rate  or
  rates  as  so required and such office shall have power to establish the
  same, which special rate or rates shall then be  used.  The  amounts  of
  joint  indebtedness so allocated and apportioned shall not exceed in the
  aggregate the total amount of such joint indebtedness.
    c. The agreement between the participating municipal corporations  and
  municipalities  may  provide  for  apportionment and allocation of joint
  indebtedness on a ratio of full valuations of  real  property  or  on  a
  basis  of the amount of services rendered or to be rendered, or benefits
  received or conferred or to be received or conferred, or  on  any  other
  equitable basis.
    d.  Any  allocation  and apportionment of joint indebtedness which has
  been contracted or incurred or which is proposed  to  be  contracted  or
  incurred   shall  be  conclusive  if  made  or  approved  by  the  state
  comptroller.   The application to the state  comptroller  for  any  such
  allocation  and apportionment may be made on behalf of the participating
  municipal corporations or municipalities by the finance  boards  thereof
  acting  jointly  or  by the chief fiscal officers thereof acting jointly
  upon the direction of such finance boards, or by the  finance  board  of
  any  such  participating  municipal  corporation  or municipality or the
  chief fiscal officer thereof upon the direction of such  finance  board.
  The  application  shall be verified by the finance board or boards or by

  the chief fiscal officer or officers making the application. It shall be
  in such form and shall contain such information as shall  be  prescribed
  by  the state comptroller. If the application is not made by the finance
  boards  or  by  the  chief  fiscal  officers of all of the participating
  municipal  corporations  or  municipalities,  written  notice  of   such
  application  shall  be  given  to  the chief fiscal officer of any other
  participating municipal corporation or municipality prior to the  filing
  of the application with the state comptroller.
    e.  If  the application to the state comptroller is for the allocation
  or apportionment of existing  or  proposed  indebtedness  exceeding  one
  hundred  thousand  dollars  in  amount,  then within five days after the
  filing of such application with the state comptroller, the chief  fiscal
  officer  or  chief  fiscal officers of the applicant or applicants shall
  cause a notice to be published that such application has been filed with
  the state comptroller. Such notice shall be published in accordance with
  the provisions of paragraph c of section  15.20  of  this  chapter.  The
  notice  also  shall  contain  a  description of the existing or proposed
  indebtedness sought to be allocated and apportioned and  the  nature  of
  the joint service or joint water, sewage or drainage project in relation
  to  which  such existing or proposed indebtedness is to be contracted or
  incurred.  Proof of publication of such notice shall  be  filed  in  the
  office  of  the  state comptroller. A copy of the application and of all
  data and information which will be submitted to the state comptroller in
  support of such application shall be filed in the office or  offices  of
  such  chief  fiscal officer or chief fiscal officers and shall be public
  records.
    f. After the filing of the application, the  state  comptroller  shall
  review  the  facts  set forth therein. Notwithstanding the provisions of
  paragraph e of this section, the state comptroller may require notice of
  the application to be  published  in  any  such  proceeding.  The  state
  comptroller  shall have power to examine the accounts and records of the
  municipal corporations or  municipalities  with  respect  to  the  joint
  service  or joint water, sewage or drainage project concerning which the
  application is made. He may also require the chief  fiscal  officer  and
  other public officers, boards and agencies of the municipal corporations
  or   municipalities   involved  to  furnish  such  additional  data  and
  information in their possession as he deems necessary to enable  him  to
  make his determination.
    g.  The  state  comptroller  shall issue a written certificate setting
  forth his determination as to how such existing or proposed indebtedness
  should be allocated  and  apportioned.  The  certificate  of  the  state
  comptroller  shall not be issued until ten days after the filing of such
  application or proof of publication of the notice of  such  application,
  whichever  date is the later, and the certificate shall be issued within
  forty-five  days  after  such  filing.  The  certificate  of  the  state
  comptroller  shall be executed under his hand and seal. Such certificate
  shall be filed in the department of  audit  and  control  and  duplicate
  certificates  shall  be  executed  under  the hand and seal of the state
  comptroller and filed in the offices of the  chief  fiscal  officers  of
  each of the participating municipal corporations or municipalities.