10-2-125 - Incorporation of a town.

10-2-125. Incorporation of a town.
(1) As used in this section:
(a) "Assessed value," with respect to agricultural land, means the value at which the landwould be assessed without regard to a valuation for agricultural use under Section 59-2-503.
(b) "Financial feasibility study" means a study to determine:
(i) the projected revenues for the proposed town during the first three years afterincorporation; and
(ii) the projected costs, including overhead, that the proposed town will incur inproviding governmental services during the first three years after incorporation.
(c) "Municipal service" means a publicly provided service that is not provided on acountywide basis.
(d) "Nonurban" means having a residential density of less than one unit per acre.
(2) (a) (i) A contiguous area of a county not within a municipality, with a population ofat least 100 but less than 1,000, may incorporate as a town as provided in this section.
(ii) An area within a county of the first class is not contiguous for purposes of Subsection(2)(a)(i) if:
(A) the area includes a strip of land that connects geographically separate areas; and
(B) the distance between the geographically separate areas is greater than the averagewidth of the strip of land connecting the geographically separate areas.
(b) The population figure under Subsection (2)(a) shall be determined:
(i) as of the date the incorporation petition is filed; and
(ii) by the Utah Population Estimates Committee within 20 days after the county clerk'scertification under Subsection (6) of a petition filed under Subsection (4).
(3) (a) The process to incorporate an area as a town is initiated by filing a request for apublic hearing with the clerk of the county in which the area is located.
(b) Each request for a public hearing under Subsection (3)(a) shall:
(i) be signed by the owners of at least five separate parcels of private real property, eachowned by a different owner, located within the area proposed to be incorporated; and
(ii) be accompanied by an accurate map or plat depicting the boundary of the proposedtown.
(c) Within 10 days after a request for a public hearing is filed under Subsection (3)(a),the county clerk shall, with the assistance of other county officers from whom the clerk requestsassistance, determine whether the petition complies with the requirements of Subsection (3)(b).
(d) If the clerk determines that a request under Subsection (3)(a) fails to comply with therequirements of Subsection (3)(b), the clerk shall reject the request and deliver written notice ofthe rejection to the signers of the request.
(e) (i) If the clerk determines that a request under Subsection (3)(a) complies with therequirements of Subsection (3)(b), the clerk shall:
(A) schedule and arrange for a public hearing to be held:
(I) (Aa) at a public facility located within the boundary of the proposed town; or
(Bb) if there is no public facility within the boundary of the proposed town, at anothernearby public facility or at the county seat; and
(II) within 20 days after the clerk provides the last notice required under Subsection(3)(e)(i)(B); and
(B) no later than 10 days after the clerk determines that a request complies with the

requirements of Subsection (3)(b), give notice of the public hearing on the proposedincorporation by:
(I) posting notice of the public hearing on the county's Internet website, if the county hasan Internet website;
(II) (Aa) publishing notice of the public hearing at least once a week for two consecutiveweeks in a newspaper of general circulation within the proposed town; or
(Bb) if there is no newspaper of general circulation within the proposed town, postingnotice of the public hearing in at least five conspicuous public places within the proposed town;and
(III) publishing notice of the public hearing on the Utah Public Notice Website created inSection 63F-1-701.
(ii) Each public hearing under Subsection (3)(e)(i)(A) shall be conducted by the chair ofthe county commission or council, or the chair's designee, to:
(A) introduce the concept of the proposed incorporation to the public;
(B) allow the public to review the map or plat of the boundary of the proposed town;
(C) allow the public to ask questions and become informed about the proposedincorporation; and
(D) allow the public to express their views about the proposed incorporation, includingtheir views about the boundary of the area proposed to be incorporated.
(4) (a) At any time within three months after the public hearing under Subsection (3)(e),a petition to incorporate the area as a town may be filed with the clerk of the county in which thearea is located.
(b) Each petition under Subsection (4)(a) shall:
(i) be signed by:
(A) the owners of private real property that:
(I) is located within the area proposed to be incorporated;
(II) covers a majority of the total private land area within the area;
(III) is equal in assessed value to more than 1/2 of the assessed value of all private realproperty within the area; and
(IV) consists, in number of parcels, of at least 1/3 of the number of all parcels of privatereal property within the area proposed to be incorporated; and
(B) a majority of all registered voters within the area proposed to be incorporated as atown, according to the official voter registration list maintained by the county on the date thepetition is filed;
(ii) designate as sponsors at least five of the property owners who have signed thepetition, one of whom shall be designated as the contact sponsor, with the mailing address ofeach owner signing as a sponsor;
(iii) be accompanied by and circulated with an accurate map or plat, prepared by alicensed surveyor, showing a legal description of the boundary of the proposed town; and
(iv) substantially comply with and be circulated in the following form:
PETITION FOR INCORPORATION OF (insert the proposed name of the proposedtown)
To the Honorable County Legislative Body of (insert the name of the county in which theproposed town is located) County, Utah:
We, the undersigned owners of real property and registered voters within the area

described in this petition, respectfully petition the county legislative body for the area describedin this petition to be incorporated as a town. Each of the undersigned affirms that each haspersonally signed this petition and is an owner of real property or a registered voter residingwithin the described area, and that the current residence address of each is correctly written afterthe signer's name. The area proposed to be incorporated as a town is described as follows: (insertan accurate description of the area proposed to be incorporated).
(c) A petition under this Subsection (4) may not describe an area that includes some orall of an area proposed for annexation in an annexation petition under Section 10-2-403 that:
(i) was filed before the filing of the petition; and
(ii) is still pending on the date the petition is filed.
(d) A petition may not be filed under this section if the private real property owned bythe petition sponsors, designated under Subsection (4)(b)(ii), cumulatively exceeds 40% of thetotal private land area within the area proposed to be incorporated as a town.
(e) A signer of a petition under this Subsection (4) may withdraw or, after withdrawn,reinstate the signer's signature on the petition:
(i) at any time until the county clerk certifies the petition under Subsection (6); and
(ii) by filing a signed, written withdrawal or reinstatement with the county clerk.
(5) (a) If a petition is filed under Subsection (4)(a) proposing to incorporate as a town anarea located within a county of the first class, the county clerk shall deliver written notice of theproposed incorporation:
(i) to each owner of private real property owning more than 1% of the assessed value ofall private real property within the area proposed to be incorporated as a town; and
(ii) within seven calendar days after the date on which the petition is filed.
(b) A private real property owner described in Subsection (5)(a)(i) may exclude all orpart of the owner's property from the area proposed to be incorporated as a town by filing anotice of exclusion:
(i) with the county clerk; and
(ii) within 10 calendar days after receiving the clerk's notice under Subsection (5)(a).
(c) The county legislative body shall exclude from the area proposed to be incorporatedas a town the property identified in the notice of exclusion under Subsection (5)(b) if:
(i) the property:
(A) is nonurban; and
(B) does not and will not require a municipal service; and
(ii) exclusion will not leave an unincorporated island within the proposed town.
(d) If the county legislative body excludes property from the area proposed to beincorporated as a town, the county legislative body shall send written notice of the exclusion tothe contact sponsor within five days after the exclusion.
(6) Within 20 days after the filing of a petition under Subsection (4), the county clerkshall:
(a) with the assistance of other county officers from whom the clerk requests assistance,determine whether the petition complies with the requirements of Subsection (4); and
(b) (i) if the clerk determines that the petition complies with those requirements:
(A) certify the petition and deliver the certified petition to the county legislative body;and
(B) mail or deliver written notification of the certification to:


(I) the contact sponsor;
(II) if applicable, the chair of the planning commission of each township in which anypart of the area proposed for incorporation is located; and
(III) the Utah Population Estimates Committee; or
(ii) if the clerk determines that the petition fails to comply with any of thoserequirements, reject the petition and notify the contact sponsor in writing of the rejection and thereasons for the rejection.
(7) (a) (i) A petition that is rejected under Subsection (6)(b)(ii) may be amended tocorrect a deficiency for which it was rejected and then refiled with the county clerk.
(ii) A valid signature on a petition filed under Subsection (4)(a) may be used towardfulfilling the signature requirement of Subsection (4)(b) for the same petition that is amendedunder Subsection (7)(a)(i) and then refiled with the county clerk.
(b) If a petition is amended and refiled under Subsection (7)(a)(i) after having beenrejected by the county clerk under Subsection (6)(b)(ii):
(i) the amended petition shall be considered as a newly filed petition; and
(ii) the amended petition's processing priority is determined by the date on which it isrefiled.
(8) (a) (i) The legislative body of a county with which a petition is filed under Subsection(4) may, at its option and upon the petition being certified under Subsection (6), commission andpay for a financial feasibility study.
(ii) If the county legislative body chooses to commission a financial feasibility study, thecounty legislative body shall:
(A) within 20 days after the incorporation petition is certified, select and engage afeasibility consultant; and
(B) require the feasibility consultant to complete the financial feasibility study andsubmit written results of the study to the county legislative body no later than 30 days after thefeasibility consultant is engaged to conduct the financial feasibility study.
(b) If the county legislative body has commissioned a financial feasibility study underSubsection (8)(a)(i), the county legislative body shall approve a petition proposing theincorporation of a town and hold an election for town officers, as provided in Subsection (9), if:
(i) the county clerk has certified the petition under Subsection (6); and
(ii) (A) the results of the financial feasibility study described in Subsection (8)(a)(i) showthat the average annual amount of revenues described in Subsection (1)(b)(i) does not exceed theaverage annual amount of costs described in Subsection (1)(b)(ii) by more than 15%; or
(B) the results of the financial feasibility study described in Subsection (8)(a)(i) showthat the average annual amount of costs described in Subsection (1)(b)(ii) does not exceed theaverage annual amount of revenues described in Subsection (1)(b)(i) by more than 15%.
(c) (i) If the results of the financial feasibility study described in Subsection (8)(a)(i)show that the average annual amount of revenues described in Subsection (1)(b)(i) exceeds theaverage annual amount of costs described in Subsection (1)(b)(ii) by more than 15%, the countylegislative body may:
(A) deny the petition, in accordance with Subsection (8)(c)(iii), if the results of thefinancial feasibility study show that the average annual amount of revenues described inSubsection (1)(b)(i) exceeds the average annual amount of costs described in Subsection(1)(b)(ii) by more than 15%; or


(B) (I) with the consent of the petition sponsors:
(Aa) impose conditions to prevent the average annual amount of revenues described inSubsection (1)(b)(i) from exceeding the average annual amount of costs described in Subsection(1)(b)(ii) by more than 15%; or
(Bb) alter the boundaries of the area proposed to be incorporated as a town toapproximate the boundaries necessary to prevent the average annual amount of revenuesdescribed in Subsection (1)(b)(i) from exceeding the average annual amount of costs described inSubsection (1)(b)(ii) by more than 15%; and
(II) approve the incorporation petition and hold an election for town officers, as providedin Subsection (9).
(ii) If the results of the financial feasibility study described in Subsection (8)(a)(i) showthat the average annual amount of costs described in Subsection (1)(b)(ii) exceeds the averageannual amount of revenues described in Subsection (1)(b)(i) by more than 15%, the countylegislative body shall:
(A) approve the petition;
(B) deny the petition in accordance with Subsection (8)(c)(iii); or
(C) (I) with the consent of the petition sponsors:
(Aa) impose conditions to prevent the average annual amount of costs described inSubsection (1)(b)(ii) from exceeding the average annual amount of revenues described inSubsection (1)(b)(i) by more than 15%; or
(Bb) alter the boundaries of the area proposed to be incorporated as a town toapproximate the boundaries necessary to prevent the average annual amount of costs described inSubsection (1)(b)(ii) from exceeding the average annual amount of revenues described inSubsection (1)(b)(i) by more than 15%; and
(II) approve the incorporation petition and hold an election for town officers, as providedin Subsection (9).
(iii) A county legislative body intending to deny a petition under Subsection (8)(c)(i)(A)or (8)(c)(ii)(B) shall deny the petition within 20 days after the feasibility consultant submits thewritten results of the financial feasibility study.
(d) Each town that incorporates pursuant to a petition approved after the countylegislative body imposes conditions under Subsection (8)(c)(i)(B)(I)(Aa) or (8)(c)(ii)(C)(I)(Aa)shall comply with those conditions.
(9) (a) The legislative body of the county in which the proposed new town is locatedshall hold the election for town officers provided for in Subsection (8) within:
(i) 45 days after the day on which the feasibility consultant submits the written results ofthe financial feasibility study, for an election under Subsection (8)(b); or
(ii) 60 days after the day on which the feasibility consultant submits the written results ofthe financial feasibility study, for an election under Subsection (8)(c)(i)(B)(II) or (8)(c)(ii)(B)(II).
(b) The officers elected at an election under Subsection (9)(a) shall take office:
(i) at noon on the first Monday in January next following the election, if the election isheld on a regular general or municipal general election date; or
(ii) at noon on the first day of the month next following the effective date of theincorporation under Subsection (12), if the election of officers is held on any other date.
(10) Each newly incorporated town shall operate under the five-member council form ofgovernment as defined in Section 10-3b-102.


(11) The mayor-elect of the future town shall:
(a) within 30 days after the canvass of the election of town officers under Subsection (9),file with the lieutenant governor:
(i) a copy of a notice of an impending boundary action, as defined in Section 67-1a-6.5,that meets the requirements of Subsection 67-1a-6.5(3); and
(ii) a copy of an approved final local entity plat, as defined in Section 67-1a-6.5; and
(b) upon the lieutenant governor's issuance of a certificate of incorporation under Section67-1a-6.5:
(i) if the town is located within the boundary of a single county, submit to the recorder ofthat county the original:
(A) notice of an impending boundary action;
(B) certificate of incorporation; and
(C) approved final local entity plat; or
(ii) if the town is located within the boundaries of more than a single county, submit theoriginal of the documents listed in Subsections (11)(b)(i)(A), (B), and (C) to one of thosecounties and a certified copy of those documents to each other county.
(12) (a) A new town is incorporated:
(i) on December 31 of the year in which the lieutenant governor issues a certificate ofincorporation under Section 67-1a-6.5, if the election of town officers under Subsection (9) isheld on a regular general or municipal general election date; or
(ii) on the last day of the month during which the lieutenant governor issues a certificateof incorporation under Section 67-1a-6.5, if the election of town officers under Subsection (9) isheld on any other date.
(b) (i) The effective date of an incorporation for purposes of assessing property withinthe new town is governed by Section 59-2-305.5.
(ii) Until the documents listed in Subsection (11)(b) are recorded in the office of therecorder of each county in which the property is located, a newly incorporated town may not:
(A) levy or collect a property tax on property within the town;
(B) levy or collect an assessment on property within the town; or
(C) charge or collect a fee for service provided to property within the town.
(13) For each petition filed before March 5, 2008:
(a) the petition is subject to and governed by the law in effect at the time the petition wasfiled; and
(b) the law in effect at the time the petition was filed governs in all administrative andjudicial proceedings relating to the petition.

Amended by Chapter 90, 2010 General Session
Amended by Chapter 90, 2010 General Session, (Coordination Clause)
Amended by Chapter 122, 2010 General Session