(4)

1. (a) A local district may not issue general obligation bonds if the issuance of the bonds will cause the outstanding principal amount of all of the district's general obligation bonds to exceed the amount that results from multiplying the fair market value of the taxable property within the district, as determined under Subsection 11-14-301(3)(b), by a number that is:

   1. (i) .05, for a basic local district, except as provided in Subsection (7);
   2. (ii) .004, for a cemetery maintenance district;
   3. (iii) .002, for a drainage district;
   4. (iv) .004, for a fire protection district;
   5. (v) .024, for an improvement district;
   6. (vi) .1, for an irrigation district;
   7. (vii) .1, for a metropolitan water district;
   8. (viii) .0004, for a mosquito abatement district;
   9. (ix) .03, for a public transit district;
   10. (x) .12, for a service area; or
   11. (xi) .05 for a municipal services district.
2. (b) Bonds or other obligations of a local district that are not general obligation bonds are not included in the limit stated in Subsection (4)(a).

(7)

1. (a) As used in this Subsection (7), "property owner district" means a local district whose board members are elected by property owners, as provided in Subsection 17B-1-1402(1)(b).

2. (b) A property owner district may issue a general obligation bond with the consent of:

   1. (i) the owners of all property within the district; and
   2. (ii) all registered voters, if any, within the boundary of the district.

3. (c) A property owner district may use proceeds from a bond issued under this Subsection (7) to fund:

   1. (i) the acquisition and construction of a system or improvement authorized in the district's creation resolution; and
   2. (ii) a connection outside the boundary of the district between systems or improvements within the boundary of the district.
4. (d) The consent under Subsection (7)(b) is sufficient for any requirement necessary for the issuance of a general obligation bond.

5. (e) A general obligation bond issued under this Subsection (7):

   1. (i) shall mature no later than 40 years after the date of issuance; and
   2. (ii) is not subject to the limit under Subsection (4)(a)(i).

6. (f)

   1. (i) A property owner district may not issue a general obligation bond under this Subsection (7) if the issuance will cause the outstanding principal amount of all the district's general obligation bonds to exceed one-half of the market value of all real property within the district.

   2. (ii) Market value under Subsection (7)(f)(i) shall:

      1. (A) be based on the value that the real property will have after all improvements financed by the general obligation bonds are constructed; and
      2. (B) be determined by appraisal by an appraiser who is a member of the Appraisal Institute.

7. (g) With respect to a general obligation bond issued under this Subsection (7), the board of a property owner district may, by resolution, delegate to one or more officers of the district, the authority to:

   1. (i) approve the final interest rate, price, principal amount, maturity, redemption features, and other terms of the bond;
   2. (ii) approve and execute a document relating to the issuance of the bond; and
   3. (iii) approve a contract related to the acquisition and construction of an improvement, facility, or property to be financed with proceeds from the bond.

8. (h)

   1. (i) A person may commence a lawsuit or other proceeding to contest the legality of the issuance of a general obligation bond issued under this Subsection (7) or any provision relating to the security or payment of the bond if the lawsuit or other proceeding is commenced within 30 days after the publication of:

      1. (A) the resolution authorizing the issuance of the general obligation bond; or
      2. (B) a notice of the bond issuance containing substantially the items required under Subsection 11-14-316(2).
   2. (ii) Following the period described in Subsection (7)(h)(i), no person may bring a lawsuit or other proceeding to contest for any reason the regularity, formality, or legality of a general obligation bond issued under this Subsection (7).

9. (i)

   1. (i) A property owner district that charges and collects an impact fee or other fee on real property at the time the real property is sold may proportionally pay down a general obligation bond issued under this Subsection (7) from the money collected from the impact fee or other fee.
   2. (ii) A property owner district that proportionally pays down a general obligation bond under Subsection (7)(i)(i) shall reduce the property tax rate on the parcel of real property on which the district charged and collected an impact fee or other charge, to reflect the amount of outstanding principal of a general obligation bond issued under this Subsection (7) that was paid down and is attributable to that parcel.
10. (j) If a property owner fails to pay a property tax that the property owner district imposes in connection with a general obligation bond issued under this Subsection (7), the district may impose a property tax penalty at an annual rate of .07, in addition to any other penalty allowed by law.