11-32-3 - Creation of county interlocal finance authority as nonprofit corporation -- Organization -- Acquisition of delinquent tax receivables -- Personnel -- Duties of elected attorney and treasurer
11-32-3. Creation of county interlocal finance authority as nonprofit corporation --Organization -- Acquisition of delinquent tax receivables -- Personnel -- Duties of electedattorney and treasurer.
(1) The governing body of any county within the state may, by resolution, organize anonprofit corporation as the financing authority for the county on behalf of public bodies withinthe county under this chapter, following the procedures set out in Title 16, Chapter 6a, UtahRevised Nonprofit Corporation Act, solely for the purpose of accomplishing the public purposesfor which the public bodies exist by financing the sale or assignment of the delinquent taxreceivables within the county to the financing authority. The authority shall be known as the"Interlocal Finance Authority of (name of county)."
(2) If the governing body of any county creates an authority on behalf of any other publicbody within the county, the resolution shall further state the name or names of the other publicbodies. A certified copy of the resolution creating the authority shall be delivered to thegoverning body of the other public bodies. The governing bodies of each of the other publicbodies shall either approve or reject the creation of the authority, but if no action has been takenwithin 30 days of delivery of the certified copy of the resolution to the governing body it shall beconsidered rejected.
(3) Following the approval, rejection, or considered rejection of the resolution by thegoverning bodies of each of the public bodies listed in the initial resolution, the county shall thenamend the resolution to delete the public bodies rejecting the resolution and shall list theparticipant members of the authority.
(4) The governing bodies of the participant members shall approve the articles ofincorporation and bylaws of the authority. Members of governing bodies of each of theparticipant members, or a paid employee of the governing body designated by the member, shallbe selected to form and shall act as the board of trustees of the authority. The powers of theboard of trustees may be vested in an executive committee to be selected from among the boardof trustees by the members of the board of trustees. The articles of incorporation and bylaws shallprovide that the members of the board of trustees of the authority may be removed and replacedby the governing body from which such member was selected at any time in its discretion. Amajority of the governing bodies of the participant members, based upon a percentage of theproperty taxes levied for the year preceding the then current year, within the county may, alter orchange the structure, organization, programs, or activities of the financing authority, subject to therights of the holders of the authority's bonds and parties to its other obligations.
(5) Each financing authority may acquire by assignment the delinquent tax receivables ofthe participant members creating the financing authority, in accordance with the procedures andsubject to the limitations of this chapter, in order to accomplish the public purposes for which theparticipant members exist.
(6) Except as limited by Subsection (7), a financing authority may contract for or employall staff and other personnel necessary for the purpose of performing its functions and activities,including contracting with the participant members within the county that created it to utilize anyof the personnel, property, or facilities of any of the participant members for that purpose. Theauthority may be reimbursed for such costs by the participant member as provided in its articlesof incorporation or bylaws.
(7) (a) With respect to any county that creates a financing authority and which has anelected attorney or treasurer, or both, the elected attorney shall be the legal advisor to and provide
all legal services for the authority, and the elected treasurer shall provide all accounting servicesfor the authority. The authority shall reimburse the county for legal and accounting services sofurnished by the county, based upon the actual cost of the services, including reasonable amountsallocated by the county for overhead, employee fringe benefits, and general and administrativeexpenses.
(b) The provisions of Subsection (7) may not prevent the financing authority fromobtaining the accounting or auditing services from outside accountants or auditors with theconsent of the elected treasurer and the governing bodies or from obtaining legal services fromoutside attorneys with the consent of the elected attorney and the governing bodies. Theprovisions of this subsection may not prevent the authority from obtaining the opinions of outsideattorneys or accountants which are necessary for the issuance of the bonds of the authority.
(c) If 50% or more of the governing bodies of the participant members, based uponproperty taxes charged for the preceding year as a percentage of all of the property taxes chargedwithin the county for that year, find it advisable that the authority retain legal or accountingservices other than as described in Subsection (7)(a) they may direct the board of trustees to doso.
Amended by Chapter 300, 2000 General Session