2006 Utah Code - 17A-2-424 — Issuance of bonds -- Purposes of bonds -- Tax levy.

     17A-2-424.   Issuance of bonds -- Purposes of bonds -- Tax levy.
     (1) (a) If a majority of the qualified voters voting at an election held pursuant to a resolution of the board of trustees adopted under Section 17A-2-423 vote in favor of incurring the indebtedness as proposed, the board of trustees may proceed to issue the bonds in the amount of money specified or in a lesser amount as it may determine.
     (b) (i) If the board of trustees issues bonds as provided in Subsection (1)(a), the board shall issue the bonds for the purpose or purposes provided in the voted proposition, which may be for the acquisition, construction, or installation of any facility or property, including water and water rights, required or considered necessary to supply any of the services referred to in Section 17A-2-403 or any part or combination of those services, or for maintaining, repairing, improving, and extending the facility or property or combination of facilities and property.
     (ii) The proceeds of the bonds may also be used for the payment of all legal, engineering, and fiscal agent expenses reasonably incurred in connection with the construction, installation, improving, maintaining, repairing, and extending of the facilities or property and with the authorization and issuance of the bonds.
     (2) (a) Improvements in county service areas may be financed either entirely from ad valorem taxes or entirely from revenue of all or part of the facilities and property of the service area or in whole or in part from both ad valorem taxes and operating revenues.
     (b) All bonds of the county service area that are not payable solely from the revenues of the county service area shall be the general obligations of the county service area, and the full faith, credit, and resources of the county service area shall be pledged for the payment of the bonds.
     (c) (i) Notwithstanding any other provision of law, the board of trustees shall cause taxes to be levied annually on all taxable property in the county service area in the manner provided in Section 17A-2-414 but without regard to the limitation on rate set forth in that section.
     (ii) The taxes levied as provided in Subsection (2)(c)(i) shall be fully sufficient:
     (A) to pay the interest on the bonds as it falls due; and
     (B) to constitute a sinking fund for the payment of the principal on the bonds within the time for which the bonds are issued.
     (3) If the board of trustees of a county service area issues bonds approved at an election held pursuant to a resolution adopted under Section 17A-2-423, the board shall issue the bonds as provided in Title 11, Chapter 14, Local Government Bonding Act.

Amended by Chapter 83, 2006 General Session