2006 Utah Code - 17A-2-310 — Certification of bond issue to county legislative body -- Tax levy -- Payment of revenue bonds -- Election on general obligation bonds and revenue bonds -- Bonds for sewer purposes -- Collection of charges.

     17A-2-310.   Certification of bond issue to county legislative body -- Tax levy -- Payment of revenue bonds -- Election on general obligation bonds and revenue bonds -- Bonds for sewer purposes -- Collection of charges.
     (1) Except as to bonds issued payable solely from revenues derived from the district's facilities, it is the duty of each board of trustees which has issued bonds under this part to certify annually to each appropriate county legislative body as provided in Section 17A-2-308, and it is the duty of the county legislative body to levy annually until principal and interest shall have been fully paid, taxes on all taxable property in the district, sufficient to assure the prompt payment of principal and interest as each falls due, all as provided in Section 17A-2-309.
     (2) If any bonds issued under this part are issued in a manner as not to be payable from taxes but to be payable solely from the revenues to be derived by the district from the operation of its facilities, the bonds so issued shall be payable from and secured by the pledge of all or any specified part of the revenues to be derived by the district from the operation of its facilities; and where the bonds are so issued, it is the duty of the board of trustees to impose for all services rendered thereby rates fully sufficient to pay principal of and interest on the bonds and to carry out all commitments made in the resolution authorizing the bonds. The board may in the resolution enter into such covenants with the future holders of the bonds as to the management and operation of the facilities, the imposition and collection of fees and charges for water and services furnished by these facilities, the disposition of these fees and revenues, the issuance of future bonds and the creation of future liens and encumbrances against these facilities and the revenue from them, and carrying of insurance on the facilities, the keeping of books and records, and other pertinent matters, as considered proper by the board of trustees to assure the marketability of the bonds. The board may undertake in the resolution to make the revenues of the facilities sufficient to pay the expense of their operation and maintenance and may undertake to make the revenues or net revenues of the facilities sufficient to produce in each year an amount in such specified excess of actual requirements for principal of and interest on the bonds in that year as the board may consider necessary to assure the highest marketability of the bonds. If the board provides in the resolution authorizing the revenue bonds for the creation of a reserve fund to assure the prompt payment of principal and interest, the board may provide for the accumulation of this fund not only from the revenues of the facilities but also through the paying into it of such part of the bond proceeds as it may consider advisable. A proposition of issuing general obligation bonds and a proposition of the issuance of revenue bonds, or any combination of them, may be voted upon at the same election.
     (3) When bonds are issued under this part in whole or in part for sewer purposes and the district operates a waterworks system, provision may be made in the bond resolution under which charges for sewer service and water are to be billed in a single bill to each customer and payment of the charge for water accepted only when the charge for sewer service is paid at the same time. The board may agree to suspend water or sewer service, or both, to any customer who shall become delinquent in the payment of any charges due the district.

Amended by Chapter 316, 2004 General Session