(1) Except as provided in Subsections (3) and (7), if a district intends to issue general obligation bonds, the district shall first obtain the approval of district voters for issuance of the bonds at an election held for that purpose as provided in Title 11, Chapter 14, Local Government Bonding Act. (2) General obligation bonds shall be secured by a pledge of the full faith and credit of the district, subject to, for a water conservancy district, the property tax levy limits of Section 17B-2a-1006. (3) A district may issue refunding general obligation bonds, as provided in Title 11, Chapter 27, Utah Refunding Bond Act, without obtaining voter approval. (4) (a) A special district may not issue general obligation bonds if the issuance of the bonds will cause the outstanding principal amount of all of the district's general obligation bonds to exceed the amount that results from multiplying the fair market value of the taxable property within the district, as determined under Subsection 11-14-301(3)(b), by a number that is: (i) .05, for a basic special district, except as provided in Subsection (7); (ii) .004, for a cemetery maintenance district; (iii) .002, for a drainage district; (iv) .004, for a fire protection district; (v) .024, for an improvement district; (vi) .1, for an irrigation district; (vii) .1, for a metropolitan water district; (viii) .0004, for a mosquito abatement district; (ix) .03, for a public transit district; (x) .12, for a service area; or (xi) .05 for a municipal services district. (b) Bonds or other obligations of a special district that are not general obligation bonds are not included in the limit stated in Subsection (4)(a). (5) A district may not be considered to be a municipal corporation for purposes of the debt limitation of the Utah Constitution, Article XIV, Section 4. (6) Bonds issued by an administrative or legal entity created under Title 11, Chapter 13, Interlocal Cooperation Act, may not be considered to be bonds of a special district that participates in the agreement creating the administrative or legal entity. (7) (a) As used in this Subsection (7), "property owner district" means a special district whose board members are elected by property owners, as provided in Subsection 17B-1-1402(1)(b). (b) A property owner district may issue a general obligation bond with the consent of: (i) the owners of all property within the district; and (ii) all registered voters, if any, within the boundary of the district. (c) A property owner district may use proceeds from a bond issued under this Subsection (7) to fund: (i) the acquisition and construction of a system or improvement authorized in: (A) the district's creation resolution; or (B) Part 14, Basic Special District; and (ii) a connection outside the boundary of the district between systems or improvements within the boundary of the district. (d) (i) The consent under Subsection (7)(b) is sufficient for any requirement necessary for the issuance of a general obligation bond. (ii) Beginning on the effective date of this bill, once consent is obtained under Subsection (7)(b), the consent is valid for a period of 10 years. (e) A general obligation bond issued under this Subsection (7): (i) shall mature no later than 40 years after the date of issuance; and (ii) is not subject to the limit under Subsection (4)(a)(i). (f) (i) A property owner district may not issue a general obligation bond under this Subsection (7) if the issuance will cause the outstanding principal amount of all the district's general obligation bonds to exceed one-half of the market value of all real property within the district. (ii) Market value under Subsection (7)(f)(i) shall: (A) be based on the value that the real property will have after all improvements financed by the general obligation bonds are constructed; and (B) be determined by appraisal by an appraiser who is a member of the Appraisal Institute. (g) With respect to a general obligation bond issued under this Subsection (7), the board of a property owner district may approve or, by resolution, delegate to one or more officers of the district, the authority to: (i) approve the final interest rate, price, principal amount, maturity, redemption features, and other terms of the bond; (ii) approve and execute a document relating to the issuance of the bond; and (iii) approve a contract, including a contract with a property owner within the district, related to the acquisition and construction of an improvement, facility, or property to be financed with proceeds from the bond. (h) (i) A person may commence a lawsuit or other proceeding to contest the legality of the issuance of a general obligation bond issued under this Subsection (7) or any provision relating to the security or payment of the bond if the lawsuit or other proceeding is commenced within 30 days after the publication of: (A) the resolution authorizing the issuance of the general obligation bond; or (B) a notice of the bond issuance containing substantially the items required under Subsection 11-14-316(2). (ii) Following the period described in Subsection (7)(h)(i), no person may bring a lawsuit or other proceeding to contest for any reason the regularity, formality, or legality of a general obligation bond issued under this Subsection (7). (i) A property owner district that charges and collects an impact fee or other fee on real property may pledge all or a portion of the revenue collected from the impact fee or other fee toward payment of a general obligation bond issued under this Subsection (7). (j) If a property owner fails to pay a property tax that the property owner district imposes in connection with a general obligation bond issued under this Subsection (7), the district may impose a property tax penalty at an annual rate of .07, in addition to any other penalty allowed by law.
‹ Prev All Utah sections Next ›
Lexace provides legal information, not legal advice, and no attorney–client relationship is created. Statute text is provided for general information and may not reflect the most recent amendments; verify against the official state code.