Before a special service district may issue guaranteed bonds:
Terms Used In Utah Code 17D-1-507
Governing body: means :
(a)
the legislative body of the county or municipality that creates the special service district, to the extent that the county or municipal legislative body has not delegated authority to an administrative control board created under Section 17D-1-301; or
(b)
the administrative control board of the special service district, to the extent that the county or municipal legislative body has delegated authority to an administrative control board created under Section 17D-1-301. See Utah Code 17D-1-102
Guaranteed bonds: means bonds:
(a)
issued by a special service district; and
(b)
the debt service of which is guaranteed by one or more taxpayers owning property within the special service district. See Utah Code 17D-1-102
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
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.
Special service district: means a limited purpose local government entity, as described in Section 17D-1-103, that:
(a)
is created under authority of the Utah Constitution Article XI, Section 7; and
(b)
operates under, is subject to, and has the powers set forth in this chapter. See Utah Code 17D-1-102
(a)
the special service district shall:
(i)
obtain a report:
(A)
prepared by:
(I)
a qualified, registered architect or engineer; or
(II)
a person qualified by experience appropriate to the project proposed to be funded by the proceeds from the guaranteed bonds;
(B)
setting forth:
(I)
a description of the project proposed to be funded by the proceeds from the guaranteed bonds;
(II)
the estimated or, if available, the actual cost of the project;
(III)
the principal amount and date and amount of each stated maturity of:
(Aa)
the guaranteed bonds to be issued; and
(Bb)
any outstanding guaranteed bonds of the special service district;
(IV)
the interest rate or rates of any outstanding guaranteed bonds of the special service district;
(V)
the amount of the annual debt service for each year during the life of all outstanding guaranteed bonds issued by the special service district;
(VI)
the estimated amount of the annual debt service for each year during the life of all guaranteed bonds that the special service district intends to issue to finance all or any part of the project; and
(VII)
the date or estimated date that the project will be complete; and
(ii)
submit to the Governor’s Office of Economic Opportunity:
(A)
the report described in Subsection (1)(a)(i);
(B)
a copy of each proposed guarantee of the guaranteed bonds, certified by the special service district;
(C)
a legal opinion indicating that each guarantee, when executed, will be the legal and binding obligation of the taxpayer executing the guarantee in accordance with the terms of the guarantee; and
(D)
evidence satisfactory to the Governor’s Office of Economic Opportunity from each taxpayer executing a guarantee of the guaranteed bonds as to the financial ability of the taxpayer to perform under the guarantee;
(b)
the Governor’s Office of Economic Opportunity shall, if it approves the issuance of the guaranteed bonds, deliver to the special service district governing body a written statement of its approval; and
(c)
the special service district governing body shall file the written approval statement under Subsection (1)(b) with the recorder of the county in which the special service district is located.
(2)
The issuance of guaranteed bonds is conditioned upon the approval of special service district voters at an election held for that purpose as provided in Title 11, Chapter 14, Local Government Bonding Act.
(3)
Guaranteed bonds that have been issued and remain outstanding shall be included in the determination of the debt limit under Subsection 17D-1-502(4) if the bonds by their terms no longer enjoy the benefit of the guarantee.
(4)
On July 1 of each year, the governing body shall file with the department of community affairs a report certifying:
(a)
the total amount of bonds issued by the special service district and other debt then outstanding and subject to the debt limit of Subsection 17D-1-502(4);
(b)
the total amount of guaranteed bonds then outstanding and not subject to the debt limit of Subsection 17D-1-502(4); and
(c)
the total amount of guaranteed bonds that, during the preceding 12 months, discontinued to enjoy the benefit of the guarantee.
