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S.B. 110
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REVENUE BONDS FOR MUNICIPALITIES
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2000 GENERAL SESSION
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STATE OF UTAH
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Sponsor: Robert F. Montgomery
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AN ACT RELATING TO CITIES, COUNTIES, AND LOCAL TAXING UNITS; EXPANDING
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WHAT MUNICIPALITIES MAY PLEDGE FOR GENERAL OBLIGATION AND REVENUE
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BONDS; AND MAKING TECHNICAL CHANGES.
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This act affects sections of Utah Code Annotated 1953 as follows:
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AMENDS:
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11-14-17, as last amended by Chapter 115, Laws of Utah 1975
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Be it enacted by the Legislature of the state of Utah:
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Section 1.
Section
11-14-17
is amended to read:
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11-14-17. Revenue bonds -- Resolution.
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(1) To the extent constitutionally permissible, municipalities may pledge as an additional
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source of payment for their general obligation bonds all or any part of revenues [from], fees, and
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charges attributable to the operation [of revenue-producing] or availability of facilities or may
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issue bonds payable solely from such revenues, fees, or charges.
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(2) (a) The [governing] legislative body may issue bonds payable solely from revenues,
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fees, or charges attributable to extensions and improvements to revenue-producing facilities[, and
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in this event].
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(b) If the legislative body issues bonds under Subsection (2)(a), the resolution authorizing
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these bonds shall set forth as a finding of the [governing] legislative body:
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(i) the value of the then existing facility and the value of this facility after completion of
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the extensions or improvements proposed to be constructed; and
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(ii) that portion of the [revenue] revenues, fees, or charges derived from the entire facility
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when the contemplated extensions and improvements are completed which the value of the
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existing facility bears to the value of the facility after completion shall be [deemed] considered to
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be revenue derived from the existing facility and the remainder may be set aside and pledged to
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the payment of the principal of and interest on the bonds and for the establishment of appropriate
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reserve fund or funds, and such portion shall be [deemed] considered to be revenue derived
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exclusively from the extensions and improvements.
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(3) (a) Any resolution or trust indenture authorizing bonds to which such revenues, fees,
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or charges are pledged may contain such covenants with the future holder or holders of the bonds
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as to the management and operation of the affected facilities, the imposition [and], collection [of],
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and disposition of rates, fees, and charges for commodities and services furnished thereby, [the
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disposition of such fees and revenues,] the issuance of future bonds, the creation of future liens and
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encumbrances against [such] the facilities, the carrying of insurance, the keeping of books and
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records, the deposit and paying out of revenues, fees, or charges and bond proceeds, the
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appointment and duties of a trustee, and other pertinent matters as may be [deemed] considered
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proper by the governing body. [Where]
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(b) If the revenue, fee, or charge so pledged involves either sewer or water revenues, fees,
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or charges or both sewer and water revenues, fees, or charges, provision may be made for charges
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for sewer services and water services to be billed in a single bill and for the suspension of water
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or sewer services, or both, to any customer who shall become delinquent in the payment [of
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charges] due for either.
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(c) Provision may be made for the securing of such bonds by a trust indenture, but no such
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indenture shall convey, mortgage, or create any lien upon property of the municipality.
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(d) Either the bond resolution or such trust indenture may impose in the holders of the
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bonds full rights to enforce the provisions thereof, and may include terms and conditions upon
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which the holders of the bonds or any proportion of them, or a trustee therefor, shall be entitled
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to the appointment of a receiver who may enter and take possession of the facility or facilities, the
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revenues, fees, or charges of which are so pledged, and may operate and maintain them, prescribe
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charges and collect, receive, and apply all revenues, fees, or charges therefrom arising in the same
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manner as the municipality itself might do.
Legislative Review Note
as of 1-11-00 1:46 PM
A limited legal review of this legislation raises no obvious constitutional or statutory concerns.