FIDDLERS CANYON INFRASTRUCTURE FINANCING DISTRICT FIDDLERS CANYON ASSESSMENT AREA ASSESSMENT ORDINANCE
Notice Tags
Ordinances
Notice Type(s)
Notice
Event Start Date & Time
October 22, 2024 11:30 AM
Description/Agenda
FIDDLERS CANYON INFRASTRUCTURE FINANCING DISTRICT
FIDDLERS CANYON ASSESSMENT AREA
ASSESSMENT ORDINANCE
DATED AS OF OCTOBER 14, 2024
4896-2142-6390, v. 2
ASSESSMENT ORDINANCE
WHEREAS, the Board of Trustees (the 'Board') of the Fiddlers Canyon Infrastructure
Financing District (the 'District'), adopted Resolution No. 2024-05 on October 14, 2024 (the
'Authorizing Resolution'), pursuant to which the Board authorized and approved the form of this
Assessment Ordinance and the form of the related designation resolution (the 'Designation
Resolution'); and
WHEREAS, the District, pursuant to the Assessment Area Act, Title 11 Chapter 42, Utah
Code Annotated 1953, as amended (the 'Act'), and pursuant to the Authorizing Resolution and
the Designation Resolution, designated the Fiddlers Canyon Assessment Area (the 'Assessment
Area') after having obtained from the fee simple owner(s) of all the property to be assessed within
the Assessment Area (the 'Owners') an executed Acknowledgement, Waiver and Consent
Agreement (the 'Waiver and Consent') attached to the Designation Resolution; and
WHEREAS, the District plans to finance the costs of publicly owned infrastructure,
facilities or systems as part of an approximately 59-acre residential development (the
'Development'). The District plans to levy the assessments to finance the Improvements within
the Development. The Board desires to assess and finance the Improvements (plus related
overhead, administration, capitalized interest, reserves, permits, fees, and closing costs) benefitting
the Assessment Area as follows:
-Sewer improvements, including, but not limited to, mains, lift stations, manholes
and manhole linings, sewer cleanouts, and laterals (various sizes).
-Water improvements, including but not limited to, mains, valves, tees/crosses,
bends, thrust bonds, fire hydrants, blow offs and appurtenances (various sizes).
-Roads and roadway improvements including, but not limited to, rights of way,
earthwork, curbs, gutters, sidewalks, landscaping, street signage, centerline monuments,
conduit crossings, street striping, streetlights and mailboxes.
-Storm drain improvements, including but, but not limited to, storm drain pipes,
catch basins, junction boxes, inlets, culverts, cleanouts, trash racks, rip-rap and geotextile
fabric.
WHEREAS, the Board has (i) determined the total estimated cost of the Improvements,
(ii) received an appraisal (the 'Appraisal') of the property to be assessed (from an appraiser who
is a member of the Appraisal Institute), which appraisal is addressed to the District and verifies
that the market value of the property, after completion of the proposed improvements, is at least
three times the amount of the assessments proposed to be levied against the property to be assessed,
and (iii) desires to assess the properties within the Assessment Area and has prepared an
assessment list of the assessments to be levied to finance the cost of the Improvements (the
'Assessments'); and
WHEREAS, the Board hereby finds that pursuant to the Act, the Improvements constitute
a publicly owned infrastructure, facility, or system that (i) the District is authorized to provide or
4896-2142-6390, v. 2 2
(ii) is necessary or convenient to enable the District to provide a service that the District is
authorized to provide; and
WHEREAS, the District now desires to confirm the assessment list and to levy said
Assessments in accordance with this Ordinance:
NOW THEREFORE, BE IT ORDAINED BY THE BOARD OF TRUSTEES OF THE
FIDDLERS CANYON INFRASTRUCTURE FINANCING DISTRICT:
Section 1. Definitions; Appraisal Requirement. Capitalized terms used herein but not
otherwise defined shall have the meanings ascribed to such terms in the Designation Resolution.
For purposes of this Ordinance:
(a) 'Assessment Bonds' means the assessment bonds anticipated to be issued
by the District for the Assessment Area, which may be issued in one or more series (or any
bonds which refund the same).
(b) 'ATV Ratio' means the Assessment to Value Ratio and shall be the ratio of
(A) the remaining unpaid Assessment on a Subdivision Parcel or Remaining Subdivision
parcel, as applicable, plus any other unpaid assessment liens or property tax liens on such
Subdivision Parcel divided by (B) the Fair Market Value of such Subdivision Parcel.
(c) 'Fair Market Value' shall be determined using either taxable value as
maintained on the tax records of Iron County, Utah (the 'County') (plus the costs of the
Improvements if not accounted for yet in the taxable value) or by appraised value presented
by the owner of the Subdivision Parcel or Remaining Subdivision Parcel, as applicable,
and determined by a certified appraiser acceptable to the District, including the costs of the
Improvements and any other additions or improvements to the extent currently funded at
the time of such appraisal, and meeting any other appraisal requirements of the District
related to the Assessment Bonds.
(d) 'Foreclosure Agent' means the Person appointed by the District to process
and carry out on behalf of the District any foreclosure of the delinquent Assessments
pursuant to this Assessment Ordinance and the Indenture. The initial Foreclosure Agent
shall be Snow Jensen Reece, P.C..
(e) 'Indenture' means the indenture(s) of trust and pledge under which the
Assessment Bonds are issued.
(f) 'Original ATV Ratio' means the ATV Ratio on a parcel, Subdivision
Parcel, or Remaining Subdivision Parcel, as applicable, at the time of closing of the
Assessment Bonds (as reasonably determined by the District).
(g) 'Person' means natural persons, firms, partnerships, associations,
corporations, trusts, public bodies, and other entities.
(h) Whenever an appraisal is required under this Ordinance, the District and
Title Owners may continue to utilize an appraisal previously delivered in connection with
4896-2142-6390, v. 2 3
the Assessment Area so long as (i) such appraisal describes the intended use of the
Subdivision Parcel and such parcel entitled for such intended use and/or density (as
applicable), (ii) the Title Owner certifies in writing that it is not aware of any facts or
circumstances that would cause the relevant values contained in such appraisal to be
materially less than the market value of the Subdivision Parcel, and (iii) the District in its
reasonable judgment has no reason to question such certification.
Section 2. Determination of Estimated Costs of the Improvements and Right of
District to Levy Additional Assessments for Completion. The Board has determined that the
estimated acquisition, construction and installation costs of the Improvements within the
Assessment Area, including estimated overhead costs, administrative costs, costs of funding
reserves, capitalized interest, and debt issuance costs, is estimated at $15,211,522, of which
$14,016,000 shall be assessed within the Assessment Area. Such amount to be levied is an
estimate, as permitted under Section 11-42-401 of the Act. The Owners anticipate using
additional funding in order to complete the Improvements. If the Assessments and additional
funding are not sufficient in amount to complete the Improvements and pay related costs as
described above, the Owners shall be responsible to pay the remaining amount in order to
complete the Improvements. However, the District does not guaranty such payments from the
Owners. Therefore, if for any reason the Owners do not pay such remaining amount to complete
the Improvements, any and all property owners within the Assessment Area shall be responsible
for paying any pro-rata share of additional costs required to complete the Improvements,
including, but not limited to, an additional assessment on their property without any ability to
contest such assessment.
Section 3. Approval of Assessment List; Findings. The Board confirms and adopts
the assessment list for the Assessment Area, a copy of which is attached hereto as Exhibit A
and incorporated herein by reference (the 'Assessment List'). The Board has determined
that the Assessments are levied according to the benefits to be derived by each property
within the Assessment Area and, in any case, the Owners have consented to such methodology
as provided in Section 11-42-409(5) of the Act.
Section 4. Levy of Assessments. The Board does hereby levy a collective
initial Assessment against each and every parcel of property identified in the Assessment
List (the 'Collective Assessment'). On the date of this Ordinance all of the property being
assessed is owned by the same Owner (or an affiliate thereof) and the Assessments are initially
levied against all parcels. The Collective Assessment and the currently anticipated amount
of Assessments expected to be levied upon each parcel of property and the number of ERUs
(defined herein) anticipated to be allocated to each parcel of property in the Assessment Area
(upon compliance with the process and coverage described herein) reflects an equitable portion
of the benefit each parcel of property will receive from the Improvements and, in any case, the
Owners have consented to such methodology as provided in Section 11-42-409(5) of the Act.
Section 5. Amount of Total Assessments. The Assessments do not exceed in the
aggregate the sum of: (a) the estimated contract price of the Improvements (plus related
capitalized soft costs); (b) the estimated acquisition price of the Improvements; (c) the
reasonable cost of (i) utility services, maintenance, and operation to the extent permitted by
the Act and (ii) labor, materials, or equipment supplied by the District, if any; (d) the
price or estimated price of purchasing property; (e) overhead costs not to exceed fifteen
percent (15%) of the sum of (a), (b),
4896-2142-6390, v. 2 4
and (c); (f) an amount for contingencies of not more than ten percent (10%) of the sum of (a) and
(c); (g) estimated interest on interim warrants and bond anticipation notes issued to finance the
Improvements, if any; (h) an amount sufficient to fund a reserve fund; and (i) the capitalized
interest on each assessment bond.
Section 6. Method and Rate. Each of the benefited properties and all of them
collectively will be assessed within the Assessment Area initially pursuant to an equivalent
residential unit ('ERU') method as follows:
Improvements Assessment Assessment Method Assessment Per ERU
All above-described Improvements $14,016,000 ERU $39,142.09
The currently anticipated number of ERUs and ERUs per unit type is set forth on Exhibit
A hereto. Notwithstanding the levy of the assessments, in order to provide additional security for
the payment of assessments, the District shall require that all assessments of all properties owned
by the same Owner within the Assessment Area (or an affiliate of the same Owner) be aggregated
as a single unified assessment against all properties owned by the same Owner within the
Assessment Area (or an affiliate of the same Owner). As used in this Ordinance, the term
'affiliate' means with respect to any Owner, any person that controls, is controlled by or is under
common control with such Owner, and the term 'control' or 'controlled' means the ownership of
more than twenty percent (20%) of the outstanding voting ownership interests of the Owner in
question or the power to direct the management of the Owner in question (subject to any required
approvals for major decisions by anyone holding equity interests in the owner in question).
Section 7. Payment of Assessments.
(a) The Board hereby determines that the Improvements have a weighted
average useful life of not less than thirty (30) years, and requires that Assessments be
prepaid for all parcels on or before the time of a final inspection required for the issuance
of certificate of occupancy for a residential unit within such parcel, provided that any
apartment units shall not be considered a residential unit for purposes of the foregoing
requirement. Pursuant to Section 11-42-409(5) of the Act, the Owners have consented to
aggregate annual Assessment payments which are not in substantially equal amounts and
instead aggregate annual Assessment payments shall be in accordance with the debt service
payments as shall be established in the Indenture, subject, however, to adjustment as
described herein. Interest on the unpaid balance of the Assessments shall accrue at the same
rate or rates as shall be borne by the Assessment Bonds, plus an annual administration cost
incurred by the District, plus any third party direct out of pocket costs of the District related
to the administration and collection of the Assessments. The District may outsource all or
a portion of the administration services, including legal costs or consulting costs, as an
additional out of pocket cost, including, but not limited to, all costs related to foreclosure
(and other remedies) and amendments to this Ordinance.
(b) The District will collect the Assessments by directly billing each property
owner rather than inclusion on a property tax notice. The bill for each Assessment payment
shall be due March 1 and September 1 of each year (approximately 30 days after sending
such bills for such period), which shall be sent on or prior to February 1 and August 1 of
4896-2142-6390, v. 2 5
each year, respectively, commencing February 1, 2027, due to capitalized interest.
However, failure to send any such bill by the scheduled date shall not impact the
requirement of property owners to timely pay their Assessments on the due date thereof.
(c) All unpaid installments of an Assessment levied against any parcel of
property may be paid prior to the dates on which they become due, but any such
prepayment must include an additional amount equal to the interest which would accrue
on the Assessment to the next succeeding date on which interest is payable on the
Assessment Bonds, plus such additional amount as, in the opinion of the District Chair or
designee as approved by the District (the 'Chair') (with assistance from the administrator
of the Assessments, if any), is necessary to assure the availability of money to pay interest
on the Assessment Bonds as interest becomes due and payable, plus any premiums required
to redeem the Assessment Bonds on their first available call date pursuant to the Indenture
(defined herein), plus any reasonable administrative costs.
(d) The property assessed has yet to be fully subdivided as anticipated for
development. The property identified on the Assessment List (whether before or after
formal subdivision individually, a 'Subdivision Parcel' and collectively, the 'Subdivision
Parcels') may hereafter be subdivided and re-subdivided, with the consent of the District
(which consent shall not be unreasonably withheld). The owner of a Subdivision Parcel
may make changes to that Subdivision Parcel including, without limitation, reducing or
increasing the size of that Subdivision Parcel, modifying the boundary description of that
Subdivision Parcel, and otherwise make changes necessary or appropriate to plat that
Subdivision Parcel; provided that (i) the total Assessment of that Subdivision Parcel after
the applicable change is unaffected and (ii) the ATV Ratio is less than or equal to the
greater of (A) the Original ATV Ratio or (B) 33.3%. Provided, however, any adjustment
of a parcel outside the boundaries of the Assessment Area would require an amendment to
this Ordinance to that effect, in accordance with the Act. Once a Subdivision Parcel is
subdivided, the lien of the Assessment Area will be re-allocated to or released from, as
appropriate, any property located outside the subdivided portion of that Subdivision Parcel
by either the District adopting an amendment to this Ordinance or by the Chair or other
authorized officer of the District authorized to make such changes and record the applicable
notices (within the provisions of this Ordinance), and provided the ATV Ratio of such
subdivided portion (after release of the property), is less than or equal to the greater of (A)
the Original ATV Ratio or (B) 33.3%.
(e) An interest in a Subdivision Parcel may be sold, transferred or exchanged
to any Person (the 'Title Owner') so long as the interest is recognized by the County and
charged a distinct property tax bill by the County. A Title Owner may further subdivide
or create a new Title Owner on the Subdivision Parcel and such new Subdivision Parcels
are reallocated Assessments in compliance with this Ordinance. When a Title Owner of
any Subdivision Parcel in the Assessment Area subdivides, re-subdivides or creates a new
Title Owner, it shall allocate the responsibility to pay Assessments tied to that Subdivision
Parcel among Title Owners in accordance with (i) or (ii) below. Such reallocation of
Assessments must be approved by all Title Owners subject to the reallocation by execution
of a form reasonably satisfactory to the Chair or other authorized officer of the District and
similar in form to the Waiver and Consent, and with the consent of the Chair, which consent
4896-2142-6390, v. 2 6
shall not be unreasonably withheld, conditioned or delayed, but such consent shall be
limited solely to the allocation of ERUs or other assessment method to Subdivided Parcels
and withheld only where the information, assumptions and/or formula described in this
section create less security for the repayment of the Assessments for the District or holders
of Assessment Bonds than the security contemplated in this Section 7(e). The final plat for
any Subdivision Parcel recorded after the effective date of this Ordinance must include a
plat note that provides the exact allocation of the Assessments among Title Owners and the
Assessment List attached as Exhibit A to this Ordinance must be accordingly amended,
and the Chair or other authorized officer of the District is hereby authorized to make such
amendments, but may also seek the approval of the Board at his/her discretion. For any
reallocation of Assessments tied to a Subdivision Parcel among Title Owners, the Title
Owners may either:
(i) Reallocate in full the Assessments ascribed to that Subdivision
Parcel(s) using ERUs as contemplated in this Section 7(e); or
(ii) As long as the aggregate Assessments tied to a Subdivision Parcel
in the Assessment Area are allocated in full among Title Owners of that Subdivision
Parcel, a Title Owner of that Subdivision Parcel may reallocate the Assessments to
the interest(s) of Title Owners in such Subdivision Parcel based on either:
(A) an ERU method, a square foot method, or a then current Fair
Market Value method, or
(B) if the Chair reasonably determines that such reallocated
assessment method selected by the Title Owners will not reasonably
allocate benefit among the Title Owners in such Subdivision Parcel, any
other assessment method reasonably allocating benefit as determined in the
reasonable discretion of the Chair or other authorized officer of the District,
so long as, following a reallocation as described in this paragraph, the then current ATV
Ratio of each remaining interest in such Subdivision Parcel and all other affected parcels
must be less than or equal to the greater of (A) the Original ATV Ratio or (B) 33.3%
(f) A release of the Assessment lien for any Subdivision Parcel will be
delivered by the District for recordation with the County Recorder as soon as practicable
after the Assessment balance for such subdivided parcel is paid in full. If prepayment of
an Assessment prior to the Assessment payment date arises out of a need of the property
owner to clear the Assessment lien from a portion (a 'Release Parcel') but not all of a
Subdivision Parcel, the Assessment lien on the Release Parcel shall be released by the
District, as follows:
(i) The Title Owner(s) shall submit the legal description of the Release
Parcel which shall include the total number of ERUs allocated to the Release Parcel
pursuant to the procedure set forth in this Ordinance. If an assessment allocation
method other than ERUs has been applied to a parcel, the release procedures in this
subsection (f) shall apply using the new assessment method in lieu of ERUs.
4896-2142-6390, v. 2 7
(ii) The Title Owner(s) shall prepay an Assessment applicable to the
Release Parcel calculated by the Chair (with assistance from the administrator of
the Assessments, if any), which Assessment shall be the product of the following:
(A) the amount of the prepayment calculated pursuant to Section 7(c) herein for the
entire Subdivision Parcel less any previously paid regularly scheduled Assessment
payments, (B) multiplied by the percentage calculated by dividing the number of
ERUs of the Release Parcel by the total number of ERUs of the entire Subdivision
Parcel.
(iii) The partial release of lien upon payment of the prepayment amount
determined under subsection (ii) above shall not be permitted, except as otherwise
provided in this paragraph, if the ATV Ratio of the Subdivision Parcel, after release
of the Release Parcel (the 'Remaining Subdivision Parcel'), is greater than the
greater of (A) the Original ATV Ratio or (B) 33.3%. If the Chair (with assistance
from the administrator of the Assessments, if any) determines that the proposed
partial release does not comply with the requirements of this paragraph, such partial
release may still be permitted if the Title Owner(s) prepays a larger portion of the
Assessment in order to clear the Assessment lien from the Release Parcel, all as
determined by said Chair (with assistance from the administrator of the
Assessments, if any).
(iv) Prepayments of Assessments shall be applied as provided in the
Indenture. As prepayments are paid and applied against the payment of the
Assessment applicable to the Release Parcel, the Release Parcel shall be released
from the lien of the Assessment in accordance with this subsection (f), and the
remaining unpaid Assessments levied against the Remaining Subdivision Parcel
shall remain unaffected.
Section 8. Default in Payment.
(a) To the extent permitted by law, the District hereby irrevocably appoints the
Foreclosure Agent, including any successor thereto, to process and carry out, on behalf of
the District, any foreclosure of Assessments pursuant to this Assessment Ordinance and
the Indenture, and assigns all rights of collection of the delinquent Assessments to the
Foreclosure Agent, as collection agent for the District. To the extent permitted by law, the
District covenants and agrees to take such actions as are necessary to authorize and
empower the Foreclosure Agent to carry out the duties provided herein. If a default occurs
in the payment of any Assessment on a Subdivision Parcel when due, and such default is
not cured within the period provided for in Section 8(b) herein, the Foreclosure Agent, on
behalf of the District, may declare the unpaid amount of such Assessment on such
Subdivision Parcel to be immediately due and payable and subject to collection as provided
herein. Interest shall accrue and be paid on all amounts declared to be delinquent and
immediately due and payable at a rate of 10% per annum (the 'Delinquent Rate'). In
addition to interest charges at the Delinquent Rate, costs of collection, as approved by the
Chair on behalf of the Board, including, without limitation, attorneys' fees, trustee's fees,
and court costs incurred by the District or required by law, shall be charged and paid on all
amounts declared to be delinquent and immediately due and payable. Until such costs of
4896-2142-6390, v. 2 8
collection are recovered by the District, the District may charge such costs as an additional
overhead cost against all Assessments, with a credit later upon any recovery of such costs.
The District hereby waives its right to accelerate payment of the total unpaid balance of an
Assessment and declare the whole of the unpaid principal and interest then due to be
immediately due and payable after a default as provided in Section 11-42-505(1)(b) of the
Act.
(b) Upon any default, the Chair shall give notice in writing of the default to the
Title Owner(s) of the Subdivision Parcel in default as shown by the last available
completed real property assessment rolls of the County. Notice shall be effective upon
deposit of the notice in the U.S. Mail, postage prepaid, and addressed to the Title Owner(s)
as shown on the last completed real property assessment rolls of the County. The notice
shall provide for a period of thirty (30) days in which the Title Owner(s) shall pay the
installments then due and owing, after which the Foreclosure Agent, on behalf of the
District, may immediately sell the Subdivision Parcel pursuant to Section 11-42-
502.1(2)(a)(ii)(B) and related pertinent provisions of the Act, in the manner provided for
judicial foreclosures. If at the sale no Person shall bid and pay the District the amount due
on the Assessment plus interest and costs, the Subdivision Parcel shall be deemed sold to
the District for these amounts. The District shall be permitted to bid at the sale. So long as
the District affirmatively elects to retain ownership of the Subdivision Parcel, it shall pay
all delinquent Assessment installments and all Assessment installments that become due,
including the interest on them, and shall be entitled to use amounts on deposit in the
Reserve Fund (as defined herein) for such purpose. The District notes it has no current
intention of owning the Subdivision Parcel and will surrender the Subdivision Parcel 'as
is' and without guaranty or warranty to owner(s) of the Assessment Bonds in full
satisfaction of all obligations to such owner(s) of the Assessment Bonds irrespective of the
owner(s) of the Assessment Bonds accepting the same.
(c) The remedies provided herein for the collection of Assessments and the
enforcement of liens shall be deemed and construed to be cumulative and the use of any
one method or means or remedy of collection or enforcement available at law or in equity
shall not deprive the District of the use of any other method or means. The amounts of
accrued interest and all costs of collection, trustee's fees, attorneys' fees, and other
reasonable and related costs, shall be added to the amount of the Assessment against such
Subdivision Parcel up to, and including, the date of foreclosure sale.
Section 9. Remedy of Default. If prior to the final date payment may be legally made
under a final sale or foreclosure of property to collect delinquent Assessments, the Title Owner(s)
pays the full amount of all unpaid installments of principal and interest which are past due and
delinquent with interest on such installments at the rate or rates set forth in Section 8 herein to the
payment date, plus all attorneys' fees, and other costs of collection, the Assessment of said Title
Owner(s) shall be restored and the default removed, and thereafter the Title Owner(s) shall have
the right to make the payments in installments as if the default had not occurred. Any payment
made to cure a default shall be applied first, to the payment of attorneys' fees and other costs
incurred as a result of such default; second, to interest charged on past due installments, as set forth
above; third, to the interest portion of all past due Assessments; and last, to the payment of
outstanding principal.
4896-2142-6390, v. 2 9
Section 10. Lien of Assessment. An Assessment or any part or installment of it, any
interest accruing thereon and the penalties, trustee's fees, attorneys' fees, and other costs of
collection therewith, shall constitute a lien against the Subdivision Parcel upon which the
Assessment is levied on the effective date of this Ordinance. Said lien shall be superior to the lien
of any trust deed, mortgage, mechanic's, or materialman's lien, or other encumbrance, and shall
be equal to and on a parity with the lien for general property taxes. The lien shall apply without
interruption, change in priority, or alteration in any manner to any reduced payment obligations
and shall continue until the Assessment, reduced payment obligations, and any interest, penalties,
and costs on it are paid, notwithstanding any sale of the property for or on account of a delinquent
general property tax, special tax, or other Assessment or the issuance of a tax deed, an assignment
of interest by the County or a sheriff's certificate of sale or deed.
Section 11. Reserve Fund.
(a) The District does hereby establish a reserve fund (the 'Reserve Fund') in
lieu of funding a guaranty fund, as additional security for the Assessment Bonds.
(b) The Reserve Fund may be initially funded from proceeds of the Assessment
Bonds in an amount not to exceed the least of (i) ten percent (10%) of the proceeds of the
Assessment Bonds determined on the basis of its initial purchase price to the public, (ii)
the maximum aggregate annual debt service requirement during any bond fund year for the
Assessment Bonds, and (iii) one hundred twenty-five percent (125%) of the average
aggregate annual debt service requirement for the Assessment Bonds (the 'Reserve
Requirement'). The cost of initially funding the Reserve Fund is included in the
Assessments of the property in the Assessment Area. The Reserve Requirement may be
adjusted as payments are made on the Assessment Bonds (including from prepayment of
Assessments by property owners) as provided in the Indenture. The moneys on deposit in
the Reserve Fund, if any, may be applied to the Assessment payment obligations, including
the final Assessment payment, and used to make payments on the Assessment Bonds as
provided in the Indenture. If the amounts on deposit in the Reserve Fund exceed the final
Assessment obligation, any excess amounts shall be paid by the District to the owners
whose properties were subject to the final Assessment payment obligation on a pro rata
basis, as an excess Assessment payment.
(c) In the event insufficient Assessments are collected by the District to make
the debt service payments on the Assessment Bonds, the District shall draw on the Reserve
Fund to make up such deficiency, but shall have no obligation to replenish the Reserve
Fund with any funds other than those collected from Assessments as described herein.
(d) Amounts recovered by exercise of any of the remedies provided herein or
otherwise from delinquent Assessments (and not needed to pay amounts coming due on
the Assessment Bonds) shall be used to replenish amounts drawn from the Reserve Fund.
(e) In the event the Assessment Bonds are refunded, the Reserve Requirement
may be adjusted by the District and amounts in the Reserve Fund may be applied to assist
in such refunding. Any refunding of the Assessment Bonds is hereby permitted so long as
the structure thereof shall not increase the total cost of the Assessments in any one year.
4896-2142-6390, v. 2 10
Section 12. Investment Earnings. Except as otherwise provided in the Indenture, all
investment earnings on the Reserve Fund shall be maintained in said Fund and applied in the same
manner as the other moneys on deposit therein as provided in the Indenture.
Section 13. Contestability. No Assessment shall be declared invalid or set aside, in
whole or in part, in consequence of any error or irregularity which does not go to the equity or
justice of the Assessment or proceeding. The Owners and any succeeding property owners
(whether by sale, foreclosure, or any other property transfer of title) have waived any rights to
contest this Ordinance. Any party who has not waived his or her objections to the same as provided
by statute may commence a civil action in the district court with jurisdiction in the District against
the District to enjoin the levy or collection of the Assessment or to set aside and declare unlawful
this Ordinance.
Such action must be commenced and summons must be served on the District not later than
thirty (30) days after the effective date of this Ordinance. This action shall be the exclusive remedy
of any aggrieved party. No court shall entertain any complaint which the party was authorized to
make by statute but did not timely make or any complaint that does not go to the equity or justice
of the Assessment or proceeding.
After the expiration of the thirty (30) day period provided in this Section:
(a) The Assessment Bonds and any refunding bonds to be issued with respect
to the Assessment Area and the Assessments levied in the Assessment Area shall become
incontestable as to all persons who have not commenced the action and served a summons
as provided for in this Section; and
(b) No suit to enjoin the issuance or payment of the Assessment Bonds or
refunding assessment bonds, the levy, collection, or enforcement of the Assessments, or in
any other manner attacking or questioning the legality of the Assessment Bonds or
refunding assessment bonds or Assessments may be commenced, and no court shall have
authority to inquire into these matters.
Section 14. Notice to Property Owners. The Owners are hereby deemed to have
received notice of assessment and have waived any notice and hearing requirements under the Act.
Section 15. All Necessary Action Approved. The officials of the District are hereby
authorized and directed to take all action necessary and appropriate to effectuate the provisions of
this Ordinance, including the filing of a notice of assessment interest with the County Recorder.
Section 16. Repeal of Conflicting Provisions; Amendment. All ordinances or parts
thereof in conflict with this Ordinance are hereby repealed. The Chair (or any assigned designee
of the Chair) may make any alterations, changes or additions to this Ordinance which may be
necessary to conform the same to the final terms of the Assessment Bonds, to correct errors or
omissions herein, to complete the same, to remove ambiguities herefrom, or to conform the same
to other provisions of this Ordinance or any resolution adopted by the Board or the provisions of
the laws of the State of Utah or the United States, including technical changes to the description
of the boundary of the Assessment Area, so long as those changes do not change the boundaries
4896-2142
Notice of Special Accommodations (ADA)
The District complies with the Americans with Disabilities Act by providing accommodations and auxiliary communicative aids and services for all those in need of assistance. Persons requesting these accommodations for public meetings should call Jennifer Gowans at 435-628-3688 at least 24 hours before the meeting.
Notice of Electronic or Telephone Participation
Unless otherwise noted on the posted Agenda, meetings of the Board of Trustees will be held in person. For meetings held via videoconferencing or telephonic communication Trustees and other meeting participants and attendees will be able to participate remotely. Persons requesting video conference or telephonic accommodation for public meetings should call Jennifer Gowans at 435-628-3688 to make arrangements.