Bill Text: AZ SB1474 | 2018 | Fifty-third Legislature 2nd Regular | Engrossed
Bill Title: Aquatics facility maintenance districts
Spectrum: Partisan Bill (Republican 1-0)
Status: (Engrossed - Dead) 2018-03-13 - House read second time [SB1474 Detail]
Download: Arizona-2018-SB1474-Engrossed.html
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Senate Engrossed |
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State of Arizona Senate Fifty-third Legislature Second Regular Session 2018
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SENATE BILL 1474 |
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AN ACT
amending section 48-261, 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 48-261, Arizona Revised Statutes, is amended to read:
48-261. District creation; procedures; notice; hearing; determinations; petitions
A. A fire district, community park maintenance district, aquatics facilities maintenance district, sanitary district or hospital district for either a hospital or an urgent care center shall be created by the following procedures:
1. Any adult person desiring to propose creation of a district shall provide a legal description of the area proposed for inclusion in the district to the county assessor of the county in which the district is to be located. The county assessor shall provide to the person proposing formation of the district a detailed list of all taxable properties in the area proposed for inclusion in the district. The person proposing formation of the district shall prepare and submit a district impact statement to the board of supervisors of the county in which the district is to be located. The county assessor's parcel map and the assessed valuation of the properties as prescribed by section 42-17052 and as shown in the county assessor's records at the time the district impact statement is submitted are deemed sufficient for any required maps and for determining the assessed valuations prescribed by this section. Except for a proposed community park maintenance district that is to be located in more than one county, if a proposed district is located in more than one county, the impact statement shall be submitted to the board of supervisors of the county in which the majority of the assessed valuation of the proposed district is located. The boards of supervisors of any other counties in which a portion of the district is to be located shall provide information and assistance to the responsible board of supervisors. For a community park maintenance district that is to be located in more than one county, the impact statement shall be submitted to the board of supervisors for each of the affected counties. If the person desiring to create a district pursuant to this section is unable to complete the district impact statement, the board of supervisors may assist in the completion of the impact statement if requested to do so, provided the bond required in subsection C of this section is in an amount sufficient to cover any additional cost to the county. The district impact statement shall contain at least the following information:
(a) A legal description of the boundaries of the proposed district and a map and a general description of the area to be included in the district sufficiently detailed to permit a property owner to determine whether a particular property is within the proposed district.
(b) The detailed list of taxable properties provided by the assessor pursuant to this paragraph.
(c) An estimate of the assessed valuation within the proposed district.
(d) An estimate of the change in the property tax liability, as a result of the proposed district, of a typical resident of the proposed district.
(e) A list and explanation of benefits that will result from the proposed district.
(f) A list and explanation of the injuries that may result from the proposed district.
(g) The names, addresses and occupations of the proposed members of the district's organizing board of directors.
(h) A general description of the scope of services to be provided by the district during its first five years of operation. At a minimum this description shall include an estimate of anticipated capital expenditures, personnel growth and enhancements to service.
2. On receipt of the district impact statement, the board of supervisors shall set a day, at least thirty but not more than sixty days after that date, for a hearing on the impact statement. The board of supervisors, at any time before making a determination pursuant to paragraph 4 of this subsection, may require that the impact statement be amended to include any information that the board of supervisors deems to be relevant and necessary.
3. On receipt of the district impact statement, the clerk of the board of supervisors shall mail, by first class mail, notice of the day, hour and place of the hearing on the proposed district to each owner of taxable property within the boundaries of the proposed district. The written notice shall state the purpose of the hearing and shall state where a copy of the impact statement may be viewed or requested. The clerk of the board of supervisors shall post the notice in at least three conspicuous public places in the area of the proposed district and shall publish twice in a daily newspaper of general circulation in the area of the proposed district, at least ten days before the hearing, or, if no daily newspaper of general circulation exists in the area of the proposed district, at least twice at any time before the date of the hearing, a notice setting forth the purpose of the impact statement, the description of the area of the proposed district and the day, hour and place of the hearing.
4. At the hearing called pursuant to paragraph 2 of this subsection, the board of supervisors shall hear those who appear for and against the proposed district and shall determine whether the creation of the district will promote public health, comfort, convenience, necessity or welfare. If the board of supervisors determines that the public health, comfort, convenience, necessity or welfare will be promoted, it shall approve the district impact statement and authorize the circulation of petitions as provided in this subsection. For a community park maintenance district that is required to obtain the approval of more than one county's board of supervisors, the petitions may only be circulated after approval of the board of supervisors from each affected county. The order of the board of supervisors shall be is final, but if the request to circulate petitions is denied, a subsequent request for a similar district may be refiled with the board of supervisors after six months from the date of the denial. The county board of supervisors shall authorize the circulation of petitions of only one proposed new district of the same type in which any property owner's land is proposed for inclusion. A new petition circulation shall not be authorized until the one-year period to submit signatures prescribed by paragraph 6 of this subsection of the original petition circulation has expired or has otherwise been extinguished.
5. Within fifteen days after receiving the approval of the board of supervisors as prescribed by paragraph 4 of this subsection, the clerk of the board shall determine the minimum number of signatures and assessed valuation required for compliance with paragraph 7 of this subsection. After making that determination, the number of signatures shall remain fixed and the assessed valuation of the taxable properties within the boundaries of the proposed district shall remain fixed as prescribed in this subsection for the purposes of determining compliance with the property valuation requirement prescribed in paragraph 7 of this subsection.
6. After receiving the approval of the board of supervisors as provided in paragraph 4 of this subsection, any adult person may circulate and present petitions to the board of supervisors of the county in which the district is located. All petitions circulated shall be returned to the board of supervisors within one year from the date of the approval of the board of supervisors pursuant to paragraph 4 of this subsection. Any petition that is returned more than one year from that date is void.
7. The petitions presented pursuant to paragraph 6 of this subsection shall comply with the provisions regarding verification in section 48‑266 and shall:
(a) At all times, contain a map and general description of the boundaries of the proposed district sufficiently detailed to permit a property owner to determine whether a particular property is within the proposed district and the names, addresses and occupations of the proposed members of the district's organizing board of directors. For an aquatics facility maintenance district, the composition of the organizing board of directors shall comply with the residency requirements prescribed by section 48‑7004, subsection A. An alteration of the proposed district shall not be made after receiving the approval of the board of supervisors as provided in paragraph 4 of this subsection. The items required to be contained with the petition under this subdivision shall be printed on the back of the petition form required pursuant to section 48‑266 unless the size of the items precludes compliance with this requirement. An error in the legal description of the proposed district shall not invalidate the petitions if considered as a whole the information provided is sufficient to identify the property as illustrated in the map required pursuant to this subdivision.
(b) Be signed by owners of more than one‑half of the taxable property units in the area of the proposed district and be signed by persons owning collectively more than one‑half of the assessed valuation of the property in the area of the proposed district. Property exempt pursuant to title 42, chapter 11, article 3 shall not be considered in determining the total assessed valuation of the proposed district nor shall owners of property not subject to taxation be eligible to sign petitions.
8. On receipt of the petitions, including any supplemental signatures, and the report of the county assessor, the board of supervisors shall set a day for a hearing on the petition.
9. Before the hearing called pursuant to paragraph 8 of this subsection, the board of supervisors shall determine the validity of the petitions presented.
10. At the hearing called pursuant to paragraph 8 of this subsection, the board of supervisors, if the petitions are valid, shall order the creation of the district. The board of supervisors shall enter its order setting forth its determination in the minutes of the meeting, not later than ten days after the day of the hearing, and a copy of the order shall be filed in the county recorder's office. The order of the board of supervisors shall be is final, and the proposed district shall be created thirty days after the board of supervisors votes to create the district, except that for a community park maintenance district that is proposed for more than one county, the proposed district is created thirty days after the approval of the board of supervisors of the final county of the counties in which the district is to be located. A decision of the board of supervisors under this subsection is subject to judicial review under title 12, chapter 7, article 6.
B. For the purpose of determining the validity of the petitions presented pursuant to subsection A, paragraph 6 of this section:
1. Property held in multiple ownership shall be treated as if it had only one property owner, and the signature of only one of the owners of property held in multiple ownership is required on the formation petition. The number of persons owning property inside the boundaries of the proposed district shall be determined as follows:
(a) In the case of property assessed by the county assessor, the number of persons owning property shall be is as shown on the most recent assessment of property.
(b) In the case of property valued by the department of revenue, the number of persons owning property shall be is as shown on the most recent valuation of property.
(c) If an undivided parcel of property is owned by multiple owners, those owners are deemed to be one owner for the purposes of this section.
(d) If a person owns multiple parcels of property, that owner is deemed to be a single owner for the purposes of this section.
2. The value of property shall be determined as follows:
(a) In the case of property assessed by the county assessor, values shall be are the same as those shown on the day the district impact statement is submitted.
(b) In the case of property valued by the department of revenue, the values shall be are those determined by the department in the manner provided by law, for municipal assessment purposes. The county assessor and the department of revenue, respectively, shall furnish to the board of supervisors, within twenty days after a request, a statement in writing showing the owner, the address of each owner and the appraisal or assessment value of properties contained within the boundaries of the proposed district as described in subsection A of this section.
3. Petition signatures representing real property on which taxes and assessments are not current at the time of petition review are invalid.
C. The board of supervisors may require of the person desiring to propose creation of a district pursuant to subsection A, paragraph 1 of this section a reasonable bond to be filed with the board at the start of proceedings under this section. The bond shall be in an amount sufficient to cover costs incurred by the county if the district is not finally organized. County costs covered by the bond include any expense incurred from completion of the district impact statement, mailing of the notice of hearing to district property owners, publication of the notice of hearing and other expenses reasonably incurred as a result of any requirements of this section.
D. If a district is created pursuant to this section, the cost of publication of the notice of hearing, the cost of the mailing of notices to property owners, the cost of the bond and all other costs incurred by the county as a result of this section shall be a charge against the district.
E. If a proposed district would include property located within an incorporated city or town, in addition to the other requirements of subsection A of this section, the board shall approve the creation and authorize the circulation of petitions only if the governing body of the city or town has by ordinance or resolution endorsed the creation.
F. Except as provided in section 48‑851 and section 48‑2001, subsection A, the area of a district created pursuant to this section shall be contiguous.
G. A district organized pursuant to this section shall have an organizing board of directors to administer the affairs of the district until a duly constituted board of directors is elected as provided in this title. The organizing board shall have all the powers, duties and responsibilities of an elected board. The organizing board shall consist of the three or five individuals named in the district impact statement and the petitions presented pursuant to subsection A of this section. If a vacancy occurs on the organizing board, the remaining board members shall fill the vacancy by appointing an interim member. Members of the organizing board shall serve without compensation but may be reimbursed for actual expenses incurred in performing their duties. The organizing board shall elect from its members a chairman and a clerk.
H. For the purposes of this section assessed valuation does not include property exempt pursuant to title 42, chapter 11, article 3.
Sec. 2. Title 48, Arizona Revised Statutes, is amended by adding chapter 40, to read:
CHAPTER 39
AQUATICS FACILITY MAINTENANCE DISTRICTS
ARTICLE 1. GENERAL PROVISIONS
48-7001. Definitions
In this chapter, unless the context otherwise requires:
1. "Aquatics facility" means pools, splash pads, water features, pumps, plumbing, operational equipment, recreational amenities, landscaping, buildings, community structures, enclosures, parking lots, easements, retention basins and ancillary site facilities associated with the aquatics facility.
2. "Board" means the board of directors of the district.
3. "Chairperson" means the person designated to preside over meetings of the board.
4. "Clerk" means the person designated to act as clerk of the board.
5. "County" means the county in which the district is formed.
6. "District" means an aquatics facility maintenance district established pursuant to this chapter.
7. "Maintain" or "maintenance" means the maintenance of the aquatics facility after its initial acquisition or construction, including the repair, replacement, renovation, modernization of and addition of safety improvements to the aquatics facility and capital improvements of any kind related to the aquatics facility as determined by the board.
8. "Operate" or "operation" means the day‑to‑day business activities of the aquatics facility, including hiring staff, opening facilities, providing lifeguards, providing activities and services for customers, operating the admission to the FACILITY, collecting fees, marketing, hosting events and other related activities reasonably required to successfully operate an aquatics facility as determined by the board.
9. "Operating expenses" means expenses of maintenance and operation of the aquatics facility and related real property and related costs and expenses of operation of the district itself.
10. "Treasurer" means the treasurer of the county in which the district is located.
48-7002. Establishment of district; limitations
In addition to the requirements for the establishment of an aquatics facility maintenance district as set forth in section 48-261, a district may be created only in a county with a population of less than one hundred thousand persons and not later than September 1, 2021.
48-7003. District powers and duties; public body; records
A. In addition to the powers specifically granted in this chapter, a district, acting through the board, may:
1. Maintain and operate an aquatics facility.
2. Acquire in the name of the district any real or personal property or interest in property by gift, purchase, condemnation or otherwise and own, control, manage or dispose of that property or interest if necessary or convenient for the purposes PRESCRIBED by paragraph 1 of this subsection. Private monies or contributions received by the district for the purpose of defraying costs of work done under its direction, including initial construction of the aquatics facility, may be expended by the district in compliance with the terms and conditions under which the monies are received, if the terms and conditions meet the approval of the board and are within the scope of the statutory powers and duties of the district.
3. Join with the county or any municipality within the district or a federal or state agency in the maintenance and operation of the aquatics facility.
4. Sell, lease or otherwise dispose of any property or interest in property of the district if the property is no longer required for the purposes of the district or if use of the property may be allowed without interfering with the use to which the property is put by the district.
5. Employ staff to perform maintenance and operation of the aquatics facility and to perform any other duties reasonably necessary for the operation of the district.
6. Formulate and adopt rules necessary to maintain and operate the aquatics facility.
7. Cause the levy of a tax pursuant to this chapter on the real property of the district sufficient to pay the expenses of the district.
8. Adopt resolutions establishing reasonable fees, rental rates, and charges for entrance and usage of the aquatics facility by members of the public for the purpose of recovering the expense of providing specific services, activities or amenities or any other fee schedule that may be required.
9. Contract with individuals or nonprofit or for profit organizations for the purposes specified in this chapter and to provide related products or services necessary or complementary to the activities associated with the district.
10. Pay expenses incidental to the exercise of its powers.
B. The district may not:
1. use district monies for the initial acquisition or construction of the aquatics facility or any interest in real property on which it is situated.
2. incur long-term indebtedness.
3. from any monies collected by its tax, pay debt service on long‑term indebtedness or acquire interest in real PROPERTY other than reasonably necessary for MAINTENANCE of the facility.
C. The district board is a public body for purposes of title 38, chapter 3, article 3.1 and title 39, chapter 1.
48-7004. District board; vacancies; term
A. The board shall consist of five directors as follows:
1. one person from each municipality in the DISTRICT with a population of one thousand persons or more.
2. oNE PERSON FROM A municipalitY in the DISTRICT with a population OF less than one thousand PERSONS.
3. tHE REMAINING PERSONS FROM The unincorporated areaS of the county IN THE DISTRICT.
B. If a vacancy occurs on the board other than from expiration of a term, a quorum of the members of the board shall fill the vacancy by appointment of an interim member who is a person from the same municipality as the person who is being replaced or from the UNINCORPORATED area of the county if that is the residence of the person who is being replaced, as applicable. The appointment of the interim member shall be made within ninety days after the date the vacancy occurs. If the quorum of members of the district board do not appoint an interim member within that ninety-day period, the board of supervisors of the county, within sixty days after expiration of the ninety-day period, shall appoint an interim member to the board who meets the qualifications prescribed by this subsection for an interim member. If the entire board resigns, for any reason cannot fulfill its duties or does not have remaining members of the board sufficient to constitute a quorum of the board, the board of supervisors of the county shall appoint interim members of the district board who are persons from the same municipalities as the persons they are replacing or are residents of the UNINCORPORATED area of the county within the district, as applicable, or may appoint an administrator to administer the district with the same duties and obligations of the board to serve until the next election.
C. A majority of the board constitutes a quorum for the transaction of business.
D. Members of the board shall serve without compensation, but may be reimbursed for actual expenses incurred in performing duties required by law.
E. The board shall elect from its members a chairperson and a clerk. The election of the chairperson and the clerk must occur at the meeting of the board that first occurs in the month immediately following each general election.
F. Of the members first elected to the board, the three people receiving the first, second and third highest number of votes are elected to four-year terms, and the two people receiving the fourth and fifth highest number of votes are elected to two-year terms. Thereafter, the term of office of each member of the board is four years from the first day of the month next following that member’s election.
48-7005. Board election procedures; qualifications
A. Except as otherwise provided in this chapter, the manner of conducting and voting at an election for members of the board, contesting elections, keeping poll lists, canvassing votes and certifying returns shall be the same, as nearly as practicable, as in elections for county officers.
B. Only a qualified elector of this state who has registered to vote at least twenty-nine days before the election as a resident within the district boundaries may vote at the election. A person offering to vote at an election for which no district register has been supplied shall sign an affidavit stating the person's address in which the person resides and swearing the person is qualified to vote and has not voted at the district election being held. A person offering to vote at an election for which a district register has been supplied shall proceed as required for voting at any election at which precinct registers are used.
C. In elections for members of the board:
1. The person from within each of the municipalities in the county as prescribed by section 48-7004 who receives the highest NUMBER of votes for candidates from that designated municipality shall be declared elected and the persons from within the unincorporated areas of the county in the district who RECEIVE the highest, second highest and third highest number of votes for candidates from the UNINCORPORATED AREAS of the county shall be declared elected.
2. Candidates must be, and during incumbency must remain, qualified electors of the applicable municipality or the applicable unincorporated area of the county in the district as prescribed by section 48-7004 for at least one year immediately preceding the date of the election. A person is not eligible to be a candidate for election to the board if that person is related by affinity or consanguinity within the third degree to a person who serves on the board during the potential candidate's term of office. Any person who violates this paragraph is not eligible to serve on the board.
3. Elections shall be held on the first Tuesday after the first Monday in November of the first even numbered year following the year the district is declared organized by the board of supervisors and every two years thereafter on the first Tuesday after the first Monday in November.
4. Nominating petitions shall be filed with the board of supervisors of the county as prescribed by title 16, chapter 3. The nominating petition shall indicate if the nominee is from a municipality in the district with a population of one thousand persons or more, is from a municipality in the district with a population of less than one thousand persons or is from an unincorporated area of the county in the district. If only one person files a nominating petition for an election to fill a position on the board for which the term of office is to expire, the board of supervisors of the county may cancel the election for that position and appoint the person who filed the nominating petition to fill the position. If no person files a nominating petition for an election to fill a district office, the board of supervisors of the county may cancel the election for that office and that office is deemed vacant and shall be filled as otherwise provided by law. A person who is appointed pursuant to this paragraph is fully vested with the powers and duties of the office as if elected to that office.
5. The names of all nominated persons for office within the district and the municipality in which they reside, or, if the person is a nominee from an UNINCORPORATED area of the county, the county, shall appear on the ballot without partisan designation.
48-7006. Tax election procedures
A. After the board determines by resolution that eighty percent of the costs of the initial acquisition and construction of the aquatics facility are available pursuant to the terms and conditions described in section 48-7003, subsection A, paragraph 2, the qualified electors of the district, voting in an election held on the first Tuesday after the first Monday in November following the first election of members of the board, may authorize the board, as prescribed by this section, to levy a secondary property tax on real property up to the rate authorized in section 48‑7007. Once approved at an election, the maximum rate shall remain in effect.
B. Notwithstanding any other law that requires additional or contrary PUBLIC notice, the board shall mail or distribute an informational report and the ballot to the households in which qualified electors reside within the district at least thirty-five days before the election. The report shall contain the following information:
1. The date of the election.
2. The voter's polling place and the times the polling place is open.
3. The estimated amount that will be obtained from the levy of the tax for the first year for which the tax will be levied at the rate authorized under section 48-7007.
4. At least two arguments, if submitted, but not more than ten arguments for and two arguments, if submitted, but not more than ten arguments against the proposed tax. The arguments shall be in a form prescribed by the board, and each argument may not exceed two hundred words. Arguments for the proposed tax shall be provided in writing and signed by the board. The arguments for the proposed tax shall be signed as the board without listing any member's individual name for the arguments for the proposed tax. If submitted, additional arguments in favor of the proposed tax shall be provided in writing and signed by those in favor. Arguments against the proposed tax shall be provided in writing and signed by those in opposition. The names of persons and entities submitting written arguments shall be included in the report. The board shall review all factual statements contained in the written arguments and correct any inaccurate statements of fact. The board may not review and correct any portion of the written arguments that are identified as statements of the author's opinion. The board shall make the written arguments available to the public as provided in title 39, chapter 1, article 2. A deadline for submitting arguments to be included in the informational report shall be set by the board.
5. The current limited property value and the net assessed valuation provided by the department of revenue and the estimated amount of the secondary property taxes if the proposed tax is approved for each of the following:
(a) An owner-occupied residence whose assessed valuation is the average assessed valuation of property classified as class three, as prescribed by section 42-12003 for the current year in the school district.
(b) An owner-occupied residence whose assessed valuation is one-half of the assessed valuation of the residence in subdivision (a) of this paragraph.
(c) An owner-occupied residence whose assessed valuation is twice the assessed valuation of the residence in subdivision (a) of this paragraph.
(d) A business whose assessed valuation is the average of the assessed valuation of property classified as class one, as prescribed by section 42-12001, paragraphs 12 and 13, for the current year in the school district.
C. The ballot shall contain the words "tax, yes" and "tax, no", and the voter shall signify the voter's desired choice.
D. In all respects not otherwise provided in this section, the election shall be held pursuant to title 16, chapter 2, article 1.
48-7007. Annual budget procedures; levy; requirements
A. A district shall prepare an annual budget that contains detailed estimated expenditures for each fiscal year and that includes provision for the reserve fund prescribed in Section 48‑7008. The budget summary shall be posted in three public places and a complete copy of the budget shall be published on the district's official website for twenty days before a public hearing at a meeting called by the board to adopt the budget. Following the public hearing, the board shall adopt a budget. A complete copy of the adopted budget shall be posted in a prominent location on the district's official website within seven business days after final adoption and shall be retained on the website for at least sixty months.
B. Not more than ten days after the organization of a district and not later than August 1 of each year thereafter, the chairperson shall submit to the board of supervisors of the county a budget estimate that contains certifications by item and that specifies the amount of money required for operating expenses for the ensuing year.
C. If authorized by the electors pursuant to section 48‑7006, and based on the budget submitted by the district, the board of supervisors of the county shall levy at the time of levying other property taxes a district tax on the net assessed value of property in the district of not more than one dollar and eighty cents per one hundred dollars of net assessed valuation, in an amount sufficient with amounts from other sources to pay operating expenses. The tax levy provided for in this subsection shall be a levy of secondary property taxes and is subject to title 42, chapter 17, article 2. The property tax levy of the district shall include in lieu contributions pursuant to chapter 1, article 8 of this title.
D. Every budget adopted by a district shall include the following:
1. A certification by the chairperson and the clerk as to both of the following:
(a) That the district has not incurred any debt or liability in excess of taxes levied and to be collected and the monies actually available and unencumbered at that time in the district general fund.
(b) That the district complies with subsection F of this section.
2. For each of the items listed in the budget adopted pursuant to subsection A of this section, the district shall estimate the revenue or expense for the next two fiscal years. Estimates shall be based on the average increase or decrease of the item for the previous two fiscal years unless more certain information is available to the district. Estimates shall include any applicable levy or rate limitations.
E. For any district that amends its budget after its initial adoption, the board shall hold at least two hearings on the revision of the budget, and the revised budget must be considered and adopted in a special meeting that is called for the adoption of the revised budget. The special meeting must be held one week after the consideration of the revision of the budget at a regularly scheduled meeting of the board.
F. When a district has adopted a budget and the board of supervisors has levied a tax as provided in subsection C of this section and the district has insufficient monies in its general fund with the treasurer to operate the district, the chairperson, on or after August 1 of each year, may draw warrants, substitute checks or electronic funds transfers for the purposes prescribed in this chapter on the treasurer, payable on November 1 of that year or on April 1 of the succeeding year. The aggregate amounts of the warrants, substitute checks or electronic funds transfers may not exceed ninety percent of the taxes levied by the county for the district's current fiscal year. If the treasurer cannot pay a warrant, substitute check or electronic funds transfer for lack of monies in the district general fund, the warrant or substitute check shall be endorsed and registered, or the electronic funds transfer shall be recorded, and the warrant, substitute check or electronic funds transfer shall bear interest and be redeemed as provided by law for county warrants, substitute checks or electronic funds transfers, except that the warrants, substitute checks or electronic funds transfers are payable only from the district general fund.
G. Any audit, report or review of a district made pursuant to section 48‑253 shall be presented to the board by the auditor telephonically or in another live electronic format during a public meeting of the board or, as directed by the board, in person at a public meeting of the board. The board shall take formal action at the public meeting to review and receive the audit, report or review. The audit, report or review shall include an attestation by the auditor of the district as to all of the following:
1. That the district has not incurred any debt or liability in excess of taxes levied and to be collected and the monies actually available and unencumbered at that time in the district general fund.
2. That the district complies with subsection F of this section.
3. Whether the audit, report or review disclosed any information contrary to the certification made as prescribed by subsection D of this section.
H. The treasurer shall keep the monies received from taxes levied pursuant to subsection C of this section in a separate fund known as the district general fund of the district. The monies shall be used strictly for the payment of operating expenses.
I. The district may maintain separate accounts with a financial institution that is authorized to do business in this state for the purpose of operating a payroll account or for holding revenues as necessary to fulfill the district's fiduciary responsibilities.
J. The district, through the treasurer, shall establish the relevant governmental funds necessary for the proper management and fiscal accountability of district monies from property taxes, grants, contributions and donations, as defined by the government accounting standards board. Unless the monies received are legally restricted by contract, agreement or law, those monies may be transferred between fund accounts according to the original or revised budget of the district.
K. The district shall reconcile all balance sheet accounts for accounts for each calendar month of the fiscal year within thirty days after the end of that calendar month. The board shall review the reconciled balance sheet accounts every two months.
L. The district shall produce monthly financial reports to include a register of checks, substitute checks, warrants and deposits, a record of electronic funds transfers, a statement of financial activities and a statement of net assets for each calendar month. The district shall produce a cash flow projection report for each fiscal year. The cash flow projection report shall be updated monthly with the actual revenues and expenditures from the preceding month. Every two months, the board shall review the financial reports, the updated cash flow projections report and all month-end fund statements and reports of the preceding months to include those reports provided by the treasurer and each of the financial institutions in which the district maintains an account. Any financial report or cash flow projection report that would indicate an adverse impact on the ongoing operations or liquidity of the district shall be reported by the chairman in writing and delivered by certified mail to the treasurer and the board of supervisors of the county within ten days after the discovery.
M. Notwithstanding section 11-605, the district may register or record warrants, substitute checks or electronic funds transfers only if separate accounts are maintained by the treasurer for each governmental fund of the district. Warrants, substitute checks or electronic funds transfers may be registered or recorded only on the maintenance and operation account, the unrestricted capital outlay account and the special revenue account, and only if the total cash balance of all three accounts is insufficient to pay the warrants, substitute checks or electronic funds transfers and after any revolving line of credit has been expended as prescribed in section 11-635.
48-7008. Fees, rentals and service charges; reserve fund
A. The board may charge and collect fees, rentals and service charges for any service performed or property furnished by the district. Revenue derived from such sources shall be paid into the district general fund established pursuant to section 48‑7007 or to the reserve fund established pursuant to subsection B of this section.
B. A reserve fund may be established in an amount found by the board to be sufficient to secure payment of all potential operating expenses if the regular tax levy fails to collect sufficient monies to fund ordinary operating expenses for the district. The reserve fund may be funded from either revenues from the regular tax levy or from fees, rentals and service charges collected pursuant to this section.
48-7009. Reimbursement of county expenses
The district shall REIMBURSE the county pursuant to section 11‑251.06 for services provided to the district by the county.
