(1)  A local entity may issue interim warrants against an assessment area.

Terms Used In Utah Code 11-42-601

  • 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
  • Contract: A legal written agreement that becomes binding when signed.
  • Governing body: means :
(a) for a county, city, or town, the legislative body of the county, city, or town;
(b) for a special district, the board of trustees of the special district;
(c) for a special service district:
(i) the legislative body of the county, city, or town that established the special service district, if no administrative control board has been appointed under Section 17D-1-301; or
(ii) the administrative control board of the special service district, if an administrative control board has been appointed under Section 17D-1-301;
(d) for the military installation development authority created in Section 63H-1-201, the board, as defined in Section 63H-1-102;
(e) for the Utah Inland Port Authority, created in Section 11-58-201, the board, as defined in Section 11-58-102; and
(f) for a public infrastructure district, the board of the public infrastructure district as defined in Section 17D-4-102. See Utah Code 11-42-102
  • Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
  • Interim warrant: means a warrant issued by a local entity under Section 11-42-601. See Utah Code 11-42-102
  • 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;
    (d) a public infrastructure district under Title 17D, Chapter 4, Public Infrastructure District Act, including a public infrastructure district created by a development authority;
    (e) the Utah Inland Port Authority, created in Section 11-58-201; or
    (f) any other political subdivision of the state. See Utah Code 11-42-102
  • Overhead costs: means the actual costs incurred or the estimated costs to be incurred by a local entity in connection with an assessment area for appraisals, legal fees, filing fees, financial advisory charges, underwriting fees, placement fees, escrow, trustee, and paying agent fees, publishing and mailing costs, costs of levying an assessment, recording costs, and all other incidental costs. See Utah Code 11-42-102
  • 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
  • Property price: means the price at which a local entity purchases or acquires by eminent domain property to make improvements in an assessment area. See Utah Code 11-42-102
  • (2)  An interim warrant may be in any amount up to:

    (a)  as portions of the work on improvements in an assessment area are completed, 90% of the value of the completed work, as estimated by the local entity’s project engineer;

    (b)  100% of the value of the work completed, after completion of the work and acceptance of the work by the local entity’s project engineer; and

    (c)  the price of property, the acquisition of which is required for an improvement.

    (3)  The governing body may:

    (a)  issue interim warrants at not less than par value in a manner the governing body determines; and

    (b)  use the proceeds from the issuance of interim warrants to pay:

    (i)  the contract price;

    (ii)  the property price; and

    (iii)  related costs, including overhead costs.

    (4) 

    (a)  Interim warrants shall bear interest from the date of their issuance until paid.

    (b) 

    (i)  The governing body shall:

    (A)  approve the interest rate applicable to interim warrants; and

    (B)  fix a maturity date for each interim warrant.

    (ii)  The interest rate applicable to interim warrants may be fixed or variable or a combination of fixed and variable.

    (iii)  If interim warrants carry a variable interest rate, the governing body shall specify the basis upon which the rate is to be determined, the manner in which the rate is to be adjusted, and a maximum interest rate.

    (iv)  A local entity may provide for interest on interim warrants to be paid semiannually, annually, or at maturity.

    (v)  If an interim warrant matures before the local entity has available sources of payment under Section 11-42-603, the local entity may authorize the issuance of a new interim warrant to pay the principal and interest on the maturing warrant.

    (c)  The local entity shall include interest accruing on interim warrants in the cost of improvements in the assessment area.

    (5)  A local entity may purchase some or all of the interim warrants it has issued using the local entity’s general fund money.

    Enacted by Chapter 329, 2007 General Session