Provision of Municipal-Type Services to Unincorporated Areas

Utah Code tit. 17, ch. 17-78, pt. 17-78-P5

in effect

Utah Code § 17-78-501 Counties may provide municipal services -- First-class counties to provide certain services -- Counties allowed to provide certain services in recreational areas.

17-78-501. Counties may provide municipal services -- First-class counties to provide certain services -- Counties allowed to provide certain services in recreational areas. (1) For purposes of thispart, "municipal-type services" means: (a) fire protection service; (b) waste and garbage collection and disposal; (c) planning and zoning; (d) street lighting; (e) animal services; (f) storm drains; (g) traffic engineering; (h) code enforcement; (i) business licensing; (j) building permits and inspections; (k) in a county of the first class: (i) advanced life support and paramedic services; and (ii) detective investigative services; and (l) all other services and functions that are required by law to be budgeted, appropriated, and accounted for from a municipal services fund or a municipal capital projects fund as defined under Chapter 63, Fiscal Authority and Processes. (2) A county may: (a) provide municipal-type services to areas of the county outside the limits of cities and towns without providing the same services to cities or towns; and (b) fund municipal-type services by: (i) levying a tax on taxable property in the county outside the limits of cities and towns; (ii) charging a service charge or fee to persons benefitting from the municipal-type services; or (iii) providing funds to a municipal services district in accordance with Section 17B-2a-1109. (3) Each county of the first class shall provide to the area of the county outside the limits of cities and towns: (a) advanced life support and paramedic services; and (b) detective investigative services. (4) (a) A county may provide fire, paramedic, and police protection services in any area of the county outside the limits of cities and towns that is designated as a recreational area in accordance with the provisions of this Subsection (4). (b) A county legislative body may designate any area of the county outside the limits of cities and towns as a recreational area if: (i) the area has fewer than 1,500 residents and is primarily used for recreational purposes, including canyons, ski resorts, wilderness areas, lakes and reservoirs, campgrounds, or picnic areas; and (ii) the county legislative body makes a finding that the recreational area is used by residents of the county who live both inside and outside the limits of cities and towns. (c) Fire, paramedic, and police protection services needed to primarily serve those involved in the recreation activities in areas designated as recreational areas by the county legislative body in accordance with Subsection (4)(b) may be funded from the county general fund. (d) A county legislative body may determine that fire, paramedic, and police protection services within a municipality that is located in an area designated as a recreational area, in accordance with this Subsection (4), may be funded with county general funds if the county legislative body makes a finding that a disproportionate share of public safety service needs within the municipality are generated by residents of the county who live both inside and outside the limits of cities and towns. (5) A county may be limited in the municipal-type services the county provides, in accordance with Section 17-60-504. Renumbered and Amended by Chapter 14, 2025 Special Session 1

Utah Code § 17-78-502 Taxes or service charges for municipal-type services -- Budgeting, accounting for, and disbursing of funds -- Annual audit.

17-78-502. Taxes or service charges for municipal-type services -- Budgeting, accounting for, and disbursing of funds -- Annual audit. (1) (a) If a county furnishes the municipal-type services and functions described in Section 17-78-501 to areas of the county outside the limits of incorporated cities or towns, the entire cost of the services or functions so furnished shall be defrayed from funds that the county has derived from: (i) taxes that the county may lawfully levy or impose outside the limits of incorporated towns or cities; (ii) service charges or fees the county may impose upon the persons benefited in any way by the services or functions; or (iii) a combination of these sources. (b) As the taxes or service charges or fees are levied and collected, they shall be placed in a special revenue fund of the county and shall be disbursed only for the rendering of the services or functions established in Section 17-78-501 within the unincorporated areas of the county or as provided in Subsection 10-2a-219(2). (2) (a) For the purpose of levying taxes, service charges, or fees provided in this section, the county legislative body may establish a district or districts in the unincorporated areas of the county. (b) A district established by a county as provided in Subsection (2)(a) may be reorganized as a special district in accordance with the procedures set forth in Sections 17D-1-601, 17D-1-603, and 17D-1-604. (3) Nothing contained in this chapter may be construed to authorize counties to impose or levy taxes not otherwise allowed by law. (4) Notwithstanding any other provision of this part, a county providing fire, paramedic, and police protection services in a designated recreational area, as provided in Section 17-78-501, may fund fire, paramedic, or police protection services from the county general fund with revenues derived from both inside and outside the limits of cities and towns, and the funding of those services is not limited to unincorporated area revenues. (5) (a) With respect to the budgeting, accounting for, and disbursing of funds to furnish the municipal-type services and functions described in Section 17-78-501 to areas of the county outside the limits of incorporated towns and cities, including levying of taxes and imposition of fees and charges under this section, each county legislative body shall separately budget and strictly account for and apportion to the costs of providing municipal-type services and functions for the following: (i) the salaries of each county commissioner and the salaries and wages of all other elected and appointed county officials and employees; (ii) the operation and maintenance costs of each municipal-type service or function provided, set forth separately as line items in the Municipal Services Fund budget; (iii) the cost of renting or otherwise using capital facilities for the purposes of providing municipal-type services or functions; and (iv) all other costs including administrative costs associated, directly or indirectly, with the costs of providing municipal-type services or functions. (b) At all times these funds and any expenditures from these funds shall be separately accounted for and utilized only for the purposes of providing municipal-type services and functions to areas of the county outside the limits of incorporated towns or cities. (6) To implement Subsection (5): (a) a budget shall be adopted and administered in the same manner as the budget for general purposes of the county which furnishes the municipal-type services and functions is adopted and administered, either as a part of the general budget or separate from it; (b) funds for the purposes of furnishing municipal-type services and functions under this chapter shall be collected, held, and administered in the same manner as other funds of the county are collected, held, and administered, but shall be segregated and separately maintained, except that where, in the judgment of the county legislative body, advantages inure to the fund from coinvestment of these funds and other funds also subject to control by the county legislative body, the county legislative body may direct this coinvestment, but in no event may the funds to furnish municipal-type services and functions or the income from their investment be used for purposes other than those described in Section 17-78-501; (c) expenditures shall be made in the same manner as other expenditures of the county are made; and (d) any taxes levied under this part shall be levied at the same time and in the same manner as other taxes of the county are levied. (7) An annual audit of the budgeting, accounting for, and disbursing of funds used to furnish municipal-type services and functions, shall be conducted by an independent certified public accountant. Renumbered and Amended by Chapter 14, 2025 Special Session 1

Utah Code § 17-78-503 Certain counties to establish funds or special service districts.

17-78-503. Certain counties to establish funds or special service districts. (1) Each county of the first, second, or third class that provides municipal-type services to unincorporated areas under this part shall: (a) establish a special revenue fund, "Municipal Services Fund," and a capital projects fund, "Municipal Capital Projects Fund," or establish a special district or special service district to provide municipal services; and (b) budget appropriations for municipal services and municipal capital projects from the funds described in Subsection (1)(a). (2) The Municipal Services Fund is subject to the same budgetary requirements as the county general fund. (3) (a) Except as provided in Subsection (3)(b), the county may deposit revenue derived from any taxes otherwise authorized by law, income derived from the investment of money contained within the municipal services fund and the municipal capital projects fund, the appropriate portion of federal money, and fees collected into a municipal services fund and a municipal capital projects fund. (b) The county may not deposit revenue derived from a fee, tax, or other source based upon a countywide assessment or from a countywide service or function into a municipal services fund or a municipal capital projects fund. (4) The maximum accumulated unappropriated surplus in the municipal services fund, as determined before adoption of the tentative budget, may not exceed an amount equal to the total estimated revenues of the current fiscal period. Enacted by Chapter 14, 2025 Special Session 1

Utah Code § 17-78-504 Contracts under Interlocal Cooperation Act.

17-78-504. Contracts under Interlocal Cooperation Act. This part may not be construed to prevent counties, cities, and towns from entering into contracts covering the furnishing by one to the other of all or any of the municipal-type services under Title 11, Chapter 13, Interlocal Cooperation Act, except that where incorporated cities or towns perform one or more of the municipal services set forth in Section 17-78-501 for unincorporated areas of a county, payment shall be made from the special revenue fund. Renumbered and Amended by Chapter 14, 2025 Special Session 1

Source: Utah Office of Legislative Research and General Counsel (le.utah.gov)URL: https://le.utah.gov/xcode/Title17/Chapter78/17-78-P5.html?v=C17-78-P5_2025110620251206Fetched: 10/26/2026