Indiana Code Title 36. Local Government § 36-9-23-14

Sec. 14.  (a) A municipality may, in the manner prescribed by IC 32-24, condemn:

However, the municipality may pay for any property condemned or purchased only from money provided under this chapter.

(b) In any proceedings to condemn, orders that are just to the municipality and to the owners of the property to be condemned may be made.  An undertaking or other security securing the property owners against any loss or damage resulting from the failure of the municipality to accept and pay for the property may be required, but the undertaking or security imposes liability upon the municipality only in the amount that may be paid from money provided under this chapter.

(c) If the board wants to purchase sewage works, it may obtain and exercise an option for the purchase of the works, or may enter into a contract for the purchase in the manner and under the terms and conditions that it considers proper.

(d) If the board wants to purchase or condemn sewage works already constructed, it must, at or before the time of adoption of the ordinance authorizing the acquisition, determine what repairs, replacements, additions, and other actions are required to make the works effective for their purpose.  An estimate of the cost of these actions shall be included in the estimate of cost made under section 11 of this chapter.  These actions shall be taken upon the acquisition of the works, as a part of the cost of the acquisition.