A contract for work in an assessment area or for the purchase of property required to make an improvement in an assessment area may require the contract obligation to be paid from proceeds from the sale of assessment bonds, interim warrants, or bond anticipation notes.
Terms Used In Utah Code 11-42-302
Assessment area: means an area, or, if more than one area is designated, the aggregate of all areas within a local entity's jurisdictional boundaries that is designated by a local entity under 2, for the purpose of financing the costs of improvements, operation and maintenance, or economic promotion activities that benefit property within the area. See Utah Code 11-42-102
payable in part or in whole from assessments levied in an assessment area, improvement revenues, and a guaranty fund or reserve fund. See Utah Code 11-42-102
Bond anticipation notes: means notes issued under Section 11-42-602 in anticipation of the issuance of assessment bonds. See Utah Code 11-42-102
Bonds: means assessment bonds and refunding assessment bonds. See Utah Code 11-42-102
Contract: A legal written agreement that becomes binding when signed.
Local entity: means :
(a)
a county, city, town, special service district, or special district;
(b)
an interlocal entity as defined in Section 11-13-103;
(c)
the military installation development authority, created in Section 63H-1-201;
Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
Project engineer: means the surveyor or engineer employed by or the private consulting engineer engaged by a local entity to perform the necessary engineering services for and to supervise the construction or installation of the improvements. See Utah Code 11-42-102
Property: includes real property and any interest in real property, including water rights and leasehold rights. See Utah Code 11-42-102
(2)
(a)
To the extent that a contract is not paid from the sources stated in Subsection (1), the local entity shall advance funds to pay the contract obligation from other legally available money, according to the requirements of the contract.
(b)
A local entity may reimburse itself for an amount paid from its general fund or other funds under Subsection (2)(a) from:
(i)
the proceeds from the sale of assessment bonds, interim warrants, or bond anticipation notes; or
(ii)
assessments or improvement revenues that are not pledged for the payment of assessment bonds, interim warrants, or bond anticipation notes.
(c)
A local entity may not reimburse itself for costs of making an improvement that are properly chargeable to the local entity or for which an assessment may not be levied.
(3)
(a)
A contract for work in an assessment area may provide for payments to the contractor as the work progresses.
(b)
If a contract provides for periodic payments:
(i)
periodic payments may not exceed 90% of the value of the work done to the date of the payment, as determined by estimates of the project engineer; and
(ii)
a final payment may be made only after the contractor has completed the work and the local entity has accepted the work.
(c)
If a local entity retains money payable to a contractor as the work progresses, the local entity shall retain or withhold and release the money as provided in Section 13-8-5.
