11-42-405. Limit on amount of assessment — Costs required to be paid by the local entity.
- (1) An assessment levied within an assessment area may not, in the aggregate, exceed the sum of:
- (a) the contract price or estimated contract price;
- (b) the acquisition price of improvements;
- (c) the reasonable cost of:
- (i)
- (A) utility services, maintenance, and operation, to the extent permitted by Subsection 11-42-401(4); and
- (B) labor, materials, or equipment supplied by the local entity;
- (ii) economic promotion activities; or
- (iii) operation and maintenance costs;
- (i)
- (d) the price or estimated price of purchasing property;
- (e) any connection fees;
- (f) estimated interest on interim warrants and bond anticipation notes issued with respect to an assessment area;
- (g) the capitalized interest on each assessment bond;
- (h) overhead costs not to exceed 15% of the sum of Subsections (1)(a), (b), (c), and (e);
- (i) an amount for contingencies of not more than 10% of the sum of Subsections (1)(a) and (c), if the assessment is levied before construction of the improvements in the assessment area is completed;
- (j) an amount sufficient to fund a reserve fund, if the governing body creates and funds a reserve fund as provided in Section 11-42-702;
- (k) 1/2 the cost of grading changes as provided in Section 11-42-407; and
- (l) incidental costs incurred by a property owner in order to satisfy the local entity’s requirements for inclusion in a voluntary assessment area, if applicable.
- (2) Each local entity providing an improvement in an assessment area shall pay, from improvement revenues not pledged to the payment of bonds and from any other legally available money:
- (a) overhead costs for which an assessment cannot be levied;
- (b) the costs of providing an improvement for which an assessment was not levied, if the assessment is levied before construction of the improvement in the assessment area is completed; and
- (c) the acquisition and constructions costs of an improvement for the benefit of property against which an assessment may not be levied.
Amended by Chapter 246, 2013 General Session