11-42-405 - Limit on amount of assessment -- Costs required to be paid by the local entity.
11-42-405. Limit on amount of assessment -- Costs required to be paid by the localentity.
(1) An assessment levied within an assessment area may not, in the aggregate, exceed thesum 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 Subsection11-42-401(4); and
(B) labor, materials, or equipment supplied by the local entity;
(ii) economic promotion activities; or
(iii) operation and maintenance costs;
(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 respectto an assessment area;
(g) overhead costs not to exceed 15% of the sum of Subsections (1)(a), (b), (c), and (e);
(h) 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 assessmentarea is completed;
(i) an amount sufficient to fund a reserve fund, if the governing body creates and funds areserve fund as provided in Section 11-42-702; and
(j) 1/2 the cost of grading changes as provided in Section 11-42-407.
(2) Each local entity providing an improvement in an assessment area shall pay, fromimprovement revenues not pledged to the payment of bonds and from any other legally availablemoney:
(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 theassessment 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 propertyagainst which an assessment may not be levied.
Enacted by Chapter 329, 2007 General Session