11-14 - Local Government Bonding Act
Title 11 > 11-14
Sections (37)
General Provisions
11-14-101 - Title.
This chapter is known as the “Local Government Bonding Act.”
Enacted by Chapter 105, 2005 General Session
11-14-102 - Definitions.
For the purpose of this chapter:
(1) “Bond” means any bond authorized to be issued under this chapter, including municipal bonds.
(2) “Election results” has the same meaning as defined in Section 20A-1-102.
(3) “Governing body” means:for a county, city, or town, the legislative body of the county, city, or town;for a special district, the board of trustees of the special district;for a school district, the local board of education; orfor a special service district under Title 17D, Chapter 1, Special Service District Act:the governing body of the county or municipality that created the special service district, if no administrative control board has been established under Section 17D-1-301; orthe administrative control board, if one has been established under Section 17D-1-301 and the power to issue bonds not payable from taxes has been delegated to the administrative control board.
(4) “Local political subdivision” means a county, city, town, school district, special district, or special service district.”Local political subdivision” does not include the state and its institutions.
(5) “Special district” means a district operating under Title 17B, Limited Purpose Local Government Entities - Special Districts.
Amended by Chapter 438, 2024 General Session
11-14-103 - Bond issues authorized — Purposes — Use of bond proceeds.
(1) Any local political subdivision may, in the manner and subject to the limitations and restrictions contained in this chapter, issue its negotiable bonds for the purpose of paying all or part of the cost of:acquiring, improving, or extending any one or more improvements, facilities, or property that the local political subdivision is authorized by law to acquire, improve, or extend;acquiring, or acquiring an interest in, any one or more or any combination of the following types of improvements, facilities, or property to be owned by the local political subdivision, either alone or jointly with one or more other local political subdivisions, or for the improvement or extension of any of those wholly or jointly owned improvements, facilities, or properties:public buildings of every nature, including without limitation, offices, courthouses, jails, fire, police and sheriff’s stations, detention homes, and any other buildings to accommodate or house lawful activities of a local political subdivision;waterworks, irrigation systems, water systems, dams, reservoirs, water treatment plants, and any other improvements, facilities, or property used in connection with the acquisition, storage, transportation, and supplying of water for domestic, industrial, irrigation, recreational, and other purposes and preventing pollution of water;sewer systems, sewage treatment plants, incinerators, and other improvements, facilities, or property used in connection with the collection, treatment, and disposal of sewage, garbage, or other refuse;drainage and flood control systems, storm sewers, and any other improvements, facilities, or property used in connection with the collection, transportation, or disposal of water;recreational facilities of every kind, including without limitation, athletic and play facilities, playgrounds, athletic fields, gymnasiums, public baths, swimming pools, camps, parks, picnic grounds, fairgrounds, golf courses, zoos, boating facilities, tennis courts, auditoriums, stadiums, arenas, and theaters;convention centers, sports arenas, auditoriums, theaters, and other facilities for the holding of public assemblies, conventions, and other meetings;roads, bridges, viaducts, tunnels, sidewalks, curbs, gutters, and parking buildings, lots, and facilities;airports, landing fields, landing strips, and air navigation facilities;educational facilities, including without limitation, schools, gymnasiums, auditoriums, theaters, museums, art galleries, libraries, stadiums, arenas, and fairgrounds;hospitals, convalescent homes, and homes for the aged or indigent; andelectric light works, electric generating systems, and any other improvements, facilities, or property used in connection with the generation and acquisition of electricity for these local political subdivisions and transmission facilities and substations if they do not duplicate transmission facilities and substations of other entities operating in the state prepared to provide the proposed service unless these transmission facilities and substations proposed to be constructed will be more economical to these local political subdivisions;new construction, renovation, or improvement to a state highway within the boundaries of the local political subdivision or an environmental study for a state highway within the boundaries of the local political subdivision; orexcept as provided in Subsection (5), the portion of any claim, settlement, or judgment that exceeds $3,000,000.
(2) Except as provided in Subsection (1)(c), any improvement, facility, or property under Subsection (1) need not lie within the limits of the local political subdivision.
(3) A cost under Subsection (1) may include:the cost of equipment and furnishings for such improvements, facilities, or property;all costs incident to the authorization and issuance of bonds, including engineering, legal, and fiscal advisers’ fees;costs incident to the issuance of bond anticipation notes, including interest to accrue on bond anticipation notes;interest estimated to accrue on the bonds during the period to be covered by the construction of the improvement, facility, or property and for 12 months after that period; andother amounts which the governing body finds necessary to establish bond reserve funds and to provide working capital related to the improvement, facility, or property.
(4) Except as provided in Subsection (4)(b), the proceeds from bonds issued on or after May 14, 2013, may not be used:for operation and maintenance expenses for more than one year after the date any of the proceeds are first used for those expenses; orfor capitalization of interest more than five years after the bonds are issued.The restrictions on the use of bond proceeds under Subsection (4)(a) do not apply to bonds issued to pay all or part of the costs of a claim, settlement, or judgment under Subsection (1)(d).
(5) Beginning on or after July 1, 2021, a local political subdivision may not issue its negotiable bonds for a purpose described in Subsection (1)(d).
(6) As used in this Subsection (6):“Applicable lease revenue bond” means a lease revenue bond in an amount that exceeds 200,000,000.The amount of a lease revenue bond to pay for the construction, reconstruction, or remodeling of a correctional facility, as defined in Section 77-17b-102, does not count toward the combined total.Before issuing an applicable lease revenue bond on or after May 1, 2024, a local political subdivision shall:make a statement at a meeting of the local political subdivision, as provided in Subsection (6)(d);as provided in Subsection (6)(e), publish notice of the proposed issuance of a lease revenue bond and of the public hearing under Subsection (6)(f); andhold a public hearing, as provided in Subsection (6)(f).At a regular meeting of the local political subdivision that is held at least 14 days before a public hearing under Subsection (6)(f), the governing body of a local political subdivision intending to issue an applicable lease revenue bond shall make a statement indicating:the intent to issue a lease revenue bond; andthe purpose and estimated amount of the lease revenue bond.The local political subdivision’s agenda under Section 52-4-202 for a meeting described in Subsection (6)(d)(i) shall include a separate item for the statement required under Subsection (6)(d)(i).A local political subdivision intending to issue an applicable lease revenue bond shall provide notice of the intent to issue a lease revenue bond and of the public hearing required under Subsection (6)(f).The notice required under Subsection (6)(e)(i) shall be published:subject to Section 45-1-101, in a newspaper or combination of newspapers of general circulation in the local political subdivision;electronically in accordance with Section 45-1-101; andfor the local political subdivision, as a class A notice under Section 63G-30-102, for at least 14 days immediately before the public hearing under Subsection (6)(d).If the local political subdivision intending to issue an applicable lease revenue bond is a school district, the notice required by Subsection (6)(e)(i) shall include a statement that contains substantially the following language: “This proposed lease revenue bond commits money from future property tax and income tax revenue allocated to the school district. Additionally, a lease revenue bond generally has a higher interest cost than a voter-approved general obligation bond.”The notice described in Subsection (6)(e)(ii)(A):shall be no less than 1/4 page in size, use type no smaller than 18 point, and be surrounded by a 1/4-inch border;shall be run once each week for the two weeks before a local political subdivision conducts a public hearing under Subsection (6)(f); andmay not be placed in the portion of a newspaper where legal notices and classified advertisements appear.A notice required under Subsection (6)(e)(i) shall:contain a clear statement indicating that the local political subdivision intends to issue a lease revenue bond;explain the purpose, proposed amount, and length of term of the lease revenue bond and the annual amount that the local political subdivision will be required to pay in principal and interest on the lease revenue bond;identify the intended lessee of the facility to be constructed using proceeds from the lease revenue bond and the expected annual amount of lease payments that the lessee will pay;provide the date, time, place, and purpose of the public hearing under Subsection (6)(f); andprovide the date, time, and place of the local political subdivision governing body meeting at which the governing body anticipates taking action on the proposal to issue a lease revenue bond.A local political subdivision intending to issue an applicable lease revenue bond shall hold a public hearing on the proposed lease revenue bond.A public hearing under this Subsection (6)(f):shall be held beginning at or after 6:00 p.m.;shall be held separate from any other public hearing; andmay be held the same day as another public hearing, including immediately before or after the other public hearing.At a public hearing under this Subsection (6)(f), the governing body of the local political subdivision shall provide a member of the public desiring to be heard an opportunity to present testimony on the proposed issuance of a lease revenue bond:within reasonable time limits; andwithout unreasonable restriction on the number of individuals allowed to make public comment.
Amended by Chapter 474, 2024 General Session
Bond Elections
11-14-201 - Election on bond issues — Qualified electors — Resolution and notice.
(1) The governing body of any local political subdivision that wishes to issue bonds under the authority granted in Section 11-14-103 shall: at least 75 days before the date of election:approve a resolution submitting the question of the issuance of the bonds to the voters of the local political subdivision; andprovide a copy of the resolution to: the lieutenant governor; andthe election officer, as defined in Section 20A-1-102, charged with conducting the election; andcomply with the requirements of Title 59, Chapter 1, Part 16, Transparency of Ballot Propositions Act.
(2) The local political subdivision may not issue the bonds unless the majority of the qualified voters of the local political subdivision who vote on the bond proposition approve the issuance of the bonds.
(3) Nothing in this section requires an election for the issuance of: refunding bonds; orother bonds not required by law to be voted on at an election.
(4) The resolution calling the election shall include a ballot proposition, in substantially final form, that complies with the requirements of Subsection 11-14-206(2).
Amended by Chapter 356, 2014 General Session
11-14-202 - Notice of election — Voter information pamphlet option — Changing or designating additional precinct polling places.
(1) The governing body shall provide notice of the election for the local political subdivision for at least three weeks before the day of the election, as a class A notice under Section 63G-30-102.
(2) When the debt service on the bonds to be issued will increase the property tax imposed upon the average value of a residence by an amount that is greater than or equal to $15 per year, the governing body shall prepare and mail either a voter information pamphlet or a notification described in Subsection (8): at least 15 days, but not more than 45 days, before the bond election;to each household containing a registered voter who is eligible to vote on the bonds; andthat includes the information required by Subsections (4) and (5).
(3) The election officer may change the location of, or establish an additional: voting precinct polling place, in accordance with Subsection (6);early voting polling place, in accordance with Subsection 20A-3a-603(2); orelection day voting center, in accordance with Subsection 20A-3a-703(2).
(4) The notice described in Subsection (1) and the voter information pamphlet described in Subsection (2): shall include, in the following order:the date of the election;the hours during which the polls will be open;the address of the Statewide Electronic Voter Information Website and, if available, the address of the election officer’s website, with a statement indicating that the election officer will post on the website the location of each polling place for each voting precinct, each early voting polling place, and each election day voting center, including any changes to the location of a polling place and the location of an additional polling place;a phone number that a voter may call to obtain information regarding the location of a polling place; andthe title and text of the ballot proposition, including the property tax cost of the bond described in Subsection 11-14-206(2)(a); andmay include the location of each polling place.
(5) The voter information pamphlet required by this section shall include: the information required under Subsection (4); andan explanation of the property tax impact, if any, of the issuance of the bonds, which may be based on information the governing body determines to be useful, including:expected debt service on the bonds to be issued;a description of the purpose, remaining principal balance, and maturity date of any outstanding general obligation bonds of the issuer;funds other than property taxes available to pay debt service on general obligation bonds;timing of expenditures of bond proceeds;property values; andany additional information that the governing body determines may be useful to explain the property tax impact of issuance of the bonds.
(6) Except as provided in Section 20A-1-308, the election officer may, after the deadlines described in Subsections (1) and (2):if necessary, change the location of a voting precinct polling place; orif the election officer determines that the number of voting precinct polling places is insufficient due to the number of registered voters who are voting, designate additional voting precinct polling places.Except as provided in Section 20A-1-308, if an election officer changes the location of a voting precinct polling place or designates an additional voting precinct polling place, the election officer shall, as soon as is reasonably possible, give notice of the dates, times, and location of a changed voting precinct polling place or an additional voting precinct polling place:to the lieutenant governor, for posting on the Statewide Electronic Voter Information Website;by posting the information on the website of the election officer, if available; andby posting notice: of a change in the location of a voting precinct polling place, at the new location and, if possible, the old location; andof an additional voting precinct polling place, at the additional voting precinct polling place.
(7) The governing body shall pay the costs associated with the notice required by this section.
(8) The governing body may mail a notice printed on a postage prepaid, preaddressed return form that a person may use to request delivery of a voter information pamphlet by mail.The notice described in Subsection (8)(a) shall include:the website upon which the voter information pamphlet is available; andthe phone number a voter may call to request delivery of a voter information pamphlet by mail.
(9) A local school board shall comply with the voter information pamphlet requirements described in Section 53G-4-603.
Amended by Chapter 435, 2023 General Session
11-14-203 - Time for election — Equipment — Election officials — Combining precincts.
(1) The local political subdivision shall ensure that bond elections are conducted and administered according to the procedures set forth in this chapter and the sections of the Election Code specifically referenced by this chapter.When a local political subdivision complies with those procedures, there is a presumption that the bond election was properly administered.
(2) A bond election may be held, and the proposition for the issuance of bonds may be submitted, on the same date as the regular general election, the municipal general election held in the local political subdivision calling the bond election, or at a special election called for the purpose on a date authorized by Section 20A-1-204.A bond election may not be held, nor a proposition for issuance of bonds be submitted, at the presidential primary election held under Title 20A, Chapter 9, Part 8, Presidential Primary Election.
(3) The bond election shall be conducted and administered by the election officer designated in Sections 20A-1-102 and 20A-5-400.5.The duties of the election officer shall be governed by Title 20A, Chapter 5, Part 4, Election Officer’s Duties.The publishing requirement under Subsection 20A-5-405(1)(f)(iii) does not apply when notice of a bond election has been provided according to the requirements of Section 11-14-202.The hours during which the polls are to be open shall be consistent with Section 20A-1-302.The appointment and duties of election judges shall be governed by Title 20A, Chapter 5, Part 6, Poll Workers.General voting procedures shall be conducted according to the requirements of Title 20A, Chapter 3a, Voting.The designation of election crimes and offenses, and the requirements for the prosecution and adjudication of those crimes and offenses are set forth in Title 20A, Election Code.
(4) When a bond election is being held on a day when no other election is being held in the local political subdivision calling the bond election, voting precincts may be combined for purposes of bond elections so long as no voter is required to vote outside the county in which the voter resides.
(5) When a bond election is being held on the same day as any other election held in a local political subdivision calling the bond election, or in some part of that local political subdivision, the polling places and election officials serving for the other election may also serve as the polling places and election officials for the bond election, so long as no voter is required to vote outside the county in which the voter resides.
Amended by Chapter 170, 2022 General Session
11-14-204 - Challenges to voter qualifications.
(1) Any person’s qualifications to vote at a bond election may be challenged according to the procedures and requirements of Sections 20A-3a-205 and 20A-3a-803.
(2) A bond election may not be invalidated on the grounds that ineligible voters voted unless: it is shown by clear and convincing evidence that ineligible voters voted in sufficient numbers to change the result of the bond election; andthe complaint is filed before the expiration of the time period permitted for contests in Subsection 20A-4-403(3).
(3) The votes cast by the voters shall be accepted as having been legally cast for purposes of determining the outcome of the election, unless the court in a bond election contest finds otherwise.
Amended by Chapter 31, 2020 General Session
11-14-205 - Special registration not required — Official register supplied by clerk.
(1) Voter registration shall be administered according to the requirements of Title 20A, Chapter 2, Voter Registration.The governing body may not require or mandate any special registration of voters for a bond election.
(2) The county clerk of each county in which a local political subdivision holding the bond election is located shall prepare the official register for the bond election according to the requirements of Section 20A-5-401.
(3) The official register’s failure to identify those voters not residing in the local political subdivision holding the bond election, or any inaccuracy in that identification, is not a ground for invalidating the bond election.
Amended by Chapter 83, 2006 General Session
11-14-206 - Ballots — Submission of ballot language — Form and contents.
(1) At least 75 days before the election, the governing body shall prepare and submit to the election officer: a ballot title for the bond proposition that includes the name of the local political subdivision issuing the bonds and the word “bond”; anda ballot proposition that meets the requirements of Subsection (2).
(2) The governing body shall ensure that the ballot proposition includes:the maximum principal amount of the bonds;the maximum number of years from the issuance of the bonds to final maturity;the general purpose for which the bonds are to be issued; andif issuance of the bonds will require the increase of the property tax imposed upon the average value of a residence by an amount that is greater than or equal to 15 per year, the following information in substantially the following form and in the following order:"PROPERTY TAX COST OF BONDS:If the bonds are issued as planned, [if applicable: without regard to the taxes currently levied for outstanding bonds that will reduce over time,] an annual property tax to pay debt service on the bonds will be required over a period of ____ years in the estimated amount of ____ (insert the average value of a residence in the taxing entity rounded to the nearest thousand dollars) on a residence and in the estimated amount of $____ on a business property having the same value.[If applicable] If there are other outstanding bonds, an otherwise scheduled tax decrease may not occur if these bonds are issued.The foregoing information is only an estimate and is not a limit on the amount of taxes that the governing body may be required to levy in order to pay debt service on the bonds. The governing body is obligated to levy taxes to the extent provided by law in order to pay the bonds.”The governing body may state the purpose of the bonds in general terms and need not specify the particular projects for which the governing body intends to issue the bonds or the specific amount of bond proceeds that the governing body intends to expend for each project.If the governing body intends that the bonds be payable in part from tax proceeds and in part from the operating revenues of the local political subdivision, or from any combination of tax proceeds and operating revenues, the governing body may indicate those payment sources on the bond proposition, but need not specify how the governing body intends to divide the bonds between those sources of payment.The governing body shall ensure that the bond proposition is followed by the words, “For the issuance of bonds” and “Against the issuance of bonds,” with appropriate boxes in which the voter may indicate the voter’s choice.Nothing in Subsection (2)(d)(i) prohibits the addition of descriptive information about the bonds.
(3) If a bond proposition is submitted to a vote on the same day as any other election held in the local political subdivision calling the bond election, the governing body or an election officer may combine the bond proposition with the candidate ballot in a manner consistent with Section 20A-6-301 or 20A-6-402.
(4) The governing body shall ensure that the ballot form complies with the requirements of Title 20A, Chapter 6, Ballot Form.
Amended by Chapter 31, 2020 General Session
11-14-207 - Counting and canvassing — Official finding.
(1) Following the election officer’s inspection and count of the ballots in accordance with the procedures of Title 20A, Chapter 4, Part 1, Counting Ballots and Tabulating Results, and Part 2, Transmittal and Disposition of Ballots and Election Returns, the governing body shall meet and canvass the election results.The governing body of the local political subdivision is the board of canvassers for the bond proposition.The board of canvassers shall always consist of a quorum of the governing body.The canvass of the election results shall be made in public no sooner than seven days after the election and no later than 14 days after the election.The canvass of election results shall be conducted according to the procedures and requirements of Subsection 20A-4-301(3) and Sections 20A-4-302 and 20A-4-303.If a bond proposition is submitted to a vote on the same day as any other election held in the local political subdivision calling the bond election, the governing body shall coordinate the date of its canvass with any other board of canvassers appointed under Section 20A-4-301.
(2) After the canvass of election returns, the governing body shall record in its minutes:an official finding as to the total number of votes cast, the number of affirmative votes, the number of negative votes, the number of challenged voters, the number of challenged voters that were issued a provisional ballot, and the number of provisional ballots that were counted; andan official finding that the bond proposition was approved or rejected.The governing body need not file with the county clerk or with any other official:any statement or certificate of the election results;any affidavit with respect to the facts pertaining to the election; orany affidavit pertaining to the indebtedness and valuation of the municipality.
(3) The official finding that the majority of the qualified voters of the local political subdivision voting on the bond proposition approved the issuance of the bonds is conclusive in any action or proceeding involving the validity of the election or involving the determination or declaration of the result of the election if the action is filed after the expiration of the period provided in Subsection 20A-4-403(3).
Amended by Chapter 83, 2006 General Session
11-14-208 - Contest of election results — Procedure.
(1) Any person wishing to contest the results of a bond election shall comply with the procedures and requirements of Title 20A, Chapter 4, Part 4, Recounts and Election Contests.The local political subdivision calling the election shall be regarded as the defendant.
(2) Unless the complaint is filed within the period prescribed in Subsection 20A-4-403(3), a court may not: allow an action contesting the bond election to be maintained; orset aside or hold the bond election invalid.
Enacted by Chapter 105, 2005 General Session
Issuance of Bonds
11-14-301 - Issuance of bonds by governing body — Computation of indebtedness under constitutional and statutory limitations.
(1) If the governing body has declared the bond proposition to have carried and no contest has been filed, or if a contest has been filed and favorably terminated, the governing body may proceed to issue the bonds voted at the election.
(2) It is not necessary that all of the bonds be issued at one time, but, except as otherwise provided in this Subsection (2), bonds approved by the voters may not be issued more than 10 years after the day on which the election is held.The 10-year period described in Subsection (2)(a) is tolled if, at any time during the 10-year period:an application for a referendum petition is filed with a local clerk, in accordance with Section 20A-7-602, with respect to the local obligation law relating to the bonds; orthe bonds are challenged in a court of law or an administrative proceeding in relation to:the legality or validity of the bonds, or the election or proceedings authorizing the bonds;the authority of the local political subdivision to issue the bonds;the provisions made for the security or payment of the bonds; orany other issue that materially and adversely affects the marketability of the bonds, as determined by the individual or body that holds the executive powers of the local political subdivision.For a bond described in this section that is approved by voters on or after May 8, 2002, but before May 14, 2019, a tolling period described in Subsection (2)(b)(i) ends on the later of the day on which:the local clerk determines that the petition is insufficient, in accordance with Subsection 20A-7-607(3), unless an application, described in Subsection 20A-7-607(4)(a), is made to a court;a court determines, under Subsection 20A-7-607(4)(c), that the petition for the referendum is not legally sufficient; orfor a referendum petition that is sufficient, the governing body declares, as provided by law, the results of the referendum election on the local obligation law.For a bond described in this section that was approved by voters on or after May 14, 2019, a tolling period described in Subsection (2)(b)(i) ends:if a county, city, town, or court determines, under Section 20A-7-602.7, that the proposed referendum is not legally referable to voters, the later of:the day on which the county, city, or town provides the notice described in Subsection 20A-7-602.7(1)(b)(ii); orif a sponsor appeals, under Subsection 20A-7-602.7(4), the day on which a court decision that the proposed referendum is not legally referable to voters becomes final; orif a county, city, town, or court determines, under Section 20A-7-602.7, that the proposed referendum is legally referable to voters, the later of:the day on which the local clerk determines, under Section 20A-7-607, that the number of certified names is insufficient for the proposed referendum to appear on the ballot; orif the local clerk determines, under Section 20A-7-607, that the number of certified names is sufficient for the proposed referendum to appear on the ballot, the day on which the governing body declares, as provided by law, the results of the referendum election on the local obligation law.A tolling period described in Subsection (2)(b)(ii) ends after:there is a final settlement, a final adjudication, or another type of final resolution of all challenges described in Subsection (2)(b)(ii); andthe individual or body that holds the executive powers of the local political subdivision issues a document indicating that all challenges described in Subsection (2)(b)(ii) are resolved and final.If the 10-year period described in Subsection (2)(a) is tolled under this Subsection (2) and, when the tolling ends and after giving effect to the tolling, the period of time remaining to issue the bonds is less than one year, the period of time remaining to issue the bonds shall be extended to one year.The tolling provisions described in this Subsection (2) apply to all bonds described in this section that were approved by voters on or after May 8, 2002.
(3) Bonds approved by the voters may not be issued to an amount that will cause the indebtedness of the local political subdivision to exceed that permitted by the Utah Constitution or statutes.In computing the amount of indebtedness that may be incurred pursuant to constitutional and statutory limitations, the constitutionally or statutorily permitted percentage, as the case may be, shall be applied to the fair market value, as defined under Section 59-2-102, of the taxable property in the local political subdivision, as computed from the last applicable equalized assessment roll before the incurring of the additional indebtedness.In determining the fair market value of the taxable property in the local political subdivision as provided in this section, the value of all tax equivalent property, as defined in Section 59-3-102, shall be included as a part of the total fair market value of taxable property in the local political subdivision, as provided in Title 59, Chapter 3, Tax Equivalent Property Act.
(4) Bonds of improvement districts issued in a manner that they are payable solely from the revenues to be derived from the operation of the facilities of the district may not be included as bonded indebtedness for the purposes of the computation.
(5) Where bonds are issued by a city, town, or county payable solely from revenues derived from the operation of revenue-producing facilities of the city, town, or county, or payable solely from a special fund into which are deposited excise taxes levied and collected by the city, town, or county, or excise taxes levied by the state and rebated pursuant to law to the city, town, or county, or any combination of those excise taxes, the bonds shall be included as bonded indebtedness of the city, town, or county only to the extent required by the Utah Constitution, and any bonds not so required to be included as bonded indebtedness of the city, town, or county need not be authorized at an election, except as otherwise provided by the Utah Constitution, the bonds being hereby expressly excluded from the election requirement of Section 11-14-201.
(6) A bond election is not void when the amount of bonds authorized at the election exceeded the limitation applicable to the local political subdivision at the time of holding the election, but the bonds may be issued from time to time in an amount within the applicable limitation at the time the bonds are issued.
(7) A local political subdivision may not receive, from the issuance of bonds approved by the voters at an election, an aggregate amount that exceeds by more than 2% the maximum principal amount stated in the bond proposition.The provision in Subsection (7)(a) applies to bonds issued pursuant to an election held after January 1, 2019.
Amended by Chapter 438, 2024 General Session
11-14-302 - Resolution — Negotiability — Registration — Maturity — Interest — Payment — Redemption — Combining issues — Sale — Financing plan.
(1) Bonds issued under this chapter:shall: be authorized by resolution of the governing body;be fully negotiable for all purposes;mature at such time or times not more than 40 years from their date;bear interest at such rate or rates, if any;be payable at such place or places;be in such form;be executed in such manner;be sold in such manner and at such prices, either at, in excess of, or below face value; andbe issued in such manner and with such details as may be provided by resolution; andmay be made: registrable as to principal alone or as to principal and interest; orredeemable prior to maturity at such times and on such terms.Interest rate limitations elsewhere appearing in the laws of Utah do not apply to nor limit the rate of interest on bonds issued under this chapter.
(2) If the bonds bear interest at a variable rate or rates, the resolution described in Subsection (1)(a)(i)(A) shall provide for the establishment of a method or methods by which the interest rate or rates on the bonds may be determined.If the resolution specifies a method by which interest on the bonds may be determined, the resolution shall also specify the maximum rate of interest the bonds may bear.Bonds voted for different purposes by separate propositions at the same or different bond elections may in the discretion of the governing body be combined and offered for sale as one issue of bonds.The resolution providing for this combination and the printed bonds for the combined issue shall separately set forth the amount being issued for each of the purposes provided for in each proposition submitted to the electors.If the local political subdivision has retained a fiscal agent to assist and advise it with respect to the bonds and the fiscal agent has received or is to receive a fee for such services, the bonds may be sold to the fiscal agent but only if the sale is made pursuant to a sealed bid submitted by the fiscal agent at an advertised public sale.The governing body may, by resolution, delegate to one or more officers of the local political subdivision the authority to:in accordance with and within the parameters set forth in the resolution, approve the final interest rate or rates, price, principal amount, maturity or maturities, redemption features, and other terms of the bond; andapprove and execute all documents relating to the issuance of a bond.
(3) All bonds shall be paid by the treasurer of the local political subdivision or the treasurer’s duly authorized agent on their respective maturity dates or on the dates fixed for the bonds redemption.All bond coupons, other than coupons cancelled because of the redemption of the bonds to which they apply, shall similarly be paid on their respective dates or as soon thereafter as the bonds or coupons are surrendered.Upon payment of a bond or coupon, the treasurer of the local political subdivision or the treasurer’s duly authorized agent, shall perforate the bond or coupon with a device suitable to indicate payment.Any bonds or coupons which have been paid or cancelled may be destroyed by the treasurer of the local political subdivision or by the treasurer’s duly authorized agent.
(4) Bonds, bond anticipation notes, or tax anticipation notes with maturity dates of one year or less may be authorized by a local political subdivision from time to time pursuant to a plan of financing adopted by the governing body.The plan of financing shall specify the terms and conditions under which the bonds or notes may be issued, sold, and delivered, the officers of the local political subdivision authorized to issue the bonds or notes, the maximum amount of bonds or notes which may be outstanding at any one time, the source or sources of payment of the bonds or notes, and all other details necessary for issuance of the bonds or notes.Subject to the Constitution, the governing body of the local political subdivision may include in the plan of financing the terms and conditions of agreements which may be entered into by the local political subdivision with banking institutions for letters of credit or for standby letters of credit to secure the bonds or notes, including payment from any legally available source of fees, charges, or other amounts coming due under the agreements entered into by the local political subdivision.
Amended by Chapter 145, 2011 General Session
11-14-303 - Bonds, notes, or other obligations of political subdivisions exempt from taxation except corporate franchise tax.
All bonds, notes, or other obligations issued under this chapter or under any other law authorizing the issuance of bonds, notes, or indebtedness by a local political subdivision or any other political subdivision now existing or subsequently created under the laws of Utah, including bonds payable solely from special assessments and tax anticipation indebtedness, and the interest on them shall be exempt from all taxation in this state, except for the corporate franchise tax.
Amended by Chapter 83, 2006 General Session
11-14-304 - Facsimile signatures and facsimile seal, use permitted — Validity of signed bonds.
(1) If the use of a facsimile signature is authorized by the body empowered by law to authorize the issuance of the bonds or other obligations of any agency, instrumentality, or institution of this state or of any municipal corporation, political subdivision, improvement district, taxing district, or other governmental entity within the state, whether or not issued under this chapter, any officer so authorized may execute, authenticate, certify, or endorse, or cause to be executed, authenticated, certified, or endorsed the bond or other obligation, or any certificate required to be executed on the back thereof, with a facsimile signature in lieu of his manual signature if at least one signature required or permitted to be placed on the face thereof shall be manually subscribed. Upon compliance with this chapter by the authorized officer, his facsimile signature has the same legal effect as his manual signature. When any seal is required in the execution, authentication, certification, or endorsement of the bond or other obligation, or any certificate required to be executed on the back thereof, the authorized officer may cause the seal to be printed, engraved, lithographed, stamped, or otherwise placed in facsimile thereon. The facsimile seal has the same legal effect as the impression of the seal.
(2) Bonds or other obligations bearing the signatures (manual or facsimile) of officers in office on the date of the execution thereof shall be valid and binding obligations notwithstanding that before the delivery thereof any or all of the persons whose signatures appear thereon shall have ceased to be officers of the local political subdivision.
Renumbered and Amended by Chapter 105, 2005 General Session
11-14-304.5 - Recital in bonds — Incontestability.
.5(1) In the resolution authorizing bonds to be issued as provided in this chapter or other applicable law, a local political subdivision may require that the bonds recite that they are issued under authority of this chapter or other applicable law.
.5(2) A bond recital as provided in Subsection (1) conclusively establishes full compliance with all the provisions of applicable law.All bonds issued containing a recital as provided in Subsection (1) shall be incontestable for any reason after their delivery for value.
Enacted by Chapter 83, 2006 General Session
11-14-305 - Registration, denominations, and exchange of obligations.
(1) As used in this section, “obligations” means bonds, bond anticipation notes, and tax anticipation notes.
(2) Unless otherwise provided by the local political subdivision, Title 15, Chapter 7, Registered Public Obligations Act, governs and applies to all obligations issued in registered form. If Title 15, Chapter 7, Registered Public Obligations Act, is inapplicable to an issue of obligations, Subsection (3) governs and applies with respect to such issue.
(3) Any obligations issued under this chapter may be issued in denominations as determined by the governing body. The governing body may provide for the exchange of any of these obligations after issuance for obligations of larger or smaller denominations in such manner as may be provided in the authorizing resolution, provided the obligations in changed denominations shall be exchanged for the original obligations in like aggregate principal amounts and in such manner that no overlapping interest is paid; and such obligations in changed denominations shall bear interest at the same rate or rates, if any, shall mature on the same date or dates, shall be as nearly as practicable in the same form except for an appropriate recital as to the exchange, and shall in all other respects, except as to denominations and numbers, be identical with the original obligations surrendered for exchange. Where any exchange is made under this section, the obligations surrendered by the holders at the time of exchange shall be cancelled; any such exchange shall be made only at the request of the holders of the obligations to be surrendered; and the governing body may require all expenses incurred in connection with such exchange, including the authorization and issuance of the new obligations, to be paid by such holders.
Amended by Chapter 83, 2006 General Session
11-14-306 - Additional pledge for general obligation bonds — Revenue bonds — Resolution.
(1) To the extent constitutionally permissible, local political subdivisions may pledge as an additional source of payment for their general obligation bonds all or any part of revenues, fees, and charges attributable to the operation or availability of facilities or may issue bonds payable solely from such revenues, fees, or charges.
(2) The governing body may issue bonds payable solely from revenues, fees, or charges attributable to extensions and improvements to revenue-producing facilities.If the governing body issues bonds under Subsection (2)(a), the resolution authorizing these bonds shall set forth as a finding of the governing body:the value of the then existing facility and the value of this facility after completion of the extensions or improvements proposed to be constructed; andthat portion of the revenues, fees, or charges derived from the entire facility when the contemplated extensions and improvements are completed which the value of the existing facility bears to the value of the facility after completion shall be considered to be revenue derived from the existing facility and the remainder may be set aside and pledged to the payment of the principal of and interest on the bonds and for the establishment of appropriate reserve fund or funds, and such portion shall be considered to be revenue derived exclusively from the extensions and improvements.
(3) Any resolution or trust indenture authorizing bonds to which such revenues, fees, or charges are pledged may contain such covenants with the future holder or holders of the bonds as to the management and operation of the affected facilities, the imposition, collection, and disposition of rates, fees, and charges for commodities and services furnished thereby, the issuance of future bonds, the creation of future liens and encumbrances against the facilities, the carrying of insurance, the keeping of books and records, the deposit and paying out of revenues, fees, or charges and bond proceeds, the appointment and duties of a trustee, and other pertinent matters as may be considered proper by the governing body.If the revenue, fee, or charge so pledged involves either sewer or water revenues, fees, or charges or both sewer and water revenues, fees, or charges, provision may be made for charges for sewer services and water services to be billed in a single bill and for the suspension of water or sewer services, or both, to any customer who shall become delinquent in the payment due for either.Provision may be made for the securing of such bonds by a trust indenture, but no such indenture shall convey, mortgage, or create any lien upon property of the local political subdivision.Either the bond resolution or such trust indenture may impose in the holders of the bonds full rights to enforce the provisions thereof, and may include terms and conditions upon which the holders of the bonds or any proportion of them, or a trustee therefor, shall be entitled to the appointment of a receiver who may enter and take possession of the facility or facilities, the revenues, fees, or charges of which are so pledged, and may operate and maintain them, prescribe charges and collect, receive, and apply all revenues, fees, or charges therefrom arising in the same manner as the local political subdivision itself might do.
Amended by Chapter 83, 2006 General Session
11-14-307 - Revenue bonds payable out of excise tax revenues.
(1) To the extent constitutionally permissible, a city, town, or county may:issue bonds payable solely from a special fund into which are to be deposited:excise taxes levied and collected by the city, town, or county;excise taxes levied by the state and rebated pursuant to law to the city, town, or county; ora combination of the excise taxes described in Subsections (1)(a)(i) and (ii); orpledge all or any part of the excise taxes described in Subsection (1)(a) as an additional source of payment for general obligation bonds it issues.
(2) If the covenant is not inconsistent with this chapter, a resolution or trust indenture providing for the issuance of bonds payable in whole or in part from the proceeds of excise tax revenues may contain covenants with the holder or holders of the bonds as to:the excise tax revenues;the disposition of the excise tax revenues;the issuance of future bonds; andother pertinent matters that are considered necessary by the governing body to assure the marketability of those bonds.A resolution may also include provisions to insure the enforcement, collection, and proper application of excise tax revenues as the governing body may think proper.The proceeds of bonds payable in whole or in part from pledged class B or C road funds shall be used to construct, repair, and maintain streets and roads in accordance with Sections 72-6-108 and 72-6-110 and to fund any reserves and costs incidental to the issuance of the bonds.When any bonds payable from excise tax revenues have been issued, the resolution or other enactment of the legislative body imposing the excise tax and pursuant to which the tax is being collected, the obligation of the governing body to continue to levy, collect, and allocate the excise tax, and to apply the revenues derived from the excise tax in accordance with the provisions of the authorizing resolution or other enactment, shall be irrevocable until the bonds have been paid in full as to both principal and interest, and is not subject to amendment in any manner that would impair the rights of the holders of those bonds or which would in any way jeopardize the timely payment of principal or interest when due.
(3) The state pledges to and agrees with the holders of any bonds issued by a city, town, or county to which the proceeds of excise taxes collected by the state and rebated to the city, town, or county are devoted or pledged as authorized in this section, that the state will not alter, impair, or limit the excise taxes in a manner that reduces the amounts to be rebated to the city, town, or county which are devoted or pledged as authorized in this section until the bonds or other securities, together with applicable interest, are fully met and discharged.Nothing in this Subsection (3) precludes alteration, impairment, or limitation of excise taxes if adequate provision is made by law for the protection of the holders of the bonds.A city, town, or county may include this pledge and undertaking for the state in those bonds.
(4) Outstanding bonds to which excise tax revenues are pledged as the sole source of payment may not at any one time exceed an amount for which the average annual installments of principal and interest will exceed 80% of the total excise tax revenues received by the issuing entity from the collection or rebate of the excise tax revenues during the fiscal year of the issuing entity immediately preceding the fiscal year in which the resolution authorizing the issuance of bonds is adopted.If an excise tax has not been levied by a city, town, or county for a sufficient period of time to determine the 80% bond payment requirement under Subsection (4)(a), a city, town, or county may use an excise tax revenue that is currently levied within the same geographic coverage area and with the same percentage of collection to determine the amount of excise tax revenues that are expected to be received to determine the 80% bond payment requirement under Subsection (4)(a).
(5) Bonds issued solely from a special fund into which are to be deposited excise tax revenues constitutes a borrowing solely upon the credit of the excise tax revenues received or to be received by the city, town, or county and does not constitute an indebtedness or pledge of the general credit of the city, town, or county.
(6) Before issuing any bonds under this section, a city, town, or county shall comply with Section 11-14-318.
(7) A city’s, town’s, or county’s action to issue a bond under this section is subject to a local referendum in accordance with Title 20A, Chapter 7, Issues Submitted to the Voters.
Amended by Chapter 427, 2024 General Session
11-14-308 - Special service district bonds secured by federal mineral lease payments — Use of bond proceeds — Bond resolution — Nonimpairment of appropriation formula — Issuance of bonds.
(1) Special service districts may: issue bonds payable, in whole or in part, from federal mineral lease payments which are to be deposited into the Mineral Lease Account under Section 59-21-1 and distributed to special service districts under Subsection 59-21-2(2)(h); orpledge all or any part of the mineral lease payments described in Subsection (1)(a) as an additional source of payment for their general obligation bonds.
(2) The proceeds of these bonds may be used: to construct, repair, and maintain streets and roads;to fund any reserves and costs incidental to the issuance of the bonds and pay any associated administrative costs; andfor capital projects of the special service district.
(3) The special service district board shall enact a resolution authorizing the issuance of bonds which, until the bonds have been paid in full:shall be irrevocable; andmay not be amended in any manner that would: impair the rights of the bond holders; orjeopardize the timely payment of principal or interest when due.Notwithstanding any other provision of this chapter, the resolution described in Subsection (3)(a) may contain covenants with the bond holder regarding:mineral lease payments, or their disposition;the issuance of future bonds; orother pertinent matters considered necessary by the governing body to: assure the marketability of the bonds; orinsure the enforcement, collection, and proper application of mineral lease payments.
(4) Except as provided in Subsection (4)(b), the state may not alter, impair, or limit the statutory appropriation formula provided in Subsection 59-21-2(2)(h), in a manner that reduces the amounts to be distributed to the special service district until the bonds and the interest on the bonds are fully met and discharged. Each special service district may include this pledge and undertaking of the state in these bonds.Nothing in this section:may preclude the alteration, impairment, or limitation of these bonds if adequate provision is made by law for the protection of the bond holders; orshall be construed: as a pledge guaranteeing the actual dollar amount ultimately received by individual special service districts;to require the Department of Transportation to allocate the mineral lease payments in a manner contrary to the general allocation method described in Subsection 59-21-2(2)(h); orto limit the Department of Transportation in making rules or procedures allocating mineral lease payments pursuant to Subsection 59-21-2(2)(h).
(5) The average annual installments of principal and interest on bonds to which mineral lease payments have been pledged as the sole source of payment may not at any one time exceed:80% of the total mineral lease payments received by the issuing entity during the fiscal year of the issuing entity immediately preceding the fiscal year in which the resolution authorizing the issuance of bonds is adopted; orif the bonds are issued during the first fiscal year the issuing entity is eligible to receive funds, 60% of the amount estimated by the Department of Transportation to be appropriated to the issuing entity in that fiscal year.The Department of Transportation is not liable for any loss or damage resulting from reliance on the estimates.
(6) The final maturity date of the bonds may not exceed 15 years from the date of their issuance.
(7) Bonds which are payable solely from a special fund into which mineral lease payments are deposited constitute a borrowing based solely upon the credit of the mineral lease payments received or to be received by the special service district and do not constitute an indebtedness or pledge of the general credit of the special service district or the state.
(8) No bond issuance shall be invalid or impaired solely because the bonds were issued under this section during the period beginning January 1, 2021 and ending May 3, 2023.
Amended by Chapter 241, 2023 General Session
11-14-309 - Refunding bonds — Limitation on redemption of bonds.
(1) Any bond issued under this chapter may be refunded as provided in the Utah Refunding Bond Act.
(2) Nothing contained in this chapter nor in any other law of this state may be construed to permit any local political subdivision to call outstanding bonds for redemption in order to refund those bonds or in order to pay them prior to their stated maturities, unless: the right to call the bonds for redemption was specifically reserved and stated in the bonds at the time of their issuance; andall conditions with respect to the manner, price, and time applicable to the redemption as set forth in the proceedings authorizing the outstanding bonds are strictly observed.
(3) A holder of an outstanding bond may not be compelled to surrender the bond for refunding before its stated maturity or optional date of redemption expressly reserved in the bond, even though the refunding might result in financial benefit to the local political subdivision issuing the bond.
Renumbered and Amended by Chapter 105, 2005 General Session
11-14-310 - General obligation bonds — Levy and collection of taxes.
(1) Any bonds issued under this chapter that are not payable solely from revenues other than those derived from ad valorem taxes are full general obligations of the local political subdivision.The local political subdivision’s full faith and credit is pledged for the prompt and punctual payment of principal of and interest on the local political subdivision’s general obligation bonds.A local political subdivision is required, regardless of any limitations that may otherwise exist on the amount of taxes that the local political subdivision may levy, to provide for the annual levy and collection of ad valorem taxes, without limitation as to the rate or amount, on all taxable property in the local political subdivision fully sufficient for the payment of principal and interest on the local political subdivision’s general obligation bonds as the principal and interest become due.If by law ad valorem taxes for the local political subdivision are levied by a board other than its governing body: the taxes shall be levied by the other board; andthe local political subdivision shall, each year, provide the levying board with all information necessary to levy the taxes in the required amount.Taxes levied under Subsection (1)(a)(iv) shall be levied and collected by the same officers, at the same time, and in the same manner as are other taxes levied for the local political subdivision.The pledge of the taxes levied under this section shall constitute an automatically arising first lien on the taxes as provided in Section 11-14-501.A local school board may use revenues remaining from a tax levied under this section for school district technology programs or projects after the principal of and premium and interest on the district’s general obligation bonds have been paid for the applicable period for which the taxes were levied.A lien created pursuant to Section 11-14-501 does not attach to any technology programs or projects paid for from the remaining tax revenues under Subsection (1)(c)(i).
(2) If a local political subdivision neglects or fails for any reason to levy or collect or to cause to be levied or collected sufficient taxes for the prompt and punctual payment of such principal and interest, a person in interest may enforce levy and collection of sufficient taxes in a court having jurisdiction of the subject matter.A suit, action, or proceeding brought by a person in interest under Subsection (2)(a) shall be a preferred cause and shall be heard and disposed of without delay.All provisions of the constitution and laws relating to the collection of county and municipal taxes and tax sales apply to and regulate the collection of the taxes levied pursuant to this section, through the officer whose duty it is to collect the taxes and money due the local political subdivision.
Amended by Chapter 366, 2020 General Session
11-14-311 - Bond anticipation notes.
(1) If the governing body considers it advisable and in the interests of the local political subdivision to anticipate the issuance of bonds to be issued under this chapter, the governing body may, pursuant to appropriate resolution, issue bond anticipation notes.Each resolution authorizing the issuance of bond anticipation notes shall:describe the bonds in anticipation of which the notes are to be issued;specify the principal amount of the notes and the maturity dates of the notes; andspecify either the rates of interest, if any, on the notes or the method by which interest on the notes may be determined while the notes are outstanding.If the resolution specifies a method by which the interest rates on the notes may be determined, the resolution may specify the maximum rate of interest which the notes may bear.
(2) Bond anticipation notes shall be issued and sold in a manner and at a price, either at, below, or above face value, as the governing body determines by resolution. Interest on bond anticipation notes may be made payable semiannually, annually, or at maturity. Bond anticipation notes may be made redeemable prior to maturity at the option of the governing body in the manner and upon the terms fixed by the resolution authorizing their issuance. Bond anticipation notes shall be executed and shall be in a form and have details and terms as provided in the authorizing resolution.
(3) Contemporaneously with the issuance of the bonds in anticipation of which bond anticipation notes are issued, provision shall be made for the retirement of any outstanding bond anticipation notes.
(4) Whenever the bonds in anticipation of which notes are issued are to be payable from ad valorem taxes and constitute full general obligations of the local political subdivision, the bond anticipation notes and the interest on them shall be secured by a pledge of the full faith and credit of the local political subdivision in the manner provided in Section 11-14-310 and shall also be made payable from funds derived from the sale of the bonds in anticipation of which the notes are issued. Whenever the bonds in anticipation of which the notes are to be issued are to be payable solely from revenues derived from the operation of revenue-producing facilities, these bond anticipation notes and the interest on them shall be secured by a pledge of the income and revenues derived by the local political subdivision from the revenue-producing facilities and shall also be made payable from funds derived from the sale of the bonds in anticipation of which the notes are issued.
(5) Bond anticipation notes issued under this section may be refunded by the issuance of other bond anticipation notes issued under this section.
(6) Sections 11-14-304, 11-14-305, 11-14-315, 11-14-316, and 11-14-401 apply to all bond anticipation notes issued under this section.
(7) Bonds are not considered to have been issued outside of the 10-year period described in Section 11-14-301, if the issuance of the bonds is anticipated under this section by bond anticipation notes issued before the expiration of the 10-year period.
Amended by Chapter 204, 2012 General Session
11-14-312 - Prior bonds validated — Exceptions.
All bonds issued by any local political subdivision before May 1, 2006, and all proceedings had in the authorization and issuance of them are hereby validated, ratified, and confirmed; and all such bonds are declared to constitute legally binding obligations in accordance with their terms. Nothing in this section shall be construed to affect or validate any bonds, the legality of which is being contested as of May 1, 2006.
Amended by Chapter 83, 2006 General Session
11-14-313 - Issuance of negotiable notes or bonds authorized — Limitation on amount of tax anticipation notes or bonds — Procedure.
(1) For the purpose of meeting the current expenses of the local political subdivision and for any other purpose for which funds of the local political subdivision may be expended, a local political subdivision may, if authorized by a resolution of its governing body, borrow money by issuing its negotiable notes or bonds in an initial principal amount:not in excess of 90% of the taxes and other revenues of the local political subdivision for the current fiscal year, if the notes or bonds are issued after the annual tax levy for taxes falling due during the fiscal year in which the notes or bonds are issued;not in excess of 75% of the taxes and other revenues of the local political subdivision for the preceding fiscal year, if the notes or bonds are issued prior to the annual tax levy for taxes falling due during the fiscal year in which the bonds or notes are issued; ornot in excess of 75% of the taxes and other revenues that the governing body of the local political subdivision estimates that the local political subdivision will receive for the current fiscal year, if the notes or bonds are issued within 24 months following the creation of the local political subdivision.The proceeds of the notes or bonds shall be applied only in payment of current and necessary expenses and other purposes for which funds of the local political subdivision may be expended.There shall be included in the annual levy a tax and there shall be provision made for the imposition and collection of sufficient revenues other than taxes sufficient to pay the notes or bonds at maturity.If the taxes and other revenues in any one year are insufficient through delinquency or uncollectibility of taxes or other cause to pay when due all the lawful debts of the local political subdivision which have been or may hereafter be contracted, the governing body of the local political subdivision is authorized and directed to levy and collect in the next succeeding year a sufficient tax and to provide for the imposition and collection of sufficient revenues other than taxes to pay all of such lawfully contracted indebtedness, and may borrow as provided in this section in anticipation of such tax and other revenues to pay any such lawfully contracted indebtedness.Each resolution authorizing the issuance of tax anticipation notes or bonds shall:describe the taxes or revenues in anticipation of which the notes or bonds are to be issued; andspecify the principal amount of the notes or bonds, any interest rates, including a variable interest rate, the notes or bonds shall bear, and the maturity dates of the notes or bonds, which dates may not extend beyond the last day of the issuing local political subdivision’s fiscal year.
(2) Tax anticipation notes or bonds shall be issued and sold in such manner and at such prices, whether at, below, or above face value, as the governing body shall by resolution determine. Tax anticipation notes or bonds shall be in bearer form, except that the governing body may provide for the registration of the notes or bonds in the name of the owner, either as to principal alone, or as to principal and interest. Tax anticipation notes or bonds may be made redeemable prior to maturity at the option of the governing body in the manner and upon the terms fixed by the resolution authorizing their issuance. Tax anticipation notes or bonds shall be executed and shall be in such form and have such details and terms as shall be provided in the authorizing resolution.
(3) The provisions of Sections 11-14-303, 11-14-304, 11-14-305, 11-14-313, 11-14-315, 11-14-316, 11-14-401, 11-14-403, and 11-14-404 shall apply to all tax anticipation notes or bonds issued under this section. In applying these sections to tax anticipation notes, “bond” or “bonds” as used in these sections shall be deemed to include tax anticipation notes.
Amended by Chapter 378, 2010 General Session
11-14-314 - Tax anticipation obligations validated.
All obligations issued in anticipation of the collection of taxes and other revenues by any local political subdivision before May 1, 2006, and all proceedings had in the authorization and issuance of them are validated, ratified, and confirmed; and all these obligations are declared to constitute legally binding obligations in accordance with their terms. Nothing in this section shall be construed to affect or validate any of these obligations, the legality of which is being contested as of May 1, 2006.
Amended by Chapter 83, 2006 General Session
11-14-315 - Nature and validity of bonds issued — Applicability of other statutory provisions — Budget provision required — Applicable procedures for issuance — Notice.
Bonds issued under this chapter shall have all the qualities of negotiable paper, shall be incontestable in the hands of bona fide purchasers or holders for value and are not invalid for any irregularity or defect in the proceedings for their issuance and sale. This chapter is intended to afford an alternative method for the issuance of bonds by local political subdivisions and may not be so construed as to deprive any local political subdivision of the right to issue its bonds under authority of any other statute, but nevertheless this chapter shall constitute full authority for the issue and sale of bonds by local political subdivisions. The provisions of Section 11-1-1 are not applicable to bonds issued under this chapter. Any local political subdivision subject to the provisions of any budget law shall in its annual budget make proper provision for the payment of principal and interest currently falling due on bonds issued hereunder, but no provision need be made in any such budget prior to the issuance of the bonds for the issuance thereof or for the expenditure of the proceeds thereof. No ordinance, resolution or proceeding in respect to the issuance of bonds hereunder shall be necessary except as herein specifically required, nor shall the publication of any resolution, proceeding or notice relating to the issuance of the bonds be necessary except as herein required. Any publication made hereunder shall be made by providing notice for the local political subdivision, as a class A notice under Section 63G-30-102 . No resolution adopted or proceeding taken hereunder shall be subject to referendum petition or to an election other than as herein required. All proceedings adopted hereunder may be adopted on a single reading at any legally convened meeting of the governing body.
Amended by Chapter 435, 2023 General Session
11-14-316 - Publication of notice, resolution, or other proceeding — Contest.
(1) The governing body of any local political subdivision may provide for the publication of any resolution or other proceeding adopted under this chapter: for the local political subdivision, as a class A notice under Section 63G-30-102, for at least 30 days; andas required in Section 45-1-101.
(2) When a resolution or other proceeding provides for the issuance of bonds, the governing body may, in lieu of publishing the entire resolution or other proceeding, publish a notice of bonds to be issued, titled as such, containing: the name of the issuer;the purpose of the issue;the type of bonds and the maximum principal amount which may be issued;the maximum number of years over which the bonds may mature;the maximum interest rate which the bonds may bear, if any;the maximum discount from par, expressed as a percentage of principal amount, at which the bonds may be sold;a general description of the security pledged for repayment of the bonds;the total par amount of bonds currently outstanding that are secured by the same pledge of revenues as the proposed bonds, if any;information on a method by which an individual may obtain access to more detailed information relating to the outstanding bonds of the local political subdivision;the estimated total cost to the local political subdivision for the proposed bonds if the bonds are held until maturity, based on interest rates in effect at the time that the local political subdivision publishes the notice; andthe times and place where a copy of the resolution or other proceeding may be examined, which shall be:at an office of the issuer identified in the notice, during regular business hours of the issuer as described in the notice; andfor a period of at least 30 days after the publication of the notice.
(3) For a period of 30 days after the publication, any person in interest may contest: the legality of such resolution or proceeding;any bonds which may be authorized by such resolution or proceeding; orany provisions made for the security and payment of the bonds.
(4) A person shall contest the matters set forth in Subsection (3) by filing a verified written complaint in the district court of the county in which he resides within the 30-day period.
(5) After the 30-day period, no person may contest the regularity, formality, or legality of the resolution or proceeding for any reason.
Amended by Chapter 435, 2023 General Session
11-14-317 - Bonds as legal investments — Use as security for the faithful performance of acts.
(1) All bonds issued under this chapter or other applicable law shall be legal investments for: all trust funds, including those under the jurisdiction of the state;the funds of all insurance companies, banks, and both commercial and savings and trust companies;the state school funds; andall sinking funds under the control of the state treasurer.
(2) If funds may by law be invested in or loaned upon the security of bonds of a county, city, or school district, funds may be invested in or loaned upon the security of the bonds of any other local political subdivision.
(3) If bonds of a county, city, or school district may by law be used as security for the faithful performance on execution of any court or private trust or any other act, the bonds of any other local political subdivision may be used in the same way.
Enacted by Chapter 83, 2006 General Session
11-14-318 - Public hearing required — Notice.
(1) Before issuing bonds authorized under this chapter, a local political subdivision shall: in accordance with Subsection (2), provide public notice of the local political subdivision’s intent to issue bonds; andhold a public hearing:if an election is required under this chapter: no sooner than 30 days before the day on which the notice of election is published under Section 11-14-202; andno later than five business days before the day on which the notice of election is published under Section 11-14-202; andto receive input from the public with respect to: the issuance of the bonds; andthe potential economic impact that the improvement, facility, or property for which the bonds pay all or part of the cost will have on the private sector.
(2) A local political subdivision shall: publish the notice required by Subsection (1)(a) for the local political subdivision, as a class A notice under Section 63G-30-102, for no less than 14 days before the day of the public hearing required by Subsection (1)(b); andensure that the notice:identifies: the purpose for the issuance of the bonds;the maximum principal amount of the bonds to be issued;the taxes, if any, proposed to be pledged for repayment of the bonds; andthe time, place, and location of the public hearing; andinforms the public that the public hearing will be held for the purposes described in Subsection (1)(b)(ii).
Amended by Chapter 435, 2023 General Session
Miscellaneous Provisions
11-14-401 - Short title — Title to appear on face of bonds — Effect of future statutes dealing with municipal bond issues.
(1) This chapter is known as the “Local Government Bonding Act.”
(2) All bonds issued pursuant to authority contained in this chapter shall contain on their face a recital to that effect, and no chapter hereafter passed by the Legislature amending other chapters under which bonds authorized to be issued by this chapter might be issued or dealing with bond issues of local political subdivisions shall be construed to affect the authority to proceed under this chapter in the manner herein provided unless such future statute amends this chapter and specifically provides that it is to be applicable to bonds issued under this chapter.
(3) All bonds referencing the prior title of this chapter, “Utah Municipal Bond Act,” that were issued prior to May 2, 2005 pursuant to the authority contained in this chapter shall be considered to reference this chapter and shall be construed according to the terms of Subsection (1) as if they refer to the current title of this chapter.
Renumbered and Amended by Chapter 105, 2005 General Session
11-14-402 - Exemptions from application of chapter — Exception.
(1) Except as provided in Subsection (2), this chapter does not apply to bonds issued by the state of Utah nor to bonds or obligations payable solely from special assessments levied on benefited property.
(2) Sections 11-14-303 and 11-14-501 have general application in accordance with their terms.
Renumbered and Amended by Chapter 105, 2005 General Session
11-14-403 - Conflict of laws.
To the extent that any one or more provisions of this chapter shall be in conflict with any other law or laws, the provisions of this chapter shall be controlling.
Renumbered and Amended by Chapter 105, 2005 General Session
11-14-404 - Severability clause.
If any one or more sentences, clauses, phrases, provisions or sections of this chapter or the application thereof to any set of circumstances shall be held by final judgment of any court of competent jurisdiction to be invalid, the remaining sentences, clauses, phrases, provisions and sections hereof and the application of this chapter to other sets of circumstances shall nevertheless continue to be valid and effective, the legislature hereby declaring that all provisions of this chapter are severable.
Renumbered and Amended by Chapter 105, 2005 General Session
11-14-405 - Validity of prior bond issues.
All bonds issued by any local political subdivision before May 1, 2006, and all proceedings had in the authorization and issuance of those bonds are hereby validated, ratified, and confirmed, and all those bonds are declared to constitute legally binding obligations in accordance with their terms. Nothing in this section may be construed to affect or validate any bonds, the legality of which is being contested as of May 1, 2006.
Amended by Chapter 83, 2006 General Session
11-14-406 - Application of chapter.
Sections 11-14-201 , 11-14-202 , 11-14-203 , 11-14-204 , 11-14-205 , and 11-14-207 shall apply to all bond elections held by any local political subdivision and, except as otherwise provided in Section 11-14-402 , by any other taxing district or governmental entity whether or not the bonds are issued under authority granted by this chapter.
Amended by Chapter 83, 2006 General Session
Government Security Interests
11-14-501 - Creation and perfection of government security interests.
(1) As used in this section: “Bonds” means any bond, note, lease, or other obligation of a governmental unit.”General obligation bond” means a bond, note, warrant, certificate of indebtedness, or other obligation of a local political subdivision that: is payable in whole or in part from revenues derived from ad valorem taxes; andconstitutes an indebtedness within the meaning of any applicable constitutional or statutory debt limitation.”General obligation bond” includes a general obligation tax, revenue, or bond anticipation note issued by a local political subdivision that is payable in whole or in part from revenues derived from ad valorem taxes.”Governmental unit” has the meaning assigned in Section 70A-9a-102.”Pledge” means the creation of a security interest of any kind.”Property” means any property or interests in property, other than real property.”Security agreement” means any resolution, ordinance, indenture, document, or other agreement or instrument under which the revenues, fees, rents, charges, taxes, or other property are pledged to secure the bonds.
(2) This section expressly governs the creation, perfection, priority, and enforcement of a security interest created by the state or a governmental unit of the state, notwithstanding anything in Title 70A, Chapter 9a, Uniform Commercial Code - Secured Transactions, to the contrary.
(3) The revenues, fees, rents, charges, taxes, or other property pledged by a governmental unit for the purpose of securing its bonds are immediately subject to the lien of the pledge.The lien is a perfected lien upon the effective date of the security agreement.The physical delivery, filing, or recording of a security agreement or financing statement under the Uniform Commercial Code or otherwise, or any other similar act, is not necessary to perfect the lien.The lien of any pledge is valid, binding, perfected, and enforceable from the time the pledge is made.The lien of the pledge has priority:based on the time of the creation of the pledge unless otherwise provided in the security agreement; andas against all parties having claims of any kind in tort, contract, or otherwise against the governmental unit, regardless of whether or not the parties have notice of the lien.Each pledge and security agreement made for the benefit or security of any of the bonds shall continue to be effective until:the principal, interest, and premium, if any, on the bonds have been fully paid;provision for payment has been made; orthe lien created by the security agreement has been released by agreement of the parties in interest or as provided by the security agreement that created the lien.
(4) General obligation bonds issued and sold by or on behalf of a local political subdivision shall be secured by a first statutory lien on all revenues received pursuant to the levy and collection of ad valorem taxes.The lien described in Subsection (4)(a):arises and attaches immediately to the ad valorem tax revenues without the need for any action or authorization by the local political subdivision;is valid and binding from the time the general obligation bonds are executed and delivered; andis effective, binding, and enforceable against the local political subdivision, its successors, transferees, and creditors, and all others asserting rights to the ad valorem tax revenues.A lien described in Subsection (4)(a) is enforceable against the parties described in Subsection (4)(b)(iii):regardless of whether the parties described in Subsection (4)(b)(iii) have notice of the lien; andwithout the need for any physical delivery, recordation, filing, or further action.
(5) Any amounts appropriated or added to the tax levy to pay principal of and premium and interest on general obligation bonds: shall be applied solely to the payment of those general obligation bonds; andmay not be used for any other purpose, except as provided by law.
(6) This section applies to all revenues received pursuant to the levy and collection of the ad valorem tax regardless of the date on which the general obligation bonds were issued.
(7) This section applies to all bonds, including bonds issued before or after the effective date of this section.
Amended by Chapter 366, 2020 General Session