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).