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HB2999 - 572R - S Ver
Senate Engrossed
House Bill
municipal
improvement districts; technical correction
(now: infrastructure
finance districts)
State of Arizona
House of Representatives
Fifty-seventh Legislature
Second Regular Session
2026
HOUSE BILL 2999
AN
ACT
Amending sections 9-463.05, 11-495,
11-496 and 11-1102, Arizona Revised Statutes; amending title 48,
Arizona Revised Statutes, by adding chapter 40; relating to special taxing
districts.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it
enacted by the Legislature of the State of Arizona:
Section 1. Section 9-463.05, Arizona Revised
Statutes, is amended to read:
START_STATUTE
9-463.05.
Development fees; imposition by cities and towns; infrastructure
improvements plan; annual report; advisory committee; limitation on actions;
definitions
A. A municipality may assess development fees to
offset costs to the municipality associated with providing necessary public
services to a development, including the costs of infrastructure, improvements,
real property, engineering and architectural services, financing and
professional services required for the preparation or revision of a development
fee pursuant to this section, including the relevant portion of the
infrastructure improvements plan.
B. Development fees assessed by a municipality under
this section are subject to the following requirements:
1. Development fees shall result in a beneficial use
to the development.
2. The municipality shall calculate the development
fee based on the infrastructure improvements plan adopted pursuant to this
section.
3. The development fee shall not exceed a
proportionate share of the cost of necessary public services, based on service
units, needed to provide necessary public services to the development.
4. Costs for necessary public services made
necessary by new development shall be based on the same level of service
provided to existing development in the service area.
5. Development fees may not be used for any of the
following:
(a) Construction, acquisition or expansion of public
facilities or assets other than necessary public services or facility
expansions identified in the infrastructure improvements plan.
(b) Repair, operation or maintenance of existing or
new necessary public services or facility expansions.
(c) Upgrading, updating, expanding, correcting or
replacing existing necessary public services to serve existing development in
order to meet stricter safety, efficiency, environmental or regulatory
standards.
(d) Upgrading, updating, expanding, correcting or
replacing existing necessary public services to provide a higher level of
service to existing development.
(e) Administrative, maintenance or operating costs
of the municipality.
6. Any development for which a development fee has
been paid is entitled to the use and benefit of the services for which the fee
was imposed and is entitled to receive immediate service from any existing
facility with available capacity to serve the new service units if the
available capacity has not been reserved or pledged in connection with the
construction or financing of the facility.
7. Development fees may be collected if any of the
following occurs:
(a) The collection is made to pay for a necessary
public service or facility expansion that is identified in the infrastructure
improvements plan and the municipality plans to complete construction and to
have the service available within the time period established in the
infrastructure
improvement
improvements
plan, but in no event longer than the time period provided in subsection H,
paragraph 3 of this section.
(b) The municipality reserves in the infrastructure
improvements plan adopted pursuant to this section or otherwise agrees to
reserve capacity to serve future development.
(c) The municipality requires or agrees to allow the
owner of a development to construct or finance the necessary public service or
facility expansion and any of the following
apply
applies
:
(i) The costs incurred or money advanced are
credited against or reimbursed from the development fees otherwise due from a
development.
(ii) The municipality reimburses the owner for those
costs from the development fees paid from all developments that will use those
necessary public services or facility expansions.
(iii) For those costs incurred the municipality
allows the owner to assign the credits or reimbursement rights from the
development fees otherwise due from a development to other developments for the
same category of necessary public services in the same service area.
8. Projected interest charges and other finance
costs may be included in determining the amount of development fees only if the
monies are used for the payment of principal and interest on the portion of the
bonds, notes or other obligations issued to finance construction of necessary
public services or facility expansions identified in the infrastructure
improvements plan.
9. Monies received from development fees assessed
pursuant to this section shall be placed in a separate fund and accounted for
separately and may only be used for the purposes authorized by this
section. Monies received from a development fee identified in an
infrastructure improvements plan adopted or updated pursuant to subsection D of
this section shall be used to provide the same category of necessary public
services or facility expansions for which the development fee was assessed and
for the benefit of the same service area, as defined in the infrastructure
improvements plan, in which the development fee was
assessed. Interest earned on monies in the separate fund shall be
credited to the fund.
10. The schedule for payment of fees shall be
provided by the municipality. Based on the cost identified in the
infrastructure improvements plan, the municipality shall provide a credit
toward the payment of a development fee for the required or agreed to
dedication of public sites, improvements and other necessary public services or
facility expansions included in the infrastructure improvements plan and for
which a development fee is assessed, to the extent the public sites, improvements
and necessary public services or facility expansions are provided by the
developer
, a community facilities DISTRICT ESTABLISHED under
title 48, chapter 4, article 6 or
a state affordability
infrastructure district ESTABLISHED under title 48, chapter 40
. The
developer of residential dwelling units shall be required to pay development
fees when construction permits for the dwelling units are issued, or at a later
time if specified in a development agreement pursuant to section 9-500.05.
If a development agreement provides for fees to be paid at a time later than
the issuance of construction permits, the deferred fees shall be paid
no
not
later than fifteen days after the
issuance of a certificate of occupancy. The development agreement shall provide
for the value of any deferred fees to be supported by appropriate security,
including a surety bond, letter of credit or cash bond.
11. If a municipality requires as a condition of
development approval the construction or improvement of, contributions to or
dedication of any facilities that were not included in a previously adopted
infrastructure improvements plan, the municipality shall cause the
infrastructure improvements plan to be amended to include the facilities and
shall provide a credit toward the payment of a development fee for the
construction, improvement, contribution or dedication of the facilities to the
extent that the facilities will substitute for or otherwise reduce the need for
other similar facilities in the infrastructure improvements plan for which
development fees were assessed.
12. The municipality shall forecast the contribution
to be made in the future in cash or by taxes, fees, assessments or other
sources of revenue derived from the property owner towards the capital costs of
the necessary public service covered by the development fee and shall include
these contributions in determining the extent of the burden imposed by the
development. Beginning August 1, 2014, for purposes of calculating
the required offset to development fees pursuant to this subsection, if a
municipality imposes a construction contracting or similar excise tax rate in
excess of the percentage amount of the transaction privilege tax rate imposed
on the majority of other transaction privilege tax classifications, the entire
excess portion of the construction contracting or similar excise tax shall be
treated as a contribution to the capital costs of necessary public services
provided to development for which development fees are assessed, unless the
excess portion was already taken into account for such purpose pursuant to this
subsection.
13. If development fees are assessed by a
municipality, the fees shall be assessed against commercial, residential and
industrial development, except that the municipality may distinguish between
different categories of residential, commercial and industrial development in
assessing the costs to the municipality of providing necessary public services
to new development and in determining the amount of the development fee
applicable to the category of development. If a municipality agrees
to waive any of the development fees assessed on a development, the
municipality shall reimburse the appropriate development fee accounts for the
amount that was waived. The municipality shall provide notice of any
such waiver to the advisory committee established pursuant to subsection G of
this section within thirty days.
14. In determining and assessing a development fee
applying to land in a community facilities district established under title 48,
chapter 4, article 6
or
a state
affordability infrastructure district ESTABLISHED under title 48, chapter 40
,
the municipality shall take into account all public
infrastructure provided by the district and capital costs paid by the district
for necessary public services and shall not assess a portion of the development
fee based on the infrastructure or costs.
C. A municipality shall give at least thirty days'
advance notice of intention to assess a development fee and shall release to
the public and post on its website or the website of an association of cities
and towns if a municipality does not have a website a written report of the
land use assumptions and infrastructure improvements plan adopted pursuant to
subsection D of this section. The municipality shall conduct a
public hearing on the proposed development fee at any time after the expiration
of the
thirty day
thirty-day
notice of intention to assess a development fee and at least thirty days before
the scheduled date of adoption of the fee by the governing
body. Within sixty days after the date of the public hearing on the
proposed development fee, a municipality shall approve or disapprove the
imposition of the development fee. A municipality shall not adopt an
ordinance, order or resolution approving a development fee as an emergency
measure. A development fee assessed pursuant to this section shall
not be effective until seventy-five days after its formal adoption by the
governing body of the municipality. Nothing in this subsection shall
affect any development fee adopted before July 24, 1982.
D. Before the adoption or amendment of a development
fee, the governing body of the municipality shall adopt or update the land use
assumptions and infrastructure improvements plan for the designated service
area. The municipality shall conduct a public hearing on the land
use assumptions and infrastructure improvements plan at least thirty days
before the adoption or update of the plan. The municipality shall
release the plan to the public, post the plan on its website or the website of
an association of cities and towns if the municipality does not have a website,
including in the posting its land use assumptions, the time period of the
projections, a description of the necessary public services included in the
infrastructure improvements plan and a map of the service area to which the
land use assumptions apply, make available to the public the documents used to
prepare the assumptions and plan and provide public notice at least sixty days
before the public hearing, subject to the following:
1. The land use assumptions and infrastructure
improvements plan shall be approved or disapproved within sixty days after the
public hearing on the land use assumptions and infrastructure improvements plan
and at least thirty days before the public hearing on the report required by
subsection C of this section. A municipality shall not adopt an
ordinance, order or resolution approving the land use assumptions or
infrastructure improvements plan as an emergency measure.
2. An infrastructure improvements plan shall be
developed by qualified professionals using generally accepted engineering and
planning practices pursuant to subsection E of this section.
3. A municipality shall update the land use
assumptions and infrastructure improvements plan at least every five
years. The initial
five year
five-year
period begins on the day the infrastructure improvements plan is
adopted. The municipality shall review and evaluate its current land
use assumptions and shall cause an update of the infrastructure improvements
plan to be prepared pursuant to this section.
4. Within sixty days after completion of the updated
land use assumptions and infrastructure improvements plan, the municipality
shall schedule and provide notice of a public hearing to discuss and review the
update and shall determine whether to amend the assumptions and plan.
5. A municipality shall hold a public hearing to
discuss the proposed amendments to the land use assumptions, the infrastructure
improvements plan or the development fee. The land use assumptions
and the infrastructure improvements plan, including the amount of any proposed
changes to the development fee per service unit, shall be made available to the
public on or before the date of the first publication of the notice of the
hearing on the amendments.
6. The notice and hearing procedures prescribed in
paragraph 1 of this subsection apply to a hearing on the amendment of land use
assumptions, an infrastructure improvements plan or a development fee. Within
sixty days after the date of the public hearing on the amendments, a
municipality shall approve or disapprove the amendments to the land use
assumptions, infrastructure improvements plan or development fee.
A municipality shall not adopt an ordinance, order or resolution approving
the amended land use assumptions, infrastructure improvements plan or
development fee as an emergency measure.
7. The advisory committee established under
subsection G of this section shall file its written comments on any proposed or
updated land use assumptions, infrastructure improvements plan and development
fees before the fifth business day before the date of the public hearing on the
proposed or updated assumptions, plan and fees.
8. If, at the time an update as prescribed in
paragraph 3 of this subsection is required, the municipality determines that no
changes to the land use assumptions, infrastructure improvements plan or
development fees are needed, the municipality may as an alternative to the
updating requirements of this subsection publish notice of its determination on
its website and include the following:
(a) A statement that the municipality has determined
that no change to the land use assumptions, infrastructure improvements plan or
development fee is necessary.
(b) A description and map of the service area in
which an update has been determined to be unnecessary.
(c) A statement that by a specified date, which
shall be at least sixty days after the date of publication of the first notice,
a person may make a written request to the municipality requesting that the
land use assumptions, infrastructure improvements plan or development fee be
updated.
(d) A statement identifying the person or entity to
whom the written request for an update should be sent.
9. If, by the date specified pursuant to paragraph 8
of this subsection, a person requests in writing that the land use assumptions,
infrastructure improvements plan or development fee be updated, the
municipality shall cause, accept or reject an update of the assumptions and
plan to be prepared pursuant to this subsection.
10. Notwithstanding the notice and hearing
requirements for adoption of an infrastructure improvements plan, a
municipality may amend an infrastructure improvements plan adopted pursuant to
this section without a public hearing if the amendment addresses only elements
of necessary public services in the existing infrastructure improvements plan
and the changes to the plan will not, individually or cumulatively with other
amendments adopted pursuant to this subsection, increase the level of service
in the service area or cause a development fee increase of greater than five
per cent
PERCENT
when a new or modified
development fee is assessed pursuant to this section. The municipality shall
provide notice of any such amendment at least thirty days before adoption,
shall post the amendment on its website or on the website of an association of cities
and towns if the municipality does not have a website and shall provide notice
to the advisory committee established pursuant to subsection G of this section
that the amendment complies with this subsection.
E. For each necessary public service that is the
subject of a development fee, the infrastructure improvements plan shall
include:
1. A description of the existing necessary public
services in the service area and the costs to upgrade, update, improve, expand,
correct or replace those necessary public services to meet existing needs and
usage and stricter safety, efficiency, environmental or regulatory standards,
which shall be prepared by qualified professionals licensed in this state, as
applicable.
2. An analysis of the total capacity, the level of
current usage and commitments for usage of capacity of the existing necessary
public services, which shall be prepared by qualified professionals licensed in
this state, as applicable.
3. A description of all or the parts of the
necessary public services or facility expansions and their costs necessitated
by and attributable to development in the service area based on the approved
land use assumptions, including a forecast of the costs of infrastructure,
improvements, real property, financing, engineering and architectural services,
which shall be prepared by qualified professionals licensed in this state, as
applicable.
4. A table establishing the specific level or
quantity of use, consumption, generation or discharge of a service unit for
each category of necessary public services or facility expansions and an
equivalency or conversion table establishing the ratio of a service unit to
various types of land uses, including residential, commercial and industrial.
5. The total number of projected service units
necessitated by and attributable to new development in the service area based
on the approved land use assumptions and calculated pursuant to generally
accepted engineering and planning criteria.
6. The projected demand for necessary public
services or facility expansions required by new service units for a period not
to exceed ten years.
7. A forecast of revenues generated by new service
units other than development fees, which shall include estimated state-shared
revenue, highway
users
USER
revenue,
federal revenue, ad valorem property taxes, construction contracting or similar
excise taxes and the capital recovery portion of utility fees attributable to
development based on the approved land use assumptions, and a plan to include
these contributions in determining the extent of the burden imposed by the
development as required in subsection B, paragraph 12 of this section.
F. A municipality's development fee ordinance shall
provide that a new development fee or an increased portion of a modified
development fee shall not be assessed against a development for twenty-four
months after the date that the municipality issues the final approval for a
commercial, industrial or multifamily development or the date that the first
building permit is issued for a residential development pursuant to an approved
site plan or subdivision plat, provided that no subsequent changes are made to
the approved site plan or subdivision plat that would increase the number of
service units. If the number of service units increases, the new or
increased portion of a modified development fee shall be limited to the amount
attributable to the additional service units. The twenty-four month
period shall not be extended by a renewal or amendment of the site plan or the
final subdivision plat that was the subject of the final approval. The
municipality shall issue, on request, a written statement of the development
fee schedule applicable to the development. If, after the date of the
municipality's final approval of a development, the municipality reduces the
development fee assessed on development, the reduced fee shall apply to the
development.
G. A municipality shall do one of the following:
1. Before the adoption of proposed or updated land
use assumptions, infrastructure improvements plan and development fees as
prescribed in subsection D of this section, the municipality shall appoint an
infrastructure improvements advisory committee, subject to the following
requirements:
(a) The advisory committee shall be composed of at
least five members who are appointed by the governing body of the municipality.
At least fifty
per cent
PERCENT
of
the members of the advisory committee must be representatives of the real
estate, development or building industries, of which at least one member of the
committee must be from the home building industry. Members shall not
be employees or officials of the municipality.
(b) The advisory committee shall serve in an
advisory capacity and shall:
(i) Advise the municipality in adopting land use
assumptions and in determining whether the assumptions are in conformance with
the general plan of the municipality.
(ii) Review the infrastructure improvements plan and
file written comments.
(iii) Monitor and evaluate implementation of the
infrastructure improvements plan.
(iv) Every year file reports with respect to the progress
of the infrastructure improvements plan and the collection and expenditures of
development fees and report to the municipality any perceived inequities in
implementing the plan or imposing the development fee.
(v) Advise the municipality of the need to update or
revise the land use assumptions, infrastructure improvements plan and
development fee.
(c) The municipality shall make available to the
advisory committee any professional reports with respect to developing and
implementing the infrastructure improvements plan.
(d) The municipality shall adopt procedural rules
for the advisory committee to follow in carrying out the committee's duties.
2. In lieu of creating an advisory committee
pursuant to paragraph 1 of this subsection, provide for a biennial certified
audit of the municipality's land use assumptions, infrastructure improvements
plan and development fees. An audit pursuant to this paragraph shall
be conducted by one or more qualified professionals who are not employees or
officials of the municipality and who did not prepare the infrastructure
improvements plan. The audit shall review the progress of the
infrastructure improvements plan, including the collection and expenditures of
development fees for each project in the plan, and evaluate any inequities in
implementing the plan or imposing the development fee. The
municipality shall post the findings of the audit on the municipality's website
or the website of an association of cities and towns if the municipality does
not have a website and shall conduct a public hearing on the audit within sixty
days of the release of the audit to the public.
H. On written request, an owner of real property for
which a development fee has been paid after July 31, 2014 is entitled to a
refund of a development fee or any part of a development fee if:
1. Pursuant to subsection B, paragraph 6 of this
section, existing facilities are available and service is not provided.
2. The municipality has, after collecting the fee to
construct a facility when service is not available, failed to complete
construction within the time period identified in the infrastructure
improvements plan, but in no event later than the time period specified in
paragraph 3 of this subsection.
3. For a development fee other than a development
fee for water or wastewater facilities, any part of the development fee is not
spent as authorized by this section within ten years after the fee has been
paid or, for a development fee for water or wastewater facilities, any part of
the development fee is not spent as authorized by this section within fifteen
years after the fee has been paid.
I. If the development fee was collected for the
construction of all or a portion of a specific item of infrastructure, and on
completion of the infrastructure the municipality determines that the actual
cost of construction was less than the forecasted cost of construction on which
the development fee was based and the difference between the actual and
estimated cost is greater than ten per cent, the current owner may receive a
refund of the portion of the development fee equal to the difference between the
development fee paid and the development fee that would have been due if the
development fee had been calculated at the actual construction cost.
J. A refund shall include any interest earned by the
municipality from the date of collection to the date of refund on the amount of
the refunded fee. All refunds shall be made to the record owner of
the property at the time the refund is paid. If the development fee is paid by
a governmental entity, the refund shall be paid to the governmental entity.
K. A development fee that was adopted before January
1, 2012 may continue to be assessed only to the extent that it will be used to
provide a necessary public service for which development fees can be assessed
pursuant to this section and shall be replaced by a development fee imposed
under this section on or before August 1, 2014. Any municipality having a
development fee that has not been replaced under this section on or before
August 1, 2014 shall not collect development fees until the development fee has
been replaced with a fee that complies with this section. Any
development fee monies collected before January 1, 2012 remaining in a
development fee account:
1. Shall be used towards the same category of
necessary public services as authorized by this section.
2. If development fees were collected for a purpose
not authorized by this section, shall be used for the purpose for which they
were collected on or before January 1, 2020, and after which, if not spent,
shall be distributed equally among the categories of necessary public services
authorized by this section.
L. A moratorium shall not be placed on development
for the sole purpose of awaiting completion of all or any part of the process
necessary to develop, adopt or update development fees.
M. In any judicial action interpreting this section,
all powers conferred on municipal governments in this section shall be narrowly
construed to ensure that development fees are not used to impose on new
residents a burden all taxpayers of a municipality should bear equally.
N. Each municipality that assesses development fees
shall submit an annual report accounting for the collection and use of the fees
for each service area. The annual report shall include the following:
1. The amount assessed by the municipality for each
type of development fee.
2. The balance of each fund maintained for each type
of development fee assessed as of the beginning and end of the fiscal year.
3. The amount of interest or other earnings on the
monies in each fund as of the end of the fiscal year.
4. The amount of development fee monies used to
repay:
(a) Bonds issued by the municipality to pay the cost
of a capital improvement project that is the subject of a development fee
assessment, including the amount needed to repay the debt service obligations
on each facility for which development fees have been identified as the source
of funding and the time frames in which the debt service will be repaid.
(b) Monies advanced by the municipality from funds
other than the funds established for development fees in order to pay the cost
of a capital improvement project that is the subject of a development fee
assessment, the total amount advanced by the municipality for each facility,
the source of the monies advanced and the terms under which the monies will be
repaid to the municipality.
5. The amount of development fee monies spent on
each capital improvement project that is the subject of a development fee
assessment and the physical location of each capital improvement project.
6. The amount of development fee monies spent for
each purpose other than a capital improvement project that is the subject of a
development fee assessment.
O. Within ninety days following the end of each
fiscal year, each municipality shall submit a copy of the annual report to the
city clerk and post the report on the municipality's website or the website of
an association of cities and towns if the municipality does not have a website.
Copies shall be made available to the public on request. The annual report may
contain financial information that has not been audited.
P. A municipality that fails to file the report and
post the report on the municipality's website or the website of an association
of cities and towns if the municipality does not have a website as required by
this section shall not collect development fees until the report is filed and
posted.
Q. Any action to collect a development fee shall be
commenced within two years after the obligation to pay the fee accrues.
R. A municipality may continue to assess a
development fee adopted before January 1, 2012 for any facility that was
financed before June 1, 2011 if:
1. Development fees were pledged to repay debt
service obligations related to the construction of the facility.
2. After August 1, 2014, any development fees
collected under this subsection are used solely for the payment of principal
and interest on the portion of the bonds, notes or other debt service
obligations issued before June 1, 2011 to finance construction of the facility.
S. Through August 1, 2014, a development fee adopted
before January 1, 2012 may be used to finance construction of a facility and
may be pledged to repay debt service obligations if:
1. The facility that is being financed is a facility
that is described under subsection T, paragraph 7, subdivisions (a) through (g)
of this section.
2. The facility was included in an infrastructure
improvements plan adopted before June 1, 2011.
3. The development fees are used for the payment of
principal and interest on the portion of the bonds, notes or other debt service
obligations issued to finance construction of the necessary public services or
facility expansions identified in the infrastructure
improvement
IMPROVEMENTS
plan.
T. For the purposes of this section:
1. "Dedication" means the actual
conveyance date or the date an improvement, facility or real or personal
property is placed into service, whichever occurs first.
2. "Development" means:
(a) The subdivision of land.
(b) The construction, reconstruction, conversion,
structural alteration, relocation or enlargement of any structure that adds or
increases the number of service units.
(c) Any use or extension of the use of land that
increases the number of service units.
3. "Facility expansion" means the
expansion of the capacity of an existing facility that serves the same function
as an otherwise new necessary public service in order that the existing
facility may serve new development. Facility expansion does not include the
repair, maintenance, modernization or expansion of an existing facility to
better serve existing development.
4. "Final approval" means:
(a) For a nonresidential or multifamily development,
the approval of a site plan or, if no site plan is submitted for the
development, the approval of a final subdivision plat.
(b) For a single family residential development, the
approval of a final subdivision plat.
5. "Infrastructure improvements plan"
means a written plan that identifies each necessary public service or facility
expansion that is proposed to be the subject of a development fee and otherwise
complies with the requirements of this section, and may be the municipality's
capital improvements plan.
6. "Land use assumptions" means
projections of changes in land uses, densities, intensities and population for
a specified service area over a period of at least ten years and pursuant to
the general plan of the municipality.
7. "Necessary public service" means any of
the following facilities that have a life expectancy of three or more years and
that are owned and operated by or on behalf of the municipality:
(a) Water facilities, including the supply,
transportation, treatment, purification and distribution of water, and any
appurtenances for those facilities.
(b) Wastewater facilities, including collection,
interception, transportation, treatment and disposal of wastewater, and any
appurtenances for those facilities.
(c) Storm water, drainage and flood control
facilities, including any appurtenances for those facilities.
(d) Library facilities of up to ten thousand square
feet that provide a direct benefit to development, not including equipment,
vehicles or appurtenances.
(e) Street facilities located in the service area,
including arterial or collector streets or roads that have been designated on
an officially adopted plan of the municipality, traffic signals and rights-of-way
and improvements thereon.
(f) Fire and police facilities, including all
appurtenances, equipment and vehicles. Fire and police facilities do
not include a facility or portion of a facility that is used to replace
services that were once provided elsewhere in the municipality, vehicles and
equipment used to provide administrative services, helicopters or airplanes or
a facility that is used for training firefighters or officers from more than
one station or substation.
(g) Neighborhood parks and recreational facilities
on real property up to thirty acres in area, or parks and recreational
facilities larger than thirty acres if the facilities provide a direct benefit
to the development. Park and recreational facilities do not include
vehicles, equipment or that portion of any facility that is used for amusement
parks, aquariums, aquatic centers, auditoriums, arenas, arts and cultural
facilities, bandstand and orchestra facilities, bathhouses, boathouses,
clubhouses, community centers greater than three thousand square feet in floor
area, environmental education centers, equestrian facilities, golf course
facilities, greenhouses, lakes, museums, theme parks, water reclamation or
riparian areas, wetlands, zoo facilities or similar recreational facilities,
but may include swimming pools.
(h) Any facility that was financed and that meets
all of the requirements prescribed in subsection R of this section.
8. "Qualified professional" means a
professional engineer, surveyor, financial analyst or planner providing
services within the scope of the person's license, education or experience.
9. "Service area" means any specified area
within the boundaries of a municipality in which development will be served by
necessary public services or facility expansions and within which a substantial
nexus exists between the necessary public services or facility expansions and
the development being served as prescribed in the infrastructure improvements
plan.
10. "Service unit" means a standardized
measure of consumption, use, generation or discharge attributable to an
individual unit of development calculated pursuant to generally accepted
engineering or planning standards for a particular category of necessary public
services or facility expansions.
END_STATUTE
Sec. 2. Section 11-495, Arizona Revised
Statutes, is amended to read:
START_STATUTE
11-495.
Taxpayers' information fund
A. A taxpayers' information fund is established in
each county treasury consisting of monies collected from the public records
copy surcharge imposed pursuant to section 11-496, the tax lien
processing fee imposed pursuant to section 42-18116, subsection C,
fifteen dollars
$15
of each judgment deed
fee collected pursuant to section 42-18205, subsection A, interest earned
from the elderly assistance fund pursuant to section 42-17401, the
community facilities district special assessment fee imposed pursuant to
section 48-721
, THE STATE
affordability
infrastructure DISTRICT SPECIAL ASSESSMENT FEE IMPOSED PURSUANT TO SECTION
48-7023
and the fees authorized for collecting municipal fire and
emergency services fees in certain areas of the county as prescribed in section
9-500.23.
B. The county treasurer shall administer the fund
and spend monies in the fund only to defray the cost of converting or upgrading
an automated public information system as follows:
1. Purchasing computer hardware and software.
2. Training employees to operate the system.
3. Maintaining the system, including purchasing
equipment maintenance agreements.
4. Updating the system hardware and software.
5. In counties with a population of more than two
million persons, notifying property owners of the tax and ownership status of a
taxpayer's parcel prior to the taxpayer's parcel being sold at a deed sale and
the tax and ownership status of any parcels being sold at a deed sale that are
adjacent to a taxpayer's parcel, prior to the deed sale.
C. The county treasurer shall annually submit to the
board of supervisors the amount of anticipated revenues under this section. If
the projected revenues are considered to be insufficient to establish and
maintain the fund at an adequate level, the monies may accumulate until
sufficient monies are available in the fund.
END_STATUTE
Sec. 3. Section 11-496, Arizona Revised
Statutes, is amended to read:
START_STATUTE
11-496.
Public records copy; proceeds of sale; agent duties; surcharge;
special district assessments; deposit
A. In addition to the fee prescribed by section 39-121.01,
subsection D, paragraph 1 or section 39-121.03, subsection A, the county
treasurer may impose a surcharge of not more than twenty-five
per
cent
percent
of the fee charged for furnishing a
copy, printout or photograph.
B. A county treasurer who is designated as a
registrar pursuant to section 35-491 may impose a surcharge of not more
than twenty-five
per cent
percent
of the average fee charged by commercial bank trust departments during the
previous calendar year for discharging registrar, transfer and paying agent
duties.
C. The county treasurer may impose and collect a fee
for expenses directly related to the collection of special assessments for a
community facilities district pursuant to section 48-721
,
A STATE
affordability infrastructure DISTRICT PURSUANT TO
SECTION 48-7023
and a revitalization district pursuant to section 48-6815
and for collecting municipal fire and emergency services fees from owners of
record in certain areas of the county as prescribed in section 9-500.23.
D. The county treasurer shall deposit monies
collected pursuant to this section in the taxpayers' information fund
established by section 11-495.
END_STATUTE
Sec. 4. Section 11-1102, Arizona Revised
Statutes, is amended to read:
START_STATUTE
11-1102.
County development fees; imposition by counties; infrastructure
improvements plan; advisory committee; annual report; limitation on actions;
definitions
A. A county may assess development fees to offset
costs to the county associated with providing necessary public services to a
development, including the costs of infrastructure, improvements, real
property, engineering and architectural services, financing and professional
services required for the preparation or revision of
a
development
fee
FEES
pursuant to
this section, including the relevant portion of the infrastructure improvements
plan.
B. Development fees assessed under this section are
subject to the following requirements:
1. Development fees shall result in a beneficial use
to the development.
2. The
county shall calculate the development
fee
FEES
based on the infrastructure improvements plan adopted pursuant to this
section.
3. The
development fees may not exceed a proportionate share of the cost of necessary
public services, based on service units, needed to provide necessary public
services to the development.
4. Costs
for necessary public services made necessary by new development shall be based
on the same level of service provided to existing development in the service
area at the time the infrastructure improvements plan is adopted.
5. Development
fees may not be used for any of the following:
(a) Funding
a level of service that is higher than the current level of service provided to
existing development at the time the infrastructure improvements plan is
adopted.
(b) Construction,
acquisition or expansion of public facilities or assets other than necessary
public services or facility expansions identified in the infrastructure
improvements plan.
(c) Repair,
operation or maintenance of existing or new necessary public services or
facility expansions.
(d) Upgrading,
updating, expanding, correcting or replacing existing necessary public services
to serve existing development in order to meet stricter safety, efficiency,
environmental or regulatory standards.
(e) Upgrading,
updating, expanding, correcting or replacing existing necessary public services
to provide a higher level of service to existing development.
(f) Administrative,
maintenance or operating costs of the county.
6. Any
development for which development fees have been paid is entitled to the use
and benefit of the services for which the development fees were imposed and is
entitled to receive immediate service from any existing facility with available
capacity to serve the new service units if the available capacity has not been
reserved or pledged in connection with the construction or financing of the
facility.
7. Development fees may be collected if any of the
following occurs:
(a) The collection is made to pay for a necessary
public service or facility expansion that is identified in the infrastructure
improvements plan and the county plans to complete construction and have the
service available within the time period established in the infrastructure
improvements plan, but not longer than the time period provided in subsection
J, paragraph 3 of this section.
(b) The
county reserves capacity in the infrastructure improvements plan adopted
pursuant to this section or otherwise agrees to reserve capacity to serve
future development.
(c) The
county requires or agrees to allow the owner of a development to construct or
finance the necessary public service or facility expansion and any of the
following applies:
(i) The
costs incurred or monies advanced are credited against or reimbursed from the
development fees otherwise due from a development. The amount of credits issued
shall equal the costs identified by the county in the infrastructure improvements
plan associated with the construction of the necessary public services or
facility expansions. The county shall allow the owner to assign the
credits from the development fees otherwise due from a development and any
excess credits to other developments for the same category of necessary public
services in the same service area.
(ii) The
county reimburses the owner for those costs from the development fees paid from
all developments that will use those necessary public services or facility
expansions. The county shall allow the owner to assign the reimbursement
rights to other developments for the same category of necessary public services
in the same service area.
8. Projected
interest charges and other finance costs may be included in determining the
amount of development fees only if the monies are used for the payment of
principal and interest on the portion of the bonds, notes or other obligations
issued to finance construction of necessary public services or facility
expansions identified in the infrastructure improvements plan.
9. Monies received from development fees shall be
placed in a separate fund and accounted for separately and may only be used for
the purposes authorized by this section. Monies received from
development fees identified in an infrastructure improvements plan adopted or
updated pursuant to subsection E of this section shall be used to provide the
same category of necessary public services or facilities expansions for which
the development fee was assessed and for the benefit of the same service area
as defined in the infrastructure improvements plan in which the development
fees were assessed. Interest earned on monies in the separate fund shall be
credited to the fund.
10. The county shall prescribe the schedule for
paying the development fees. Based on the costs identified in the
infrastructure improvements plan, the county shall provide a credit toward the
payment of the development fees for the required or agreed to dedication of
public sites, improvements and other necessary public services or facility
expansions included in the infrastructure improvements plan and for which
development fees are assessed, to the extent the public sites, improvements and
necessary public services or facility expansions are provided by the developer
, a community facilities DISTRICT ESTABLISHED under title 48, chapter
4, article 6 or
a state affordability infrastructure district
ESTABLISHED under title 48, chapter 40
. On request of the
developer, instead of providing a credit toward the payment of development
fees, the county shall provide for reimbursement from the development fees paid
from all development that will use those public sites, improvements or
necessary public services or facility expansions of the actual costs of the
required or agreed to dedication of public sites, improvements or other
necessary public services or facility expansions included in the infrastructure
improvements plan and for which development fees are assessed, to the extent
the public sites, improvements and necessary public services or facility
expansions are provided by the developer
, a community facilities
DISTRICT ESTABLISHED under title 48, chapter 4, article 6 or
a state affordability infrastructure district ESTABLISHED under title
48, chapter 40
. The developer of residential dwelling units shall be
required to pay the fees when construction permits for the dwelling units are
issued, or at a later time if specified in the development agreement pursuant
to section 11-1101. If a development agreement provides for
development fees to be paid at a time later than the issuance of construction
permits, the deferred development fees shall be paid not later than fifteen
days after the issuance of a certificate of occupancy. The development
agreement shall provide for the value of any deferred development fees to be
supported by an appropriate security, including a surety bond, letter of credit
or cash bond.
11. If a county requires as a condition of
development approval the construction or improvement of, contributions to or
dedication of any facilities that were not included in a previously adopted
infrastructure improvements plan, the county shall cause the infrastructure
improvements plan to be amended to include the facilities and shall provide a
credit toward the payment of development fees for the construction,
improvement, contribution or dedication of the facilities to the extent that the
facilities will substitute for or otherwise reduce the need for other similar
facilities in the infrastructure improvements plan for which development fees
were assessed. If a county requires as a condition of development
approval the set aside of active or passive open space, the county shall issue
a credit toward any development fees identified in the infrastructure
improvements plan to fund any park facilities or facility expansion. On request
of the individual or entity seeking development approval, instead of issuing a
credit toward the payment of development fees, the county shall provide for
reimbursement from the development fees paid from all development that will use
those facilities or facility expansions of the actual costs of the construction
or improvement of, contributions to or dedication of the public facilities
required as a condition of development approval.
12. The
county shall forecast the contribution to be made in the future in cash, taxes,
fees, assessments and all other sources of revenue derived from the property
owner towards the capital costs of the necessary public service covered by the
development fees.
13. If development fees are assessed against
residential development, the county shall also assess development fees against
commercial and industrial development. The county may distinguish between
different categories of residential, commercial and industrial development in
assessing the costs to the county of providing necessary public services to new
development and in determining the amount of the development fees applicable to
the category, except that the county may not distinguish residential developments
on the basis of the size of the dwelling unit or number of bedrooms. If a
county agrees to waive any of the development fees assessed on a development,
the county shall reimburse the appropriate development fees accounts for the
amount that was waived. The county shall provide notice of any such waiver to
the advisory committee established pursuant to subsection I of this
section.
14. In determining and assessing development fees
applying to land in a community facilities district established under title 48,
chapter 4, article 6, the county shall take into account all public
infrastructure provided by the district and capital costs paid by the district
for necessary public services and shall not assess a portion of the development
fees based on the infrastructure or costs.
15. The county shall not assess or collect
development fees from a school district or charter school, other than fees
assessed or collected for streets and water and wastewater utility functions.
C. Before assessing development fees, the county
shall:
1. Give at least thirty days' advance notice of
intention to assess new or increased development fees.
2. Release to the public and post on the county's
website a written report of the land use assumptions and infrastructure
improvements plan adopted pursuant to subsection E of this section.
3. Conduct a public hearing on the proposed
development fees at any time after the expiration of the thirty-day notice of
intention to assess development fees and at least thirty days before the
scheduled date of adoption of the development fees. Within sixty days after the
date of the public hearing on the proposed development fees, the county shall
approve or disapprove the imposition of the development fees. A county may not
adopt an ordinance, order or resolution approving development fees as an emergency
measure.
D. Development fees assessed pursuant to this
section are not effective for at least ninety days after formal adoption by the
board of supervisors.
E. Before
the adoption or amendment of development fees or amendment of the boundaries of
a service area, the board of supervisors shall adopt or update the land use
assumptions and infrastructure improvements plan for the designated service area. The
county shall conduct a public hearing on the land use assumptions and
infrastructure improvements plan at least thirty days before the adoption or
update of the infrastructure improvements plan. The county shall
release the infrastructure improvements plan to the public, post the
infrastructure improvements plan on the county's website, including in the
posting the land use assumptions, the time period of the projections, a
description of the necessary public services included in the infrastructure
improvements plan and a map of the service area to which the land use
assumptions apply, make available to the public the documents used to prepare
the land use assumptions and infrastructure improvements plan and provide
public notice at least sixty days before the public hearing, subject to the
following:
1. The
land use assumptions and infrastructure improvements plan shall be approved or
disapproved within sixty days after the public hearing on the land use
assumptions and infrastructure improvements plan and at least thirty days
before the public hearing on the report required by subsection C of this
section. A county may not adopt an ordinance, order or resolution
approving the land use assumptions or infrastructure improvements plan as an
emergency measure.
2. An
infrastructure improvements plan shall be developed by qualified professionals
using generally accepted engineering and planning practices pursuant to
subsection F of this section.
3. A
county shall update the land use assumptions and infrastructure improvements
plan at least every five years. The initial five-year period begins
on the day the infrastructure improvements plan is adopted. The
county shall review and evaluate the current land use assumptions and shall
cause an update of the infrastructure improvements plan to be prepared pursuant
to this section.
4. Within
sixty days after completion of the updated land use assumptions and
infrastructure improvements plan, the county shall schedule and provide notice
of a public hearing to discuss and review the update and shall determine
whether to amend the land use assumptions and infrastructure improvements plan.
5. A
county shall hold a public hearing to discuss the proposed amendments to the
land use assumptions, the infrastructure improvements plan or the development
fees. The land use assumptions and the infrastructure improvements
plan, including the amount of any proposed changes to the development fees per
service unit, shall be made available to the public on or before the date of
the first publication of the notice of the hearing on the amendments.
6. The
hearing procedures prescribed in paragraph 1 of this subsection apply to a
hearing on the amendment of land use assumptions, an infrastructure
improvements plan or development fees. Within sixty days after the date of the
public hearing on the amendments, a county shall approve or disapprove the
amendments to the land use assumptions, infrastructure improvements plan or
development fees. A county may not adopt an ordinance, order or resolution
approving the amended land use assumptions, infrastructure improvements plan or
development fees as an emergency measure.
7. The
advisory committee established under subsection I of this section shall file
its written comments on any proposed or updated land use assumptions,
infrastructure improvements plan and development fees before the fifth business
day before the date of the public hearing on the proposed or updated land use
assumptions, infrastructure improvements plan and development fees.
8. If,
at the time an update as prescribed in paragraph 3 of this subsection is
required, the county determines that no changes to the land use assumptions,
infrastructure improvements plan or development fees are needed, the county, as
an alternative to the updating requirements of this subsection, may publish
notice of the determination on the county's website that includes the
following:
(a) A
statement that the county has determined that no change to the land use
assumptions, infrastructure improvements plan or development fees is necessary.
(b) A
description and map of the service area in which an update has been determined
to be unnecessary.
(c) A
statement that by a specified date, which shall be at least sixty days after
the date of publication of the first notice, a person may request to the county
in writing that the county update the land use assumptions, infrastructure
improvements plan or development fees.
(d) A
statement identifying the person or entity to whom the written request for an
update should be sent.
9. If,
by the date specified pursuant to paragraph 8 of this subsection, a person
requests in writing that the county update the land use assumptions,
infrastructure improvements plan or development fees, the county shall cause,
accept or reject an update of the land use assumptions, infrastructure
improvements plan or development fees to be prepared pursuant to this section.
10. Notwithstanding
the notice and hearing requirements for adoption of an infrastructure
improvements plan, the county may amend an infrastructure improvements plan
without a public hearing if the amendment addresses only elements of necessary
public services in the existing infrastructure improvements plan and the
changes to the plan will not, individually or cumulatively with other
amendments adopted pursuant to this subsection, increase the level of service
in the service area or cause an increase in development fees that is greater
than five percent when new or modified development fees are assessed pursuant
to this section. The county shall provide notice of the amendment at least
thirty days before adoption, shall post the amendment on the county's website
and shall provide notice to the advisory committee established pursuant to
subsection I of this section that the amendment complies with this subsection.
F. For
each necessary public service that is the subject of development fees, the
infrastructure improvements plan shall include:
1. A
description of the existing necessary public services in the service area and
the costs to upgrade, update, improve, expand, correct or replace those
necessary public services to meet existing needs and usage and stricter safety,
efficiency, environmental or regulatory standards. The description shall be
prepared by qualified professionals who are licensed in this state, as
applicable.
2. An
analysis of the total capacity, the level of current usage and commitments for
usage of capacity of the existing necessary public services. The analysis shall
be prepared by qualified professionals who are licensed in this state, as applicable.
3. A
description of all or the parts of the necessary public services or facility
expansions and their costs necessitated by and attributable to new development
in the service area based on the approved land use assumptions, including a
forecast of the cost of infrastructure, improvements, real property, financing,
engineering and architectural services. The description shall be prepared by
qualified professionals who are licensed in this state, as applicable.
4. A
table that establishes the specific level or quantity of use, consumption,
generation or discharge of a service unit for each category of necessary public
services or facility expansions and an equivalency or conversion table that
establishes the ratio of a service unit to various types of land uses,
including residential, commercial and industrial.
5. A
description of all the costs necessitated by ongoing maintenance and operations
of the necessary public services once construction is completed and a
description of the source of revenue to be used to fund the maintenance and
operations.
6. The
total number of projected service units necessitated by and attributable to new
development in the service area based on the approved land use assumptions and
calculated pursuant to generally accepted engineering and planning criteria.
7. The
projected demand for necessary public services or facility expansions required
by new service units for a period of not more than ten years.
8. A
forecast of revenues generated by new service units other than development
fees, including estimated state shared revenue, highway user revenue, federal
revenue, ad valorem property taxes, construction contracting or similar excise
taxes and the capital recovery portion of utility fees attributable to
development based on the approved land use assumptions, and a plan to include
these contributions in determining the extent of the burden imposed by the
development as required in subsection B, paragraph 12 of this section.
G. A
county's infrastructure improvements plan may identify necessary public
services or facility expansions that the county plans to construct beyond the
time period provided for in subsection J, paragraph 3 of this section but may
not include the costs of those necessary public services or facility expansions
in the calculation of development fees.
H. A
county's development fees ordinance shall provide:
1. That
new development fees or an increased portion of modified development fees may
not be assessed against a development for twenty-four months after the
date that the county issues the final approval for a commercial, industrial or
multifamily development or the date that the first building permit is issued
for a residential development pursuant to an approved site plan or subdivision
plat, only if subsequent changes are not made to the approved site plan or
subdivision plat that would increase the number of service units. If
the number of service units increases, the new or increased portion of modified
development fees shall be limited to the amount attributable to the additional
service units. The period is not extended by a renewal or amendment of the site
plan or the final subdivision plat that was the subject of the final approval.
The county shall issue, on request, a written statement of the development fees
schedule applicable to the development. If, after the date of the
county's final approval of a development, the county reduces the development
fees assessed on development, the reduced fees shall apply to the development.
2. A
process for a development to request an alternative development fee calculation
or change in category of development that appears on an adopted development fee
schedule based on a projection that the actual burdens and costs associated with
the county's provision of necessary public services or facility expansions to
the development that are to be paid by development fees will differ
substantially from those costs projected by the county or will be substantially
less than the amount projected to be paid by development fees. The county
manager or the county manager's designee shall review the request and make a
determination as to the development fee to be assessed. The assessed
development fee shall have a substantial nexus to the actual burdens and costs
associated with providing the necessary public services or facility expansions
to that development that are to be funded by development fees. The
determination of the county manager is appealable to the board of supervisors.
I. A
county shall do one of the following:
1. Before
the adoption of the proposed or updated land use assumptions, infrastructure
improvements plan and development fees as prescribed in subsection E of this
section, appoint an infrastructure improvements advisory committee, subject to
the following requirements:
(a) The
advisory committee shall be composed of at least five members who are appointed
by the board of supervisors. At least fifty percent of the members of the
advisory committee must be representatives of the real estate, development or
building industries, of which at least one member of the committee must be from
the home building industry. Members may not be employees or officials of the
county.
(b) The
advisory committee shall serve in an advisory capacity and shall:
(i) Advise
the county in adopting land use assumptions and in determining whether the
assumptions are in conformance with the general plan of the county.
(ii) Review
the infrastructure improvements plan and file written comments.
(iii) Monitor
and evaluate implementation of the infrastructure improvements plan.
(iv) Every
year file reports with respect to the progress of the infrastructure
improvements plan and the collection and expenditures of development fees and
report to the county any perceived inequities in implementing the
infrastructure improvements plan or assessing the development fees.
(v) Advise
the county of the need to update or revise the land use assumptions,
infrastructure improvements plan and development fees.
(c) The
county shall make available to the advisory committee any professional reports
with respect to developing and implementing the infrastructure improvements
plan.
(d) The
county shall adopt procedural rules for the advisory committee to follow in
carrying out the advisory committee's duties.
2. Provide
for a biennial certified audit of the county's land use assumptions,
infrastructure improvements plan and development fees. An audit
pursuant to this paragraph shall be conducted by one or more qualified
professionals who are not employees or officials of the county and who did not
prepare the infrastructure improvements plan. The audit shall review the
progress of the infrastructure improvements plan, including the collection and
expenditures of development fees for each project in the infrastructure
improvements plan, and evaluate any inequities in implementing the
infrastructure improvements plan or imposing the development
fees. The county shall post the findings of the audit on the
county's website and shall conduct a public hearing on the audit within sixty
days after the release of the audit to the public.
J. On
written request, an owner of real property for which development fees have been
paid after December 31, 2020 is entitled to a refund of the development fees or
any part of the development fees if:
1. Pursuant
to subsection B, paragraph 6 of this section, existing facilities are available
and service is not provided.
2. The
county, after collecting the fees to construct a facility when service is not
available, has failed to complete construction within the time period
identified in the infrastructure improvements plan, but in no event later than
the time period specified in paragraph 3 of this subsection.
3. For
development fees other than development fees for water or wastewater
facilities, any part of the development fees is not spent as authorized by this
section within ten years after the fees have been paid or, for development fees
for water or wastewater facilities, any part of the development fees is not
spent as authorized by this section within fifteen years after the development
fees have been paid.
K. If
the development fees were collected for the construction of all or a portion of
a specific item of infrastructure, and on completion of the infrastructure the
county determines that the actual cost of construction was less than the forecasted
cost of construction on which the development fees were based and the
difference between the actual and estimated cost is greater than ten percent,
the current owner may receive a refund of the portion of the development fees
equal to the difference between the development fees paid and the development
fees that would have been due if the development fees had been calculated at
the actual construction cost.
L. A
refund shall include any interest earned by the county from the date of
collection to the date of refund on the amount of the refunded fees. All
refunds shall be paid to the owner of record of the property at the time the
refund is paid. If the development fees are paid by a governmental
entity, the refund shall be paid to the governmental entity.
M. Development
fees that were adopted before January 1, 2017 may continue to be assessed only
to the extent that the development fees will be used to provide a necessary
public service for which development fees can be assessed pursuant to this
section and shall be replaced by development fees imposed under this section on
or before January 1, 2021. Any county having development fees that have not
been replaced under this section on or before January 1, 2021 may not collect
development fees until the development fees have been replaced with fees that
comply with this section. Development fees adopted or amended by a county after
January 1, 2017 shall comply with this section. Any development fees monies
collected before January 1, 2017 remaining in a development fees account:
1. Shall
be used
towards
TOWARD
the same
category of necessary public services as authorized by this section.
2.
And
tHAT WERE
collected for a purpose not
authorized by this section shall be used for the purpose for which the
development fees were collected on or before January 1, 2024, and after which,
if not spent, shall be distributed equally among the categories of necessary
public services authorized by this section.
N. A
moratorium may not be placed on development for the sole purpose of awaiting
completion of all or any part of the process necessary to develop, adopt or
update development fees.
O. In
any judicial action interpreting this section all powers conferred on a county
by this section shall be narrowly construed to ensure that development fees are
not used to impose on new residents a burden all taxpayers of a county should bear
equally.
P. Each county that assesses development fees shall
submit an annual report accounting for the collection and use of the fees for
each service area. The annual report shall include the following:
1. The amount assessed by the county for each type
of development fee.
2. The balance of each fund maintained for each type
of development fee assessed as of the beginning and end of the fiscal year.
3. The amount of interest or other earnings on the
monies in each fund as of the end of the fiscal year.
4. The amount of development fee monies used to
repay:
(a) Bonds issued by the county to pay the cost of a
necessary public service that is the subject of a development fees assessment,
including the amount needed to repay the debt service obligations on each
facility for which development fees have been identified as the source of
funding and the time frames in which the debt service will be repaid.
(b) Monies advanced by the county from funds other
than the funds established for development fees in order to pay the cost of a
necessary public service that is the subject of a development fees assessment,
the total amount advanced by the county for each facility, the source of the
monies advanced and the terms under which the monies will be repaid to the
county.
5. The amount of development fees monies spent on
each necessary public service or facility expansion that is the subject of a
development fees assessment and the physical location of each capital
improvement project.
6. The amount of development fees monies spent for
each purpose other than a necessary public service or facility expansion that
is the subject of a development fees assessment.
Q. Within ninety days following the end of each
fiscal year, each county shall submit a copy of the annual report to the clerk
of the board of supervisors and post the annual report on the county's website.
Copies shall be made available to the public on request. The annual report may
contain financial information that has not been audited.
R. A county that fails to file the report and post
the annual report on the county's website as required by this section shall not
collect development fees until the report is filed and posted.
S. Any
action to collect development fees shall be commenced within two years after
the obligation to pay the development fees accrues.
T. A
county may continue to assess development fees adopted before January 1, 2017
for any facility that was financed before June 1, 2016 if:
1. Development
fees were pledged to repay debt service obligations related to the construction
of the facility.
2. After
January 1, 2018, any development fees collected under this subsection are used
solely for the payment of principal and interest on the portion of the bonds,
notes or other debt service obligations issued before June 1, 2016 to finance
construction of the facility.
U. Through
January 1, 2018, development fees adopted before January 1, 2017 may be used to
finance construction of a facility and may be pledged to repay debt service
obligations if:
1. The
facility that is being financed is a facility that is described under
subsection V, paragraph 7, subdivision (a), (b), (c), (d) or (e) of this
section.
2. The
facility was included in an infrastructure improvements plan adopted before
June 1, 2016.
3. The
development fees are used for the payment of principal and interest on the
portion of the bonds, notes or other debt service obligations issued to finance
construction of the necessary public services or facility expansions identified
in the infrastructure improvements plan.
V. For
the purposes of this section:
1. "Dedication"
means the actual conveyance date or the date an improvement, facility or real
or personal property is placed into service, whichever occurs first.
2. "Development"
means:
(a) The
subdivision of land.
(b) The
construction, reconstruction, conversion, structural alteration, relocation or
enlargement of any structure that adds or increases the number of service
units.
(c) Any
use or extension of the use of land that increases the number of service units.
3. "Facility
expansion" means the expansion of the capacity of an existing facility
that serves the same function as an otherwise new necessary public service in
order that the existing facility may serve new development. Facility expansion
does not include the repair, maintenance, modernization or expansion of an
existing facility to better serve existing development.
4. "Final
approval" means, for nonresidential or multifamily development, the
approval of a site plan or, if no site plan is submitted for the development,
the approval of a final subdivision plat.
5. "Infrastructure
improvements plan" means a written plan that identifies each necessary
public service or facility expansion that is proposed to be the subject of
development fees and otherwise complies with the requirements of this section
and may be the county's capital improvements plan.
6. "Land
use assumptions" means projections of changes in land uses, densities,
intensities and population for a specified service area over a period of at
least ten years and pursuant to the general plan of the county.
7. "Necessary
public service" means any of the following facilities that have a life
expectancy of three or more years and that are owned and operated by or on
behalf of the county:
(a) Water
facilities, including the supply, transportation, treatment, purification and
distribution of water, and any appurtenances for those facilities.
(b) Wastewater
facilities, including collection, interception, transportation, treatment and
disposal of wastewater, and any appurtenances for those facilities.
(c) Street
facilities located in the service area, including arterial or collector streets
or roads that have been designated on an officially adopted plan of the county,
traffic signals and rights-of-way and improvements
thereon. Improvements to rights-of-way do not include streetcars,
railways or other forms of transportation and their corresponding tracks.
(d) Public
safety facilities, including all appurtenances, equipment and
vehicles. Public safety facilities do not include a facility or
portion of a facility that is used to replace services that were once provided
elsewhere in the county, vehicles and equipment used to provide administrative
services, helicopters or airplanes, paramilitary vehicles, court and judicial
facilities, facilities that are used for training firefighters or officers from
more than one station or substation or jail, correctional or detention
facilities.
(e) Neighborhood
parks and recreational facilities on real property up to thirty acres in area,
or parks and recreational facilities larger than thirty acres if the facilities
provide a direct benefit to the development. Parks and recreational facilities
do not include vehicles, equipment of that portion of any facility that is used
for amusement parks, aquariums, aquatic centers, auditoriums, arenas, arts and
cultural facilities, bandstand and orchestra facilities, bathhouses,
boathouses, clubhouses, community centers greater than three thousand square
feet in floor area, environmental education centers, equestrian facilities,
trails, golf course facilities, greenhouses, lakes, museums, theme parks, water
reclamation or riparian areas, wetlands, zoo facilities or similar recreational
facilities, but may include swimming pools and equipment or improvements
constituting accessory or incidental amenities to a park or recreational
facility allowed under this section.
(f) Any
facility that was financed and that meets all of the requirements prescribed in
subsection T of this section.
8. "Qualified
professional" means a professional engineer, surveyor, financial analyst
or planner providing services within the scope of the person's license,
education or experience.
9. "Service
area" means any specified area within the boundaries of a county in which
development will be served by necessary public services or facility expansions
and within which a substantial nexus exists between the necessary public
services or facility expansions and the development being served as prescribed
in the infrastructure improvements plan.
10. "Service
unit" means a standardized measure of consumption, use, generation or
discharge attributable to an individual unit of development calculated using
data specific to the service area in which the facility will be located and
pursuant to generally accepted engineering or planning standards for a
particular category of necessary public services or facility expansions.
END_STATUTE
Sec. 5. Title 48, Arizona Revised Statutes, is
amended by adding chapter 40, to read:
CHAPTER
40
state
affordability
infrastructure
DISTRICTs
Article 1. general
PROVISIONS
START_STATUTE
48-7001.
Definitions
In this CHAPTER, unless the context otherwise
requires:
1. "ad valorem tax" means
the
secondary property taxes levied by a district against
the net assessED limited property valuation of real and personal property in
the district.
2. "Assessment" means a
charge for the costs of any public infrastructure PURPOSE levied by the
district against specific real property within the district for the costs of
any public infrastructure purpose based on the benefit determined by the board
to be received by the specific real property against which the assessment is
levied.
3. "authority" means THE
aRIZONA FINANCE AUTHORITY ESTABLISHED BY SECTION 41-5352.
4. "Board" means the board
of directors of a district created pursuant to this CHAPTER.
5. "Bonds":
(
a
) means any
bond PRESCRIBED by this CHAPTER and issued by a district.
(
b
) Includes
general obligation bonds, assessment bonds, revenue bonds and refunding bonds.
6. "Clerk" means THE person
appointed by the board to be the district clerk.
7. "County" means the
county in which a district is formed pursuant to this CHAPTER.
8. "Debt service" means the
principal of, interest on and premium, if any, on the bonds, when due, whether
at maturity or prior redemption and fees and costs of registrars, trustees,
paying agents or other agents necessary to handle the bonds and the costs of
credit enhancement or liquidity support.
9. "District" means A STATE
affordability infrastructure district formed pursuant to
this CHAPTER.
10. "executive director"
means the executive director of the authority or the executive director's
designee.
11. "Financing plan" means
the district's CAPITAL plan containing financial PROJECTIONS, engineering
studies, cost allocation, sequencing and market-value analyses.
12. "Formation order" means
the written order issued by the authority evidencing its final approval of the
formation of a district pursuant to this chapter.
13. "General plan" means
the general plan described in section 48-7002, subsection B, as the plan
may be amended.
14. "Market value" has the
same meaning PRESCRIBED in section 28-7091, as indicated by an appraisal
of the real property by an appraiser who is licensed or certified pursuant to
title 32, chapter 36.
15. "maximum authorized tax
rate" means the maximum tax rate for ad valorem taxes pledged to secure
general obligation bonds approved at an election authorizing the levy of ad
valorem taxes and the issuance of general obligation bonds and indicated in the
petition, provided that the maximum authorized tax rate shall not exceed $5 per
$100 of net assessed limited property valuation of property within the
boundaries of the district, except as PRESCRIBED IN section 48-7021, subsection
B.
16. "Municipality" means a
city or town
in which a district is formed pursuant to
this chapter.
17. "net premium" means the
difference between the par amount of the general obligation bond issue and the
general obligation bond issue price that is determined pursuant to united
states department of the treasury regulations.
18. "O/M tax" means a
secondary property tax levied to pay the expenses of operating, maintaining and
administering the DISTRICT and the public infrastructure financed by the
district, including legal expenses and expenses associated with insurance
coverage, as approved by the district in its budget.
19. "owner" means the
person or entity that, on the day the action, election or proceeding is begun
or held, appears to be the fee-title owner of real property as shown on the
property tax assessment roll.
20. "Petition" means a
petition submitted to the AUTHORITY to initiate formation of a district
pursuant to this chapter.
21. "Petitioner" means the
person or entity that initiates the formation of a district by submitting a
petition to the authority pursuant to this chapter and includes any SUCCESSOR
or assignee of that person or entity that the authority recognizes as the
petitioner for the purposes of the petition and formation order.
22. "Public Infrastructure"
means
all improvements
listed in this paragraph that will result in a beneficial use principally to
land within the geographical limits of the district and may include a
district's share of any improvements listed in this paragraph if the district
board determines such share is proportionate to the beneficial use of such
improvements to land within the geographical limits of the district,
improvements within or outside the geographical limits of the district,
necessary or incidental work, including land clearance and environmental
remediation activities, whether newly constructed, renovated or existing, and
all necessary or desirable appurtenances. For the purposes of this
paragraph, adoption by the district board of a resolution of intent pursuant to
section 48-7008 shall conclusively establish that the improvements or, if
applicable, share of the improvements that are the subject of the resolution
will result in a beneficial use principally to land within the geographical
limits of the district. Public infrastructure improvements are:
(
a
) Water,
wastewater, sewer, stormwater and flood control facilities and appurtenances
used for the DEVELOPMENT, treatment, storage, conveyance, control, reuse,
distribution, connection and lawful disposition of potable and nonpotable
water, wastewater, stormwater and floodwaters for residential, commercial,
governmental, irrigation and fire-suppression uses, EXCLUDING infrastructure
dedicated primarily to agricultural irrigation facilities impacted by other
improvements authorized by this CHAPTER, all to the extent located within or
necessary to serve the district.� NOTWITHSTANDING any other PROVISION of this
chapter, a district shall not finance, construct, acquire, install, own or
operate any water, wastewater, sewer or related facilities described in this
chapter if those facilities are located or will be located within the
CERTIFICATED service territory of any public service corporation that holds a
certificate of convenience and necessity issued pursuant to title 40, chapter
2, article 4, unless the affected public service corporation has provided prior
written authorization to the DISTRICT.� If the affected public service
corporation PROVIDES that written AUTHORIZATION, the district must plan,
design, engineer, construct and install the water, wastewater, sewer or related
facilities in coordination with and to the standards of the affected public
service corporation and shall convey OWNERSHIP of these facilities to the
public service corporation on completion.
(
b
) Transportation
and mobility facilities, improvements and appurtenances used to provide
vehicular and nonvehicular circulation, access, egress and parking, including
streets, roads, highways, bridges, alleys, parking facilities, sidewalks, trails,
pathways, bicycle facilities, equestrian routes and other areas and
improvements intended for motorized and nonmotorized travel and parking, and,
if located within or necessary to serve the district, railway corridors, rail
crossings, grade separations, sidings, signalization and related rail
transportation facilities and traffic management and control facilities and
devices, including signals, intelligent transportation systems, controls,
pavement markings, wayfinding, signage and lighting and illuminations systems,
including street lighting, pathway lighting, area lighting and related
electrical and control facilities.
(
c
) Public
realm and open space amenities, including pedestrian malls, parks, plazas,
recreational facilities other than stadiums, and other areas and improvements
intended for public entertainment, assembly, and recreation, together with
landscaping, grading, earthworks, structures,
plantings,
trees, irrigation and water delivery systems and related site
improvements. CONSTRUCTION OR MAINTENANCE OF WATER PARKS OR
DECORATIVE WATER FEATURES, INCLUDING LAKES, PONDS OR LAGOONS, IS PROHIBITED,
EXCEPT AS PROVIDED IN SECTION 45-132, SUBSECTION B, PARAGRAPH 4.
(
d
) Public
buildings and public safety facilities, including police, fire and emergency
services facilities and related improvements.
(
e
) Communications
and digital infrastructure, including fiberoptic, wireless and broadband
facilities, conduitS, towers, antennas, data transmission systems, network
equipment, public safety communications facilities, and related appurtenances
and rights-of-way.
(
f
) Equipment,
vehicles, furnishings, technology and other personal property and appurtenances
related to or necessary for the operation of any public infrastructure
authorized by this CHAPTER.
(
g
) Refinancing
any matured or unmatured bonds with new bonds.
23. "Public infrastructure
purpose" means:
(
a
) Planning,
designING, engineering, constructiNG, acquiRING or installinG public
infrastructure.
(
b
) Acquiring,
converting, renovating or improving existing facilities for public
infrastructure.
(
c
) Acquiring
interests in real property for public infrastructure.
(
d
) Establishing,
maintaining and replenishing reserves in order to secure payment of debt
service on bonds.
(
e
) Funding and
paying from bond proceeds interest accruing on bonds for a period of not to
exceed three years after their date of issuance AND COSTS OF ISSUANCE OF THE
BONDS AND UNDERWRITER AND PLACEMENT AGENT FEEs.
(
f
) Providing
for the timely payment of debt service on indebtedness of the district or of
development fees or similar exactions imposed by a municipality or other public
entity, to the extent THOSE charges are imposed to fund public infrastructure
that is located within, primarily serves or is necessitated by development
within the district.
(
g
) Refinancing
any matured or unmatured bonds with new bonds.
(
h
) Incurring
expenses of the district THAT ARE incidentAL to and reasonably necessary to
carry out the purposes specified in this paragraph.
24. "qualified elector"
means a person who is a qualified elector pursuant to title 16 and who resides
within the boundaries of a district.
25. "Treasurer" means THE
person appointed by the board TO BE the district treasurer.
END_STATUTE
START_STATUTE
48-7002.
Petition to form district; contents of petition; filings;
limitation of liability
A. a
STATE AFFORDABILITY
infrastructure district may be formed
pursuant to this chapter by petition of all individuals and entities having fee-title
ownership of all real property in the proposed district. The petition shall be
submitted to the authority. The district may include contiguous or
noncontiguous property, PROVIDED THAT ALL NONCONTIGUOUS PROPERTY SHALL BE
LOCATED IN THE SAME COUNTY AND SHALL LIE WITHIN FIVE MILES OF THE BOUNDARY OF
OTHER PROPERTY WITHIN THE DISTRICT, MEASURED IN A STRAIGHT LINE BETWEEN SUCH
PARCEL BOUNDARIES. IF ANY PORTION OF A DISTRICT IS LOCATED WITHIN
THE CORPORATE LIMITS OF A MUNICIPALITY, THE ENTIRE DISTRICT SHALL AT ALL TIMES
BE LOCATED WITHIN THE CORPORATE LIMITS OR WITHIN THE ADOPTED PLANNING AREA OF
THAT MUNICIPALITY, AS SUCH LIMITS OR PLANNING AREA MAY BE AMENDED FROM TIME TO
TIME.
B. The petition shall contain all of
the following:
1. A metes and bounds description and
a map of the district boundaries.
2. The proposed name of the district.
3. A general plan setting out a
general description of the public infrastructure for which the district is
proposed to be formed and for which bonds may be issued, the general areas to
be improved and the estimated costs of constructing or acquiring the public
infrastructure to be financed, constructed or acquired by the district.
4. A general description of the
estimated cost of engineering services, legal services, administrative services
and other major expenses that are related to organizing and initially operating
the district.
5. An engineer's estimate of the
costs of the public infrastructure for which the district is proposed to be
formed and for which bonds may be issued.
6. The maximum authorized tax rate,
the maximum aggregate principal amount of general obligation bonds and the
maximum aggregate assessment amount, if any.
7. The maximum O/M tax rate, if any.
8. A PRELIMINARY FINANCING PLAN THAT
INCLUDES THE ANTICIPATED SOURCES AND USES OF MONIES FOR THE PUBLIC
INFRASTRUCTURE.
9. IF THE DISTRICT PROPOSES TO ISSUE
ASSESSMENT BONDS, An appraisal or an opinion of value prepared by a licensed
real estate broker indicating the aggregate as
-is
value of real property in the district and THE PROJECTED VALUE OF THE REAL
PROPERTY AND IMPROVEMENTS IN THE DISTRICT AFTER COMPLETION OF THE PUBLIC
INFRASTRUCTURE PROPOSED TO BE FINANCED WITH SUCH ASSESSMENT BONDS.
10. IF THE DISTRICT PROPOSES TO ISSUE
GENERAL OBLIGATION BONDS, A THIRD-PARTY MARKET STUDY THAT INCLUDES PROJECTIONS
OF the limited property value of real property in the district for each year in
which general obligation bonds are proposed to be outstanding, TOGETHER WITH
INFORMATION DEMONSTRATING THAT DEBT SERVICE ON SUCH BONDS CAN BE SUPPORTED
WITHIN THE MAXIMUM AUTHORIZED TAX RATE.
11. A statement of all holders of fee
title to all real property in the district, the initial board members, the
initial terms of office of the initial board members and the district clerk and
the district treasurer.
12. A statement of bond counsel
indicating that the petition complies with the procedural requirements of this
section.
13. A copy of any EXISTING AND
APPLICABLE development agreement or other agreement with the municipality or
the county that relates to
public infrastructure and that
is recorded against the land included within the boundaries of the DISTRICT,
AND A CERTIFICATION
by the petitioner THAT THE FORMATION
OF THE DISTRICT WILL NOT VIOLATE ANY SUCH AGREEMENT.
14. A written statement, signed by an
engineer, certifying that the estimated cost of the public infrastructure to be
constructed in the proposed district exceeds $5,000,000.
15. A SUMMARY OF THE ANTICIPATED
COMMUNITY BENEFITS OF FORMING THE DISTRICT, INCLUDING EXPECTED IMPACTS ON
PUBLIC INFRASTRUCTURE TIMING, HOUSING ATTAINABILITY AND ECONOMIC DEVELOPMENT,
TOGETHER WITH A DESCRIPTION OF ANY MATERIAL RISKS ASSOCIATED WITH DISTRICT
FORMATION AND IMPLEMENTATION OF THE GENERAL PLAN, INCLUDING POTENTIAL TAX,
ASSESSMENT AND FISCAL IMPACTS ON OWNERS OF REAL PROPERTY IN THE DISTRICT.
16. A formation order in
substantially final and recordable form.
17. A
description of the petitioner, including:
(
a
) The LEGAL NAME of each entity or individual HAVING FEE-TITLE
OWNERSHIP OF ANY REAL PROPERTY in the proposed district.
(
b
) The name,
address and telephone number of the primary contact for the petitioner.
(
c
) The names
of any legal representatives, engineers, architects, financial consultants or
other consultants that are significantly involved in the petition.
(
d
) A general
description of the petitioner's experience with similar types of developments
that the district will support.
C. Any financial burden of a district
is borne solely by the district and is not borne by the authority, this state
or any municipality, county or other political subdivision of this state. Any
liability, judgment or claim against a district is the sole responsibility of
the district and does not constitute a liability, judgment or claim against the
authority, this state or any municipality, county or other political
subdivision of this state.
d. The petition shall be filed with
the authority. The petitioner shall provide written notice of the filing of the
petition to each affected municipality and, if the district is located in an
unincorporated area, to the county. The notice shall state that the district
will be formed not less than thirty days and not more than sixty days after
submitting the petition, subject to approval by the authority
, AND THAT THE MUNICIPALITY OR THE COUNTY, AS APPLICABLE, MAY SUBMIT
TO THE AUTHORITY WITHIN THIRTY DAYS after THE FILING OF THE PETITION A WRITTEN
NOTICE THAT IDENTIFIES A BASIS FOR DENIAL OF THE PETITION PURSUANT TO SECTION
48-7003, subsection d, paragraph 4.
e. If the authority determines that
the petition is incomplete or deficient, the petitioner shall have a period of
sixty days after WRITTEN notice of the deficiencies to SUBMIT CORRECTIONS OF
the deficiencies. If the CORRECTIONS OF THE deficiencies are not SUBMITTED TO
THE AUTHORITY within sixty days after notice OR DO NOT CORRECT THE
DEFICIENCIES, the authority may reject the petition
pursuant
to section 48-7003, subsection D.
F. FOR the PURPOSES OF THIS CHAPTER,
ALL CERTIFICATIONS, DETERMINATIONS, APPROVALS, FINDINGS AND ACTIONS REQUIRED TO
BE MADE BY THE AUTHORITY SHALL BE MADE BY THE EXECUTIVE DIRECTOR. NO
ACTION, APPROVAL, RESOLUTION OR VOTE OF THE BOARD OF DIRECTORS OF THE AUTHORITY
IS REQUIRED FOR ANY CERTIFICATION, DETERMINATION OR ACTION TAKEN BY THE
EXECUTIVE DIRECTOR PURSUANT TO THIS CHAPTER. ANY ACTION TAKEN BY THE
EXECUTIVE DIRECTOR PURSUANT TO THIS CHAPTER IS DEEMED AN ACTION OF THE
AUTHORITY.
END_STATUTE
START_STATUTE
48-7003.
Authority; formation order; limitations on rejection; fees
A. A district shall be formed only on
the issuance of a formation order by the authority. The authority shall review
the petition submitted pursuant to section 48-7002 and accompanying
materials to evaluate, solely on the basis of the information included with the
petition, the following:
1. WHETHER ANY APPRAISAL, THIRD-PARTY
MARKET STUDY or opinion of value that is PROVIDED IN CONNECTION WITH THE
PETITION IS COMPLETE.
2. whether the description of the
proposed public infrastructure IN THE GENERAL PLAN APPEARS COMPLETE ON ITS FACE
AND DOES NOT CONTAIN OBVIOUS ERRORS, WITHOUT ANY INDEPENDENT ENGINEERING
INVESTIGATION, ANALYSIS OR VERIFICATION.
3.
WHETHER THE PRELIMINARY FINANCING PLAN INCLUDES THE
ANTICIPATED SOURCES AND USES OF MONIES FOR THE PUBLIC INFRASTRUCTURE.
4. Whether the district is REASONABLY
EXPECTED TO HAVE THE FINANCIAL ABILITY TO DISCHARGE ITS PROPOSED INDEBTEDNESS
WITHIN THE MAXIMUM AUTHORIZED TAX RATE AND MAXIMUM AGGREGATE ASSESSMENT AMOUNT,
AS APPLICABLE.
5. Whether formation of the district
will violate any existing and applicable development AGREEMENT or other
agreement with the municipality or the county that relates to the land included
within the
boundaries of
the district
THAT WAS
SUBMITTED TO THE AUTHORITY IN CONNECTION WITH THE PETITION.
b. The authority shall approve
formation of the district and issue the formation order for the district if the
authority finds that all of the following occurred:
1. All required documents have been
submitted in the form prescribed by this chapter.
2. The proposed district meets all
statutory eligibility and boundary requirements that are established under this
chapter.
3. The notice to each affected
municipality and, if the district is located in an unincorporated area, to the
county has been provided as prescribed by section 48-7002, subsection D.
4. solely on the basis of THE
INFORMATION SUBMITTED IN CONNECTION WITH THE PETITION, INCLUDING ANY APPRAISAL,
THIRD-PARTY MARKET STUDY or opinion OF VALUE, the district has, or will have,
the financial ability to discharge ITS proposed indebtedness WITHIN THE MAXIMUM
AUTHORIZED TAX RATE AND MAXIMUM AGGREGATE ASSESSMENT AMOUNT, AS APPLICABLE.
c. If the requirements of subsection
B of this section are satisfied, the authority shall issue a formation order
within sixty days after the submission of a complete petition.� The formation
order shall include all of the following:
1. The name of the district.
2. A metes and bounds description and
a map of the district's boundaries.
3. A general description of the
public infrastructure that the DISTRICT may finance.
4. A statement that a general plan
and a preliminary financing plan for the district WILL BE on file with the
clerk.
5. The types of bonds that the
district is authorized to issue.
6. The maximum authorized tax rate,
the maximum authorized aggregate principal amount of general obligation bonds,
the maximum aggregate assessment amount and the maximum O/M tax rate.
7. The names and initial terms of the
initial board of directors and that the district will be governed by directors
who are chosen pursuant to this chapter.
8. A statement that:
(
a
) The
formation of the district may result in the levy of ad valorem taxes or
assessments to pay the costs of authorized public infrastructure that is
constructed by the district and for operating and maintaining the authorized
public infrastructure.
(
b
) Any ad
valorem tax that is levied for the payment of general obligation bonds may not
be levied at a rate that exceeds the maximum authorized tax rate that is
approved at the election that authorized the levy and the issuance of the
bonds, except as prescribed in section 48-7021, subsection B.
(
c
) Any bonds
or other obligations of the district will not be a debt, legal or moral, of
this state or any municipality or any county of this state, are not obligations
of this state or any municipality or any county of this state, are obligations
of the district and are payable only from the sources pledged for their
payment.
d. The authority shall approve
formation of the district and issue the formation order if the authority
determines that the petition and accompanying materials meet the statutory
requirements of this chapter. The authority's review is limited to confirming
that the statutory requirements of this chapter have been satisfied and the
authority may deny a petition only on A WRITTEN FINDING OF ONE OF THE
FOLLOWING:
1. The petition is incomplete.
2. The financial information
SUBMITTED IN CONNECTION WITH THE PETITION, INCLUDING ANY APPRAISAL, THIRD-PARTY
MARKET STUDy or opinion of value, is incomplete or
illustrates
that the district will
not have the financial ability to
discharge its proposed indebtedness WITHIN THE MAXIMUM AUTHORIZED TAX RATE AND
MAXIMUM AGGREGATE ASSESSMENT AMOUNT, AS APPLICABLE.
3. The proposed district violates a
statutory prohibition or boundary rule under this chapter, and in each case the
petitioner failed to submit proposed corrections of the deficiencies within
sixty days after notice.
4. THE FORMATION OF THE PROPOSED
DISTRICT WILL MATERIALLY VIOLATE ANY EXISTING AND APPLICABLE DEVELOPMENT
AGREEMENT OR OTHER AGREEMENT WITH THE MUNICIPALITY OR THE COUNTY THAT RELATES
TO PUBLIC INFRASTRUCTURE AND that IS RECORDED AGAINST THE LAND INCLUDED WITHIN
THE BOUNDARIES OF THE DISTRICT WITH RESPECT TO THE DESIGN, CONSTRUCTION,
CONVEYANCE, OPERATION OR MAINTENANCE OF the PUBLIC INFRASTRUCTURE.
E. If the authority does not issue
the formation order within sixty days after submission of a complete petition,
the authority shall provide a written basis for not adopting the formation
order and shall identify the specific changes that are needed for the petition
to be approved and for the district to be formed. SUCH ACTION WILL NOT
CONSTITUTE A DENIAL OF THE PETITION AND The petition may be revised and
resubmitted at any time.
F. On issuance of the formation order
by the authority, the district shall cause the formation order to be recorded
in the real property records of the county in which the district is located and
shall cause a copy of the formation order to be delivered to the county
assessor and the board of supervisors of the county in which the district is
located, to any municipality in which the district is located and to the
department of revenue. On recording the formation order, the district is established
as a political subdivision of this state.
G. Before recording a formation order
under this section, a general plan for the district shall be recorded with the
county recorder of the county in which the district is located that sets out a
general description of the improvements for which the district is proposed to
be formed and the areas to be improved.
h. On formation, the district is a
special purpose district for the purposes of article IX, section 19,
Constitution of Arizona, a tax levying public improvement district for the
purposes of article XIII, section 7, Constitution of Arizona, and a municipal
corporation for all purposes of title 35, chapter 3, articles 3, 3.1, 3.2, 4
and 5. A district that distributes or sells groundwater is a private
water company only for the purposes of title 45, chapters 2 and
3.1. Except as otherwise provided in this section, a district is
considered to be a municipal corporation and political subdivision of this
state, separate and apart from any municipality or county in which the district
is located. Notwithstanding any other law, a district formed pursuant
to this chapter does not have the power of eminent domain and does not have the
power to enact zoning ordinances. Notwithstanding any other law, this chapter
does not impose any additional regulation or requirements on or alter the
service territory, including certificates of convenience and necessity, of any
county, irrigation district, electrical district, AGRICULTURAL IMPROVEMENT
district, municipality or public service corporation.
I. On formation of the district, the
board shall implement the general plan for the public infrastructure of the
district.
j. Fees and other charges assessed by
the authority in connection with the submission and consideration of a petition
to form a district may not exceed $15,000. If a petition is denied
by the authority, it may not assess a fee or other charge in connection with
submitting and considering a substantially similar petition that is submitted
within
ninety days after the denial. Fees and other
charges assessed by a district in connection with administering the district,
including the issuance and sale of bonds, may not exceed the actual expense
incurred by the district for staff and consultant services and support
facilities supplied by the district or the financial, legal and administrative
costs of the district that are not reimbursed from proceeds of the bonds or
other district revenue.
K. AFTER THE FORMATION ORDER IS
ISSUED, THE OWNERS OF AT LEAST FIFTY PERCENT OF THE LAND IN THE DISTRICT MAY
PETITION THE AUTHORITY TO AMEND THE FORMATION ORDER TO MODIFY THE POWERS OR
FINANCIAL PARAMETERS OF THE DISTRICT, INCLUDING ANY MAXIMUM AUTHORIZED TAX
RATE, MAXIMUM AUTHORIZED AGGREGATE PRINCIPAL AMOUNT OF GENERAL OBLIGATION
BONDS, MAXIMUM AGGREGATE ASSESSMENT AMOUNT OR MAXIMUM OPERATIONS AND
MAINTENANCE TAX RATE. ANY SUCH PETITION FOR AMENDMENT SHALL:
1. DESCRIBE THE PROPOSED AMENDMENTS
TO THE FORMATION ORDER AND GENERAL PLAN.
2. INCLUDE UPDATED FINANCIAL
INFORMATION, INCLUDING AN UPDATED PRELIMINARY FINANCING PLAN, SUFFICIENT TO
ALLOW THE AUTHORITY TO DETERMINE WHETHER THE DISTRICT IS REASONABLY EXPECTED TO
HAVE THE FINANCIAL ABILITY TO DISCHARGE ITS PROPOSED INDEBTEDNESS WITHIN THE
REVISED MAXIMUM AUTHORIZED TAX RATE AND MAXIMUM AGGREGATE ASSESSMENT AMOUNT, AS
APPLICABLE.
3. DEMONSTRATE THAT THE PROPOSED
AMENDMENTS DO NOT VIOLATE ANY APPLICABLE STATUTORY ELIGIBILITY OR BOUNDARY
REQUIREMENTS OR ANY DEVELOPMENT AGREEMENT OR OTHER AGREEMENT WITH THE
MUNICIPALITY OR COUNTY RELATING TO THE LAND WITHIN THE DISTRICT.
L. THE AUTHORITY SHALL REVIEW AND ACT
ON A PETITION FOR AMENDMENT UNDER THE STANDARDS AND WITHIN THE TIME PERIODS
PRESCRIBED IN SUBSECTIONS A THROUGH E OF THIS SECTION, AND, IF APPROVED, SHALL
ISSUE AND CAUSE TO BE RECORDED AN AMENDED FORMATION ORDER REFLECTING THE
APPROVED CHANGES.
M. ANY PETITION TO AMEND THE
FORMATION ORDER THAT INCREASES THE MAXIMUM AUTHORIZED TAX RATE OR MAXIMUM
AGGREGATE ASSESSMENT AMOUNT SHALL BE SIGNED BY ALL OWNERS OF ALL REAL PROPERTY
IN THE DISTRICT.
N. THE AUTHORITY�S ISSUANCE OF A
FORMATION ORDER PURSUANT TO THIS CHAPTER IS A GOVERNMENTAL DETERMINATION OF
STATEWIDE FINANCIAL COMPLIANCE AND DOES NOT CONSTITUTE ZONING, PLANNING OR
LAND-USE APPROVAL.
ANY ACTION OF THE AUTHORITY OR THE
EXECUTIVE DIRECTOR PURSUANT TO THIS ARTICLE IS THE EXERCISE OF AN
ADMINISTRATIVE FUNCTION INVOLVING THE DETERMINATION OF FUNDAMENTAL GOVERNMENTAL
POLICY AS PRESCRIBED IN SECTION 12-
820.01.
END_STATUTE
START_STATUTE
48-7004.
District governance; board of directors; elections; powers and
duties
A. On issuance of the formation
order, a district shall be governed by a board of directors that consists of
three directors. The initial directors shall be appointed as set forth in the
petition and formation order.
B. SUBJECT TO SUBSECTION J OF THIS
SECTION, Each director shall either hold a fee title to real property within
the district or be an individual who is designated or appointed by a holder of
a fee title to real property within the district.� A DIRECTOR WILL RESIGN FROM
THE BOARD OF DIRECTORS IF AT ANY TIME DURING SUCH DIRECTOR'S TERM THE DIRECTOR
IS NO LONGER AN OWNER OF REAL PROPERTY WITHIN THE DISTRICT OR, IF SUCH DIRECTOR
WAS DESIGNATED OR APPOINTED BY AN OWNER OF REAL PROPERTY WITHIN THE DISTRICT,
SUCH OWNER OF REAL PROPERTY WITHIN THE DISTRICT IS NO LONGER AN OWNER OF REAL
PROPERTY WITHIN THE DISTRICT. SUCH DIRECTOR'S VACANCY WILL BE FILLED
PURSUANT TO SUBSECTION H OF THIS SECTION.
c. The term of the initial directors
begins on the date of the formation order.� Of the initial directors, one
director shall serve a term of three years, one director shall serve a term of
four years and one director shall serve a term of five years, as specified in
the petition. Thereafter, each subsequently elected director shall serve a term
of three years. These subsequently elected directors shall be an
owner of real property in the district who shall be elected at large by the
owners of real property in the district, as shown on the property tax
assessment roll, who are qualified to vote pursuant to section 48-7041. The
board shall develop bylaws for the operation of the district.
d. Only the owners that hold fee
title to real property in the district and their respective designees and
appointees are eligible to vote in:
1. An election regarding an ad
valorem tax or an assessment to be levied against the real property in the
district.
2. An election for the board of the
district.
3. An election for dissolution of the
district.
E. Corporations, partnerships and
other business entities are eligible to vote as property owners, but only one
vote may be cast for each one
-seventh of an acre of
real property in the district, except that any fraction of ownership of real
property that is less than one
-seventh of an acre
entitles the owner to cast one vote. A majority of the acreage, as
represented by the votes cast at an election that is conducted solely under
this acreage system, determines the result of the election.
f. An election conducted under this
section shall be held as a special election of the district and shall be
noticed, called, conducted and canvassed by the board in the manner prescribed
by this chapter. The board may enter into intergovernmental
agreements with the county, a municipality or another public entity for
election administration, including reimbursement of reasonable costs of
district elections.
G. The board shall:
1. Adopt and amend the general plan
for the district.
2. Authorize and approve the issuance
of bonds of the district as provided by this chapter.
3. Levy ad valorem taxes and
assessments, subject to the limitations and election requirements of this
chapter, including the maximum authorized tax rate.
4. Manage and administer the affairs
of the district, including operating, maintaining and repairing public
infrastructure that is owned or operated by the district.
5. Adopt annual budgets, statements
and estimates for the district.
6. Administer district elections or
enter into intergovernmental agreements with the county, a municipality or
other qualified public entities to administer district elections.
7. Perform all other acts that are
necessary or convenient to carry out the purposes of this chapter.
h. If a vacancy occurs on the board
because of a death, a resignation or an inability of the director to discharge
the duties of director, the vacancy shall be filled by appointment made by the
remaining directors
WITHIN THIRTY DAYS OF a
VACANCY. THE BOARD SHALL PROVIDE WRITTEN NOTICE TO THE AUTHORITY
THAT the VACANCY HAS BEEN FILLED BY APPOINTMENT WITHIN THIRTY DAYS OF the
APPOINTMENT OR, IF THE REMAINING DIRECTORS HAVE NOT FILLED the VACANCY BY
APPOINTMENT, WRITTEN NOTICE TO THE AUTHORITY THAT the VACANCY HAS NOT BEEN
FILLED BY APPOINTMENT WITHIN THIRTY DAYS OF the VACANCY. A director
appointed by the remaining directors shall hold office for the remainder of the
unexpired term until the director's successor is elected as provided by article
3 of this chapter. A director shall not be an elected official of a
municipality in which the district is located or an Indian tribe or community
or an employee or agent of a municipality or Indian tribe or community but may
be a director of more than one district.
I. The members of the board are not
eligible to receive compensation for their services as members of the board.
J. IF A VACANCY OCCURS ON THE BOARD
BECAUSE OF DEATH, RESIGNATION OR INABILITY OF THE DIRECTOR TO DISCHARGE THE
DUTIES OF DIRECTOR, AND THERE ARE NO OWNERS OF REAL PROPERTY WITHIN THE
DISTRICT OR INDIVIDUALS DESIGNATED OR APPOINTED BY AN OWNER OF REAL PROPERTY
WITHIN THE DISTRICT WHO ARE WILLING TO FILL SUCH VACANCY, THE AUTHORITY SHALL
APPOINT A DIRECTOR TO FILL THE VACANCY. THE DIRECTOR APPOINTED BY
THE AUTHORITY IS NOT REQUIRED TO BE A FEE-TITLE OWNER OF REAL PROPERTY WITHIN
THE DISTRICT OR AN INDIVIDUAL DESIGNATED OR APPOINTED BY A FEE-TITLE OWNER OF
REAL PROPERTY WITHIN THE DISTRICT. THE DIRECTOR APPOINTED BY THE
AUTHORITY SHALL HOLD OFFICE FOR THE REMAINDER OF THE UNEXPIRED TERM AND UNTIL
THE DIRECTOR'S SUCCESSOR IS ELECTED, UNLESS A FEE-TITLE OWNER OF REAL PROPERTY
WITHIN THE DISTRICT SUBMITS A WRITTEN REQUEST TO THE AUTHORITY AND THE BOARD TO
REPLACE THE DIRECTOR APPOINTED BY THE AUTHORITY. IN THAT EVENT, THE
AUTHORITY SHALL, AS SOON AS PRACTICABLE, APPOINT THAT FEE-TITLE OWNER OF REAL
PROPERTY WITHIN THE DISTRICT TO REPLACE THE DIRECTOR APPOINTED BY THE
AUTHORITY.
K. THE BOARD SHALL COMPLY WITH TITLE
38, CHAPTER 3, ARTICLE 3.1 AS A SEPARATE POLITICAL SUBDIVISION.
END_STATUTE
START_STATUTE
48-7005.
Records; open meetings
A. A district shall keep the
following records, which shall be maintained by the clerk and open to public
inspection:
1. Minutes of all Board meetings.
2. All resolutions.
3. Accounts
showing all monies received and disbursed.
4. The annual budget.
5. All other records required to be
maintained by law.
B. The board shall comply with the
requirements of title 38, chapter 3, article 3.1 as a separate political
subdivision.
END_STATUTE
START_STATUTE
48-7006.
District powers
A. In addition to the powers
otherwise granted to a district pursuant to this chapter, a district, to
further implement the general plan, may:
1. Enter into contracts and expend
monies for any public infrastructure purpose with respect to the district,
including in connection with the acquisition, construction or installation of
public infrastructure, PROVIDED THAT A DISTRICT MAY NOT BE THE CONTRACTING
PARTY ON ANY CONSTRUCTION CONTRACT FOR PUBLIC INFRASTRUCTURE AND THE DISTRICT'S
ROLE WITH RESPECT TO THE CONSTRUCTION OF SUCH PUBLIC INFRASTRUCTURE SHALL BE
LIMITED TO ACQUIRING OR REIMBURSING THE COSTS OF SUCH PUBLIC INFRASTRUCTURE.
2. Enter into intergovernmental
agreements with this state, a county, a municipality or any other public agency
that is authorized by law to enter into intergovernmental agreements for the
planning, design, inspection, ownership, control, maintenance, operation or
repair of public infrastructure.
3. Enter into intergovernmental
agreements with the county, a municipality or another qualified public entity
for the administration of district elections, including agreements to reimburse
the public entity for the reasonable costs of district elections.
4. Sell, lease or otherwise dispose
of district property if the sale, lease or conveyance is not a violation of the
terms of any contract, bond resolution or trust indenture of the district.
5. Operate, maintain and repair
public infrastructure that is owned or operated by the district.
6. Establish, charge and collect user
fees, rates or other charges for the use of any
service
or public infrastructure of the district
other than
streets, roads or highways.
7. Employ or contract for staff,
counsel and consultants, including engineers, attorneys, accountants, financial
advisors, underwriters, administrators and election officials, to assist with
district and board administration, financing and election matters.
8. Incur
and repay loans, advances or other obligations for any public infrastructure
purpose, INCLUDING TO PROVIDE FOR THE PRESENT FINANCING OF COSTS TO BE
REIMBURSED FROM FUTURE DISTRICT REVENUES OR REIMBURSEMENTS RELATED TO PUBLIC
INFRASTRUCTURE.
9. Enter into agreements with
landowners and with a municipality or county for the collection of fees and
charges from landowners for public infrastructure purposes, for the advance of
monies by landowners for public infrastructure purposes or for the granting of
real property or interests in real property by a landowner for public
infrastructure purposes, AND RECOGNIZE, ASSIGN, CONFIRM OR CONSENT TO THE
ASSIGNMENT BY SUCH LANDOWNERS OF THEIR RIGHTS TO RECEIVE ANY REIMBURSEMENTS OR
PAYMENTS FROM THE DISTRICT FOR PUBLIC INFRASTRUCTURE COSTS, INCLUDING TO OR IN
FAVOR OF LENDERS, TRUSTEES OR OTHER FINANCING PARTIES.
10. By resolution, levy and assess
the costs of any public infrastructure purpose on any land that is benefited in
the district, subject to the limitations and election requirements of this
chapter, including the maximum authorized tax rate.
11. Pay the financial, legal and
administrative costs of the district.
12. Enter into contracts, agreements
and trust indentures to obtain credit enhancement or liquidity support for its
bonds and to provide for the issuance, registration, transfer and payment of
its bonds and for the disbursement and investment of bond proceeds.
13. Enter into agreements with
persons outside of the district to provide services to persons and property
outside of the district and to receive compensation for those services.
14. Use public easements and rights
-of
-way in or across public
property, roadways, highways, streets or other thoroughfares and other public
easements and rights
-of
-way,
whether in or out of the geographical limits of the district, a municipality or
a county, subject to applicable law
, permitting
restrictions and the rights of the public.
B. In connection with any power
authorized by statute, the district may:
1. Contract.
2. Enter into intergovernmental
agreements pursuant to title 11, chapter 7, article 3.
3. Adopt and change a seal.
4. Sue and be sued.
5. Enter into development agreements
as defined in section 9-500.05.
C. A district is not empowered to
exercise land use or zoning authority and may not adopt, amend or enforce
zoning ordinances or similar land use regulations.
D. Public
infrastructure other than personalty may be located only in or on lands owned
by this state, a county, a municipality or the district or dedicated or
otherwise designated as public roadways, highways, streets, thoroughfares,
easements or rights-of-way, whether in or out of the district or a
municipality. Personalty may be used only for purposes authorized by the board.
E. An agreement pursuant to
subsection A, paragraph 9 of this section may include agreements to repay all
or part of such advances, fees and charges from the proceeds of bonds if issued
or from advances, fees and charges collected from other landowners or users or
those having a right to use any infrastructure. A person does not
have authority to compel the issuance or sale of the bonds of the district or
the exercise of any taxing power of the district to make repayment under any agreement.
F. A construction contract for public
infrastructure under this chapter is a private construction contract between an
owner and the contractor for purposes of title 32, chapter 10, article 5, and
any person furnishing labor, professional services, materials, machinery,
fixtures or tools for that public infrastructure shall have such mechanics' and
materialmen's lien rights that would otherwise apply to the construction
contract and the public infrastructure subject thereto under title 33, chapter
7, article 6, and is subject to all requirements and limitations of that
article.
g.
a
construction contract for public infrastructure under this chapter shall
include the following provisions:
1. Before commencing construction,
the
owner shall provide a payment bond, letter of credit,
GUARANTY, proof of funds or other comparable financial assurance that the owner
can pay the full Contract price as of the date of execution.
2. Before commencing any work that is
subject to owner-approved change orders that individually or collectively
increase the aggregate
construction contract
price by more than ten percent, the owner shall provide
a payment bond
or payment bond rider
, letter of credit,
GUARANTY
, proof of FUNDS
or other comparable
financial assurance that the owner can pay the full amount of those
change orders as of the date of approvaL
.
END_STATUTE
START_STATUTE
48-7007.
District finances; revenue
The projects to be constructed or acquired as
shown in the general plan may be financed from the following sources of
revenue:
1. Proceeds received from the sale of
bonds of the district.
2. Monies of a municipality or Indian
tribe or community that are contributed to the district.
3. Assessments.
4. Ad valorem taxes.
5. Private contributions.
6. User, landowner and other fees and
charges.
7. Proceeds of LOANS or advances.
8. Any other monies available to the
district by law.
END_STATUTE
START_STATUTE
48-7008.
Project review by authority; hearing; notice; fees
A. Before constructing or acquiring
any public infrastructure, the board shall cause a study of the feasibility and
benefits of the project that shall be prepared by engineers and other qualified
persons and that shall include a description of the public infrastructure to be
constructed or acquired and all other information useful to understand the
project, a map showing, in general, the location of the project, an estimate of
the cost to construct, acquire, operate and maintain the project, an estimated
schedule for completion of the project, a map or description of the area to be
benefited by the project and the financing plan for the project. Within sixty
days after receiving the report, the board shall hold a public hearing on the
report and provide notice of the hearing by publication not less than ten days
in advance in the official newspaper of the municipality in which the district
is located or, if none in the municipality
or if the
district is located in an unincorporated area, a newspaper of general
circulation in the county and by mail to the governing body of the
municipality. Within sixty days after the hearing, the board may reject, amend
or approve the report. If the report is amended substantially, a new
hearing shall be held within sixty days after the date the amended report is
received and before approval. If the report is approved, the board
shall adopt a resolution that identifies the public infrastructure of the
project, the areas benefited, the expected method of financing, including the
nature and timing of the issuance of bonds, if any, and an appropriate system
of providing revenues to operate and maintain the project
,
if applicable. The board shall execute the provisions of the report
within the time frames identified in the approved report.
B. Before constructing or acquiring
any public infrastructure and before the board has held the public hearing
prescribed in subsection A of this section, the board shall cause the study of
the feasibility and benefits of the project prescribed in subsection A of this
section to be provided to the authority. In addition to the study of the
feasibility and benefits of the project prescribed in subsection A of this
section, the board shall cause the following information to be provided to the
authority:
1. The proposed maximum principal
amount of bonds to be issued, the maximum interest rate and a preliminary debt
service schedule for the bonds.
2. IF THE PUBLIC INFRASTRUCTURE TO BE
CONSTRUCTED OR ACQUIRED IS PROPOSED TO BE FINANCED WITH THE PROCEEDS OF GENERAL
OBLIGATION BONDS,
a report INDICATING THE PROJECTED
MARKET VALUE OF THE REAL PROPERTY AND IMPROVEMENTS IN THE DISTRICT AFTER THE
PUBLIC INFRASTRUCTURE TO BE CONSTRUCTED OR ACQUIRED BY THE DISTRICT WITH THE
PROCEEDS OF SUCH BONDS IS COMPLETED PLUS THE VALUE OF THE PUBLIC INFRASTRUCTURE
OWNED BY THE DISTRICT AND TO BE CONSTRUCTED OR ACQUIRED BY THE DISTRICT WITH
THE PROCEEDS OF SUCH BONDS.
3. If the PUBLIC INFRASTRUCTURE TO BE
CONSTRUCTED OR ACQUIRED IS PROPOSED TO BE FINANCED WITH THE PROCEEDS OF general
obligation bonds, a THIRD-PARTY MARKET STUDY THAT INCLUDES PROJECTIONS OF THE
LIMITED PROPERTY VALUE OF REAL PROPERTY IN THE DISTRICT FOR EACH YEAR IN WHICH
GENERAL OBLIGATION BONDS ARE PROPOSED TO BE OUTSTANDING, TOGETHER WITH A
projection of the ad valorem tax rate that is required to support debt service
on the general obligation bonds and that does not exceed the maximum authorized
tax rate.
4. IF THE PUBLIC INFRASTRUCTURE TO BE
CONSTRUCTED OR ACQUIRED IS PROPOSED TO BE FINANCED WITH THE PROCEEDS OF
ASSESSMENT BONDS, AN APPRAISAL INDICATING THE AGGREGATE AS-IS MARKET VALUE OF
REAL PROPERTY IN THE DISTRICT AND THE PROJECTED MARKET VALUE OF THE REAL
PROPERTY AND IMPROVEMENTS IN THE DISTRICT AFTER COMPLETION OF THE PUBLIC
INFRASTRUCTURE PROPOSED TO BE FINANCED WITH SUCH ASSESSMENT BONDS.
5. If the PUBLIC INFRASTRUCTURE TO BE
CONSTRUCTED OR ACQUIRED IS PROPOSED TO BE FINANCED WITH THE PROCEEDS OF
assessment bonds, the maximum aggregate assessment and the maximum per
-lot assessment to be levied in connection with the assessment
bonds.
6. The anticipated build
-out schedule and associated valuation increases.
7. The currently outstanding
aggregate principal amount of all bonds of the district and the current ad
valorem tax rate of the district, if any.
8. The proposed financing team,
including the underwriter or placement agent and the district's bond counsel.
9. A certification as to the
reasonableness of assumptions that are used in the market value and growth
projections AND A CERTIFICATION THAT THE AD VALOREM TAX RATE LEVIED TO PAY THE
DEBT SERVicE ON GENERAL OBLIGATION BONDS OF THE DISTRICT IN THE CURRENT AND
IMMEDIATELY PRECEDING FISCAL YEAR IS NOT IN EXCESS OF THE MAXIMUM AUTHORIZED
TAX RATE.
10. A certification that the
construction or acquisition of the public infrastructure, as applicable, will
not conflict with any existing and applicable development AGREEMENT OR OTHER
AGREEMENT WITH THE MUNICIPALITY OR THE COUNTY THAT RELATES to the land
INCLUDED WITHIN THE BOUNDARIES OF THE
DISTRICT THAT WAS SUBMITTED TO THE AUTHORITY IN CONNECTION WITH THE PETITION.
C. The authority shall review the
information submitted pursuant to subsection B of this section to confirm,
solely on the basis of the information submitted and without any independent
determination of feasibility or value, that all information required pursuant
to subsection B of this section has been submitted and that the construction or
acquisition of the public infrastructure, or both, as applicable, complies with
the formation order and the general plan and does not otherwise violate the
provisions of this chapter.
D. The authority shall provide
written notice to the district within thirty days after receiving the
information submitted pursuant to subsection B of this section if the submitted
information is incomplete or has not been submitted or if the submitted
information indicates that the construction or acquisition of the public
infrastructure does not comply with the formation order or the general plan or
does not otherwise comply with the provisions of this chapter.� The WRITTEN
NOTICE SHALL IDENTIFY ANY DEFICIENCIES. The board may not hold the public
hearing described in subsection A of this section until thirty days has elapsed
since the submission of the information submitted pursuant to subsection B of
this section and the district has not received from the authority the notice
prescribed in this subsection.
E. Fees and other charges that are
assessed by the authority in connection with the review of the information
submitted pursuant to subsection B of this section shall not exceed
$30,000 for each submission. ANY SUCH FEES SHALL BE IN ADDITION TO THE
FEES AND OTHER CHARGES THAT ARE ASSESSED BY THE AUTHORITY IN CONNECTION WITH
THE SUBMISSION AND CONSIDERATION OF AN APPLICATION AND PETITION TO FORM A
DISTRICT PURSUANT TO SECTION 48-7003, subsection J.
END_STATUTE
article 2. financial
provisions
START_STATUTE
48-7021.
General obligation bonds debt limitations; maximum authorized tax
rate
A. The
total aggregate outstanding amount of general obligation bonds and any other
indebtedness for which the ad valorem taxes of the district are pledged shall
not exceed sixty percent of the aggregate of the projected market value of the
real property and improvements in the district after the public infrastructure
to be constructed or acquired by the district WITH THE PROCEEDS OF SUCH GENERAL
OBLIGATION BONDS is completed, plus the value of the public infrastructure
owned by the district and to be constructed or acquired by the district with
the proceeds of such general obligation bonds.
B. Any ad valorem tax levied to pay
the debt service on all general obligation bonds of the district shall not be
levied at a rate that exceeds the maximum authorized tax rate OF $5 PER $100 OF
NET ASSESSED LIMITED PROPERTY VALUATION OF PROPERTY WITHIN THE BOUNDARIES OF
THE DISTRICT.� The maximum authorized tax rate shall be indicated in the
petition and the formation order and shall be approved at an election held
pursuant to section 48-7041. the maximum authorized tax rate IS THE MAXIMUM TAX
RATE THAT MAY BE USED TO PRICE AND SIZE ANY ISSUE OF GENERAL OBLIGATION BONDS
OF THE DISTRICT AND THE BOARD MAY NOT ASSUME AN ANNUAL GROWTH RATE FOR LIMITED
PROPERTY VALUE IN EXCESS OF FIVE PERCENT. iF, IN ANY FISCAL YEAR, APPLICATION
OF THE MAXIMUM AUTHORIZED TAX RATE TO THE NET ASSESSED LIMITED PROPERTY
VALUATION OF REAL AND PERSONAL PROPERTY IN THE DISTRICT, TOGETHER WITH ANY
MONIES FROM THE SOURCES DESCRIBED IN SECTION 48-7007, IS INSUFFICIENT TO PAY
DEBT SERVICE ON THE BONDS IN THE FISCAL YEAR, THE DISTRICT SHALL LEVY SUCH
ADDITIONAL AD VALOREM TAXES AS ARE NECESSARY TO PAY SUCH DEBT SERVICE WHEN DUE,
EXCEPT THAT THE LEVY OF SUCH ADDITIONAL AD VALOREM TAXES shall not exceed A
RATE OF $7.50 per $100 of net assessed LIMITED property valuation of property
within the boundaries of the District. The authority shall not
otherwise restrict the maximum authorized tax rate, the maximum assessment
assessed by a district or the maximum aggregate amount of bonds issued by a
district except as expressly provided in this chapter.
END_STATUTE
START_STATUTE
48-7022.
General obligation bonds; tax levy; security
A. At
any time after the formation of a district, the board may from time to time
order and call a general obligation bond election to submit to the qualified
electors of the district or to those persons who are qualified to vote pursuant
to section 48-7041 the question of authorizing the board to issue general
obligation bonds of the district to provide monies for any public
infrastructure purposes consistent with the general plan and the question of
authorizing an ad valorem tax to be levied.
b. If general obligation bonds are
approved at an election, the board may issue and sell general obligation bonds
of the district, the term of which may not exceed thirty years, subject to the
limitation that any ad valorem tax levied to pay the debt service on the
general obligation bonds shall not be levied at a rate that exceeds the maximum
authorized tax rate, EXCEPT AS PRESCRIBED IN SECTION 48-7021, SUBSECTION b.
c. The district may issue and sell
refunding bonds to refund any general obligation bonds of the district, THE
TERM OF WHICH MAY NOT EXCEED THIRTY YEARS. If general obligation
bonds are issued to refund any general obligation bonds of the district, an
election on the issuance of such refunding bonds is not required, but any ad
valorem tax levied to pay the debt service on such refunding bonds shall not be
levied at a rate that exceeds the maximum authorized tax rate, EXCEPT AS PRESCRIBED
IN SECTION 48-7021, SUBSECTION b.
D. After the bonds are issued, the
board shall enter in its minutes a record of the bonds sold and their numbers
and dates and shall annually levy and cause an ad valorem tax to be collected,
at the same time and in the same manner as other taxes are levied and collected
on all taxable property in the district, sufficient, together with any monies
from the sources described in section 48-7007, to pay debt service on the bonds
when due.� The annual levy shall not exceed the net amount necessary to meet
annual payments of principal and interest, projected payments of principal and
interest on new debt planned for the ensuing year, a reasonable
delinquency factor, including an amount necessary to correct prior year errors
or shortages in the levy, if applicable, and any expenses and fees required in
conjunction with the authorization pursuant to section 35-512.� The
annual ad valorem tax rate levied pursuant to this subsection shall not exceed
the maximum authorized tax rate, EXCEPT AS PRESCRIBED IN SECTION 48-7021,
SUBSECTION b.� The levy shall be the net of all cash in excess of ten percent
of the annual payments of principal and interest in the current fiscal year
from the previous year that remain in the fund or funds prescribed by
subsection E of this section.
E. Monies derived from the levy of
the tax provided in this section when collected constitute funds to pay the
debt service on the bonds and shall be kept separately from other funds of the
district.� Amounts levied for debt service on bonds payable from the secondary
tax are and shall be considered special revenues of the district, shall be kept
in a special, segregated fund, are not and shall not be general property taxes
and may not be used for any other purpose of the district.
f. All general obligation bonds,
heretofore and hereafter issued, are secured by a lien on all revenues received
pursuant to the ad valorem tax levy.� The lien arises automatically without the
need for any action or authorization by the district or the board.� The lien is
valid and binding from the time of the issuance of the general obligation
bonds.� The revenues received pursuant to the levy of the ad valorem tax are
immediately subject to the lien.� The lien attaches immediately to the revenues
and is effective, binding and enforceable against the district, the district's
successors, transferees and creditors and all other parties asserting rights in
the revenues, irrespective of whether the parties have notice of the lien,
without the need for any physical delivery, recordation, filing or further act.
END_STATUTE
START_STATUTE
48-7023.
Assessments; assessment lien bonds; judicial review
A. after approval of the assessment
at an election held as prescribed by section 48-7041, and pursuant to the
procedures prescribed by sections 48-576 through 48-589, as nearly as
practicable, or such other procedures as the board provides, The board may levy
by resolution an assessment of the costs of any public infrastructure purpose
or any operation and maintenance of public infrastructure on any land in the
district that is based on the benefit determined by the board to be received by
the land. Before the issuance of assessment bonds, the district may
enter into a written agreement with a landowner as to the manner in which the
assessment is to be allocated if the land is to be divided into more than one
parcel. If an issue of assessment bonds finances more than one purpose or
service, the benefit received by the land, in the discretion of the district,
may be determined by reference to the purposes and services as a whole or
individually. The assessment may be based on estimated costs and amended to reflect
actual costs, and the preparation of plans and specifications and the awarding
of the contract are not a prerequisite to the levying of the assessment.� An
owner of land on which an assessment has been levied may seek judicial review
of whether the land is benefited by the proposed public infrastructure, on the
merits, by special action filed with the court of appeals, within thirty days
after the effective date of the resolution.
b. After adoption by the board of a
resolution levying an assessment on property in the district, the board may
issue and sell assessment bonds, the term of which may not exceed thirty years,
payable from amounts collected from the assessments, from amounts available
from time to time in any reserve fund established for those bonds and from any
other amounts available for those purposes as prescribed by section 48-7007.�
The district and the county treasurer for the county in which the district is
located may enter into an agreement for the county treasurer to collect the
district's assessments in the manner and by the officers provided by law for
the collection and enforcement of general taxes.� The district and the county
treasurer may provide by agreement for the payment of the county treasurer's
collection expenses directly related to the levy of the assessment and, if so
provided, the levy of the assessment may include an amount for compensation of
the county treasurer directly related to the collection of the assessment.� The
compensation received by the county treasurer pursuant to the agreement shall
be governed by section 11-496. The board may also issue and sell bond
anticipation notes pursuant to the procedures prescribed in section 48-2081
or with procedures as similar to those as is practicable. The
assessment shall be a first lien on the property assessed subject only to
general property taxes and prior assessments.� In the event of nonpayment of an
assessment and except as otherwise provided in an agreement between the
district and the county treasurer pursuant to this section, the procedures for
collection of delinquent assessments, sale of delinquent property and issuance
and effect of the deed prescribed by sections 48-601 through 48-607
apply, as nearly as practicable, except that the district, a municipality
, a county or the state is not required to purchase the delinquent
land at the sale if there is no other purchaser. If the landowner
owns more than one parcel in the district, the board may provide procedures for
the collection and enforcement of assessments as the board deems appropriate by
contract with a landowner to allow the sale of any or all of the landowner's
parcels in the district if the landowner becomes delinquent as to any parcel
that the landowner owns in the district.
C. On adoption of the resolution, but
before issuance of the assessment bonds, the district may direct the treasurer
to make demand on the owners of the property so assessed, as shown on the
property tax roll, for advance payment of the amount assessed.� The demand
shall state a date not less than twenty days after the date of adoption of the
resolution after which the treasurer may refuse to accept advance payments of
the assessment. The treasurer shall certify to the clerk on or after
the date specified in the demand the amount collected and the assessments
remaining unpaid against each parcel of land assessed. Assessment bonds may not
be issued in an amount in excess of the amount assessed in the resolution or,
if advance payments are demanded, the amount certified to the
clerk. The district may adopt procedures for prepayment and
provisions for payment and reallocation of assessments.
d. The district may issue and sell
refunding bonds to refund any assessment bonds of the district, THE TERM OF
WHICH MAY NOT EXCEED THIRTY YEARS.
END_STATUTE
START_STATUTE
48-7024.
Revenue bonds
A. At any time after the hearing on
formation of the district, the board may hold a hearing on the question of
authorizing the board to issue revenue bonds of the district to provide monies
for any infrastructure purposes consistent with the general plan.
B. If revenue bonds are approved by
resolution, the board may issue and sell revenue bonds of the district, the
term of which may not exceed thirty years.
C. The board may pledge to the
payment of its revenue bonds any revenues of the district or revenues to be
collected by a municipality or a county in trust for the district and returned
to the district.
D. The district shall prescribe fees
and charges, and shall revise them when necessary, to generate revenue
sufficient, together with any monies from the sources described in section
48-7007, to pay when due the principal and interest of all revenue bonds for
the payment of which revenue has been pledged. The establishment or
revision of any rates, fees and charges shall be identified and noticed
concurrently with the annual budget process of the district pursuant to section
48-7027.
E. If, in the resolution of the
board, the revenues to be pledged are limited to certain types of revenues,
only those types of revenues may be pledged and only those revenues must be
maintained.
F. a holder of revenue bonds issued
under this chapter may not compel any exercise of the taxing power of the
district, a municipality, the county or this state to pay the bonds or the
interest on the bonds. Revenue bonds issued under this chapter are not a debt
of the district, a municipality, the county or this state, nor is the payment
of revenue bonds enforceable out of any monies other than the revenue pledged
to the payment of the bonds.
G. The district may issue and sell
refunding bonds to refund any revenue bonds of the district, THE TERM OF WHICH
MAY NOT EXCEED THIRTY YEARS.
END_STATUTE
START_STATUTE
48-7025.
Terms of bonds
A. With respect to any bonds, the
board shall prescribe the denominations of the bonds, the size of each issue
and the form of the bonds and shall establish the maturities, interest payment
dates and interest rates, whether fixed or variable, not exceeding the maximum
rate stated in the notice of the election or the resolution of the
board, EXCEPT THAT THE BOARD SHALL NOT APPROVE AN ISSUANCE OF BONDS OTHER
THAN REFUNDING BONDS IF THE AD VALOREM TAX RATE LEVIED TO PAY THE DEBT SERVICE
ON GENERAL OBLIGATION BONDS OF THE DISTRICT IN THE CURRENT OR immediately
PRECEDING FISCAL YEAR IS IN EXCESS OF THE MAXIMUM AUTHORIZED TAX RATE.� The
bonds may be sold by competitive bid or negotiated sale for public or private
offering at, below or above par.� If the bonds are sold below par, the
aggregate amount of discount and interest to be paid on the bonds shall not
exceed the amount of interest that would have been payable on those bonds
pursuant to the maturity schedule prescribed by the board at the maximum rate
set out in the bond resolution.
B. If general obligation bonds of the
district are sold above par, the amount of net premium associated with a
general obligation bond issue may be used only for the following purposes:
1. To pay any or all costs incurred
in issuing the general obligation bonds.
2. As a deposit in a debt service
fund and used only to pay interest on the issue of general obligation bonds.
C. If used for any purpose other than
as prescribed in subsection B of this section, and if the district has general
obligation bond voter authorization and available capacity under its debt
limitations prescribed by section 48-7021, subsection A, the amount of net
premium used for that purpose shall reduce in an equal amount both the
available aggregate indebtedness capacity of the district prescribed in section
48-7021, subsection A and the principal amount authorized at the general
obligation bond election for the district from which the issue of general
obligation bonds is being sold.� Any net premium that is used as prescribed in
this subsection shall be amortized for all debt limitation purposes on a pro
rata basis each year by multiplying the net premium used by a percentage equal
to the percentage of the total principal amount of the general obligation bond
issue that matures in that year.
D. The proceeds of the sales shall be
deposited with the treasurer, or with a trustee or agent designated by the
board, to the credit of the district to be withdrawn for the purposes provided
by this chapter. Pending that use, the proceeds may be invested as determined
by the district. The bonds may contain terms, conditions, covenants
and agreements as the board deems proper.� The bonds may be payable from any
combination of ad valorem taxes, revenues or assessments of the types described
in this chapter and as specified in the bonds if all applicable requirements
are met.
END_STATUTE
START_STATUTE
48-7026.
O/M taxes; election; annual financial estimate and budget;
hearing
A. At any time after the recording of
a formation order, the board may call an election to submit to the persons who
are eligible to vote in the district as prescribed in section 48-7041 the
question of authorizing the board to levy an O/M tax on the net assessed
LIMITED property valuation of property in the district at a rate or rates that
do not exceed the maximum rate or rates specified in the ballot. The
maximum rate specified in the original ballot must be approved by a
majority of the persons who are eligible to vote in the district as prescribed
in section 48-7041, voting in a regular or special election at least every
seven years after the date of the initial imposition, if an ELECTION is not
REQUIRED TO LEVY AN O/M TAX AT THE RATE DETERMINED BY THE BOARD TO BE NECESSARY
TO MAINTAIN THE DISTRICT'S FACILITIES AND IMPROVEMENTS AND ENSURE REPAYMENT OF
THE DISTRICT'S OUTSTANDING BONDS AND OBLIGATIONS. All O/M taxes shall be used
for the operation and maintenance expenses of the district, including legal expenses
and expenses that are associated with insurance coverage, and shall not exceed
an amount equal to $.30 per $100 of assessed valuation for all real and
personal property in the district. The board by simple majority vote may reduce
or eliminate any portion of the O/M tax imposed by the district THAT THE BOARD
DETERMINES IS NOT NECESSARY TO MAINTAIN THE DISTRICT'S FACILITIES AND
IMPROVEMENTS.� if NO BONDS OR OBLIGATIONS REMAIN OUTSTANDING, A DISTRICT SHALL
NOT LEVY AN O/M TAX IN ANY YEAR FOLLOWING COMPLETION OF ALL WORK TO BE
PERFORMED UNDER THE DISTRICT'S GENERAL PLAn.
B. The district may not levy an O/M
tax at a rate or rates in excess of the maximum rate
specified
in
the formation order.
C. When levying an O/M tax, the board
shall make annual statements and estimates of the operation and maintenance
expenses of the district and the amount of all other expenditures for public
infrastructure proposed to be paid from the O/M tax levy or levies, all of
which shall be provided for by the levy and collection of ad valorem taxes on
the assessed value of all the real and personal property in the district.� The
board shall file the annual statements and estimates with the clerk.� The board
shall publish a notice of the filing of the estimate, shall hold hearings on
the portions of the estimate not relating to debt service on bonds and shall
adopt a budget.� The board, on or before the date set by law for certifying the
annual budget of the county or municipality, shall fix, levy and assess the
amounts to be raised by O/M taxes of the district and shall cause certified
copies of the order to be delivered to the board of supervisors and to the
department of revenue.� All statutes relating to the levy and collection of
general county taxes, including the collection of delinquent taxes and sale of
property for nonpayment of taxes, apply to the district taxes provided for by
this section.
END_STATUTE
START_STATUTE
48-7027.
Budget; hearing
On or before July 15 each year, the treasurer
shall prepare a proposed budget for the ensuing fiscal year to be submitted to
the board for approval. The board shall indicate its approval of the budget by
resolution, which shall provide for a hearing on the budget as approved. The
participating entities may review the proposed annual budget and may submit
written comments to the board for its assistance and information in adopting
its annual budget.� At the conclusion of the budget hearing, the board, by
resolution, shall adopt the budget as finally approved by the board.� The
budget shall be adopted before October 1 each year.
END_STATUTE
START_STATUTE
48-7028.
Display of district taxes and assessments on property tax bills
A. Any ad valorem tax that is levied
by a district pursuant to this chapter shall be shown on each property tax bill
as a separate line item that:
1. STATES THAT THE DISTRICT IS
"STATE-CERTIFIED" TO INDICATE THAT ITS FORMATION WAS APPROVED BY THE
AUTHORITY.
2. Identifies the name of the
district.
B. Any assessment that is levied by a
district pursuant to this chapter and that is collected by the county treasurer
shall be shown on each property tax bill as a separate line item that:
1. STATES THAT THE DISTRICT IS
"STATE-CERTIFIED" TO INDICATE THAT ITS FORMATION WAS APPROVED BY THE
AUTHORITY.
2. Identifies the name of the
district.
END_STATUTE
article 3. operations
START_STATUTE
48-7041.
Notice and conduct of elections; eligible voters
A. Any election under this article
shall be a nonpartisan election AND NOT A GENERAL ELECTION AND IS NOT SUBJECT
TO THE REQUIREMENTS APPLICABLE TO ELECTIONS FOR GENERAL GOVERNMENTAL BODIES,
INCLUDING ONE-PERSON-ONE-VOTE PRINCIPLES. AN
ELECTION UNDER THIS ARTICLE SHALL BE called by posting notices in three public
places within the boundaries of the district not less than twenty days before
the election. Any election may be conducted as a mail ballot election in the
manner prescribed in title 16, chapter 4, article 8.1 as nearly as
practicable. If the election notice is not mailed to the property
owners and, if applicable, to the qualified electors, the notice shall also be
published in a newspaper of general circulation in the municipality, or if
there is no newspaper so circulated in the municipality
or
if the district is located in an unincorporated area, in a newspaper of general
circulation in the county in which the district is located once a week for two
consecutive weeks before the election. The notice shall state:
1. The place of holding the election.
2. The hours during the day, not less
than six, in which the polls will be open.
3. If it is a bond election, the
amount of bonds to be authorized for the district, the maximum rate of interest
to be borne on the bonds, the maximum term of the bonds, not exceeding thirty
years, and the purposes for which the monies raised will be used.
4. If it is an ad valorem tax levy
election pursuant to section 48-7022 or 48-7023, the maximum tax rate per
$100 of net assessed limited property valuation to be imposed, the purposes for
which the monies raised will be used and the existing maximum authorized tax
rate.
5. If it is an assessment levy
election PURSUANT to section 48-7023, the maximum assessment rate to be
imposed, the purposes for which the monies raised will be used and the existing
maximum assessment rate, if any.
6. That a general plan is on file
with the clerk.
B. The board shall determine the date
of the election and, if applicable, the polling places for the election and may
consolidate precincts.� The clerk shall prepare a list of eligible voters in
the election. A prospective landowner voter shall execute an affidavit stating
that the voter is the owner of land in the district and is qualified to vote
pursuant to this section and stating the parcel number owned by the voter.
Election board members may administer oaths or take all affirmations for these
purposes. An election held pursuant to this article is not subject to title 16,
chapter 2, article 3.
C. Only the owners of real property
in the district AND THEIR DESIGNATED REPRESENTATIVES are eligible to vote in an
election regarding an ad valorem tax levy election, an assessment election, an
O/M tax election, an election for the board of directors of the district and in
an election for dissolution. VOTING ELIGIBILITY IS BASED ON OWNERSHIP OF REAL
PROPERTY SUBJECT TO TAXATION OR ASSESSMENT BY THE DISTRICT. Corporations,
partnerships and other business entities are eligible to vote as property
owners, but only one vote may be cast for each one-seventh of an acre of
real property in the district, except that any fraction of ownership of real
property that is less than one-seventh of an acre entitles the owner to cast
one vote. A majority of the acreage as represented by the votes cast at an election
conducted solely under the acreage system shall determine the result. An
acreage system election shall be conducted pursuant to the procedures
prescribed in sections 48-3042 through 48-3051 as nearly as practicable.
qualified electors are ELIGIBLE to vote in an election regarding general
obligation bonds.
D. Except as otherwise provided by
this article, the election shall comply with the general election laws of this
state, except that the words to appear on the ballots shall be for a bond
election "bonds, yes" and "bonds, no", for a tax election
if no tax is in place "tax, yes" and "tax, no"
,
FOR AN ASSESSMENT LEVY ELECTION
"ASSESSMENT, YES" AND "ASSESSMENT, NO" and for a tax
election to change an existing maximum or eliminate an existing tax "tax
change, yes" and "tax change, no". The returns of election shall
be made to the board.
E. Within fourteen days after an
election, the board shall meet and canvass the returns. If the majority of
acreage as represented by the votes cast at the election is in favor of
imposing the tax, the board shall enter that fact on its minutes. The canvass
may be continued from time to time. Failure of a majority to vote in favor of
the matter submitted does not prejudice the submission of the same or similar
matters at a later election. ANY CHALLENGE TO THE CONDUCT OR OUTCOME OF AN
ELECTION HELD PURSUANT TO THIS CHAPTER MUST BE COMMENCED WITHIN THIRTY DAYS
AFTER THE CANVASS OF THE ELECTION AND SHALL BE LIMITED TO WHETHER THE DISTRICT
COMPLIED WITH THE PROCEDURAL REQUIREMENTS OF THIS CHAPTER.
f. If a person listed on the
assessment roll is no longer the owner of land in the district and the name of
the successor owner becomes known and is verified by recorded deed or other
similar evidence of transfer of ownership, the successor owner is deemed to be
the owner for the purposes of this article.
G. Notwithstanding any other
provision of this article, if no person has registered to vote within the
district within fifty days immediately preceding any scheduled election date,
any election required to be held pursuant to this article shall be held with
the vote by the owners of land within the district who are qualified electors
of this state and other landowners according to section
48-3043. Each owner has the number of votes or portion of votes
equal to the number of acres or portion of acres rounded upward to the nearest
one-fifth of an acre owned in the district by that person.
H. NOTWITHSTANDING ANY OTHER
PROVISION OF THIS ARTICLE, IF THE DISTRICT RECEIVES A CONSENT TO WAIVER SIGNED
BY OWNERS OF ALL OF THE LAND IN THE DISTRICT, THE DISTRICT MAY WAIVE ANY OR ALL
REQUIREMENTS OF POSTING, PUBLICATION, MAILING, NOTICE, HEARING AND LANDOWNER
ELECTION OTHERWISE REQUIRED IN CONNECTION WITH ASSESSMENTS OR ASSESSMENT
BONDS. ON RECEIPT OF SUCH CONSENT TO WAIVER, THE DISTRICT MAY LEVY
THE ASSESSMENT AND ISSUE THE ASSESSMENT BONDS WITHOUT BEING REQUIRED TO COMPLY
WITH THE PROVISIONS OF THIS ARTICLE FOR POSTING, PUBLICATION, MAILING, NOTICE,
HEARING OR LANDOWNER ELECTION.
END_STATUTE
START_STATUTE
48-7042.
Recording documents
The district shall file and record with the
county recorder the formation order, the general plan of the district, the
canvass of any general obligation bond election and any assessments levied by
the district. Copies of all such information shall be provided to
the state real estate department.
END_STATUTE
START_STATUTE
48-7043.
District website; required content; coordination with seller
disclosures
A. The board shall establish and
maintain an official website that is electronically searchable by the public
and that contains a comprehensive database of district contracts, public
notices, meeting minutes, resolutions and accounts showing, ON AN AGGREGATE AND
SUMMARY BASIS, all monies received and disbursed, the annual budget and other
records required to be maintained by law. The board shall provide a link to the
database on the district's main website maintained by the board and shall provide
a link to that database to the department of administration. The database may
not include:
1. Tax payment or refund data that
includes confidential taxpayer information.
2. Work product in anticipation of
litigation or other information that is subject to attorney-client privilege.
3. Any other information that is
designated by law as confidential.
B. The district shall keep the
website current and shall post, in addition to the information described in
subsection A of this section, all of the following information:
1. The district's legal name, common
name, if any, statutory authority, formation date and the boundaries of the
district, including at least one map in a downloadable format.
2. A copy of the formation order and
the general plan.
3. A statement that the formation of
the district was reviewed and approved by the authority designated pursuant to
this chapter, and that the district is a separate political subdivision from
the municipality and the county in which it is located and that any ad valorem
taxes, assessments, fees or charges imposed by the district are levied by the
district and are not taxes, assessments, fees or charges of the municipality or
the county.
4. A plain
-language
description of the purpose for which the district was formed and the public
infrastructure the district is authorized to finance, IDENTIFYING
WHICH CATEGORIES OF PUBLIC INFRASTRUCTURE ARE REQUIRED BY THE APPLICABLE
MUNICIPALITY OR COUNTY AND WHICH CATEGORIES ARE NOT REQUIRED BUT HAVE BEEN
ELECTED TO BE FINANCED BY THE DISTRICT.
5. The current year's adopted budget
for the district and the two most recent prior years' adopted budgets.
6. A schedule of all ad valorem
taxes, assessments, fees and charges imposed by the district for the current
fiscal year.
7. A description of all outstanding
bonds and other long
-term obligations of the
district, including the original principal amount, current principal balance,
if reasonably available, maximum authorized principal, final maturity date and
a general description of the revenue sources pledged for repayment.
8. The maximum authorized tax rate,
the maximum authorized aggregate principal amount of general obligation bonds,
the maximum aggregate assessment amount and the maximum O/M tax rate.
9. The names, official titles and
contact information for the board, the clerk and the treasurer.
10. Notices of all regular and
special meetings of the board, agendas and minutes, posted in a timely manner.
11. Any annual reports, audits or
financial reviews required to be filed with a county, this state or any other
public body and any additional reports the district elects to provide for
public transparency.
12. A SUMMARY OF THE ANTICIPATED
COMMUNITY BENEFITS OF FORMING THE DISTRICT, INCLUDING EXPECTED IMPACTS ON
PUBLIC INFRASTRUCTURE TIMING, HOUSING ATTAINABILITY AND ECONOMIC DEVELOPMENT,
TOGETHER WITH A DESCRIPTION OF ANY MATERIAL RISKS ASSOCIATED WITH DISTRICT
FORMATION AND IMPLEMENTATION OF THE GENERAL PLAN, INCLUDING POTENTIAL TAX,
ASSESSMENT AND FISCAL IMPACTS ON OWNERS OF REAL PROPERTY IN THE DISTRICT.
C. The district shall also make
available on the website, in a form that can be downloaded and provided to a
purchaser, a standardized "district disclosure notice" that includes:
1. A brief description of the
district and its powers to levy ad valorem taxes, assessments, fees and
charges.
2. The most recent ad valorem tax
rate or assessment rate imposed by the district and a sample calculation of the
estimated annual ad valorem tax or assessment on a hypothetical residential
property value selected by the board.
3. A statement that actual ad valorem
taxes, assessments, fees and charges on a particular property may differ based
on changes in tax rates, assessed value and district financing decisions.
4. A DESCRIPTION OF THE PUBLIC
INFRASTRUCTURE THE DISTRICT IS AUTHORIZED TO FINANCE, IDENTIFYING WHICH
CATEGORIES OF PUBLIC INFRASTRUCTURE ARE REQUIRED BY THE APPLICABLE MUNICIPALITY
OR COUNTY AND WHICH CATEGORIES ARE NOT REQUIRED BUT HAVE BEEN ELECTED TO BE
FINANCED BY THE DISTRICT.
5. A statement directing prospective
purchasers to the district website for additional and updated information.
D. A seller of property located in
the district who is required by law to provide a district disclosure to a
purchaser may satisfy any requirement to describe the district's purposes,
powers, tax rates or indebtedness by:
1. Providing the purchaser with a
current copy of the standardized district disclosure notice described in
subsection C of this section.
2. Identifying in writing the
district's website address on or before the date the purchaser signs a binding
contract to acquire the property.
E. The failure of the district to
timely update all information on the website does not relieve a seller from any
duty under other applicable disclosure laws, but a seller who, in good faith,
relies on information posted by the district on its website at the time of
disclosure is not liable for an inaccuracy in that information unless the
seller had actual knowledge of the inaccuracy.
END_STATUTE
START_STATUTE
48-7044.
Annual report; bond report
A. Not later than one hundred eighty
days after the end of each fiscal year, the district shall submit to the
authority an annual report containing:
1. The current year's adopted budget
for the district and the two most recent prior years' adopted budgets.
2. A schedule of all ad valorem
taxes, assessments, fees and charges imposed by the district for the current
fiscal year.
3. A description of all outstanding
bonds and other long
-term obligations of the
district, including the original principal amount, current principal balance,
if reasonably available, maximum authorized principal, final maturity date and
a general description of the revenue sources pledged for repayment.
4. The maximum authorized tax rate,
the maximum authorized aggregate principal amount of general obligation bonds,
the maximum aggregate assessment amount and the maximum O/M tax rate.
5. The names, official titles and
contact information for the board, the clerk and the treasurer.
6. A brief description of the public
infrastructure the district has acquired or constructed.
7. The number of residential housing
units constructed within the district.
B. Not
later than thirty days after the issuance of any bonds, the district shall
submit to the authority a bond issuance report containing:
1. The
final offering document, if any, pursuant to which the bonds were sold.
2. A debt service schedule for the
bonds.
3. A description of the public
infrastructure financed with the proceeds of the bonds.
4. If the bonds are general
obligation bonds, a projection of the ad valorem tax rate that is required to
support debt service on the bonds and that does not exceed the maximum
authorized tax rate.
5. If the bonds are assessment bonds,
the maximum aggregate assessment and the maximum per
-lot
assessment levied in connection with the bonds.
6. A description of all outstanding
bonds and other long
-term obligations of the
district, including the original principal amount, current principal balance,
if reasonably available, maximum authorized principal, final maturity date and
a general description of the revenue sources pledged for repayment.
END_STATUTE
START_STATUTE
48-7045.
Seller disclosure; form of notice
A. This section applies to the sale
or other conveyance of any residential real property that is located within the
boundaries of a district formed under this chapter and that is authorized to
levy an ad valorem tax, assessment, fee or charge that appears as a separate
line item on the property tax bill for that property.
B. A seller of residential real
property to which this section applies shall provide to each prospective
purchaser a written "district disclosure notice" that contains, at a
minimum, the information described in section 48
-7043,
subsection C and that substantially complies with the form prescribed by the
district.
C. The seller shall deliver the
district disclosure notice as follows:
1. for a transaction in which the
purchaser signs a written offer, the seller shall deliver the notice to the
purchaser on or before the date on which the purchaser signs a binding purchase
contract for the property.
2. for any other transaction, the
seller shall deliver the notice to the purchaser before the purchaser becomes
obligated under any binding agreement to acquire the property.
D. A district disclosure notice
satisfies the seller's obligation under this section if the notice:
1. Identifies the district by legal
name and common name, if any.
2. States that the property is
located within the district and is subject to the district's taxing and
assessment authority.
3. Includes a brief description of
the district's purposes and powers, including its authority to levy ad valorem
taxes, assessments, fees or charges AND A DESCRIPTION OF THE PUBLIC
INFRASTRUCTURE THE DISTRICT IS AUTHORIZED TO FINANCE, IDENTIFYING WHICH
CATEGORIES OF PUBLIC INFRASTRUCTURE ARE REQUIRED BY THE APPLICABLE MUNICIPALITY
OR COUNTY AND WHICH CATEGORIES ARE NOT REQUIRED BUT HAVE BEEN ELECTED TO BE
FINANCED BY THE DISTRICT.
4. States
the current ad valorem tax rate or assessment rate imposed by the district and
provides an example of the estimated annual tax or assessment on a hypothetical
residential property value.
5. States
that actual taxes, assessments, fees and charges on the property may change
over time and may differ from the example provided.
6. States that the formation of the
district was reviewed and approved by the authority designated pursuant to this
chapter and that the district is a separate political subdivision from the
municipality and the county in which it is located and that any ad valorem
taxes, assessments, fees or charges imposed by the district are levied by the
district and are not taxes, assessments, fees or charges of the municipality or
the county.
7. Provides the internet website
address for the district and advises the purchaser that additional and updated
information regarding the district's finances, meetings and operations is
available on that website.
E. A seller may satisfy the
disclosure requirements of this section by:
1. Providing the purchaser with a
current copy of the standardized district disclosure notice made available by
the district pursuant to section 48
-7043,
subsection C.
2. Identifying the district's website
address in the purchase contract or in a separate written disclosure delivered
with the notice.
F. A seller who, in good faith,
relies on information contained in the standardized district disclosure notice
provided by the district or posted on the district's website at the time of
disclosure is not liable for an inaccuracy in that information unless the
seller had actual knowledge of the inaccuracy.
G. A seller's compliance with this
section does not satisfy or limit any obligation of a subdivider or other
seller to obtain and deliver a subdivision public report under title 32,
chapter 20, article 4, and does not limit any disclosure obligations imposed by
section 33-423 or any other provision of law.
END_STATUTE
START_STATUTE
48-7046.
Change in district boundaries or general plan
A. After
formation of a district, an area may be deleted from the district only
following a hearing after notice to the owners of land in the district,
adoption of a resolution of intention to do so by the board and approval by the
owners of land in the district pursuant to section 48-7041, subsection
C. Deleted areas remain subject to the levy for debt service on any
bonds issued before the date of deletion.
B. After formation of a district, an
area may be added to the district on approval by the board following receipt of
a petition for addition signed by the owners of all of the real property in the
proposed addition area. the petition must include a waiver of any requirement
for a separate resolution of intention by the board and a waiver of any
requirement of posting, publication, mailing, notice, hearing and election as
to that addition to the district. THE ADDITION OF PROPERTY TO A DISTRICT
PURSUANT TO THIS SECTION DOES NOT CONSTITUTE THE FORMATION OF A NEW DISTRICT
AND DOES NOT REQUIRE COMPLIANCE WITH THE PROCEDURES APPLICABLE TO INITIAL
DISTRICT FORMATION OR TO AMENDING THE FORMATION ORDER PURSUANT TO SECTION 48-7003,
SUBSECTION K.
C. following a hearing on notice to
owners of land in the district given in the manner prescribed for the deletion
of an area from the district, The board may amend the general plan in any
manner that it determines will not substantially reduce the benefits to be
received by any land in the district from the public infrastructure on
completion of the work to be performed under the general plan.
D. THE AUTHORITY SHALL APPROVE THE
ADDITION OR DELETION OF PROPERTY UPON DETERMINING THAT THE REQUIREMENTS OF THIS
SECTION HAVE BEEN SATISFIED AND WILL AMEND THE FORMATION ORDER ACCORDINGLY.
END_STATUTE
START_STATUTE
48-7047.
Other districts or improvements
A. The formation of a district under
this chapter does not prevent the subsequent establishment of similar districts
or the improvement or assessment of land in the district by the municipality or
county pursuant to chapter 4, article 2 of this
title or
the exercise by the municipality or county of any of its powers on the same
basis as on all other land in its corporate boundaries.
B. Notwithstanding subsection A of
this section, a district may not be formed if any portion of the land to be
included within the district is already included within the boundaries of a
community facilities
district
or
revitalization
district
if the community
facilities
district
or revitalization
district
has debt outstanding that is
secured by ad valorem taxes or
assessments
.
END_STATUTE
START_STATUTE
48-7048.
Perpetual succession; dissolution of district
A. The district has perpetual
succession, except that the district may be dissolved as provided in this
section and, if the district does not have any bonds or other obligations
outstanding, shall be dissolved ten years after the date of formation unless
the authority by resolution extends the district by an additional period of ten
years.
B. The board shall adopt a resolution
dissolving the district if the following conditions exist:
1. the
district
no longer owns any real
or personal property.
2. The authority verifies that the
district has no bonds or obligations outstanding.
3. The authority approves the
dissolution order on receipt of a dissolution petition executed by the owners
of a majority of the real property in the district.
C. A DISTRICT SHALL BE DISSOLVED
AUTOMATICALLY AND WITHOUT ANY ACTION FROM THE BOARD OR THE QUALIFIED ELECTORS
IN THE YEAR THAT IS FIVE YEARS AFTER COMPLETION OF ALL WORK TO BE PERFORMED
UNDER THE DISTRICT'S GENERAL PLAN, AS LONG AS THE AUTHORITY HAS VERIFIED THAT
NO BONDS OR OBLIGATIONS REMAIN OUTSTANDING. IF ANY BONDS OR
OBLIGATIONS REMAIN OUTSTANDING AFTER the YEAR, the DISTRICT SHALL BE DISSOLVED
IN THE YEAR AFTER the BONDS OR OBLIGATIONS ARE PAID IN FULL.
d. on
satisfaction of the conditions prescribed by subsection B
or C of this section, the authority shall approve the dissolution and
issue a dissolution order. The board shall cause the dissolution
order to be recorded in the office of the county recorder
AND SHALL CAUSE A COPY OF THE DISSOLUTION ORDER TO BE DELIVERED TO THE
COUNTY ASSESSOR AND THE BOARD OF SUPERVISORS OF THE COUNTY IN WHICH THE
DISTRICT IS LOCATED, TO ANY MUNICIPALITY IN WHICH THE DISTRICT IS LOCATED AND
TO THE DEPARTMENT OF REVENUE.
e. All property in the district,
except federal, state, county and municipal property, remains subject to the
lien for the payment of ad valorem taxes levied, and any property subject to an
assessment lien remains subject to the lien notwithstanding dissolution of the
district. The district may not be dissolved if any general obligation bonds,
revenue bonds or assessment bonds of the district remain outstanding unless an
amount of money sufficient, together with investment income thereon, to make
all payments due on the bonds either at maturity or prior redemption has been
deposited with a trustee or escrow agent and pledged to the payment and
redemption of the bonds. The district may continue to operate after dissolution
only as needed to collect monies and make payments on any outstanding bonds.
END_STATUTE
START_STATUTE
48-7049.
Local involvement; preservation of municipal and county authority
A. A DISTRICT FORMED PURSUANT TO THIS
chapter HAS NO ZONING, SUBDIVISION, BUILDING CODE, PERMITTING OR OTHER LAND USE
OR DEVELOPMENT APPROVAL AUTHORITY. ALL LAND USE REGULATION,
DEVELOPMENT PLANNING, PLATTING, PERMITTING, INSPECTION AND CODE ENFORCEMENT
AUTHORITY WITHIN THE BOUNDARIES OF A DISTRICT REMAINS EXCLUSIVELY WITH THE
MUNICIPALITY OR COUNTY IN WHICH THE LAND IS LOCATED, AND ALL DEVELOPMENT WITHIN
A DISTRICT IS SUBJECT TO THE SAME GENERAL PLANS, SPECIFIC OR AREA PLANS, ZONING
ORDINANCES, SUBDIVISION REGULATIONS, ENGINEERING STANDARDS, BUILDING AND FIRE
CODES AND OTHER APPLICABLE LAWS, STANDARDS AND PROCEDURES AS COMPARABLE
DEVELOPMENT OUTSIDE A DISTRICT.
B. A MUNICIPALITY OR COUNTY RETAINS
FULL AUTHORITY TO ADOPT, AMEND, ADMINISTER AND ENFORCE ITS GENERAL PLAN,
SPECIFIC OR AREA PLANS, ZONING ORDINANCES, SUBDIVISION AND DEVELOPMENT
REGULATIONS, ENGINEERING AND DESIGN STANDARDS, BUILDING AND FIRE CODES AND ANY
OTHER LAWS, REGULATIONS OR POLICIES GOVERNING THE PLANNING, ENTITLEMENT,
CONSTRUCTION, INSPECTION, ACCEPTANCE, OPERATION OR MAINTENANCE OF PUBLIC
INFRASTRUCTURE OR PRIVATE DEVELOPMENT WITHIN ITS JURISDICTION, WITHOUT REGARD
TO WHETHER THE LAND IS LOCATED WITHIN A DISTRICT.
C. A DISTRICT MAY FINANCE, CONSTRUCT
OR ACQUIRE PUBLIC INFRASTRUCTURE THAT IS INTENDED TO BE CONVEYED TO AND OWNED,
OPERATED OR MAINTAINED BY A MUNICIPALITY OR COUNTY ONLY IF THE PUBLIC
INFRASTRUCTURE IS DESIGNED AND CONSTRUCTED IN ACCORDANCE WITH THE GENERALLY
APPLICABLE PLANS, ORDINANCES, CODES, STANDARDS, REGULATIONS AND STANDARD-FORM
AGREEMENTS OF THE MUNICIPALITY OR COUNTY FOR COMPARABLE PUBLIC INFRASTRUCTURE
IN THE JURISDICTION. A MUNICIPALITY OR COUNTY MAY ACCEPT OR REJECT
ANY SUCH PUBLIC INFRASTRUCTURE IN ACCORDANCE WITH THE MUNICIPALITY'S OR
COUNTY'S GENERALLY APPLICABLE ORDINANCES, CODES, STANDARDS, REGULATIONS,
STANDARD-FORM SUBDIVISION OR IMPROVEMENT AGREEMENTS OR OTHER WRITTEN
INSTRUMENTS, INCLUDING ANY APPLICABLE DEVELOPMENT AGREEMENT OR
INTERGOVERNMENTAL AGREEMENT, AND IS NOT REQUIRED TO ACCEPT PUBLIC
INFRASTRUCTURE THAT THE MUNICIPALITY OR COUNTY IS NOT OTHERWISE REQUIRED TO
ACCEPT UNDER APPLICABLE LAW.
D. BEFORE A DISTRICT CONVEYS TO A
MUNICIPALITY OR COUNTY ANY PUBLIC INFRASTRUCTURE THAT IS FINANCED, CONSTRUCTED
OR ACQUIRED BY THE DISTRICT, THE DISTRICT SHALL OBTAIN A CERTIFICATION FROM THE
ENGINEER OR OTHER OFFICIAL DESIGNATED BY THE MUNICIPALITY OR COUNTY STATING
THAT THE PUBLIC INFRASTRUCTURE HAS BEEN COMPLETED IN ACCORDANCE WITH THE
APPLICABLE PLANS, SPECIFICATIONS AND STANDARDS OF THE MUNICIPALITY OR
COUNTY. THE TIMING, FORM AND CONTENT OF THE CERTIFICATION AND OF ANY
CONVEYANCE INSTRUMENTS SHALL CONFORM TO THE MUNICIPALITY'S OR COUNTY'S
GENERALLY APPLICABLE REQUIREMENTS FOR COMPARABLE PUBLIC
INFRASTRUCTURE. ACCEPTANCE OF A DISCRETE SECTION OF PUBLIC
INFRASTRUCTURE PURSUANT TO THIS SECTION DOES NOT MODIFY THE ASSURANCES AND
WARRANTY REQUIREMENTS OF A MUNICIPALITY OR COUNTY PRESCRIBED BY A MUNICIPAL OR
COUNTY CODE OR ORDINANCE OR AS OUTLINED IN A DEVELOPMENT AGREEMENT ENTERED INTO
PURSUANT TO SECTION 9-500.05 OR 11-1101.
E. THE FORMATION OR EXISTENCE OF A
DISTRICT DOES NOT CREATE ANY OBLIGATION FOR A MUNICIPALITY OR COUNTY TO PROVIDE
SERVICES, FACILITIES OR FINANCIAL SUPPORT TO THE DISTRICT OR TO ANY LAND WITHIN
THE DISTRICT THAT THE MUNICIPALITY OR COUNTY WOULD NOT OTHERWISE BE REQUIRED TO
PROVIDE IF THE LAND WERE NOT LOCATED IN THE DISTRICT. A MUNICIPALITY
OR COUNTY IS NOT REQUIRED, SOLELY BECAUSE A DISTRICT HAS BEEN FORMED OR PUBLIC
INFRASTRUCTURE HAS BEEN FINANCED, CONSTRUCTED OR ACQUIRED BY A DISTRICT, TO
ACCEPT OWNERSHIP, OPERATION OR MAINTENANCE RESPONSIBILITY FOR ANY PUBLIC
INFRASTRUCTURE OR TO INCUR ANY ADDITIONAL FINANCIAL OBLIGATION OR LIABILITY
WITH RESPECT TO A DISTRICT OR ITS PUBLIC INFRASTRUCTURE, EXCEPT TO THE EXTENT
THAT THE MUNICIPALITY OR COUNTY EXPRESSLY AGREES IN A DEVELOPMENT AGREEMENT,
INTERGOVERNMENTAL AGREEMENT OR OTHER WRITTEN INSTRUMENT THAT IS AUTHORIZED BY
LAW.
F. THIS ARTICLE DOES NOT AUTHORIZE A
DISTRICT TO PLEDGE THE FULL FAITH AND CREDIT OR THE TAXING POWER OF A
MUNICIPALITY OR COUNTY. ANY BONDS OR OTHER OBLIGATIONS OF A DISTRICT ARE
OBLIGATIONS ONLY OF THE DISTRICT AND ARE PAYABLE ONLY FROM THE SOURCES THAT ARE
PLEDGED FOR THEIR PAYMENT.
G. ANY PUBLIC
INFRASTRUCTURE FINANCED PURSUANT TO THIS CHAPTER THAT CONSTITUTES IMPROVEMENTS
AS DEFINED IN SECTION 9-463 WILL REMAIN SUBJECT TO THE MUNICIPALITY'S
AUTHORITY UNDER SECTION 9-463.01, INCLUDING REQUIREMENTS FOR PERFORMANCE
BONDS, ASSURANCES OR OTHER SECURITY UNDER section 9-463.01, SUBSECTION C,
PARAGRAPH 8.
END_STATUTE
START_STATUTE
48-7050.
District formation period; termination; bonds; applicability
A. The
authority may not issue a formation order for a district under this chapter
after June 30, 2036.
B. This section does not affect the
continued existence, powers or operations of any district that is formed under
this chapter on or before June 30, 2036.
C. This section does not impair the
validity or enforceability of any bonds or other obligations issued or incurred
by a district that is formed under this chapter on or before June 30, 2036, or
any pledge of taxes, assessments or other revenues made to secure those bonds
or obligations.
END_STATUTE
Sec. 6.
Legislative findings; purpose
A. The legislature finds
and declares that:
1. The provision of public
infrastructure in advance of development is essential to housing affordability,
economic development and orderly growth.
2. State affordability
infrastructure districts provide a uniform, statewide
mechanism for financing public infrastructure in a manner that:
(
a
) Protects
taxpayers through limited tax rates and debt limitations.
(
b
) Ensures
transparency and public accountability.
(
c
)
Facilitates early delivery of public infrastructure at lower cost.
3. The Arizona finance
authority is the appropriate statewide certification authority to ensure
uniform financial, engineering, and statutory compliance for such districts.
4. The certification and
oversight functions provided in this chapter constitute governmental functions
serving valid public purposes.
B. The legislature further
finds and declares that:
1. State affordability
infrastructure districts exercise limited, special-purpose
governmental powers relating solely to the financing, construction, operation
and maintenance of public infrastructure.
2. The financial
obligations of a district, including ad valorem taxes, assessments, and liens,
are borne directly and proportionally by real property within the district.
3. Because the powers and
financial burdens of a district disproportionately affect real property owners,
it is reasonable and constitutionally permissible to allocate voting power in
district elections based on land ownership and acreage.
4. Elections conducted
pursuant to this chapter are fiscal determinations relating to property-based
obligations and are not general political elections.
Sec. 7.
Short title
This
act may be cited as the "State Affordability
Infrastructure District Act".