S.B. 88 Enrolled

EXCLUSION OF TERRITORY FROM COUNTY
SERVICE AREA
2000 GENERAL SESSION
STATE OF UTAH
Sponsor: Parley Hellewell
AN ACT RELATING TO SPECIAL DISTRICTS; AMENDING COUNTY SERVICE AREA
PROVISIONS; FOR COUNTY SERVICE AREAS LOCATED IN CERTAIN COUNTIES,
ALLOWING THE EXCLUSION OF COUNTY SERVICE AREA TERRITORY BY BOARD
RESOLUTION WHEN THE TERRITORY IS INCLUDED IN A MUNICIPAL ANNEXATION
OR INCORPORATION; AND MAKING TECHNICAL CHANGES.
This act affects sections of Utah Code Annotated 1953 as follows:
AMENDS:
17A-2-418, as last amended by Chapter 227, Laws of Utah 1993
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 17A-2-418 is amended to read:
17A-2-418. Annexation of all or part of county service area into city or town --
Petition and election on exclusion -- Exclusion resolution -- Exclusion of territory from area
-- Unencumbered funds -- Service area facilities.
(1) (a) If all or any portion of a county service area is annexed into an incorporated city or
town, the annexed territory may not be excluded from the county service area unless:
(i) a petition is filed under Subsection (1)(b) with the governing body of the city or town
requesting that the territory described in the petition be excluded from the service area; or
(ii) for a county service area that is not located within a county of the first class, the county
service area board of trustees adopts a resolution excluding the annexed territory from the county
service area.
(b) [The] (i) Each petition under Subsection (1)(a)(i) shall be signed by:
[(i)] (A) property owners owning taxable property in the territory to be excluded from the
service area that has a taxable value in excess of 40% of the taxable value of all taxable property
within the area to be excluded, according to the last assessment roll for county taxes completed

prior to the date of filing of the petition; or
[(ii)] (B) 25% of the registered voters residing within the territory to be excluded.
[(c)] (ii) Upon receipt and verification of the validity of [the] a petition under Subsection
(1)(a)(i), the governing body of the city or town shall, at the next general election, place the following
proposition before the qualified voters residing within that portion of the city or town lying within
the boundaries of the county service area as described in the petition: "Shall the territory lying within
(name of city or town) which is also within the boundaries of (name of county service area) be
excluded from (name of county service area)?"
[(d)] (iii) If a majority of the qualified voters cast their ballots in favor of excluding the
territory from the county service area, the territory within the county service area that is included
within the city or town is excluded from the county service area, effective as of the date of election.
[(e)] (iv) If a majority of the qualified voters cast their ballots against excluding the territory
lying within the city or town from the county service area, the territory shall remain within the service
area.
(c) (i) The board of trustees of a county service area that is not located in a county of the first
class shall provide advance notice of the board's intent to adopt an exclusion resolution under
Subsection (1)(a)(ii) by:
(A) at least 45 days before adopting a resolution, giving written notice to the legislative body
of the municipality that annexed the county service area territory proposed to be excluded; and
(B) publishing a notice in a newspaper of general circulation within the county service area
at least once a week for two consecutive weeks, the last publication being no more than ten days
before adopting a resolution.
(ii) Upon adoption of a resolution under Subsection (1)(a)(ii) excluding annexed territory
from the county service area, the territory within the county service area included within the annexing
municipality is excluded from the county service area.
(2) (a) If all or any portion of a county service area is included within a newly incorporated
city or town, that territory may not be excluded from the county service area unless:
(i) a petition is filed under Subsection (2)(b) with the governing body of the city or town,

- 2 -

requesting that the territory be excluded from the county service area; or
(ii) for a county service area that is not located within a county of the first class, the county
service area board of trustees adopts a resolution excluding the territory from the county service area.
(b) [The] (i) Each petition under Subsection (2)(a)(i) shall be signed by:
[(i)] (A) owners of taxable property in the territory to be excluded from the service area that
has a taxable value in excess of 40% of the taxable value of all taxable property within the area to be
excluded, according to the last assessment roll for county taxes completed prior to the date of filing
of the petition; or
[(ii)] (B) by 25% of the registered voters residing within the territory to be excluded.
[(c)] (ii) Upon receipt and verification of the validity of the petition, the governing body of
the city or town shall, at the next general election, place the following proposition before the qualified
voters residing within that portion of the city or town lying within the boundaries of the county
service area: "Shall all territory lying within (name of city or town) which is also within the
boundaries of (name of county service area) be excluded from (name of county service area)?"
[(d)] (iii) If a majority of the qualified voters cast their ballots in favor of excluding the
territory from the county service area, the territory within the county service area that is included
within the city or town shall be excluded from the county service area, effective as of the date of the
election.
[(e)] (iv) If a majority of the qualified voters cast their ballots against excluding the territory
lying within the city or town from the county service area, the territory shall remain within the county
service area.
(c) (i) The board of trustees of a county service area that is not located in a county of the first
class shall provide advance notice of the board's intent to adopt an exclusion resolution under
Subsection (2)(a)(ii) by:
(A) at least 45 days before adopting a resolution, giving written notice to the legislative body
of the municipality whose incorporation included the county service area territory proposed to be
excluded; and
(B) publishing a notice in a newspaper of general circulation within the county service area

- 3 -

at least once a week for two consecutive weeks, the last publication being no more than ten days
before adopting a resolution.
(ii) Upon adoption of a resolution under Subsection (1)(a)(ii) excluding territory from the
county service area, the territory within the county service area included within the municipality is
excluded from the county service area.
(3) (a) For purposes of this section, "unencumbered funds" means the sums of money,
uncollected taxes, and other uncollected accounts due a county service area, in excess of an amount
sufficient to pay all claims.
(b) When territory is excluded from a county service area, all unencumbered funds standing
to the credit of the county service area upon the date of the exclusion shall be divided between the
incorporated area and the county service area in proportion to the taxable value of the taxable
property of the territory excluded and the portion remaining within the county service area if the
incorporated area within which the excluded area is located:
(i) undertakes to provide the services previously provided by the service area; and
(ii) assumes a proportionate share of the debt, both bonded and otherwise, of the service area.
(c) The outstanding debts of the service area shall be divided between the incorporated area
and the service area based upon the same formula and same proportion specified in Subsection (3)(b).
(d) (i) If, at the time of the exclusion of any territory from a county service area, the county
service area has outstanding indebtedness payable from taxes, the exclusion shall relieve the excluded
territory from liability for the payment of taxes for any indebtedness except as specified in this
Subsection (3)(d).
(ii) The excluded area may be taxed to pay voted indebtedness existing at the time of
exclusion, but only to the extent, and only in the years where, it is necessary to levy that tax in the
excluded area in order to forestall or prevent a default in the payment of principal and interest on that
indebtedness.
(iii) If the county legislative body levies those taxes, the county treasurer shall collect them
as other county taxes are collected.
(4) If the area annexed into an incorporated area and excluded from the service area

- 4 -

encompasses service area facilities, the county service area shall continue to own and operate those
facilities so that the service area's ability to provide services and facilities to the residents and
occupants of the service area is unabated and undiminished.

- 5 -