11-42-411 - Installment payment of assessments.
11-42-411. Installment payment of assessments.
(1) (a) In an assessment resolution or ordinance, the governing body may, subject toSubsection (1)(b), provide that some or all of the assessment be paid in installments over a periodnot to exceed 20 years from the effective date of the resolution or ordinance.
(b) If an assessment resolution or ordinance provides that some or all of the assessmentbe paid in installments for a period exceeding 10 years from the effective date of the resolution orordinance, the governing body:
(i) shall make a determination that:
(A) the improvement for which the assessment is made has a reasonable useful life forthe full period during which installments are to be paid; or
(B) it would be in the best interests of the local entity and the property owners forinstallments to be paid for more than 10 years; and
(ii) may provide in the resolution or ordinance that no assessment is payable during someor all of the period ending three years after the effective date of the resolution or ordinance.
(2) An assessment resolution or ordinance that provides for the assessment to be paid ininstallments may provide that the unpaid balance be paid over the period of time that installmentsare payable:
(a) in substantially equal installments of principal; or
(b) in substantially equal installments of principal and interest.
(3) (a) Each assessment resolution or ordinance that provides for the assessment to bepaid in installments shall, subject to Subsections (3)(b) and (c), provide that the unpaid balanceof the assessment bear interest at a fixed rate, variable rate, or a combination of fixed andvariable rates, as determined by the governing body, from the effective date of the resolution orordinance or another date specified in the resolution or ordinance.
(b) If the assessment is for operation and maintenance costs or for the costs of economicpromotion activities:
(i) a local entity may charge interest only from the date each installment is due; and
(ii) the first installment of an assessment shall be due 15 days after the effective date ofthe assessment resolution or ordinance.
(c) If an assessment resolution or ordinance provides for the unpaid balance of theassessment to bear interest at a variable rate, the assessment resolution or ordinance shall specify:
(i) the basis upon which the rate is to be determined from time to time;
(ii) the manner in which and schedule upon which the rate is to be adjusted; and
(iii) a maximum rate that the assessment may bear.
(4) Interest payable on assessments may include:
(a) interest on assessment bonds;
(b) ongoing local entity costs incurred for administration of the assessment area; and
(c) any costs incurred with respect to:
(i) securing a letter of credit or other instrument to secure payment or repurchase ofbonds; or
(ii) retaining a marketing agent or an indexing agent.
(5) Interest imposed in an assessment resolution or ordinance shall be paid in addition tothe amount of each installment annually or at more frequent intervals as provided in theassessment resolution or ordinance.
(6) (a) Except for an assessment for operation and maintenance costs or for the costs of
economic promotion activities, a property owner may pay some or all of the entire assessmentwithout interest if paid within 25 days after the assessment resolution or ordinance takes effect.
(b) After the 25-day period stated in Subsection (6)(a), a property owner may at any timeprepay some or all of the assessment levied against the owner's property.
(c) A local entity may require a prepayment of an installment to include:
(i) an amount equal to the interest that would accrue on the assessment to the next dateon which interest is payable on bonds issued in anticipation of the collection of the assessment;and
(ii) the amount necessary, in the governing body's opinion or the opinion of the officerdesignated by the governing body, to assure the availability of money to pay:
(A) interest that becomes due and payable on those bonds; and
(B) any premiums that become payable on bonds that are called in order to use themoney from the prepaid assessment installment.
Amended by Chapter 250, 2008 General Session