H.B. 408 Enrolled

NEW MUNICIPALITY FUNDING AMENDMENTS
1997 GENERAL SESSION
STATE OF UTAH
Sponsor: David L. Zolman
AN ACT RELATING TO CITIES AND TOWNS; AUTHORIZING OFFICERS-ELECT OF A
FUTURE MUNICIPALITY TO BORROW FUNDS AND ISSUE TAX ANTICIPATION
NOTES; AUTHORIZING COUNTIES TO GRANT OR LOAN FUNDS TO A FUTURE
MUNICIPALITY; AND MAKING TECHNICAL CORRECTIONS.
This act affects sections of Utah Code Annotated 1953 as follows:
AMENDS:
10-2-108.5, as last amended by Chapter 27, Laws of Utah 1983
10-2-114, as enacted by Chapter 13, Laws of Utah 1980
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 10-2-108.5 is amended to read:
10-2-108.5. Alternative to filing articles -- Powers of officers-elect.
(1) In lieu of filing the articles of incorporation, the mayor-elect of the future municipality
may file a verified notice of intention to file the articles of incorporation. The notice shall set forth
the name of the future municipality, the geographical description, its class according to population,
and the proposed date for filing the articles of incorporation. On receipt of the notice, the lieutenant
governor shall certify the notice and return one copy to the county clerk or clerks of the county or
counties where the municipality will be located and retain one copy for his own records.
(2) Upon the [filing of such certified copies] lieutenant governor's certification of the
notice under Subsection (1) and until the municipality is legally incorporated, the persons elected
as officers of the future municipality [shall have the following powers until it becomes legally
incorporated] may:
(a) [to] prepare and adopt, pursuant to [the] Chapter 6, Uniform Fiscal Procedures Act for
Utah Cities, a proposed budget, and compilation of ordinances;
(b) [to] negotiate personnel contracts and hirings;
(c) [to] negotiate service contracts;

(d) [to] file the notification required by Section 11-12-3; [and]
(e) [to] negotiate contracts, to purchase equipment, materials, and supplies;
(f) borrow funds for startup expenses of the future municipality; and
(g) issue tax anticipation notes in the name of the future municipality.
(3) The municipality's legislative body shall review and ratify each action taken or contract
made by the officers-elect under Subsection (2) within 30 days of the effective date of incorporation
under Section 10-2-112.
Section 2. Section 10-2-114 is amended to read:
10-2-114. Revenues and services prior to incorporation.
During the period subsequent to the filing of the notice of election results and prior to the
date of incorporation, the county:
(1) shall continue to be entitled to tax and other revenues from or pertaining to the proposed
municipality and shall correspondingly continue to deliver services to the proposed municipality;
and
(2) may grant or loan funds to the officers-elect for startup expenses of the future
municipality.

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