10-18-302. Bonding authority.
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Effective 5/7/2025
10-18-302. Bonding authority.
(1)In accordance with Title 11, Chapter 14, Local Government Bonding Act , the legislative body of a municipality may by resolution determine to issue one or more revenue bonds or general obligation bonds to finance the capital costs for facilities necessary to provide to subscribers:
(a)a broadband service;
(b)a cable television service; or
(c)a public telecommunications service.
(2)The resolution described in Subsection
(1)shall:
(a)describe the purpose for which the indebtedness is to be created; and
(b)specify the dollar amount of the one or more bonds proposed to be issued.
(a)A revenue bond issued under this section shall be secured and paid for:
(i)from the revenues generated by the municipality from providing:
(A)subject to Subsection
(4), a broadband service, if the revenue bond is issued to finance a facility for that broadband service;
(B)a cable television service, if the revenue bond is issued to finance a facility for that cable television service; and
(C)a public telecommunications service, if the revenue bond is issued to finance a facility for that public telecommunications service; and
(ii)notwithstanding Subsection (3)(b) and Subsection 10-18-303(5)(a) , and subject to the requirements of Subsection
(5), from revenues generated under Title 59, Chapter 12, Sales and Use Tax Act .
(b)Except as provided in Subsection (3)(a)(ii) , a municipality may not pay the origination, financing, or other carrying costs associated with one or more revenue bonds issued under this section from the municipality's general funds or other enterprise funds.
(4)A municipality may only issue a revenue bond described in Subsection (3)(a)(i)(A) if the legislative body of the municipality obtains the approval of registered voters at an election held in accordance with Title 11, Chapter 14, Local Government Bonding Act.
(5)A municipality may only issue a revenue bond described in Subsection (3)(a)(ii) if:
(a)notwithstanding Subsection 11-14-201(3) and except as provided in Subsection
(6), the revenue bond is approved by the registered voters in an election held:
(i)except as provided in Subsection (5)(a)(ii) , pursuant to the provisions of Title 11, Chapter 14, Local Government Bonding Act, that govern bond elections; and
(ii)notwithstanding Subsection 11-14-203(2) , at a regular general election;
(b)the revenues described in Subsection (3)(a)(ii) are pledged as security for the revenue bond; and
(c)the municipality annually appropriates the revenues described in Subsection (3)(a)(ii) to secure and pay the revenue bond issued under this section.
(6)The voter approval requirement described in Subsection
(5)does not apply to a municipality that issues a revenue bond described in Subsection (3)(a)(ii) , if:
(a)the bond is issued to finance a cable television service or a public telecommunications service;
(i)the municipality that is issuing the revenue bond holds a public hearing for which public notice was given by publication of the notice for the municipality, as a class A notice under Section 63G-30-102 , for 14 days before the day of the public hearing; and
(ii)the notice identifies:
(A)that the notice is given pursuant to Title 11, Chapter 14, Local Government Bonding Act ;
(B)the purpose for the bond to be issued;
(C)the maximum amount of the revenues described in Subsection (3)(a)(ii) that will be pledged in any fiscal year;
(D)the maximum number of years that the pledge will be in effect; and
(E)the time, place, and location for the public hearing; and
(c)not more than 50% of the average annual debt service of all revenue bonds described in this section to provide service throughout the municipality or municipal entity may be paid from the revenues described in Subsection (3)(a)(ii) .
(7)A municipality that issues a bond pursuant to this section may not make or grant any undue or unreasonable preference or advantage to the municipality or to any private provider of:
(a)a broadband service;
(b)a cable television service; or
(c)a public telecommunications service.
(8)A municipality that issues a bond pursuant to this section shall timely disclose to the general public all matters material to the municipality's issuance of a bond to fund the service, including:
(a)debt service delinquencies and defaults;
(b)non-payment covenant defaults;
(c)unscheduled reserve fund draws;
(d)adverse tax opinions;
(e)credit rating changes;
(f)bond calls;
(g)tender offers; and
(h)private debt placements.
Amended by Chapter 45 , 2025 General Session