2006 Utah Code - 17A-2-1424 — Board may sell or lease water to municipalities upon petition -- Levy and collection of special assessments under class B.

     17A-2-1424.   Board may sell or lease water to municipalities upon petition -- Levy and collection of special assessments under class B.
     To levy and collect special assessments under class B as herein provided, the board shall make an allotment of water to each petitioning municipality in the district in the manner as hereinafter provided, in such quantity as will in the judgment of the board, when added to the then present supply of water of such municipality, make an adequate supply for such municipality, and shall fix and determine the rate or rates per acre-foot, or other units of measurement, the service, turnout, construction, distribution system charges, or other charges, if any, and terms at and upon which water shall be sold, leased or otherwise disposed of, for use by such municipalities; provided, however, that such rates and charges shall be equitable although not necessarily equal or uniform for like classes of services throughout the district. In the event of any city, city and county, or town shall desire to purchase, lease or otherwise obtain the beneficial use of waters of the district for domestic or irrigation purposes, the legislative body of such municipality shall by ordinance authorize and direct its mayor and clerk to petition the board for an allotment of water, upon terms prescribed by the board, which petition shall contain inter alia, the following:
     (1) Name of municipality.
     (2) Quantity of water to be purchased or otherwise acquired.
     (3) Price per acre-foot or other unit of measurement, and the amount of any service, turnout, connection, distribution system charge or other charges to be paid.
     (4) Whether payments are to be made in cash or annual installments.
     (5) Agreement by the municipality to make payments for the beneficial use of such water together with annual maintenance and operating charges and to be bound by the provisions of this part and the rules and regulations of the board.
     Neither the quantity of water to be acquired, nor the rates or charges as specified in such petition, need be the same in each year to be covered by the petition. Any such petition and order may provide for water for such municipality for such term of years as may be fixed therein and the procedure herein provided for the determination of the amount of taxes necessary to be levied each year shall be operative in each year over such term of years without the filing of a new petition or the entering of a new order.
     The secretary of the board shall cause notice of the filing of such petition to be given and published once each week for two successive weeks, in a newspaper published in the county in which said municipality is situated, which notice shall state the filing of such petition and giving notice to all persons interested to appear at the office of the board, at a time named in said notice, and show cause, in writing, if any they have, why the petition should not be granted, and such persons may advance reasons and arguments to show that the municipality and its inhabitants will not be benefited by the proposed petition and order to the amount of such taxes. The board at the time and place mentioned in said notice or at such time or times at which the hearing of said petition may adjourn, shall proceed to hear the petition and objections thereto, presented, in writing, by any person showing cause as aforesaid why said petition should not be granted. The failure of any person interested to show cause in writing, as aforesaid, shall be deemed and taken as an assent on his part to the granting of said petition. The board may at its discretion, accept or reject the said petition, but if it deems it for the best interest of the district that said petition be granted, and if it finds that said municipality and its inhabitants will be benefited thereby to an amount not less than the taxes which will be imposed, it shall enter an order granting the said petition and from and after such order the said municipality shall be deemed to have purchased,

leased or otherwise acquired the beneficial use of water as set forth in said order. If said petition is granted, the board shall, in each year, determine the amount of money necessary to be raised by taxation from property within such municipality to pay the annual installments and a fair proportionate amount of estimated operating and maintenance charges for the next succeeding year, as provided in the order granting said petition, and prepare a statement showing the tax rate to be applied to all property in such municipality, which rate shall be the rate fixed by resolution of the board modified to the extent necessary to produce from each such municipality only the amount of money apportioned thereto in said resolution, less any amount paid or undertaken to be paid by such municipality in cash or as credited thereto by payments from the other funds of such municipality. In fixing the rate of taxes to be levied in each year the board shall give due consideration to probable delinquencies in tax payments and shall fix such rate as will assure the prompt collection of taxes sufficient to make up the amount needed for such year despite the fact that a part of the taxes so levied may be delinquent when due. Upon receipt by the county legislative body of each county, wherein such municipality is located, of a certified copy of such resolution showing the tax rate to be applied to all property in each municipality and showing the municipalities and the property which is exempt therefrom, if any, it shall be the duty of the county officers to levy and collect such tax in addition to such other tax as may be levied by the county legislative body at the rate so fixed and determined.
     The hearing on the petition for which provision is hereinabove required and the finding as to benefits which will be made by the board shall take into consideration a tax to be levied on all real and personal property in the petitioning municipality and the class B assessments which will be levied pursuant to the provisions of this section shall be in the nature of ad valorem taxes to be levied on all real and personal property in the municipality with the exception of property exempt from taxation under the provisions of the Constitution and statutes of Utah or Section 17A-2-1431.

Amended by Chapter 227, 1993 General Session