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H.B. 75 Enrolled

             1     

ASSESSMENT AREA AMENDMENTS

             2     
2010 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Gage Froerer

             5     
Senate Sponsor: Wayne L. Niederhauser

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill amends provisions of the Assessment Area Act.
             10      Highlighted Provisions:
             11          This bill:
             12          .    requires that a governing body adopt a resolution or ordinance designating an
             13      assessment area before the governing body may levy an assessment;
             14          .    amends notice requirements;
             15          .    amends the requirements for preparing an assessment list;
             16          .    clarifies when a governing body may levy more than one assessment in a
             17      designated assessment area to pay for operation and maintenance costs or economic
             18      promotion activities;
             19          .    creates reporting requirements for an assessment levied to pay for economic
             20      promotion activities; and
             21          .    makes technical corrections.
             22      Monies Appropriated in this Bill:
             23          None
             24      Other Special Clauses:
             25          None
             26      Utah Code Sections Affected:
             27      AMENDS:
             28          11-42-201, as enacted by Laws of Utah 2007, Chapter 329
             29          11-42-202, as last amended by Laws of Utah 2009, Chapters 246 and 388


             30          11-42-401, as last amended by Laws of Utah 2009, Chapter 246
             31          11-42-402, as last amended by Laws of Utah 2009, Chapter 388
             32          11-42-404, as last amended by Laws of Utah 2009, Chapters 246 and 388
             33          11-42-406, as enacted by Laws of Utah 2007, Chapter 329
             34     
             35      Be it enacted by the Legislature of the state of Utah:
             36          Section 1. Section 11-42-201 is amended to read:
             37           11-42-201. Resolution or ordinance designating an assessment area -- Zones
             38      within an assessment area -- Preconditions to adoption of a resolution or ordinance.
             39          (1) (a) Subject to the requirements of this part, a governing body of a local entity
             40      intending to levy an assessment on property to pay some or all of the cost of providing
             41      improvements benefitting the property, performing operation and maintenance benefitting the
             42      property, or conducting economic promotion activities benefitting the property [may] shall
             43      adopt a resolution or ordinance designating an assessment area.
             44          (b) A designation resolution or designation ordinance described in Subsection (1)(a)
             45      may divide the assessment area into zones to allow the governing body to:
             46          (i) levy a different level of assessment; or [to]
             47          (ii) use a different assessment method in each zone to reflect more fairly the benefits
             48      that property within the different zones is expected to receive because of the proposed
             49      improvement, operation and maintenance, or economic promotion activities.
             50          (c) The boundaries of a proposed assessment area may include property that is not
             51      intended to be assessed.
             52          (2) Before adopting a designation resolution or designation ordinance described in
             53      Subsection (1)(a), the governing body of the local entity shall:
             54          (a) give notice as provided in Section 11-42-202 ;
             55          (b) receive and consider all protests filed under Section 11-42-203 ; and
             56          (c) hold a public hearing as provided in Section 11-42-204 .
             57          Section 2. Section 11-42-202 is amended to read:


             58           11-42-202. Requirements applicable to a notice of a proposed assessment area
             59      designation.
             60          (1) Each notice required under Subsection 11-42-201 (2)(a) shall:
             61          (a) state that the local entity proposes to:
             62          (i) designate one or more areas within the local entity's jurisdictional boundaries as an
             63      assessment area;
             64          (ii) provide an improvement to property within the proposed assessment area; and
             65          (iii) finance some or all of the cost of improvements by an assessment on benefitted
             66      property within the assessment area;
             67          (b) describe the proposed assessment area by any reasonable method that allows an
             68      owner of property in the proposed assessment area to determine that the owner's property is
             69      within the proposed assessment area;
             70          (c) describe, in a general way, the improvements to be provided to the assessment
             71      area, including:
             72          (i) the general nature of the improvements; and
             73          (ii) the general location of the improvements, by reference to streets or portions or
             74      extensions of streets or by any other means that the governing body chooses that reasonably
             75      describes the general location of the improvements;
             76          (d) [a statement of] state the estimated cost of the improvements as determined by a
             77      project engineer;
             78          (e) [a statement] state that the local entity proposes to levy an assessment on benefitted
             79      property within the assessment area to pay some or all of the cost of the improvements
             80      according to the estimated direct and indirect benefits to the property from the improvements;
             81          (f) [a statement of] state the assessment method by which the governing body proposes
             82      to levy the assessment [is proposed to be levied];
             83          (g) [a statement of] state:
             84          (i) the time within which and the location at which protests against designation of the
             85      proposed assessment area or of the proposed improvements are required to be filed; and


             86          (ii) the method by which the governing body will determine the number of protests
             87      required to defeat the designation of the proposed assessment area or acquisition or
             88      construction of the proposed improvements [are to be determined];
             89          (h) state the date, time, and place of the public hearing [under] required in Section
             90      11-42-204 ;
             91          (i) if the governing body elects to create and fund a reserve fund under Section
             92      11-42-702 , include a description of:
             93          (i) how the reserve fund will be funded and replenished; and
             94          (ii) how remaining money in the reserve fund is to be disbursed upon full payment of
             95      the bonds;
             96          (j) if the governing body intends to designate a voluntary assessment area, include a
             97      property owner consent form that:
             98          (i) estimates the total assessment to be levied against the particular parcel of property;
             99          (ii) describes any additional benefits that the governing body expects the assessed
             100      property to receive from the improvements; and
             101          (iii) designates the date and time by which the fully executed consent form is required
             102      to be submitted to the governing body;
             103          (k) if the local entity intends to levy an assessment to pay operation and maintenance
             104      costs or for economic promotion activities, include:
             105          (i) a description of the operation and maintenance costs or economic promotion
             106      activities to be paid by assessments and the initial estimated annual assessment to be levied;
             107          (ii) a description of how the estimated assessment will be determined;
             108          (iii) a description of how and when the governing body will adjust the assessment to
             109      reflect [current operation and maintenance costs or] the costs of:
             110          (A) in accordance with Section 11-42-406 , current economic promotion activities; or
             111          (B) current operation and maintenance costs;
             112          (iv) a description of the method of assessment if different from the method of
             113      assessment to be used for financing any improvement; and


             114          (v) a statement of the maximum number of years over which the assessment will be
             115      levied for:
             116          (A) operation and maintenance costs; or
             117          (B) economic promotion activities [will be levied]; and
             118          (l) if the governing body intends to divide the proposed assessment area into zones
             119      under Subsection 11-42-201 (1)(b), include a description of the proposed zones.
             120          (2) A notice required under Subsection 11-42-201 (2)(a) may contain other information
             121      that the governing body considers to be appropriate, including:
             122          (a) the amount or proportion of the cost of the improvement to be paid by the local
             123      entity or from sources other than an assessment;
             124          (b) the estimated amount of each type of assessment for the various improvements to
             125      be financed according to the method of assessment that the governing body chooses; and
             126          (c) provisions for any improvements described in Subsection 11-42-102 (22)(b).
             127          (3) Each notice required under Subsection 11-42-201 (2)(a) shall:
             128          (a) (i) (A) be published in a newspaper of general circulation within the local entity's
             129      jurisdictional boundaries, once a week for four consecutive weeks, with the last publication at
             130      least five but not more than 20 days before the deadline for filing protests specified in the
             131      notice under Subsection (1)(g); or
             132          (B) if there is no newspaper of general circulation within the local entity's
             133      jurisdictional boundaries, be posted in at least three public places within the local entity's
             134      jurisdictional boundaries at least 20 but not more than 35 days before the deadline [under
             135      Section 11-42-203 ] for filing protests specified in the notice under Subsection (1)(g); and
             136          (ii) be published [in accordance with Section 45-1-101 ] on the Utah Public Notice
             137      Website described in Section 63F-1-701 for four weeks before the deadline [under Section
             138      11-42-203 ] for filing protests specified in the notice under Subsection (1)(g); and
             139          (b) be mailed, postage prepaid, within 10 days after the first publication or posting of
             140      the notice under Subsection (3)(a) to each owner of property to be assessed within the
             141      proposed assessment area at the property owner's mailing address.


             142          Section 3. Section 11-42-401 is amended to read:
             143           11-42-401. Levying an assessment -- Prerequisites -- Assessment list.
             144          (1) [A] If a local entity has designated an assessment area in accordance with Part 2,
             145      Designating an Assessment Area, the local entity may levy an assessment against property
             146      within [an] that assessment area as provided in this part.
             147          (2) Before a governing body may adopt a resolution or ordinance levying an
             148      assessment against property within an assessment area:
             149          (a) the governing body shall:
             150          (i) subject to Subsection (3), prepare an assessment list designating:
             151          (A) each parcel of property proposed to be assessed; and
             152          (B) the amount of the assessment to be levied against the property;
             153          (ii) appoint a board of equalization as provided in Section 11-42-403 ; and
             154          (iii) give notice as provided in Section 11-42-402 ; and
             155          (b) the board of equalization, appointed under Section 11-42-403 , shall hold hearings,
             156      make any corrections [to assessments it considers appropriate] it considers appropriate to an
             157      assessment, and report its findings to the governing body as provided in Section 11-42-403 .
             158          (3) [An] (a) The governing body of a local entity shall prepare the assessment list
             159      [under] described in Subsection (2)(a)(i) [may be prepared] at any time after:
             160          [(a)] (i) the governing body has determined the estimated or actual operation and
             161      maintenance costs [have been determined], if the assessment is to pay operation and
             162      maintenance costs;
             163          [(b) the light service has commenced, if the assessment is to pay for light service;]
             164          [(c) the park maintenance has commenced, if the assessment is to pay for park
             165      maintenance;]
             166          [(d) adoption of a resolution or ordinance under]
             167          (ii) the governing body has determined the estimated or actual economic promotion
             168      costs described in Section 11-42-206 , if the assessment is to pay for economic promotion
             169      activities; or


             170          [(e)] (iii) for any other assessment, the governing body has determined:
             171          [(i)] (A) the estimated or actual acquisition and construction costs of all proposed
             172      improvements within the assessment area, including overhead costs and authorized
             173      contingencies;
             174          [(ii)] (B) the estimated or actual property price for all property to be acquired to
             175      provide the proposed improvements; and
             176          [(iii)] (C) the reasonable cost of any work to be done by the local entity.
             177          (b) In addition to the requirements of Subsection (3)(a), the governing body of a local
             178      entity shall prepare the assessment list described in Subsection (2)(a)(i) before:
             179          (i) the light service has commenced, if the assessment is to pay for light service; or
             180          (ii) the park maintenance has commenced, if the assessment is to pay for park
             181      maintenance.
             182          (4) A local entity may levy an assessment for some or all of the cost of improvements
             183      within an assessment area, including payment of:
             184          (a) operation and maintenance costs of improvements constructed within the
             185      assessment area;
             186          (b) (i) if an outside entity furnishes utility services or maintains utility improvements,
             187      the actual cost that the local entity pays for utility services [furnished] or for maintenance of
             188      improvements [provided by another or,]; or
             189          (ii) if the local entity itself furnishes utility service or maintains improvements, for the
             190      reasonable cost of supplying the utility service or maintenance;
             191          (c) the reasonable cost of supplying labor, materials, or equipment in connection with
             192      improvements; and
             193          (d) (i) the reasonable cost of connection fees; or [the cost of]
             194          (ii) the reasonable costs, as determined by the local entity governing body, if the local
             195      entity owns or supplies any sewer, storm drainage, water, gas, electric, or communications
             196      connections [if the local entity owns or supplies these services, to the depth that the local
             197      entity's governing body considers just and equitable].


             198          (5) A local entity may not levy an assessment for an amount donated or contributed for
             199      an improvement or part of an improvement.
             200          (6) The validity of an otherwise valid assessment is not affected because the actual
             201      cost of improvements exceeds the estimated cost.
             202          (7) [An] Subject to Subsection (7)(b), an assessment levied to pay for operation and
             203      maintenance costs may not be levied over a period of time exceeding [the reasonable useful
             204      life of the facilities to be maintained by the levy] five years beginning on the day on which the
             205      local entity adopts the assessment ordinance or assessment resolution for the operation and
             206      maintenance costs assessment.
             207          (b) A local entity may levy an additional assessment described in Subsection (7)(a) in
             208      the assessment area designated for the assessment described in Subsection (7)(a) if, after the
             209      five-year period expires, the local entity complies with the provisions of this part.
             210          Section 4. Section 11-42-402 is amended to read:
             211           11-42-402. Notice of assessment and board of equalization hearing.
             212          Each notice required under Subsection 11-42-401 (2)(a)(iii) shall:
             213          (1) state:
             214          (a) that an assessment list is completed and available for examination at the offices of
             215      the local entity;
             216          (b) the total estimated or actual cost of the improvements;
             217          (c) the amount of the total estimated or actual cost of the proposed improvements to be
             218      paid by the local entity;
             219          (d) the amount of the assessment to be levied against benefitted property within the
             220      assessment area;
             221          (e) the assessment method used to calculate the proposed assessment;
             222          (f) the unit cost used to calculate the assessments shown on the assessment list, based
             223      on the assessment method used to calculate the proposed assessment; and
             224          (g) the dates, times, and place of the board of equalization hearings under Subsection
             225      11-42-401 (2)(b);


             226          (2) (a) beginning at least 20 but not more than 35 days before the day on which the
             227      first hearing of the board of equalization is held:
             228          [(a)] (i) be published at least once in a newspaper of general circulation within the
             229      local entity's jurisdictional boundaries; or
             230          (ii) if there is no newspaper of general circulation within the local entity's
             231      jurisdictional boundaries, be posted in at least three public places within the local entity's
             232      jurisdictional boundaries; and
             233          (b) be published [in accordance with Section 45-1-101 ] on the Utah Public Notice
             234      Website created in Section 63F-1-701 for 35 days immediately before the day on which the
             235      first hearing of the board of equalization is held; and
             236          (3) be mailed, postage prepaid, within 10 days after the first publication or posting of
             237      the notice under Subsection (2) to each owner of property to be assessed within the proposed
             238      assessment area at the property owner's mailing address.
             239          Section 5. Section 11-42-404 is amended to read:
             240           11-42-404. Adoption of a resolution or ordinance levying an assessment -- Notice
             241      of the adoption -- Effective date of resolution or ordinance -- Notice of assessment
             242      interest.
             243          (1) (a) After receiving a final report from a board of equalization under Subsection
             244      11-42-403 (5) or, if applicable, after the time for filing an appeal under Subsection
             245      11-42-403 (6) has passed, the governing body may adopt a resolution or ordinance levying an
             246      assessment against benefitted property within the assessment area designated in accordance
             247      with Part 2, Designating an Assessment Area.
             248          [(b) Each local entity that levies an assessment under this chapter shall levy the
             249      assessment at one time only, unless the assessment is to pay operation and maintenance costs
             250      or the costs of economic promotion activities.]
             251          (b) (i) Except as provided in Subsection (1)(b)(ii), a local entity may not levy more
             252      than one assessment under this chapter for an assessment area designated in accordance with
             253      Part 2, Designating an Assessment Area.


             254          (ii) A local entity may levy more than one assessment in an assessment area
             255      designated in accordance with Part 2, Designating an Assessment Area, if:
             256          (A) the local entity has adopted a designation resolution or designation ordinance for
             257      each assessment in accordance with Section 11-42-201 ; and
             258          (B) the assessment is levied to pay:
             259          (I) subject to Section 11-42-401 , operation and maintenance costs; or
             260          (II) subject to Section 11-42-406 , the costs of economic promotion activities.
             261          (c) An assessment resolution or ordinance adopted under Subsection (1)(a):
             262          (i) need not describe each tract, block, lot, part of block or lot, or parcel of property to
             263      be assessed;
             264          (ii) need not include the legal description or tax identification number of the parcels of
             265      property assessed in the assessment area; and
             266          (iii) is adequate for purposes of identifying the property to be assessed within the
             267      assessment area if the assessment resolution or ordinance incorporates by reference the
             268      corrected assessment list that describes the property assessed by legal description and tax
             269      identification number.
             270          (2) [(a) Each] (a) A local entity that adopts an assessment resolution or ordinance
             271      shall give notice of the adoption by:
             272          (i) (A) publishing a copy of the resolution or ordinance, or a summary of the resolution
             273      or ordinance, once in a newspaper of general circulation within the local entity's jurisdictional
             274      boundaries; or
             275          (B) if there is no newspaper of general circulation with the local entity's jurisdictional
             276      boundaries as described in Subsection (2)(a)(i)[(A)], posting a copy of the resolution or
             277      ordinance in at least three public places within the local entity's jurisdictional boundaries for at
             278      least 21 days; and
             279          (ii) publishing, in accordance with Section 45-1-101 , a copy of the resolution or
             280      ordinance for at least 21 days.
             281          (b) No other publication or posting of the resolution or ordinance is required.


             282          (3) Notwithstanding any other statutory provision regarding the effective date of a
             283      resolution or ordinance, each assessment resolution or ordinance takes effect:
             284          (a) on the date of publication or posting of the notice under Subsection (2); or
             285          (b) at a later date provided in the resolution or ordinance.
             286          (4) (a) The governing body of each local entity that has adopted an assessment
             287      resolution or ordinance under Subsection (1) shall, within five days after the day on which the
             288      25-day prepayment period under Subsection 11-42-411 (6) has passed, file a notice of
             289      assessment interest with the recorder of the county in which the assessed property is located.
             290          (b) Each notice of assessment interest under Subsection (4)(a) shall:
             291          (i) state that the local entity has an assessment interest in the assessed property;
             292          (ii) if the assessment is to pay operation and maintenance costs or for economic
             293      promotion activities, state the maximum number of years over which an assessment will be
             294      payable; and
             295          (iii) describe the property assessed by legal description and tax identification number.
             296          (c) A local entity's failure to file a notice of assessment interest under this Subsection
             297      (4) has no affect on the validity of an assessment levied under an assessment resolution or
             298      ordinance adopted under Subsection (1).
             299          Section 6. Section 11-42-406 is amended to read:
             300           11-42-406. Assessment for economic promotion activities -- Reporting.
             301          [(1) An assessment levied to pay for economic promotion activities may not extend for
             302      more than five years after the date of the notice under Section 11-42-402 .]
             303          (1) (a) If the governing body of a local entity designates an assessment area in
             304      accordance with Part 2, Designating an Assessment Area, for economic promotion activities,
             305      the governing body:
             306          (i) may levy an assessment to pay for economic promotion activities by adopting an
             307      assessment resolution or ordinance in accordance with Section 11-42-404 ; and
             308          (ii) subject to Subsection (1)(b), may levy an additional assessment for economic
             309      promotion activities for the designated assessment area described in Subsection (1)(a):


             310          (A) by adopting an assessment resolution or an ordinance in accordance with Section
             311      11-42-404 ; and
             312          (B) for a period of five years, beginning on the day on which the local entity adopts
             313      the initial assessment resolution or ordinance described in Subsection (1)(a)(i).
             314          (b) A governing body may not levy an additional assessment to pay for economic
             315      promotion activities after the five-year period described in Subsection (1)(a)(ii)(B) unless the
             316      governing body:
             317          (i) designates a new assessment area in accordance with Part 2, Designating an
             318      Assessment Area; and
             319          (ii) adopts a new assessment resolution or ordinance in accordance with Section
             320      11-42-404 .
             321          (2) If a local entity designates an assessment area for economic promotion activities,
             322      the local entity:
             323          (a) shall spend on economic promotion activities at least 70% of the money generated
             324      from an assessment levied in the assessment area and from improvement revenues; [and]
             325          (b) may not spend more than 30% of [that money] the money generated from the
             326      assessment levied in the assessment area and from improvement revenues on administrative
             327      costs, including salaries, benefits, rent, travel, and costs incidental to publications[.]; and
             328          (c) in accordance with Subsection (3), shall publish a detailed report including the
             329      following:
             330          (i) an account of monies deposited into the assessment fund described in Section
             331      11-42-412 ;
             332          (ii) an account of expenditures from the fund described in Section 11-42-412 ; and
             333          (iii) a detailed account of whether each expenditure described in Subsection (2)(c)(ii)
             334      was made for economic promotion activities described in Subsection (2)(a) or for
             335      administrative costs described in Subsection (2)(b).
             336          (3) A local entity shall publish a report required in Subsection (2)(c):
             337          (a) on:


             338          (i) if available, the local entity's public web site; and
             339          (ii) if the local entity is not a county or municipality, on the public web site of any
             340      county or municipality in which the local entity has jurisdiction;
             341          (b) (i) within one year after the day on which the local entity adopts a new assessment
             342      resolution or ordinance for economic promotion activities; and
             343          (ii) each subsequent year that the economic promotion activities levy is assessed by
             344      updating the information described in Subsection (2)(c); and
             345          (c) for six months on a web site described in Subsection (3)(a) after the day on which
             346      the report is initially published under Subsection (3)(b) or updated under Subsection (3)(b)(ii).


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