Bill Text: AZ SB1404 | 2017 | Fifty-third Legislature 1st Regular | Introduced
Bill Title: Community facilities districts; amendments
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2017-02-15 - Senate FIN Committee action: Held, voting: (0-0-0-0) [SB1404 Detail]
Download: Arizona-2017-SB1404-Introduced.html
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REFERENCE TITLE: community facilities districts; amendments |
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State of Arizona Senate Fifty-third Legislature First Regular Session 2017
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SB 1404 |
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Introduced by Senator Lesko
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AN ACT
amending sections 48-701, 48‑702, 48‑704, 48‑708, 48‑709, 48‑715, 48‑719, and 48‑720, Arizona Revised Statutes; amending title 48, chapter 4, article 6, Arizona Revised Statutes, by adding sections 48‑726 and 48‑727; relating to community facilities districts.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 48-701, Arizona Revised Statutes, is amended to read:
48-701. Definitions
In this article, unless the context otherwise requires:
1. "Clerk" includes any person or official who performs the duties of clerk of the municipality or county or any person appointed by the district board to be the district clerk pursuant to section 48‑711, subsection D.
2. "County" means a county that forms a community facilities district pursuant to this article in an unincorporated area or in an incorporated area with the municipality's consent.
3. "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.
4. "District" means a tax levying community facilities district formed pursuant to this article by a municipality or formed pursuant to this article by a county in an unincorporated area or in an incorporated area with the municipality's consent.
5. "District board" means the board of directors of the district, which shall be comprised that consists of the members of the governing body of the municipality or county, ex officio, or, at the option of the governing body, five directors appointed by the governing body under this article.
6. "Enhanced municipal services" means public service provided by a county or municipality within the district at a higher level or to a greater degree than provided in the remainder of the county or municipality, including such services as public safety, fire protection, street or sidewalk cleaning or landscape maintenance in public areas.
7. "Entity" means any of the following:
(a) A corporation.
(b) A general partnership, including a general partnership that has registered as a limited liability partnership.
(c) A limited partnership, including a limited partnership that has registered as a limited liability partnership.
(d) A limited liability company, including a professional limited liability company.
(e) A business trust, statutory trust entity or similar trust.
(f) An unincorporated association.
(g) A cooperative.
(h) Any other person that has a separate legal existence or has the power to acquire an interest in real property in its own name other than any of the following:
(i) An individual.
(ii) A testamentary, inter vivos or charitable trust, with the exception of a business trust, statutory trust entity or similar trust.
(iii) A decedent's estate.
(iv) A government, a governmental or political subdivision, a governmental agency or entity or a municipal corporation.
7. 8. "General obligation bond" means a bond that is issued pursuant to section 48‑719 and that is secured by a pledge of ad valorem taxes levied by the district.
8. 9. "General plan" means the general plan described in section 48‑702, subsection B D, as the plan may be amended.
9. 10. "Governing body" means the body or board which that by law is constituted as the legislative department of the municipality or county.
10. 11. "Municipality" means an incorporated city or town.
11. 12. "Owner" means the person who that, on the day the action, election or proceeding is begun or held, appears to be the owner of real property as shown on the property tax assessment roll.
12. 13. "Public infrastructure" means all improvements listed in this paragraph that will result in a beneficial use principally special benefit to land within the geographical limits of the district and may include a district's proportionate 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, whether newly constructed, renovated or existing, and all necessary or desirable appurtenances. If the district includes noncontiguous property, the public infrastructure is limited to the public infrastructure improvements prescribed in subdivisions (a), (b), (c), and (d) of this paragraph. For the purposes of this paragraph, if the public infrastructure is located within the geographical limits of the district or is necessary to provide sewer service, water service, transportation service or drainage service, adoption by the district board of a resolution of intent pursuant to section 48‑715 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 special benefit to land within the geographical limits of the district. If the public infrastructure is not located within the geographical limits of the district, adoption by the district board of a resolution of intent pursuant to section 48-715 shall establish a rebuttable presumption that the improvements or, if applicable, share of the improvements that are the subject of the resolution will result in a special benefit to land within the geographical limits of the district. Public infrastructure improvements are:
(a) Sanitary sewage systems, including collection, transport, storage, treatment, dispersal, effluent use and discharge.
(b) Drainage and flood control systems, including collection, transport, diversion, storage, detention, retention, dispersal, use and discharge.
(c) Water systems for domestic, industrial, irrigation, municipal or fire protection purposes, including production, collection, storage, treatment, transport, delivery, connection and dispersal, but not including facilities for agricultural irrigation purposes unless for the repair or replacement of existing facilities when required by other improvements permitted by this article.
(d) Highways, streets, roadways and parking facilities, including all areas for vehicular use for travel, ingress, egress and parking.
(e) Areas for pedestrian, equestrian, bicycle or other nonmotor vehicle use for travel, ingress, egress and parking.
(f) Pedestrian malls, parks, recreational facilities other than stadiums, and open space areas for the use of members of the public for entertainment, assembly and recreation.
(g) Landscaping, including earthworks, structures, lakes and other water features, plants, trees and related water delivery systems.
(h) Public buildings, public safety facilities and fire protection facilities.
(i) Lighting systems.
(j) Traffic control systems and devices, including signals, controls, markings and signage.
(k) Equipment, vehicles, furnishings and other personalty related to the items listed in this paragraph.
13. 14. "Public infrastructure purpose" means:
(a) Planning, design, engineering, construction, acquisition or installation of 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 from any source described in section 48‑717 or from any other source in order to secure payment of debt service on bonds.
(e) Notwithstanding section 48‑589, funding and paying from bond proceeds interest accruing on bonds for a period of not to exceed three years from their date of issuance.
(f) Providing for the timely payment of debt service on bonds or other indebtedness of the district.
(g) Refinancing any matured or unmatured bonds with new bonds.
(h) Incurring expenses of the district incident to and reasonably necessary to carry out the purposes specified in this paragraph.
14. 15. "Revenue bonds" means those bonds that are issued pursuant to section 48‑720 and that are secured by a pledge of revenues of the district or revenues collected by the county or municipality and returned to the district.
16. "Special benefit" means a particular and distinct benefit that is over and above general benefits that are conferred on real property located outside of the district or to the public at large.
17. "Substantially complete" means the earliest of the following:
(a) The stage in the progress of work on the construction of a discrete segment of public infrastructure at which the work is sufficiently complete in accordance with the plans and specifications required by the municipality or county so that the applicant or the public can occupy and use the public infrastructure for its intended purpose.
(b) The date on which the governing body issues a written acceptance allowing the applicant or the public to occupy and use the public infrastructure for its intended purpose.
15. 18. "Treasurer" includes any person or official who performs the duties of treasurer of the municipality or county or any person appointed by the district board as the district treasurer pursuant to section 48‑711, subsection D.
Sec. 2. Section 48-702, Arizona Revised Statutes, is amended to read:
48-702. Resolution declaring intention to form district
A. If the public convenience and necessity require, and on presentation of a petition signed by the owners of at least twenty‑five per cent percent of the land area proposed to be included in the district, the governing body of a county may adopt a resolution declaring its intention to form a community facilities district to that shall include contiguous or noncontiguous property which shall be that is wholly within the corporate boundaries of the municipality or county.
B. On presentation of a petition signed by the owners of at least twenty‑five percent of the land area proposed to be included in the district and a completed application for formation of a district by an individual or entity, the governing body of a municipality within sixty days after submission of the completed application shall hold a public hearing to consider the application for formation of the district. Immediately after completion of the hearing, if the public convenience and necessity require, the governing body may adopt a resolution declaring its intention to form a community facilities district that shall include contiguous or noncontiguous property that is wholly within the corporate boundaries of the municipality. If the governing body does not adopt a resolution declaring its intention to form a district, the governing body shall publicly indicate the reason it is not adopting the resolution and shall identify the changes needed for the application to be approved and for the resolution declaring its intention to form a district to be adopted. If the application for formation of a district includes noncontiguous property, each discrete property must be located within one‑half mile of another discrete property that is proposed to be included in the district.
C. The resolution adopted by the governing body shall state the following:
1. The area or areas to be included in the district.
2. The purposes for which the district is to be formed.
3. That a general plan for the district is on file with the clerk.
4. The date, time and place of the hearing to be held on the formation of the district.
5. The place where written objections to the formation of the district may be filed.
6. That formation of the district may result in the levy of taxes to pay the costs of improvements constructed by the district and for their operation and maintenance.
7. A reference to this article.
8. Whether the district will be governed by a district board comprised that consists of the members of the governing body, ex officio, or, at the option of the governing body and if the total area to be included in the district is larger than six hundred acres, five directors appointed by the governing body.
B. Before adopting a resolution under this section, a general plan for the district shall be filed with the clerk setting out a general description of the public infrastructure improvements for which the district is proposed to be formed and the general areas to be improved.
D. Unless otherwise prescribed in an ordinance, resolution or policy adopted by the municipality in which the proposed district is to be located, a completed application shall include at least the following information:
1. A petition signed by the owners of at least twenty-five percent of the land to be included in the district.
2. A description of the applicant, including the corporate and organizational structure of the entity or individual making the application, the names of all officers and corporate directors directly related to or associated with the proposed district, the name, address and telephone number of the primary contact for the applicant, the names of any legal representatives, engineers, architects, financial consultants or other consultants significantly involved in the application, a general description of the applicant's experience with similar types of developments and evidence demonstrating the applicant's ability and capacity to financially complete the proposed development.
3. A general plan setting out a general description of the public infrastructure for which the district is proposed to be formed, the general areas to be improved and the estimated costs of construction or acquisition of the public infrastructure to be financed or acquired by the district.
4. A financing plan that includes the sources and uses of monies for the public improvements, a financial feasibility study for the public infrastructure, an analysis of the taxes, assessments, impact fee and utility fee impacts on the current and future property owners within the district, a value‑to‑lien ratio analysis based on the estimated value of the property within the district, including the acquisition or construction of the public improvements, and an estimation of the annual operation and maintenance cost of the public infrastructure.
5. A development agreement between the applicant and the municipality adopted pursuant to section 9‑500.05.
Sec. 3. Section 48-704, Arizona Revised Statutes, is amended to read:
48-704. Hearing on objections
A. Within thirty days after adoption of the resolution of intent to form a district, any person claiming an interest in real property which that the resolution discloses is situated in the district may file a written objection with the clerk before 5:00 p.m. on the business day preceding the date and time set for the hearing on the question of formation of the district. The objection may raise one or more of the following:
1. That the objector's property would will not be benefited receive a special benefit from the improvements set forth in the general plan and that the property should be excluded from the district.
2. That the district should not be formed, stating the specific reasons.
3. That the general plan should be modified, stating the reasons for modification.
B. At the hearing, including any adjournments or continuances, the governing body shall hear and pass only on the written objections and the testimony and evidence presented in support of or opposition to the objections. The hearing shall be either transcribed by a court reporter or recorded by a tape recorder. The court reporter's transcript or a transcription of the tape recording certified to be true and correct by the clerk shall be filed in the official records of the governing body.
C. In furtherance of the hearing, the clerk, on written request or praecipe being presented, shall issue subpoenas or subpoenas duces tecum to compel the attendance and testimony of any person or the submission of any documents at the hearing. Compliance with the subpoena shall be enforced as if the subpoena were issued by a clerk of the superior court.
D. Testimony at the hearing need not be under oath, unless requested by any owner or required by the governing board. Requests by owners that the testimony be under oath must be made in writing and be filed with, or served on, the clerk before the hearing begins or the request is deemed waived.
E. The minutes or a copy of a written transcript or a tape recording of the proceedings of a hearing conducted pursuant to this section shall be open to public inspection three working days after the conclusion of a hearing. Any person may request to examine or be furnished copies, printouts, photographs, transcripts or recordings of a hearing during regular office hours of the governing body. The custodian of the records shall furnish the copies, printouts, photographs, transcripts or recordings and may charge a reasonable fee which that does not exceed the actual cost of reproducing the item requested.
Sec. 4. Section 48-708, Arizona Revised Statutes, is amended to read:
48-708. Formation; debt limitation
A. If the formation of the district is approved by a majority of the votes cast at the election, the governing body shall order the formation, appoint the initial directors of the district board if the district will be governed by an appointed board, set the district boundaries and order that a map showing the district boundaries be drawn and a copy of the order forming the district be delivered to the county assessor and the board of supervisors of the county in which the district is located and to the department of revenue. A notice of the formation showing the number and date of the order and giving a description of the land included in the district shall be recorded with the county recorder.
B. On its formation, the district is a special purpose district for 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 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 the municipality or county. Under no circumstances may the amount of indebtedness evidenced by general obligation bonds issued pursuant to section 48‑719 and revenue bonds issued pursuant to section 48‑720 exceed the estimated cost of the public infrastructure improvements plus all costs connected with the public infrastructure purposes and issuance and sale of bonds, including, without limitation, credit enhancement and liquidity support fees and costs. The total aggregate outstanding amount of bonds and any other indebtedness for which the full faith and credit of the district are pledged shall not exceed sixty per cent percent of the aggregate of the estimated market value of the real property and improvements in the district after the public infrastructure of the district is completed plus the value of the public infrastructure owned or to be acquired by the district with the proceeds of the bonds.
C. On formation of the district, the district board shall administer, in a reasonable manner, the implementation of make a good faith effort to implement the general plan for the public infrastructure of the district and any development agreement entered into pursuant to section 9‑500.05 between the governing body and owners of land in the district. The district board shall be considered a party to that agreement.
D. Fees and other charges assessed by a municipality or county in connection with the submission and consideration of an application or petition to form a district, or shall not exceed fifteen thousand dollars. If an application is denied by the governing body, the municipality or county may not assess a fee or other charge in connection with the submission and consideration of a substantially similar application that is submitted within one year following the denial. fees and other charges assessed by a municipality, county or district in connection with the formation or administration of a district, including the issuance and sale of bonds, shall not exceed the estimated actual expense incurred by the municipality, county or district for staff and consultant services and support facilities supplied by the municipality, county or district or the financial, legal and administrative costs of the district that are not reimbursed from proceeds of the bonds or other district revenue. Any fees or other charges paid by the applicant before formation of the district that exceed the actual costs of forming the district shall be used by the municipality or county solely to support the formation or administration of the district, including the issuance and sale of bonds.
Sec. 5. Section 48‑709, Arizona Revised Statutes, is amended to read:
48-709. Powers of a community facilities district
A. In addition to the powers otherwise granted to a district pursuant to this article, a district may to further the general plan:
1. Enter into contracts and expend monies for any public infrastructure purpose with respect to the district.
2. Enter into intergovernmental agreements as prescribed in title 11, chapter 7, article 3 for the planning, design, inspection, ownership, control, maintenance, operation or repair of public infrastructure or the provision of enhanced municipal services by the municipality in the district.
3. Sell, lease or otherwise dispose of district property if the sale, lease or conveyance is not a violation of the terms of any contract or bond resolution of the district.
4. Reimburse the municipality for providing enhanced municipal services in the district.
5. Operate, maintain and repair public infrastructure.
6. Establish, charge and collect user fees, rates or charges for the use of any public infrastructure or service.
7. Employ staff, counsel and consultants.
8. Reimburse the municipality or county for staff and consultant services and support facilities supplied by the municipality or county.
9. Accept gifts or grants and incur and repay loans for any public infrastructure purpose.
10. Enter into agreements with landowners and the municipality or county for the collection of fees and charges from landowners for public infrastructure purposes, the advance of monies by landowners for public infrastructure purposes or the granting of real property by the landowner for public infrastructure purposes.
11. By resolution, levy and assess the costs of any public infrastructure purpose on any land benefited in the district.
12. Pay the financial, legal and administrative costs of the district.
13. Enter into contracts, agreements and trust indentures to obtain credit enhancement or liquidity support for its bonds and process the issuance, registration, transfer and payment of its bonds and the disbursement and investment of proceeds of the bonds.
14. With the consent of the governing body of the municipality or county which that formed the district, enter into agreements with persons outside of the district to provide services to persons and property outside of the district.
15. 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, the municipality or the county.
B. This article does not authorize:
1. A district to acquire, construct, operate or maintain an electric generation or distribution system or natural gas distribution system without the written consent of any affected public service corporation, electric cooperative, agricultural improvement or power district or other district described in article XIII, section 7, Constitution of Arizona, the service area of which encompasses all or part of the district, if that entity is providing or is capable of adequately providing electrical utility service or natural gas utility service in the district.
2. A district to provide service outside its boundaries without the written consent of any affected public service corporation, electric cooperative, agricultural improvement or power district or other district described in article XIII, section 7, Constitution of Arizona, with a service area that lies outside of the district, if that entity is providing or is capable of adequately providing electrical utility service or natural gas utility service in the area that the district proposes to serve.
C. If a district is granted written consent pursuant to this section, the district shall provide a copy to the governor, the president of the senate, the speaker of the house of representatives and each commissioner of the Arizona corporation commission no later than thirty days after consent is granted.
D. 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.
6. Exercise the same right and power of eminent domain as a public service corporation pursuant to title 12, chapter 8, articles 2 and 3 to acquire any property or right‑of‑way, except political subdivision, county, state or federal property, for any public infrastructure purpose.
E. A district which that proposes to provide domestic water service in the certificated area of a public service corporation serving domestic water shall provide just compensation to the public service corporation pursuant to section 9‑516.
F. Public infrastructure other than personalty may be located only in or on lands owned by the 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 the municipality. Personalty may be used only for purposes authorized by the district board.
G. An agreement pursuant to subsection A, paragraph 10 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 public infrastructure. Except as prescribed by section 48‑719, Subsection B, 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.
H. A district shall not contract with a municipality for enhanced municipal services unless the area for which the services are to be provided is designated by the municipality as a slum or blighted area pursuant to title 36, chapter 12, or an urban core business district of the municipality determined by formal resolution of the municipality to be in need of enhanced municipal services to encourage or preserve commercial development in the area.
I. Notwithstanding title 34 or article 2 of this chapter, the district at the option of the district board may enter into contracts for the performance of district projects with landowners in the district after calling for bids but before publishing notice of the award of a contract if all of the following conditions are met:
1. The landowner or landowners own three‑fourths or more of the total land area of the district.
2. The landowner or landowners contract to perform the work at a cost which that does not exceed the cost specified in the bid of the bidder who would have been awarded that bid.
3. The work for which the contract was let is to be financed pursuant to this article.
4. All contracts and work executed pursuant to this section are subject to those rules as the district board may prescribe.
Sec. 6. Section 48-715, Arizona Revised Statutes, is amended to read:
48-715. Project approval
Before constructing or acquiring any public infrastructure, the district board shall cause a study of the feasibility and benefits of the project to that shall be prepared by engineers and other qualified persons, which 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 a plan for financing the project, including an estimated schedule for the issuance and sale of bonds, if any. The board shall hold a public hearing on the report study and provide notice of the hearing by publication not less than ten days in advance in the official newspaper of the municipality or county or, if none in the municipality, a newspaper of general circulation in the county and by mail to the governing body of the municipality. After the hearing the district board may reject, amend or approve the report study. If the report study is amended substantially a new hearing shall be held before approval. If the report study is approved, the district board shall adopt a resolution of intent which that identifies the public infrastructure of the project, the areas benefited, the expected method and timing of financing and an appropriate system of providing revenues to operate and maintain the project. The DISTRICT board shall make a good faith effort to implement the findings of the study.
Sec. 7. Section 48-719, Arizona Revised Statutes, is amended to read:
48-719. General obligation bonds; tax levy; security
A. At any time after the hearing on formation of the district, the district board, or, if before formation, the governing body, 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 48‑707, subsection G the question of authorizing the district board to issue general obligation bonds of the district to provide monies for any public infrastructure purposes consistent with the general plan. The election may be held in conjunction with the formation election.
B. If general obligation bonds are approved at an election: ,
1. The district board may issue and sell general obligation bonds of the district.
2. An applicant may request financing from general obligation bonds by providing to the district board a certification from an engineer that a discrete segment of public infrastructure is substantially complete, an appraisal of the current cash fair market value of the property within the district that is to be taxed and evidence that the public infrastructure was constructed in compliance with title 34. The appraisal shall demonstrate that the current cash fair market value of the property within the district is sufficient to legally support the issuance of the general obligation bonds and complies with any requirements outlined in a development agreement adopted pursuant to 9-500.05 or 11‑1101. Within ninety days after receipt of a request by the applicant for financing from general obligation bonds, the district board shall cause a feasibility study to be prepared and adopted in accordance with section 48-715 and shall issue and sell the requested general obligation bonds.
C. The district may issue and sell refunding bonds to refund any general obligation bonds of the district. If general obligation bonds are issued to refund any general obligation bonds of the district no election on the issuance of such refunding bonds is required.
D. After the bonds are issued, the district 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 48‑717, to pay debt service on the bonds when due. 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.
E. All bonds, whenever issued, are secured by a lien on all revenues received pursuant to the tax levy. The lien arises automatically without the need for any action or authorization by the district or the district board. The lien is valid and binding from the time of the issuance of the bonds. The revenues received pursuant to the levy of the 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.
Sec. 8. Section 48-720, Arizona Revised Statutes, is amended to read:
48-720. Revenue bonds; fees and charges
A. At any time after the hearing on formation of the district, the district board may hold a hearing on the question of authorizing the district board to issue revenue bonds of the district to provide monies for any public infrastructure purposes consistent with the general plan.
B. If revenue bonds are approved by resolution: ,
1. The district board may issue and sell revenue bonds of the district.
2. An applicant may request financing from revenue bonds by providing to the district board a certification from an engineer that a discrete segment of public infrastructure is substantially complete, an appraisal of the current cash fair market value of the property within the district that is to be taxed and evidence that the public infrastructure was constructed in compliance with title 34. The appraisal shall demonstrate that the current cash fair market value of the property within the district is sufficient to legally support the issuance of the revenue bonds and complies with any requirements outlined in a development agreement adopted pursuant to section 9-500.05 or 11-1101. Within ninety days after receipt of a request by the applicant for financing from revenue bonds, the district board shall cause a feasibility study to be prepared and adopted in accordance with section 48-715 and shall issue and sell the requested revenue bonds.
C. The district board may pledge to the payment of its revenue bonds any revenues of the district or revenues to be collected by the municipality or 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 48‑717, 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 48‑716.
E. If, in the resolution of the district board, the revenues to be pledged were limited to certain types of revenues, only those types of revenues may be pledged and only those revenues must be maintained.
F. No holder of revenue bonds issued under this article may compel any exercise of the taxing power of the district, municipality or county to pay the bonds or the interest on the bonds. Revenue bonds issued under this article are not a debt of the district, municipality or county, 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.
Sec. 9. Title 48, chapter 4, article 6, Arizona Revised Statutes, is amended by adding sections 48-726 and 48-727, to read:
48-726. Public infrastructure acceptance; bond
A. On completion of a discrete segment of public infrastructure, the applicant may submit a letter of completion to the governing body. Within thirty days after receiving a letter of completion, the governing body, or the governing body's designee, shall conduct an inspection of the discrete segment of public infrastructure and provide the applicant with a written list of deficiencies not later than thirty days after initiating the inspection.
B. Within thirty days after submittal of an engineer's certification that a discrete segment of public infrastructure has been constructed according to the plans and specifications required by the governing body and that the deficiencies identified by the governing body or the governing body's designee have been remedied, the governing body shall adopt and accept the discrete segment of public infrastructure for ownership, operation and maintenance.
C. As a condition of acceptance, a governing body may require the applicant to provide the governing body with a performance bond or a warranty bond and may require the applicant to comply with the warranty provisions 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.
48-727. District application and procedures; ordinance or policy
On or before January 1, 2018, the governing body of a municipality shall adopt an ordinance or policy that includes at least the following information:
1. The contents required for a completed application to form a district in accordance with this article.
2. The procedures for submitting an application to form a district, including any required fees, charges or deposits.
3. The considerations and factors the governing body will use in considering whether or not to approve an application to form a district.
4. The operating procedures for a district on formation and the manner in which financing will be approved, issued and dispersed.
Sec. 10. Severability
If a provision of this act or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the act that can be given effect without the invalid provision or application, and to this end the provisions of this act are severable.
