UTAH CODE (Last Updated: January 16, 2015) |
Title 11. Cities, Counties, and Local Taxing Units |
Chapter 14. Local Government Bonding Act |
Part 3. Issuance of Bonds |
§ 11-14-306. Additional pledge for general obligation bonds -- Revenue bonds -- Resolution.
Latest version.
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(1) To the extent constitutionally permissible, local political subdivisions may pledge as an additional source of payment for their general obligation bonds all or any part of revenues, fees, and charges attributable to the operation or availability of facilities or may issue bonds payable solely from such revenues, fees, or charges. (2) (a) The governing body may issue bonds payable solely from revenues, fees, or charges attributable to extensions and improvements to revenue-producing facilities. (b) If the governing body issues bonds under Subsection (2)(a), the resolution authorizing these bonds shall set forth as a finding of the governing 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 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 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 considered to be revenue derived exclusively from the extensions and improvements.
Amended by Chapter 83, 2006 General Session