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House approves procedure to let municipal residents withdraw from water improvement districts
Summary
After hours of debate over bond protections, voting rights and asset allocation, the Utah House passed First Substitute House Bill 194 to allow municipal residents to petition to withdraw from special water improvement districts and transfer service to their municipality; sponsors say the bill holds districts harmless and preserves bondholder protections.
The Utah House on Feb. 6 approved First Substitute House Bill 194, creating a statutory procedure by which residents inside a municipality who are served by a special improvement district may petition for a local election to transfer service to their city.
Sponsor Representative Brian Allen said the bill responds to conflicts that arise when cities grow and annex areas that remain in county improvement districts. "What we have tried to do is figure out a way where if there is this conflict between a city and a special district that the residents in the area can choose who they want to provide that service," Allen said on the House floor. He emphasized amendments negotiated with the Special Districts Association and with bond counsel to protect…
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