(1) As used in this section: (a) "Transportation facility" means any of the items listed in Subsection 59-12-2212.2(1) as purposes for which revenue from a local option sales and use tax under Section 59-12-2212.2 may be expended. (b) "Transportation fund" means a fund described in and established under Subsection (9). (c) "Transportation utility fee" means a fee imposed to generate revenue to pay for costs associated with developing, constructing, maintaining, operating, repairing, upgrading, or replacing a transportation facility. (d) "User segment" means a segment of the city's population based on a classification established under Subsection (5). (2) (a) A city may impose and collect a transportation utility fee: (i) if the city establishes a reasonable relationship between: (A) the amount of the transportation utility fee; and (B) the services provided to, the benefits received by, or the need created by those who pay the transportation utility fee; and (ii) only as provided in this section. (b) A city may impose a transportation utility fee to provide funding for any number of transportation facilities but may not have more than a single transportation utility fee in effect at a time. (3) (a) A city may not impose or increase a transportation utility fee unless the city first conducts a study as described in this Subsection (3). (b) A study under Subsection (3)(a) shall: (i) determine and provide a reasonable estimate of the need for a new transportation facility or for maintaining, operating, repairing, upgrading, or replacing an existing transportation facility; (ii) identify and provide a reasonable estimate of existing funding sources that could be used to pay for a new transportation facility or for maintaining, operating, repairing, upgrading, or replacing an existing transportation facility; (iii) explain and provide a reasonable calculation showing how existing city funding sources are inadequate to cover the cost of constructing a new transportation facility or maintaining, operating, repairing, upgrading, or replacing an existing transportation facility; (iv) determine whether the proposed transportation utility fee is reasonably related to: (A) the services provided to those who pay the transportation utility fee; (B) the benefits received by persons who pay the transportation utility fee; or (C) the need created by those who pay the transportation utility fee; (v) explain the reasonable relationship determined under Subsection (3)(b)(iv); and (vi) determine whether there is a reasonable basis for different rates within a proposed transportation utility fee based on different levels of services provided to, benefits received by, or need created by those who pay the transportation utility fee, as described in Subsection (7), and, if so, explain the basis for the proposed different rates. (c) A city that conducts a study under Subsection (3)(a) shall post a copy of the study on the city's website, if the city has a website. (4) (a) In developing a fee calculation for a transportation utility fee, a city shall: (i) use methodologies based on trip generation, vehicle types, and traffic counts, including local data or standard civil engineering manuals; (ii) exclude traffic counts from whichever day of the week generates the lowest amount of traffic, on average and as best approximated with the methodologies used under Subsection (4)(a)(i), for the transportation facility or transportation facility system; and (iii) utilize the study described in Subsection (3)(a). (b) A city may not utilize a fee study or fee calculation that takes into account the ownership or fair market value of a property owned by a user that will be subject to the fee. (c) A city may utilize a fee study or fee calculation that takes the size of a property owned by a user into account to the extent that size is only used to determine trip generation, vehicle types, or traffic counts, based on objective data. (5) (a) A city shall establish different rates within a transportation utility fee for different classifications of users of a transportation facility if the rates and classifications have a reasonable basis. (b) The different types of classifications of users of a transportation facility under Subsection (5) (a) shall include, at a minimum: (i) residential users; (ii) commercial users; and (iii) other users. (c) A reasonable basis under Subsection (5)(a) may include: (i) different levels of benefits received by users of a transportation utility fee; (ii) different impacts on or usage of transportation facilities by those who pay the transportation utility fee; (iii) a difference in the cost of providing a transportation facility to different classifications of users; (iv) a difference in levels of risk to the operation of a transportation facility for different classifications of users; (v) differing contributions that different classifications of users make, separate from a transportation utility fee, to the cost of constructing, maintaining, or operating a transportation facility; or (vi) distinguishable differences in the needs or conditions of different classifications of users based on economic, public policy, or other identifiable elements. (d) A reasonable basis under Subsection (5)(a) may not include: (i) whether a user resides inside or outside the city boundary; (ii) a consideration of the age of development within areas with the same zoning designation; or (iii) the lack of financial contributions, or the reduced financial contributions, that a tax- exempt organization user makes to the cost of constructing, maintaining, or operating a transportation facility. (6) (a) Before adopting an ordinance imposing or increasing a transportation utility fee, the governing body shall comply with the notice and public hearing requirements established in Sections
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