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Show 4 - PLANTING TIMES - MARCH 15, 1995 COMMUNITY ISSUES TRANSFER OF POA MONEY TO TOWN The Town has received yet another legal opinion stating that the transfer of POA funds to the Town is legal. So far, there are no legal opinions stating that the transfer is improper. This legal opinion was given by Gerry Kinghorn, the attorney who helped advise the POA in the 1980’s and who helped with the original incorporation of the Town. He states as follows: “Under the May 4, 1994 agreement, the POA is contracting with the Town for the Town to provide services which may other— wise be argued to be the responsibility of the POA. The contract does not appear to impose on the POA any obligation beyond that which the POA assumes for a curent year. I do not believe it is illegal for the POA to pay the re— quired payments under the contract and I do not believe that the POA is violating the provisions of Section 4 of the By—Laws of the POA by making payments for ser— vices within a given year to the Town. “It can be argued that money is personal property and that by paying the Town for services ren— dered the POA is disposing of per— sonal property of a value in excess make it virtually impossible to ef— fectively manage the POA and it would impair the ability of the Association to conduct the activi— ties to fulfill the responsibilities which are obviously the responsi— bility of the POA under the CC&R’s.” (Excerpts from opinion dated March 14, 1995, by Gerry Kinghorn) municipality based on an aliquot basis depending upon the benefit each lot or tract of land received by the street improvements. It would be the virtual equivalent of extablishing a special service dis— trict and levying an assessment in lieu of Class “C” Road Funds thereby converting the debt service to a tax. Yours very truly, Ken Chamberlain Re-Paying Community Impact Board for CV Drainage System loan FROM UTAH STATE Lois Oliver obtained the following information from Ken Chamberlain, attorney for the CIB loan program, There is still more than $20,000 outstanding on the loan the community received for drainage culvert purchase and in- stallation. This debt is being paid off with Class “C” Road Fund money, which would cease if the Town were disincorporated. Re: PUBLIC STATEMENT CON— CERNING CASTLE VALLEY TOWN DISINCORPORATION To effect a disincorporation the Town would be required to ask the court to allocate debt among all of the property owners in the incorporated municipality including those remaining in and those of $1000. I believe that is a being eliminated from the corpostrained and unreasonable inter— rate boundary. There would have pretation of Section 4 not consis— to be a lien placed upon each partent with the general purpose of cel of property being excluded or the section or the obvious intent of disincorporated for the amount of the section. the obligation. Substantial engi— “As long as the POA does not neering and legal costs would be levy an assessment in excess of the prohibitive in retiring the obliga— amount authorized by the CC&R’s ($100 per year), the POA may use tion on a pro-rata bases. Grand County would not and could not that amount to pay for services without violating the provisions of legally assume the indebtedness. Class “C” Road Funds would the By—Laws. I do not believe that cease on the roads to be excluded a court would find it reasonaable from the municipality. for the POA to have a majority of There would be no funds with all of the owners vote in favor of which to pay the existing indebtany expenditure for services in ex— cess on $1000. That process would edness except by attachment of a lien to detached property from the CODE: DISSOLUTION OF MUNICIPALITIES 10-2-706. Taxes to meet municipal obligations. “The court shall have power to wind down the affairs of the municipality, to dispose of its property as provided by law, and to make provisions for the payment of all indebtedness thereof and for the performance of its contracts and obligations, and shall order such taxes levied from time to time as may be requisite therefore, which the county legislative body shall levy against the property within the municipality. The taxes shall be collected by the county treasurer in the manner for collecting other property taxes and shall be paid out under the orders of the court, and the surplus, if any, shall be paid into the school fund for the district in which the taxes were levied. All municipal property re— ' maining after the winding down of the affairs of the municipality, shall be transferred to the board of education of such school district, which board hereby is empowered to enforce all claims for the same and to have the use of all property so vesting.” |