S.B. 25

1

MUNICIPAL INCORPORATION AMENDMENTS
2 2008 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Dennis E. Stowell
5 House Sponsor: Melvin R. Brown
6
7 LONG TITLE
8 Committee Note:
9 The Political Subdivisions Interim Committee recommended this bill.
10 General Description:
11 This bill modifies provisions relating to the incorporation of municipalities.
12 Highlighted Provisions:
13 This bill:
14 . repeals a provision relating to the incorporation of a town; and
15 . makes the process for incorporating a town the same as the process for
16 incorporating a city, except that in the process of incorporating a town:
17 . the county legislative body may waive the feasibility study requirement;
18 . the percentage of allowable annual average revenue over average annual
19 expenses is increased from 5% to 10%; and
20 . an incorporation petition may not be filed if the feasibility study results indicate
21 that annual average revenue exceeds average annual expenses by more than 10%
22 unless the county legislative body consents, with or without conditions.
23 Monies Appropriated in this Bill:
24 None
25 Other Special Clauses:
26 None
27 Utah Code Sections Affected:

28 AMENDS:
29 10-2-102, as repealed and reenacted by Laws of Utah 1997, Chapter 389
30 10-2-103, as last amended by Laws of Utah 2000, Chapter 184
31 10-2-104, as last amended by Laws of Utah 2003, Chapter 129
32 10-2-106, as last amended by Laws of Utah 2007, Chapter 329
33 10-2-107, as last amended by Laws of Utah 2000, Chapter 184
34 10-2-108, as repealed and reenacted by Laws of Utah 1997, Chapter 389
35 10-2-109, as last amended by Laws of Utah 1997, Second Special Session, Chapter 3
36 10-2-111, as repealed and reenacted by Laws of Utah 1997, Chapter 389
37 10-2-112, as last amended by Laws of Utah 2004, Chapter 202
38 10-2-113, as repealed and reenacted by Laws of Utah 1997, Chapter 389
39 10-2-114, as last amended by Laws of Utah 2004, Chapter 202
40 10-2-115, as last amended by Laws of Utah 2000, Chapter 1
41 10-2-116, as enacted by Laws of Utah 1997, Chapter 389
42 10-2-119, as last amended by Laws of Utah 2005, Chapter 233
43 10-2-120, as last amended by Laws of Utah 2005, Chapter 233
44 10-2-121, as last amended by Laws of Utah 2005, First Special Session, Chapter 9
45 10-2-122, as last amended by Laws of Utah 2000, Chapter 38
46 10-2-123, as enacted by Laws of Utah 1997, Chapter 389
47
48 Be it enacted by the Legislature of the state of Utah:
49 Section 1. Section 10-2-102 is amended to read:
50 10-2-102. Incorporation of a contiguous area.
51 [(1)] A contiguous unincorporated area [of a county not within a municipality] with a
52 population of 100 or more may incorporate as a municipality as provided in this part.
53 [(2) Incorporation as a city is governed by Sections 10-2-103 through 10-2-124 .
54 Incorporation as a town is governed by Section 10-2-125 .]
55 Section 2. Section 10-2-103 is amended to read:
56 10-2-103. Request for feasibility study -- Requirements -- Limitations.
57 (1) The process to incorporate a contiguous area of a county as a [city] municipality is
58 initiated by a request for a feasibility study filed with the clerk of the county in which the area

59 is located.
60 (2) Each request under Subsection (1) shall:
61 (a) be signed by the owners of private real property that:
62 (i) is located within the area proposed to be incorporated;
63 (ii) covers at least 10% of the total private land area within the area; and
64 (iii) is equal in value to at least 7% of the value of all private real property within the
65 area;
66 (b) indicate the typed or printed name and current residence address of each owner
67 signing the request;
68 (c) describe the contiguous area proposed to be incorporated as a [city] municipality;
69 (d) designate up to five signers of the request as sponsors, one of whom shall be
70 designated as the contact sponsor, with the mailing address and telephone number of each;
71 (e) be accompanied by and circulated with an accurate map or plat, prepared by a
72 licensed surveyor, showing the boundaries of the proposed [city] municipality; and
73 (f) request the county legislative body to commission a study to determine the
74 feasibility of incorporating the area as a [city] municipality.
75 (3) A request for a feasibility study under this section may not propose for
76 incorporation an area that includes some or all of an area that is the subject of a completed
77 feasibility study or supplemental feasibility study whose results comply with Subsection
78 10-2-109 (3) unless:
79 (a) the proposed incorporation that is the subject of the completed feasibility study or
80 supplemental feasibility study has been defeated by the voters at an election under Section
81 10-2-111 ; or
82 (b) the time provided under Subsection 10-2-109 (1) for filing an incorporation petition
83 based on the completed feasibility study or supplemental feasibility study has elapsed without
84 the filing of a petition.
85 (4) (a) Except as provided in Subsection (4)(b), a request under this section may not
86 propose for incorporation an area that includes some or all of an area proposed for annexation
87 in an annexation petition under Section 10-2-403 that:
88 (i) was filed before the filing of the request; and
89 (ii) is still pending on the date the request is filed.

90 (b) Notwithstanding Subsection (4)(a), a request may propose for incorporation an area
91 that includes some or all of an area proposed for annexation in an annexation petition described
92 in Subsection (4)(a) if:
93 (i) the proposed annexation area that is part of the area proposed for incorporation does
94 not exceed 20% of the area proposed for incorporation;
95 (ii) the request complies with Subsections (2) and (3) with respect to the area proposed
96 for incorporation excluding the proposed annexation area; and
97 (iii) excluding the area proposed for annexation from the area proposed for
98 incorporation would not cause the area proposed for incorporation to lose its contiguousness.
99 (c) Except as provided in Section 10-2-107 , each request to which Subsection (4)(b)
100 applies shall be considered as not proposing the incorporation of the area proposed for
101 annexation.
102 (5) At the time of filing the request for a feasibility study with the county clerk, the
103 sponsors of the request shall mail or deliver a copy of the request to the chair of the planning
104 commission of each township in which any part of the area proposed for incorporation is
105 located.
106 Section 3. Section 10-2-104 is amended to read:
107 10-2-104. Notice to owner of more than 1% of property -- Exclusion of property
108 from proposed boundaries.
109 (1) Within seven calendar days of the date on which a request under Section 10-2-103
110 is filed, the county clerk shall notify of the proposed incorporation each owner of real property
111 owning more than 1% of the assessed value of all property in the proposed incorporation
112 boundaries.
113 (2) (a) A property owner within the boundaries of a proposed municipality, owning
114 more than 1% of the assessed value of all property in the proposed incorporation boundaries,
115 may exclude all or part of the property owner's property from the proposed boundaries by filing
116 a Notice of Exclusion within ten calendar days of receiving the clerk's notice under Subsection
117 (1).
118 (b) The county legislative body shall exclude the property identified in the Notice of
119 Exclusion from the proposed boundaries only if the property:
120 (i) is currently nonurban;

121 (ii) does not or will not require municipal provision of municipal-type services
122 including:
123 (A) culinary or irrigation water;
124 (B) sewage collection or treatment;
125 (C) storm drainage or flood control;
126 (D) recreational facilities or parks;
127 (E) electric generation or transportation;
128 (F) construction or maintenance of local streets and roads;
129 (G) curb and gutter or sidewalk maintenance;
130 (H) garbage and refuse collection; and
131 (I) street lighting; and
132 (iii) exclusion will not leave an unincorporated island within the proposed
133 municipality.
134 (3) This section [applies only to counties of the first or second] does not apply to a
135 proposed incorporation of a city in a county of the third, fourth, fifth, or sixth class.
136 (4) If the county legislative body excludes property from the proposed boundaries
137 under Subsection (2)(b), the county legislative body shall, within five days of the exclusion,
138 send written notice of its action to the contact sponsor.
139 Section 4. Section 10-2-106 is amended to read:
140 10-2-106. Feasibility study -- Feasibility study consultant.
141 (1) [Within] (a) Except as provided in Subsection (1)(b), within 60 days [of receipt of]
142 after receiving a certified request under Subsection 10-2-105 (1)(b)(i), the county legislative
143 body shall engage the feasibility consultant chosen under Subsection (2) to conduct a feasibility
144 study.
145 (b) The county legislative body may waive the requirement of a feasibility study for the
146 proposed incorporation of a town.
147 (2) The feasibility consultant shall be chosen by a majority vote of a selection
148 committee consisting of:
149 (a) a person designated by the county legislative body;
150 (b) a person designated by the sponsors of the request for a feasibility study; and
151 (c) a person designated by the governor.

152 (3) The county legislative body shall require the feasibility consultant to:
153 (a) complete the feasibility study and submit the written results to the county legislative
154 body and the contact sponsor no later than 90 days after the feasibility consultant is engaged to
155 conduct the study;
156 (b) submit with the full written results of the feasibility study a summary of the results
157 no longer than one page in length; and
158 (c) attend the public hearings under Subsection 10-2-108 (1) and present the feasibility
159 study results and respond to questions from the public at those hearings.
160 (4) (a) The feasibility study shall consider:
161 (i) the population and population density within the area proposed for incorporation
162 and the surrounding area;
163 (ii) the history, geography, geology, and topography of and natural boundaries within
164 the area proposed to be incorporated and the surrounding area;
165 (iii) whether the proposed boundaries eliminate or create an unincorporated island or
166 peninsula;
167 (iv) whether the proposed incorporation will hinder or prevent a future and more
168 logical and beneficial incorporation or a future logical and beneficial annexation;
169 (v) the fiscal impact on unincorporated areas, other municipalities, local districts,
170 special service districts, and other governmental entities in the county;
171 (vi) current and five-year projections of demographics and economic base in the
172 proposed [city] municipality and surrounding area, including household size and income,
173 commercial and industrial development, and public facilities;
174 (vii) projected growth in the proposed [city] municipality and in adjacent areas during
175 the next five years;
176 (viii) subject to Subsection (4)(c), the present and five-year projections of the cost,
177 including overhead, of governmental services in the proposed [city] municipality;
178 (ix) the present and five-year projected revenue for the proposed [city] municipality;
179 (x) the projected impact the incorporation will have over the following five years on
180 the amount of taxes that property owners within the proposed [city] municipality and in the
181 remaining unincorporated county will pay;
182 (xi) past expansion in terms of population and construction in the proposed [city]

183 municipality and the surrounding area;
184 (xii) the extension of the boundaries of other nearby municipalities during the past ten
185 years, the willingness of those municipalities to annex the area proposed for incorporation, and
186 the probability that those municipalities would annex territory within the area proposed for
187 incorporation within the next five years except for the incorporation; and
188 (xiii) whether the legislative body of the county in which the area proposed to be
189 incorporated favors the incorporation proposal.
190 (b) For purposes of Subsection (4)(a)(ix), the feasibility consultant shall assume ad
191 valorem property tax rates on residential property within the proposed [city] municipality at the
192 same level at which they would have been without the incorporation.
193 (c) For purposes of Subsection (4)(a)(viii):
194 (i) the feasibility consultant shall assume a level and quality of governmental services
195 to be provided to the proposed [city] municipality in the future that fairly and reasonably
196 approximate the level and quality of governmental services being provided to the proposed
197 [city] municipality at the time of the feasibility study;
198 (ii) in determining the present cost of a governmental service, the feasibility consultant
199 shall consider:
200 (A) the amount it would cost the proposed [city] municipality itself to provide the
201 service after incorporation;
202 (B) if the county is currently providing the service to the proposed [city] municipality,
203 the county's cost of providing the service; and
204 (C) if the county is not currently providing the service to the proposed [city]
205 municipality, the amount the proposed [city] municipality can reasonably expect to pay for the
206 service under a contract for the service; and
207 (iii) the five-year projected cost of a governmental service shall be based on the
208 amount calculated under Subsection (4)(c)(ii), taking into account inflation and anticipated
209 growth.
210 (5) If the results of the feasibility study or revised feasibility study do not meet the
211 requirements of Subsection 10-2-109 (3), the feasibility consultant shall, as part of the
212 feasibility study or revised feasibility study and if requested by the sponsors of the request,
213 make recommendations as to how the boundaries of the proposed [city] municipality may be

214 altered so that the requirements of Subsection 10-2-109 (3) may be met.
215 (6) (a) For purposes of this Subsection (6), "pending" means that the process to
216 incorporate an unincorporated area has been initiated by the filing of a request for feasibility
217 study under Section 10-2-103 but that, as of the date this Subsection (6) becomes effective, a
218 petition under Section 10-2-109 has not yet been filed.
219 (b) The amendments to Subsection (4) that become effective upon the effective date of
220 this Subsection (6):
221 (i) apply to each pending proceeding proposing the incorporation of an unincorporated
222 area; and
223 (ii) do not apply to a municipal incorporation proceeding under this part in which a
224 petition under Section 10-2-109 has been filed.
225 (c) (i) If, in a pending incorporation proceeding, the feasibility consultant has, as of the
226 effective date of this Subsection (6), already completed the feasibility study, the county
227 legislative body shall, within 20 days after the effective date of this Subsection (6) and except
228 as provided in Subsection (6)(c)(iii), engage the feasibility consultant to revise the feasibility
229 study to take into account the amendments to Subsection (4) that became effective on the
230 effective date of this Subsection (6).
231 (ii) Except as provided in Subsection (6)(c)(iii), the county legislative body shall
232 require the feasibility consultant to complete the revised feasibility study under Subsection
233 (6)(c)(i) within 20 days after being engaged to do so.
234 (iii) Notwithstanding Subsections (6)(c)(i) and (ii), a county legislative body is not
235 required to engage the feasibility consultant to revise the feasibility study if, within 15 days
236 after the effective date of this Subsection (6), the request sponsors file with the county clerk a
237 written withdrawal of the request signed by all the request sponsors.
238 (d) All provisions of this part that set forth the incorporation process following the
239 completion of a feasibility study shall apply with equal force following the completion of a
240 revised feasibility study under this Subsection (6), except that, if a petition under Section
241 10-2-109 has already been filed based on the feasibility study that is revised under this
242 Subsection (6):
243 (i) the notice required by Section 10-2-108 for the revised feasibility study shall
244 include a statement informing signers of the petition of their right to withdraw their signatures

245 from the petition and of the process and deadline for withdrawing a signature from the petition;
246 (ii) a signer of the petition may withdraw the signer's signature by filing with the
247 county clerk a written withdrawal within 30 days after the final notice under Subsection
248 10-2-108 (2) has been given with respect to the revised feasibility study; and
249 (iii) unless withdrawn, a signature on the petition may be used toward fulfilling the
250 signature requirements under Subsection 10-2-109 (2)(a) for a petition based on the revised
251 feasibility study.
252 Section 5. Section 10-2-107 is amended to read:
253 10-2-107. Modified request for feasibility study -- Supplemental feasibility study.
254 (1) (a) (i) The sponsors of a request may modify the request to alter the boundaries of
255 the proposed [city] municipality and then refile the request, as modified, with the county clerk
256 if:
257 (A) the results of the feasibility study do not meet the requirements of Subsection
258 10-2-109 (3); or
259 (B) (I) the request meets the conditions of Subsection 10-2-103 (4)(b);
260 (II) the annexation petition that proposed the annexation of an area that is part of the
261 area proposed for incorporation has been denied; and
262 (III) an incorporation petition based on the request has not been filed.
263 (ii) (A) A modified request under Subsection (1)(a)(i)(A) may not be filed more than
264 90 days after the feasibility consultant's submission of the results of the study.
265 (B) A modified request under Subsection (1)(a)(i)(B) may not be filed more than 18
266 months after the filing of the original request under Section 10-2-103 .
267 (b) (i) Subject to Subsection (1)(b)(ii), each modified request under Subsection (1)(a)
268 shall comply with the requirements of Subsections 10-2-103 (2), (3), (4), and (5).
269 (ii) Notwithstanding Subsection (1)(b)(i), a signature on a request filed under Section
270 10-2-103 may be used toward fulfilling the signature requirement of Subsection 10-2-103 (2)(a)
271 for the request as modified under Subsection (1)(a), unless the modified request proposes the
272 incorporation of an area that is more than 20% greater or smaller than the area described by the
273 original request in terms of:
274 (A) private land area; or
275 (B) value of private real property.

276 (2) Within 20 days after the county clerk's receipt of the modified request, the county
277 clerk shall follow the same procedure for the modified request as provided under Subsection
278 10-2-105 (1) for an original request.
279 (3) The timely filing of a modified request under Subsection (1) gives the modified
280 request the same processing priority under Subsection 10-2-105 (2) as the original request.
281 (4) Within ten days after the county legislative body's receipt of a certified modified
282 request under Subsection (1)(a)(i)(A) or a certified modified request under Subsection
283 (1)(a)(i)(B) that was filed after the completion of a feasibility study on the original request, the
284 county legislative body shall commission the feasibility consultant who conducted the
285 feasibility study to supplement the feasibility study to take into account the information in the
286 modified request that was not included in the original request.
287 (5) The county legislative body shall require the feasibility consultant to complete the
288 supplemental feasibility study and to submit written results of the supplemental study to the
289 county legislative body and to the contact sponsor no later than 30 days after the feasibility
290 consultant is commissioned to conduct the supplemental feasibility study.
291 (6) (a) Subject to Subsection (6)(b), if the results of the supplemental feasibility study
292 do not meet the requirements of Subsection 10-2-109 (3):
293 (i) the sponsors may file a further modified request as provided in Subsection (1); and
294 (ii) Subsections (2), (4), and (5) apply to a further modified request under Subsection
295 (6)(a)(i).
296 (b) A further modified request under Subsection (6)(a) shall, for purposes of its
297 processing priority, be considered as an original request for a feasibility study under Section
298 10-2-103 .
299 Section 6. Section 10-2-108 is amended to read:
300 10-2-108. Public hearings on feasibility study results -- Notice of hearings.
301 (1) If the results of the feasibility study or supplemental feasibility study meet the
302 requirements of Subsection 10-2-109 (3), the county legislative body shall, at its next regular
303 meeting after receipt of the results of the feasibility study or supplemental feasibility study,
304 schedule at least two public hearings to be held:
305 (a) within the following 60 days;
306 (b) at least seven days apart;

307 (c) in geographically diverse locations within the proposed [city] municipality; and
308 (d) for the purpose of allowing:
309 (i) the feasibility consultant to present the results of the study; and
310 (ii) the public to become informed about the feasibility study results and to ask
311 questions about those results of the feasibility consultant.
312 (2) (a) (i) The county clerk shall publish notice of the public hearings required under
313 Subsection (1) at least once a week for three successive weeks in a newspaper of general
314 circulation within the proposed [city] municipality.
315 (ii) The last publication of notice required under Subsection (2)(a)(i) shall be at least
316 three days before the first public hearing required under Subsection (1).
317 (b) (i) If there is no newspaper of general circulation within the proposed [city]
318 municipality, the county clerk shall post at least one notice of the hearings per 1,000 population
319 in conspicuous places within the proposed [city] municipality that are most likely to give notice
320 of the hearings to the residents of the proposed [city] municipality.
321 (ii) The clerk shall post the notices under Subsection (2)(b)(i) at least seven days before
322 the first hearing under Subsection (1).
323 (c) The notice under Subsections (2)(a) and (b) shall include the feasibility study
324 summary under Subsection 10-2-106 (3)(b) and shall indicate that a full copy of the study is
325 available for inspection and copying at the office of the county clerk.
326 Section 7. Section 10-2-109 is amended to read:
327 10-2-109. Incorporation petition -- Requirements and form.
328 (1) At any time within 18 months of the completion of the public hearings required
329 under Subsection 10-2-108 (1), a petition for incorporation of the area proposed to be
330 incorporated as a [city] municipality may be filed in the office of the clerk of the county in
331 which the area is located.
332 (2) Each petition under Subsection (1) shall:
333 (a) be signed by the owners of private real property that:
334 (i) is located within the area proposed to be incorporated;
335 (ii) covers at least 1/3 of the total private land area within the area; and
336 (iii) is equal in value to at least 1/3 of the value of all private real property within the
337 area;

338 (b) indicate the typed or printed name and current residence address of each owner
339 signing the petition;
340 (c) describe the area proposed to be incorporated as a [city] municipality, as described
341 in the feasibility study request or modified request that meets the requirements of Subsection
342 (3);
343 (d) state the proposed name for the proposed [city] municipality;
344 (e) designate five signers of the petition as petition sponsors, one of whom shall be
345 designated as the contact sponsor, with the mailing address and telephone number of each;
346 (f) state that the signers of the petition appoint the sponsors, if the incorporation
347 measure passes, to represent the signers in the process of:
348 (i) selecting the number of [commission or] council members the new [city]
349 municipality should have; and
350 (ii) drawing district boundaries for the election of [commission or] council members, if
351 the voters decide to elect [commission or] council members by district;
352 (g) be accompanied by and circulated with an accurate plat or map, prepared by a
353 licensed surveyor, showing the boundaries of the proposed [city] municipality; and
354 (h) substantially comply with and be circulated in the following form:
355 PETITION FOR INCORPORATION OF (insert the proposed name of the proposed
356 [city] municipality)
357 To the Honorable County Legislative Body of (insert the name of the county in which
358 the proposed [city] municipality is located) County, Utah:
359 We, the undersigned owners of real property within the area described in this petition,
360 respectfully petition the county legislative body to submit to the registered voters residing
361 within the area described in this petition, at a special election held for that purpose, the
362 question of whether the area should incorporate as a [city] municipality. Each of the
363 undersigned affirms that each has personally signed this petition and is an owner of real
364 property within the described area, and that the current residence address of each is correctly
365 written after the signer's name. The area proposed to be incorporated as a [city] municipality is
366 described as follows: (insert an accurate description of the area proposed to be incorporated).
367 (3) (a) A petition for incorporation of a city under Subsection (1) may not be filed
368 unless the results of the feasibility study or supplemental feasibility study show that the average

369 annual amount under Subsection 10-2-106 (4)(a)(ix) does not exceed the average annual
370 amount under Subsection 10-2-106 (4)(a)(viii) by more than 5%.
371 (b) (i) If the results of the feasibility study or supplemental feasibility study for a
372 proposed incorporation of a town show that the average annual amount under Subsection
373 10-2-106 (4)(a)(ix) exceeds the average annual amount under Subsection 10-2-106 (4)(a)(viii)
374 by more than 10%, a p