2006 Utah Code - 17A-3-309 — Payment of contracts.

     17A-3-309.   Payment of contracts.
     (1) (a) Any contract for work in any special improvement district, and any contract for the purchase of property that must be acquired in order to make improvements in any special improvement district, may provide that the contract price or property price shall be paid, or, at the option of the municipality, may be paid, in whole or in part, from:
     (i) proceeds of the sale of special improvement bonds issued as provided in this part; or
     (ii) proceeds of the sale of interim warrants issued as authorized by this part.
     (b) If any contract is not paid from those sources in whole or in part or, if paid in part, to the extent that it is not paid from those sources, the municipality shall advance funds for payment of the contract price or property price from the general fund of the municipality or from other funds legally available, according to the requirements of the contract.
     (c) The municipality may reimburse itself for the amount paid from its general fund or other funds from:
     (i) the proceeds of the sale of interim warrants;
     (ii) the proceeds of the sale of special improvement bonds;
     (iii) funds paid on assessments that are not pledged for the payment of the bonds or warrants; or
     (iv) improvement revenues not pledged for the payment of the bonds or warrants.
     (d) The municipality may not reimburse itself for any of the costs of making the improvements that are properly chargeable to the municipality or for which assessments may not be levied.
     (2) (a) Any contract for work in a special improvement district may provide for payments to the contractor as the work progresses.
     (b) When the contract provides for periodic payments, payments may be made as follows:
     (i) periodic payments not to exceed 95% of the value of the work done to the date of payment as determined by estimates of the engineer for the municipality; and
     (ii) a final payment to be made only after completion of the work by the contractor and acceptance of the work by the municipality.
     (c) Any payment on a contract that is retained shall be retained or withheld and released as provided in Section 13-8-5.

Amended by Chapter 365, 1999 General Session