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S.B. 88

             1     

EXCLUSION OF TERRITORY FROM COUNTY

             2     
SERVICE AREA

             3     
2000 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Sponsor: Parley Hellewell

             6      AN ACT RELATING TO SPECIAL DISTRICTS; AMENDING COUNTY SERVICE AREA
             7      PROVISIONS; ALLOWING THE EXCLUSION OF COUNTY SERVICE AREA TERRITORY
             8      BY BOARD RESOLUTION WHEN THE TERRITORY IS INCLUDED IN A MUNICIPAL
             9      ANNEXATION OR INCORPORATION; AND MAKING TECHNICAL CHANGES.
             10      This act affects sections of Utah Code Annotated 1953 as follows:
             11      AMENDS:
             12          17A-2-418, as last amended by Chapter 227, Laws of Utah 1993
             13      Be it enacted by the Legislature of the state of Utah:
             14          Section 1. Section 17A-2-418 is amended to read:
             15           17A-2-418. Annexation of all or part of county service area into city or town --
             16      Petition and election on exclusion -- Exclusion resolution -- Exclusion of territory from area
             17      -- Unencumbered funds -- Service area facilities.
             18          (1) (a) If all or any portion of a county service area is annexed into an incorporated city or
             19      town, the annexed territory may not be excluded from the county service area unless:
             20          (i) a petition is filed under Subsection (1)(b) with the governing body of the city or town
             21      requesting that the territory described in the petition be excluded from the service area; or
             22          (ii) the county service area board of trustees adopts a resolution excluding the annexed
             23      territory from the county service area.
             24          (b) [The] (i) Each petition under Subsection (1)(a)(i) shall be signed by:
             25          [(i)] (A) property owners owning taxable property in the territory to be excluded from the
             26      service area that has a taxable value in excess of 40% of the taxable value of all taxable property
             27      within the area to be excluded, according to the last assessment roll for county taxes completed


             28      prior to the date of filing of the petition; or
             29          [(ii)] (B) 25% of the registered voters residing within the territory to be excluded.
             30          [(c)] (ii) Upon receipt and verification of the validity of [the] a petition under Subsection
             31      (1)(a)(i), the governing body of the city or town shall, at the next general election, place the
             32      following proposition before the qualified voters residing within that portion of the city or town
             33      lying within the boundaries of the county service area as described in the petition: "Shall the
             34      territory lying within (name of city or town) which is also within the boundaries of (name of
             35      county service area) be excluded from (name of county service area)?"
             36          [(d)] (iii) If a majority of the qualified voters cast their ballots in favor of excluding the
             37      territory from the county service area, the territory within the county service area that is included
             38      within the city or town is excluded from the county service area, effective as of the date of election.
             39          [(e)] (iv) If a majority of the qualified voters cast their ballots against excluding the
             40      territory lying within the city or town from the county service area, the territory shall remain within
             41      the service area.
             42          (c) (i) At least ten days before adopting a resolution under Subsection (1)(a)(ii), the county
             43      service area board of trustees shall give written notice of the board's intent to adopt an exclusion
             44      resolution to the legislative body of the municipality that annexed the county service area territory
             45      proposed to be excluded.
             46          (ii) Upon adoption of a resolution under Subsection (1)(a)(ii) excluding annexed territory
             47      from the county service area, the territory within the county service area included within the
             48      annexing municipality is excluded from the county service area.
             49          (2) (a) If all or any portion of a county service area is included within a newly incorporated
             50      city or town, that territory may not be excluded from the county service area unless:
             51          (i) a petition is filed under Subsection (2)(b) with the governing body of the city or town,
             52      requesting that the territory be excluded from the county service area; or
             53          (ii) the county service area board of trustees adopts a resolution excluding the territory
             54      from the county service area.
             55          (b) [The] (i) Each petition under Subsection (2)(a)(i) shall be signed by:
             56          [(i)] (A) owners of taxable property in the territory to be excluded from the service area
             57      that has a taxable value in excess of 40% of the taxable value of all taxable property within the
             58      area to be excluded, according to the last assessment roll for county taxes completed prior to the


             59      date of filing of the petition; or
             60          [(ii)] (B) by 25% of the registered voters residing within the territory to be excluded.
             61          [(c)] (ii) Upon receipt and verification of the validity of the petition, the governing body
             62      of the city or town shall, at the next general election, place the following proposition before the
             63      qualified voters residing within that portion of the city or town lying within the boundaries of the
             64      county service area: "Shall all territory lying within (name of city or town) which is also within the
             65      boundaries of (name of county service area) be excluded from (name of county service area)?"
             66          [(d)] (iii) If a majority of the qualified voters cast their ballots in favor of excluding the
             67      territory from the county service area, the territory within the county service area that is included
             68      within the city or town shall be excluded from the county service area, effective as of the date of
             69      the election.
             70          [(e)] (iv) If a majority of the qualified voters cast their ballots against excluding the
             71      territory lying within the city or town from the county service area, the territory shall remain within
             72      the county service area.
             73          (c) (i) At least ten days before adopting a resolution under Subsection (2)(a)(ii), the county
             74      service area board of trustees shall give written notice of the board's intent to adopt an exclusion
             75      resolution to the legislative body of the municipality whose incorporation included the county
             76      service area territory proposed to be excluded.
             77          (ii) Upon adoption of a resolution under Subsection (1)(a)(ii) excluding territory from the
             78      county service area, the territory within the county service area included within the municipality
             79      is excluded from the county service area.
             80          (3) (a) For purposes of this section, "unencumbered funds" means the sums of money,
             81      uncollected taxes, and other uncollected accounts due a county service area, in excess of an amount
             82      sufficient to pay all claims.
             83          (b) When territory is excluded from a county service area, all unencumbered funds
             84      standing to the credit of the county service area upon the date of the exclusion shall be divided
             85      between the incorporated area and the county service area in proportion to the taxable value of the
             86      taxable property of the territory excluded and the portion remaining within the county service area
             87      if the incorporated area within which the excluded area is located:
             88          (i) undertakes to provide the services previously provided by the service area; and
             89          (ii) assumes a proportionate share of the debt, both bonded and otherwise, of the service


             90      area.
             91          (c) The outstanding debts of the service area shall be divided between the incorporated
             92      area and the service area based upon the same formula and same proportion specified in Subsection
             93      (3)(b).
             94          (d) (i) If, at the time of the exclusion of any territory from a county service area, the county
             95      service area has outstanding indebtedness payable from taxes, the exclusion shall relieve the
             96      excluded territory from liability for the payment of taxes for any indebtedness except as specified
             97      in this Subsection (3)(d).
             98          (ii) The excluded area may be taxed to pay voted indebtedness existing at the time of
             99      exclusion, but only to the extent, and only in the years where, it is necessary to levy that tax in the
             100      excluded area in order to forestall or prevent a default in the payment of principal and interest on
             101      that indebtedness.
             102          (iii) If the county legislative body levies those taxes, the county treasurer shall collect them
             103      as other county taxes are collected.
             104          (4) If the area annexed into an incorporated area and excluded from the service area
             105      encompasses service area facilities, the county service area shall continue to own and operate those
             106      facilities so that the service area's ability to provide services and facilities to the residents and
             107      occupants of the service area is unabated and undiminished.




Legislative Review Note
    as of 9-20-99 3:33 PM


A limited legal review of this legislation raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel


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