H.J.R. 14

1

JOINT RESOLUTION - DEBT LIMITS FOR
2 POLITICAL SUBDIVISIONS
3 2002 GENERAL SESSION
4 STATE OF UTAH
5 Sponsor: Wayne A. Harper
6 This joint resolution of the Legislature proposes to amend the Utah Constitution to modify
7 language relating to an additional debt limit for certain municipalities. The joint resolution
8 clarifies the measurement of the debt limit for counties and how the value of taxable
9 property is to be determined for purposes of the county debt limit. The joint resolution
10 makes technical changes, directs the lieutenant governor to submit this proposal to voters,
11 and provides an effective date.
12 This resolution proposes to change the Utah Constitution as follows:
13 AMENDS:
14 ARTICLE XIV, SECTION 3
15 ARTICLE XIV, SECTION 4
16 Be it resolved by the Legislature of the state of Utah, two-thirds of all members elected to each of
17 the two houses voting in favor thereof:
18 Section 1. It is proposed to amend Utah Constitution Article XIV, Section 3 , to read:
19 Article XIV, Section 3. [Certain debt of counties, cities, towns, school districts, and
20 other political subdivisions not to exceed revenue -- Exception -- Debt may be incurred only
21 for specified purposes.]
22 (1) No debt issued by a county, city, town, school district, or other political subdivision
23 of the State and directly payable from and secured by ad valorem property taxes levied by the
24 issuer of the debt may be created in excess of the taxes for the current year unless the proposition
25 to create the debt has been submitted to a vote of qualified voters at the time and in the manner
26 provided by statute, and a majority of those voting thereon has voted in favor of incurring the debt.
27 (2) No part of the indebtedness allowed in this section may be incurred for other than

28 strictly county, city, town, school district, or other political subdivision purposes respectively.
29 Section 2. It is proposed to amend Utah Constitution Article XIV, Section 4 , to read:
30 Article XIV, Section 4. [Limit of indebtedness of counties, cities, towns, and school
31 districts.]
32 [When] (1) (a) If authorized to create indebtedness as provided in Section 3 of this Article,
33 no county [shall] may become indebted to an amount, including existing indebtedness, exceeding
34 two per centum of the value of taxable property in the county.
35 (b) No city, town, school district, or other municipal corporation, [shall] may become
36 indebted to an amount, including existing indebtedness, exceeding four per centum of the value
37 of the taxable property therein[,].
38 (2) For purposes of Subsection (1), the value [to] of taxable property shall be ascertained
39 by the last assessment for State and County purposes[,] previous to the incurring of [such] the
40 indebtedness[;], except that in incorporated cities the assessment shall be taken from the last
41 assessment for city purposes[; provided, that no part of the indebtedness allowed in this section
42 shall be incurred for other than strictly county, city, town or school district purposes; provided
43 further, that any].
44 (3) A city of the first [and] or second class [when], if authorized as provided in Section
45 [three] 3 of this [article] Article, may be allowed to incur a larger indebtedness, not to exceed four
46 per centum, and any other city [of the third class,] or town, not to exceed eight per centum
47 additional, for supplying such city or town with water, artificial lights or sewers, [when] if the
48 works for supplying [such] the water, light, and sewers[, shall be] are owned and controlled by the
49 municipality.
50 Section 3. Submittal to voters.
51 The lieutenant governor is directed to submit this proposed amendment to the voters of the
52 state at the next regular general election in the manner provided by law.
53 Section 4. Effective date.
54 If the amendment proposed by this joint resolution is approved by a majority of those
55 voting on it at the next regular general election, the amendment shall take effect on January 1,
56 2003.

Legislative Review Note
as of 1-9-02 12:34 PM

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

Office of Legislative Research and General Counsel