§ 10-2a-205 — Feasibility study -- Feasibility study consultant -- Qualifications for proceeding with incorporation.

(1) (1)(a) The lieutenant governor shall, within 10 days after the day on which the lieutenant governor certifies a feasibility request under Subsection 10-2a-204(5)(a):
(1)(a)(i) estimate the cost of a feasibility study under this section; and
(1)(a)(ii) provide the estimated cost to the feasibility request sponsors.
(1)(b) The feasibility request sponsors shall pay to the lieutenant governor the amount of the estimated cost under Subsection (1)(a) of a feasibility study conducted on or after May 1, 2024.
(1)(c) Within 90 days after the feasibility request sponsors pay the estimated feasibility study cost under Subsection (1)(a), the lieutenant governor shall, in accordance with Subsection (2), engage a feasibility consultant to conduct a feasibility study.
(2) The lieutenant governor shall:
(2)(a) select a feasibility consultant in accordance with Title 63G, Chapter 6a, Utah Procurement Code;
(2)(b) ensure that the feasibility consultant:
(2)(b)(i) has expertise in the processes and economics of local government;
(2)(b)(ii) is independent of and not affiliated with a sponsor of the feasibility request or the county in which the proposed municipality is located; and
(2)(b)(iii) for a feasibility study for the proposed incorporation of a community council area, has expertise in the processes and economics of a municipal services district providing municipal services to an unincorporated island, as defined in Section 10-2-814; and
(2)(c) require the feasibility consultant to:
(2)(c)(i) submit a draft of the feasibility study to each applicable person with whom the feasibility consultant is required to consult under Subsection (3)(c) within 90 days after the day on which the lieutenant governor engages the feasibility consultant to conduct the study;
(2)(c)(ii) allow each person to whom the consultant provides a draft under Subsection (2)(c)(i) to review and provide comment on the draft;
(2)(c)(iii) submit a completed feasibility study, including a one-page summary of the results, to the following within 120 days after the day on which the lieutenant governor engages the feasibility consultant to conduct the feasibility study:
(2)(c)(iii)(A) the lieutenant governor;
(2)(c)(iii)(B) the county legislative body of the county in which the incorporation is proposed;
(2)(c)(iii)(C) the contact sponsor; and
(2)(c)(iii)(D) each person to whom the consultant provided a draft under Subsection (2)(c)(i); and
(2)(c)(iv) attend the public hearings described in Section 10-2a-207 to present the feasibility study results and respond to questions from the public.
(3) (3)(a) The feasibility study shall include:
(3)(a)(i) an analysis of the population and population density within the area proposed for incorporation and the surrounding area;
(3)(a)(ii) the current and projected five-year demographics and tax base within the boundaries of the proposed municipality and surrounding area, including household size and income, commercial and industrial development, and public facilities;
(3)(a)(iii) subject to Subsection (3)(b), the current and five-year projected cost of providing municipal services to the proposed municipality, including administrative costs;
(3)(a)(iv) assuming the same tax categories and tax rates as currently imposed by the county and all other current service providers, the present and five-year projected revenue for the proposed municipality;
(3)(a)(v) an analysis of the risks and opportunities that might affect the actual costs described in Subsection (3)(a)(iii) or revenues described in Subsection (3)(a)(iv) of the newly incorporated municipality;
(3)(a)(vi) an analysis of new revenue sources that may be available to the newly incorporated municipality that are not available before the area incorporates, including an analysis of the amount of revenues the municipality might obtain from those revenue sources;
(3)(a)(vii) the projected tax burden per household of any new taxes that may be levied within the proposed municipality within five years after incorporation;
(3)(a)(viii) the fiscal impact of the municipality's incorporation on unincorporated areas, other municipalities, special districts, special service districts, and other governmental entities in the county; and
(3)(a)(ix) if the county clerk excludes property from, or includes property in, the proposed municipality under Section 10-2a-204.5, an update to the map and legal description described in Subsection 10-2a-202(3)(c).
(3)(b) (3)(b)(i) In calculating the projected costs under Subsection (3)(a)(iii), the feasibility consultant shall assume the proposed municipality will provide a level and quality of municipal services that fairly and reasonably approximate the level and quality of municipal services that are provided to the area of the proposed municipality at the time the feasibility consultant conducts the feasibility study.
(3)(b)(ii) In calculating the current cost of a municipal service under Subsection (3)(a)(iii), the feasibility consultant shall consider:
(3)(b)(ii)(A) the amount it would cost the proposed municipality to provide the municipal service for the first five years after the municipality's incorporation; and
(3)(b)(ii)(B) the current municipal service provider's present and five-year projected cost of providing the municipal service.
(3)(b)(iii) In calculating costs under Subsection (3)(a)(iii), the feasibility consultant shall account for inflation and anticipated growth.
(3)(c) In conducting the feasibility study, the feasibility consultant shall consult with the following before submitting a draft of the feasibility study under Subsection (2)(c)(i):
(3)(c)(i) if the proposed municipality will include lands owned by the United States federal government, the entity within the United States federal government that has jurisdiction over the land;
(3)(c)(ii) if the proposed municipality will include lands owned by the state, the entity within state government that has jurisdiction over the land;
(3)(c)(iii) each entity that provides a municipal service to a portion of the proposed municipality; and
(3)(c)(iv) each other special service district that provides services to a portion of the proposed municipality.
(4) If the five-year projected revenues calculated under Subsection (3)(a)(iv) exceed the five-year projected costs calculated under Subsection (3)(a)(iii) by more than 5%, the feasibility consultant shall project and report the expected annual revenue surplus to the contact sponsor and the lieutenant governor.
(5) (5)(a) Except as provided in Subsection (5)(b), if the results of the feasibility study, or a supplemental feasibility study described in Section 10-2a-206, show that the average annual amount of revenue calculated under Subsection (3)(a)(iv) does not exceed the average annual cost calculated under Subsection (3)(a)(iii) by more than 5%, the process to incorporate the area that is the subject of the feasibility study or supplemental feasibility study may not proceed.
(5)(b) The process to incorporate an area described in Subsection (5)(a) may proceed if a subsequent supplemental feasibility study conducted under Section 10-2a-206 for the proposed incorporation demonstrates compliance with Subsection (5)(a).
(6) If the results of the feasibility study or revised feasibility study do not comply with Subsection (5), and if requested by the sponsors of the request, the feasibility consultant shall, as part of the feasibility study or revised feasibility study, make recommendations regarding how the boundaries of the proposed municipality may be altered to comply with Subsection (5).
(7) The lieutenant governor shall post a copy of the feasibility study, and any supplemental feasibility study described in Section 10-2a-206, on the lieutenant governor's website and make a copy available for public review at the lieutenant governor's office.

Legislative History

Amended by Chapter 399, 2025 General Session