2006 Utah Code - 17A-2-829 — Water rates to pay operating expenses, repairs, and depreciation -- Interest and principal of bonded and other debt to be paid so far as practicable from water rates -- Tax levy.

     17A-2-829.   Water rates to pay operating expenses, repairs, and depreciation -- Interest and principal of bonded and other debt to be paid so far as practicable from water rates -- Tax levy.
     The board of trustees shall fix such rate or rates for water furnished as will, in conjunction with the proceeds of the maintenance and operation tax authorized by Section 17A-2-818, pay the operating expenses of the district, provide for repairs and depreciation of works owned or operated by such district, pay the interest on any bonded or other debt, and so far as practicable, provide a sinking or other fund for the payment of the principal of such debt as the same may become due; it being the intention of this section to require the districts to pay the interest and principal of its indebtedness from the revenues of such district, so far as practicable. If, however, from any cause, the revenues of the district are inadequate to pay the interest or principal of any debt, other than revenue bonds, as the same becomes due, the board of trustees shall, at the time of fixing the tax levy and in the manner for such tax levy provided, levy and collect annually until the indebtedness is paid or until there is a sum in the treasury of the district set apart for that purpose sufficient to meet all sums coming due for principal and interest thereon, a tax sufficient to pay the annual interest on such indebtedness, or such part thereof as is not met from revenues of the district, and also sufficient to pay such part of the principal of such bonds and other debt as shall become due before the time when money will be available from the next general tax levy, or such portion thereof as is not met from revenues of the district; provided, however, that if the maturity of such indebtedness is made to begin more than one year after the date when the same is incurred, such tax shall be levied and collected at the time and in the manner aforesaid annually sufficient when added to revenues of the district available for that purpose to pay the interest on such indebtedness as it falls due and also to constitute, together with the revenues of the district available for such purpose, a sinking fund for the payment of the principal thereof on or before maturity. The taxes herein required to be levied and collected shall be in addition to all other taxes levied for district purposes and shall be collected at the time and in the same manner as other district taxes are collected and shall be used for no purpose other than the payment of such indebtedness and accruing interest. Nothing in this part shall be so construed as to prevent the making of long term contracts by the district for the sale of water to industrial or other large consumers at fixed rates.

Amended by Chapter 254, 2000 General Session