S.B. 110 Enrolled

REVENUE BONDS FOR MUNICIPALITIES
2000 GENERAL SESSION
STATE OF UTAH
Sponsor: Robert F. Montgomery
AN ACT RELATING TO CITIES, COUNTIES, AND LOCAL TAXING UNITS; EXPANDING
WHAT MUNICIPALITIES MAY PLEDGE FOR GENERAL OBLIGATION AND REVENUE
BONDS; AND MAKING TECHNICAL CHANGES.
This act affects sections of Utah Code Annotated 1953 as follows:
AMENDS:
11-14-17, as last amended by Chapter 115, Laws of Utah 1975
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 11-14-17 is amended to read:
11-14-17. Additional pledge for general obligation bonds -- Revenue bonds --
Resolution.
(1) To the extent constitutionally permissible, municipalities may pledge as an additional
source of payment for their general obligation bonds all or any part of revenues [from], fees, and
charges attributable to the operation [of revenue-producing] or availability of facilities or may issue
bonds payable solely from such revenues, fees, or charges.
(2) (a) The [governing] legislative body may issue bonds payable solely from revenues,
fees, or charges attributable to extensions and improvements to revenue-producing facilities[, and
in this event].
(b) If the legislative body issues bonds under Subsection (2)(a), the resolution authorizing
these bonds shall set forth as a finding of the [governing] legislative body:
(i) the value of the then existing facility and the value of this facility after completion of the
extensions or improvements proposed to be constructed; and
(ii) that portion of the [revenue] revenues, fees, or charges derived from the entire facility
when the contemplated extensions and improvements are completed which the value of the existing
facility bears to the value of the facility after completion shall be [deemed] considered to be revenue
derived from the existing facility and the remainder may be set aside and pledged to the payment

of the principal of and interest on the bonds and for the establishment of appropriate reserve fund or
funds, and such portion shall be [deemed] considered to be revenue derived exclusively from the
extensions and improvements.
(3) (a) Any resolution or trust indenture authorizing bonds to which such revenues, fees, or
charges are pledged may contain such covenants with the future holder or holders of the bonds as to
the management and operation of the affected facilities, the imposition [and], collection [of], and
disposition of rates, fees, and charges for commodities and services furnished thereby, [the disposition
of such fees and revenues,] the issuance of future bonds, the creation of future liens and
encumbrances against [such] the facilities, the carrying of insurance, the keeping of books and
records, the deposit and paying out of revenues, fees, or charges and bond proceeds, the appointment
and duties of a trustee, and other pertinent matters as may be [deemed] considered proper by the
governing body. [Where]
(b) If the revenue, fee, or charge so pledged involves either sewer or water revenues, fees,
or charges or both sewer and water revenues, fees, or charges, provision may be made for charges
for sewer services and water services to be billed in a single bill and for the suspension of water or
sewer services, or both, to any customer who shall become delinquent in the payment [of charges]
due for either.
(c) Provision may be made for the securing of such bonds by a trust indenture, but no such
indenture shall convey, mortgage, or create any lien upon property of the municipality.
(d) Either the bond resolution or such trust indenture may impose in the holders of the bonds
full rights to enforce the provisions thereof, and may include terms and conditions upon which the
holders of the bonds or any proportion of them, or a trustee therefor, shall be entitled to the
appointment of a receiver who may enter and take possession of the facility or facilities, the revenues,
fees, or charges of which are so pledged, and may operate and maintain them, prescribe charges and
collect, receive, and apply all revenues, fees, or charges therefrom arising in the same manner as the
municipality itself might do.

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