Chapter 6-6 MUNICIPAL IMPROVEMENT DISTRICTS

The City Council shall have the power to create special improvement districts as provided by the Utah Municipal Improvement District Act. In creating such districts, making assessments on property in such districts and financing the improvements for which such districts are created, the City Council and other officers of the City shall be governed by the provisions of this Chapter and shall follow all of the procedures and shall have all of the powers in addition thereto which are specified by the Utah Municipal Improvement District Act.

(Statutory Authority UCA 17A-3-301 et seq.; added in codification 1979; 1979 Code 6-6-1)

6-6-102 Powers of City.

(1) The City Council shall have the power to make or cause to be made any one or more or a combination of the following improvements:

(a) establish grades and lay out, establish, open, extend and widen any street, sidewalk, alley or off-street parking facility;

(b) improve, repair, light, grade, pave, repave, curb, gutter, sewer, drain, park and beautify any street, sidewalk, alley, or off-street parking facility;

(c) construct, reconstruct, extend, maintain or repair bridges, sidewalks, crosswalks, driveways, culverts, sewers, storm sewers, drains, flood barriers and channels;

(d) construct, reconstruct, extend, maintain or repair lines, facilities and equipment (other than generating equipment) for street lighting purposes or for the expansion or improvement of a previously established municipally-owned electrical distribution system to a district within the boundaries of the City;

(e) plant or cause to be planted, set out, cultivate, and maintain lawns, shade trees or other landscaping;

(f) (i) cover, fence, safeguard, or enclose reservoirs, canals, ditches and water courses; and

(ii) construct, reconstruct, extend, maintain and repair waterworks, reservoirs, canals, ditches, pipes, mains, hydrants, and other water facilities for the purpose of supplying water for domestic and irrigation purposes or either, regulating, controlling or distributing water for domestic or irrigation purposes, and regulating and controlling water and water courses leading into the City;

(g) acquire, construct, reconstruct, extend, maintain or repair parking lots or other facilities for the parking of vehicles off streets;

(h) acquire, construct, reconstruct, extend, maintain or repair any of the improvements authorized in this Section for use in connection with an industrial or research park, except that this Chapter does not authorize the use of City funds to pay the cost of buildings or structures used for industry or research;

(i) acquire, construct, reconstruct, extend, maintain or repair parks and other recreational facilities and libraries;

(j) remove any non-conforming, existing improvements in the areas to be improved;

(k) construct, reconstruct, extend, maintain or repair optional improvements;

(l) acquire any property necessary or advisable in order to make any of such improvements;

(m) make any other improvements now or hereafter authorized by any other law, the cost of which in whole or in part can properly be determined to be of particular benefit to a particular area within the City;

(n) (i) construct and install all structures, equipment and other items; and

(ii) do any other work as may be necessary or appropriate to complete any of such improvements in a proper manner; and

(o) conduct economic promotion activities.

(2) In a district created for economic promotion activities, the City Council shall:

(a) spend at least seventy-percent (70%) of any funds generated on economic promotion activities; and

(b) spend no more than thirty-percent (30%) of any funds generated on administrative costs, including salaries, benefits, rent, travel, and costs incidental to publications.

(3) For the purpose of making and paying for all or a part of the cost of any of such improvements (including optional improvements), the City Council may:

(a) create special improvement districts within the City;

(b) levy assessments on property within such a district which is benefited by the improvements;

(d) issue interim warrants and special improvement bonds as provided in the Utah Municipal Improvement District Act.

(4) The City Council shall not use the procedures outlined in this Chapter to pay the cost of buildings or structures used for industry or research.

(Statutory Authority UCA 17A-16-304; added in codification 1979; 1979 code 6-6-2; amended in codification)

6-6-103 Notice of Intention.

Before a special improvement district is created, the City Council shall give notice of its intention to make the improvements and to levy assessments to pay all or a part of the cost thereof. Such notice shall contain the information and be given in the manner required by the Utah Municipal Improvement District Act.

(Statutory Authority UCA 17A-3-305, 306; added in codification 1979; 1979 Code 6-6-3)

6-6-104 Protests by Property Owners.

(1) (a) Any person who is the owner of property to be assessed in the special improvement district described in the notice of intention may, within the time designated in the notice, file, in writing, a protest to the creation of the special improvement district or make any other objections relating thereto.

(b) The protest shall describe or otherwise identify the property owned by the person making the protest.

(2) (a) On the date and at the time and place specified in the notice of intention, the City Council shall, in open and public session, consider all protests so filed and hear all objections relating to the proposed special improvement district.

(b) The City Council may adjourn the hearing from time to time to a fixed future time and place.

(c) After the hearing has been concluded and after all persons desiring to be heard have been heard, the City Council shall consider the arguments and protests made.

(d) The City Council may:

(i) make deletions and changes in the proposed improvements; and

(ii) make deletions and changes in the area to be included in the special improvement district as desirable or necessary to assure adequate benefits to the property in the district.

(e) The City Council may not provide for the making of any improvements that are not stated in the notice of intention nor for adding to the district any property not included within the boundaries of the district unless a new notice of intention is given and a new hearing held.

(3) (a) (i) After this consideration and determination, the City Council shall adopt a resolution either abandoning the district or creating the district either as described in the notice of intention or with deletions and changes made as authorized in this Section.

(ii) The City Council shall abandon the district and not create the same if the necessary number of protests as provided in the Utah Municipal Improvement District Act have been filed on or before the time specified in the notice of intention for the filing of protests after eliminating from the filed protests:

(A) protests relating to property or relating to a type of improvement that has been deleted from the district; and

(B) protests that have been withdrawn in writing before the conclusion of the hearing.

(B) If less than the necessary number of protests are filed by the owners of the property to be assessed, the City Council may create the special improvement district and begin making the improvements.

(Statutory Authority UCA 17A-3-307; added in codification 1979; 1979 Code 6-6-4; amended in codification)

6-6-105 Contracts for Improvements.

Except as otherwise provided in the Municipal Improvement District Act, improvements in a special improvement district shall be made only under contract duly let to the lowest responsible bidder for the kind of service or material or form of construction which may be determined upon after notice has been given and bids received as provided in said act. The improvements may be divided into parts and separate contracts let for each part, or several such parts may be combined in the same contract. A contract may be let on a unit basis.

(Statutory Authority UCA 17A-3-308; added in codification 1979; 1979 Code 6-6-5)

6-6-106 When Assessments May be Levied.

Assessments for improvements in a special improvement district may be levied:

(1) At any time after all contracts for the making of the improvements have been let, the proper price for all property acquired to make the improvements has been plainly determined and the reasonable cost of any work to be done by the City has been determined; or

(2) For light service or park maintenance at any time after the light service or park maintenance has been commenced; or

(3) At any time after all of the improvements in the special improvement district are entirely completed and accepted; or

(4) For economic promotion activities, at any time after the district has been created.

(Statutory Authority UCA 17A-3-312; added in codification 1979; 1979 code 6-6-6; amended in codification)

6-6-107 Assessment List and Board of Equalization.

(1) Before an assessment is levied, an assessment list shall be prepared designating each parcel of property proposed to be assessed and the amount of the assessment apportioned to such property.

(2) (a) Upon completion of the assessment list, the City Council shall:

(i) appoint a board of equalization and review consisting of three or more members of the City Council or, at the option of the City Council, consisting of the City Engineer, City Recorder and City Attorney;

(ii) and give public notice of the completion of the assessment list and of the time and place of the holding of public hearings relating to the proposed assessments in accordance with the Utah Municipal Improvement District Act.

(b) If the board of equalization and review consists of other than members of the City Council, appeal from a decision of the board of equalization and review shall be taken to the City Council by filing a written notice of appeal in the office of the City Recorder within fifteen (15) days from the date the board’s final report to the City Council is mailed to the affected property owners as provided in subsection (7).

(3) (a) The notice shall be published in a newspaper published in the City.

(b) The notice shall be published at least one time with the first publication at least twenty (20) and not more than thirty-five (35) days prior to the date the board will begin its hearings.

(4) Not later than ten (10) days after the first publication of the notice, the notice shall be mailed, postage prepaid:

(a) addressed to each owner of property to be assessed within the special improvement district at the last known address of the owner, using for this purpose the names and addresses appearing on the last completed real property assessment rolls of the county; and

(b) addressed to “owner” at the street number of each piece of improved real property to be assessed. If a street number has not been assigned, then the post office box, rural route number, or any other mailing address of the improved property shall be used for the mailing of the notice.

(5) The board of equalization and review shall convene at the time and place specified in the notice. Hearings shall be held on not less than three consecutive days for at least one (1) hour between 9:00 a.m. and 9:00 p.m. as specified in the notice. The hearings may be adjourned or recessed from time to time to a specific place and a specific hour and day until the work of the board shall have been completed. At each hearing the board shall hear arguments from any person who believes himself to be aggrieved, including arguments relating to the benefits accruing to any tract, block, lot, or parcel of property in the district or relating to the amount of the proposed assessment against that tract, block, lot, or parcel.

(6) (a) After the hearings have been completed, the board shall consider all facts and arguments presented and shall make such corrections in any proposed assessment as it may consider just and equitable. These corrections may eliminate one or more pieces of property or may increase or decrease the amount of the assessment proposed to be levied against any piece of property.

(b) If the corrections result in an increase of any proposed assessment, before approving the corrected assessment list, the board shall cause notice of such increase and hear objections thereto in accordance with the requirements of the Utah Municipal Improvement District Act before approving the corrected assessment list.

(7) (a) After all corrections have been made and all hearings, including hearings under subsection (6), have been held, the board shall report to the City Council its findings that each piece of property within the special improvement district will be benefited in an amount not less than the assessment to be levied against such property, and that no piece of property listed on the assessment will bear more than its proportionate share of the cost of the improvement.

(b) The board shall cause to be mailed a copy of the board’s final report to each owner of property who objected at the hearings of the board to the assessment proposed to be levied against his property.

(c) The findings of the board, when approved by the City Council or after passage of time for appeal and review by the City Council, shall be final and, except as provided in subsection 2(b), no appeal may be taken therefrom.

(d) After receipt of the report from the board and the running of the appeal period provided in subsection 2(b), if applicable, the City Council may proceed with the levy of the assessments.

(8) Each person whose property is subject to assessment and who fails to appear before the board of equalization and review to raise his objections to the levy of the assessment shall be deemed to have waived all objections to the levy except the objection that the City Council failed to obtain jurisdiction to order the making of the improvements which the assessment is intended to pay.

(Statutory Authority UCA 17A-3-317; added in codification 1979; 1979 Code 6-6-7; amended in codification)

6-6-108 Ordinance Levying Assessments.

Assessments shall be levied by ordinance. The assessment ordinance shall conform to all provisions of the Utah Municipal Improvement District Act and may contain any provision authorized by that act.

(Statutory Authority UCA 17A-3-318 to 320; added in codification 1979; 1979 Code 6-6-8; amended in codification)

6-6-109 [Repealed]

(Added in codification 1979; 1979 Code 6-6-9; repealed in codification)

6-6-110 Prepayment of Assessments.

(1) Assessments payable in installments may be paid prior to the due date of any such installment as provided in this section but not otherwise.

(2) The whole or any part of the assessment may be paid without interest within fifteen (15) days after the ordinance levying the assessment becomes effective. If the assessment is paid in part, the unpaid balance may, at the discretion of the City Council, be payable either in substantially equal installments of principal and interest over the period of time installments are payable as provided in the assessment ordinance.

(3) After such fifteen (15) day period and if the ordinance levying the assessment so provides, all unpaid installments of assessments levied against any piece of property (but only in their entirety) may be paid prior to the dates on which they become due. Any such prepayment must include an additional amount equal to the interest which would accrue on the assessment to the next succeeding date on which interest is payable on any special improvement bonds issued in anticipation of the collection of the assessments, plus such additional amount as, in the opinion of the City Council or of any officer of the City designated by the City Council, is necessary to assure the availability of money to pay interest on the special improvement bonds as interest becomes due plus any premiums which may become payable on redeemable bonds which may be called in order to utilize the assessments thus paid in advance.

(Statutory Authority UCA 17A-3-321; amended in codification 1979; 1979 Code 6-6-10; amended in codification)

6-6-111 Default in Payment.

(1) When an assessment is payable in installments and a default occurs in the payment of any installment when due, the whole of the unpaid principal and interest shall become due and payable immediately, and subject to collection as provided in this Chapter. Interest shall accrue and be paid on all amounts delinquent or accelerated and immediately due and payable and shall bear interest at a rate established by the City council until the next succeeding date after payment or collection on which interest is payable on any bonds issued. Costs of collection approved by the City Council or required by law shall be charged and paid on all amounts declared to be delinquent or accelerated and immediately due and payable.

(2) Any interest assessed for or costs of collection charged under authority of this section on delinquent balances of principal and interest shall be the same as are applied to delinquent real property taxes for the year in which the balance of the fee or charge became delinquent.

(3) Notwithstanding the provisions of subsection (1), if before the final date that payment may be legally made under a final sale or foreclosure of property to collect delinquent assessment installments, the owner pays the amount of all unpaid installments that are past due and delinquent with interest at the rate determined by the City Council to date of payment plus all approved or required costs, the owner shall then be restored to the right to pay in installments in the same manner as if default had not occurred.

(Statutory Authority UCA 17A-3-322; added in codification 1979; 1979 Code 6-6-12; amended in codification)

6-6-112 Assessment Constitutes Lien Against Property.

An assessment or any part or installment of it, any interest accruing on the assessment, and the penalties and cost of collection of the assessment shall constitute a lien on and against the property upon which the assessment is levied on the effective date of the ordinance levying the assessment. This lien shall be superior to the lien of any trustee, mortgage, mechanic’s or material man’s lien, or other encumbrance, and shall be equal to the lien for general property taxes. Such lien shall apply without interruption, change in priority, or alteration in any manner to any reduced payment obligations and shall continue until the assessment, reduced payment obligation, and any interest, penalties and costs on them are paid, notwithstanding any sale of the property for or on account of a general property tax, special tax, or other assessment or the issuance of an auditor’s deed, an assignment of interest by the county, or a sheriff’s certificate of sale or deed.

(Statutory Authority UCA 17A-3-323; added in codification 1979; 1979 Code 6-6-13; amended in codification)

6-6-113 Delinquent List.

The City Treasurer, as directed from time to time by the City Council, shall prepare a list of all property upon which the assessment remains due and unpaid and cause the same to be published one time in a newspaper having general circulation in the City. Said list shall contain a description of the property, the owner’s name, if known, and if not, the words “unknown owner,” the amount due on each separate parcel, exclusive of costs, and shall be accompanied by a notice of sale substantially in the following form: Notice is hereby given that assessments for special improvements are due and unpaid in the amounts and upon the lands described herein. Unless the assessments, interests, and costs of advertising, are paid on or before (here fix a day at least ten days after the date of publication), the property will on said day be sold, for the amounts of the delinquent assessment, interests and costs against the same, at the front door of the City Building in Springville, Utah, beginning at the hour of 12:00 noon of said day, and continue until all of the property has been sold.

(Statutory Authority UCA 17A-3-324; added in codification 1979; 1979 Code 6-6-14)

6-6-114 Minimum Sale Price.

In no case shall any land be sold for less than the amount of the delinquent assessment against the same, interest, the costs of advertising and expense of sale.

(Statutory Authority UCA 17A-3-324; added in codification 1979; 1979 Code 6-6-14)

6-6-115 Sale.

On the day fixed for sale, the City Treasurer shall appear at the hour and place stated in the notice of sale and offer the land for sale at public auction to the highest responsible bidder for cash. The offer of sale shall be substantially in the following language: There is delinquent upon (here describe the parcel of land being sold) an assessment amounting to $____ , including interest, with costs and expenses of $____ . What is the smallest portion of this property which you will take and pay the assessment, interest, costs and expenses?

(Statutory Authority UCA 17A-3-324; added in codification 1979; 1979 Code 6-6-15)

6-6-116 Payment by City.

In case no bid at least equal to the amount of the assessment, interest, cost of advertising and expense of sale on each separate parcel is received, the land shall be deemed sold to the City for the amount of the assessment, interest, and cost, and such sale shall have the same effect as if made to an individual. Any land sold to the City shall be paid for out of the Special Improvement Guarantee Fund. Payment shall be made at the time and in the manner specified by the Utah Municipal Improvement District Act.

(Added in codification 1979; 1979 Code 6-6-16)

6-6-117 Special Improvement Guarantee Fund.

The City Council shall create, replenish and maintain a special improvement fund as required by law.

(Statutory Authority UCA 17A-3-326; added in codification 1979; 1979 Code 6-6-17; amended in codification)

6-6-118 [Repealed]

(Added in codification 1979; 1979 Code 6-6-18; repealed in codification)

6-6-119 Certificate of Sale.

When land is sold for a delinquent assessment, the Treasurer shall make, sign, acknowledge and deliver a certificate of sale which shall be substantially in the following form:

SPRINGVILLE CITY CORPORATION
Treasurer’s Office
CERTIFICATE OF SALE FOR DELINQUENT
ASSESSMENTS
IMPROVEMENT DISTRICT NUMBER _______

THIS CERTIFIES, that on_________ , 20___ , the undersigned, as City Treasurer and collector of Special Assessments for Springville, Utah, sold to _______________________ subject to redemption as provided by law, the following land in Springville, Utah, for delinquent assessments against the same in the name of________________________________________:
(description of land from assessment list)

ASSESSMENT AND COSTS

Amount of Assessment: $____________
Interest to date of sale: $____________
Advertising: $____________
Expense of sale: $____________
Certificate of sale: $____________
Total: $____________

DATED: _________________________________

/s/ City Treasurer and Collector
of Special Assessments

(Acknowledgment in statutory form)

(Added in codification 1979; 1979 Code 6-6-19)

6-6-120 Recording.

When property is sold to the City, it shall be the duty of the City Treasurer to see that such certificate is properly recorded in the office of the county recorder.

(Added in codification 1979; 1979 Code 6-6-20)

6-6-121 Sale of Certificate.

The City may sell and assign any certificate of sale upon payment to the City of the amount mentioned in said certificate, together with such interest as the City Council may determine from date of sale to date of assignment, and all monies received therefrom shall be paid into such fund as required by law or by the assessment ordinance.

(Added in codification 1979; 1979 Code 6-6-21; amended in codification)

6-6-122 Record of Sales.

The City Treasurer shall keep a record of all sales of land describing therein the several parcels of land sold, the amount of the assessment, interest, costs and expenses, the part of each tract sold, to whom sold, and the date of sale. Whenever any portion of the land sold shall be redeemed, the fact of redemption shall be entered opposite the description of the land in the assessment sale record.

(Added in codification 1979; 1979 Code 6-6-22; amended in codification)

6-6-123 Payment of General Taxes.

The City Council may from time to time as it deems necessary direct the City Treasurer to pay the general taxes on any land sold to the City for delinquent assessments, or redeem such property where it has been sold for delinquent general taxes. The City Treasurer shall enter in the Record of Sales the date and amount of any taxes so paid. Said amount shall draw interest at the rate applied to delinquent property taxes from the date of payment until repaid and shall be included in the amount required to be paid for redemption of such land.

(Added in codification 1979; 1979 Code 6-6-23; amended in codification)

6-6-124 Procedure for Redemption.

Land sold for delinquent assessments may be redeemed by any person interested therein at any time within three years after the date of sale by paying to the City Treasurer, for the use of the purchaser, the amount paid by such purchaser, plus costs and expenses of the sale and redemption, together with interest at the rate of ten-percent per annum on the whole from the date of sale to the date of redemption. If land has been sold to the City and general taxes thereon have been paid by the City, it shall be necessary also for the redeemer to pay the amount of such general tax with interest thereon from the date of payment to the date of redemption at the rate applied to delinquent real property taxes. When two or more parties are interested in land that has been sold for delinquent assessments, a party may redeem the land in which he is interested by payment of that proportion of the assessment, interest and costs which his land bears to the whole parcel sold.

(Added in codification 1979; 1979 Code 6-6-24; amended in codification)

6-6-125 Certificate of Redemption.

When any land is redeemed, the City Treasurer shall make the proper entry in the record of sale and issue a certificate of redemption duly acknowledged by the City Treasurer.

(Added in codification 1979; 1979 Code 6-6-25; amended in codification)

6-6-126 City Recorder’s Deed.

If any land is not redeemed within the time and in the manner provided in this Chapter, the City Recorder shall, on presentation of the certificate of sale, make, acknowledge and deliver a deed conveying the property to the purchaser. It shall be the duty of the City Treasurer to present to the City Recorder the certificate of sale for land sold to the City and to see that deeds to the City are properly recorded in the office of the county recorder. Deeds issued by the City Recorder shall recite the purpose for which the assessment was levied, the year in which the levy was made, the day and year of sale, the amount for which the land was sold, a description of the land sold, and the name of the purchaser. The deed shall be executed and acknowledged by the City Recorder.

(Added in codification 1979; 1979 Code 6-6-26)

6-6-127 Record of Recorder’s Deeds.

The City Recorder shall keep on file in his office a record of all deeds issued by him which shall be a facsimile copy of the deeds so issued and which shall be indexed in the name of the party whose property was sold and also in the name of the individual to whom the deed was issued.

(Added in codification 1979; 1979 Code 6-6-27)

CHAPTER 6MUNICIPAL IMPROVEMENT DISTRICTS

6-6-101 Creation of Special Improvement Districts.