Aspects of special district government in Arizona: an informal assessment of implementation of recent selected special district legislation with recommendations and drafts of proposed legislation

              ASPECTS OF SPECIAL DISTRICT GOVERNMENT
IN ARIZONA
by
Don L. Bowen
and
Ed Ricketts
Office of Community and Public Service
T H E U N I V E R S I T Y O F
ARIZONA
T U C S O N . A R I Z O N A
ASPECTS OF SPECIAL DISTRICT GOVERNMENT IN ARIZONA
An Informal Assessment of Irnplernentation of Recent
Selected Special District Legislation with Recomrnendations
and D r a f t s of Proposed Legislation
Don L. Rowen
Consultant
Office of Community and Public Service
University of Arizona
and
Ed Kicketts
Administrative Assistant for Finance and Administration
County Supervisors Association of Arizona
Office of Comrnunity and Public Service
University of Arizona
June 1988
INTRODUCTION
Preparation of this report was undertaken on behalf of work of the 1987 Joint
Legislative Committee on County Issues. The extensive use of special purpose district
government in Arizona and its formation and other organizational relationships with
county government make special districts a natural focal point for Committee endeavor.
Within this context, Cominittee interest in special district governrnent activity is
especially appropriate in light of recent legislative enactment of a series of special
d i s t r i c t oriented rneasures and the value of assessing effectiveness of those rneasures at
this time. One of these measures dealt with special district financial and related
organizational reporting requirements; another with special d i s t r i c t formation and
annexation practices; another with county assistance tax for fire districts; and another
with special district reimbursernent for county services.1 These four legislative
initiatives, along with others,:! largely stemmed frorn work of the earlier established Joint
Legislative Committee on Special Districts.3
Although frequently suggested, no formal mechanism for monitoring impact o l
special district legislative rneasures is in place. However, the two authors of this report
were intimately involved in work of the Joint Special District Committee and frorn their
respective continuing e~nployment posts have followed irnplementation activity of the
recent legislative special district package just as a matter of that professional interest.
Hence this report is dubbed "informal." It is not based on any formal survey of special
district activity. Rather, i t simply reports the observations of how two interested and to
some extent informed observers see irnple~nentation of t h a t legislation t o be as of now
with recornmendations f o r f u t u r e legislative consideration.
The report is divided into two sections. The f i r s t focuses on financial and related
reporting of special district government as a rneans of better understanding and fuller
accountability of special district activity. Here, results of the first legislatively required
reporting year (1986-87) are briefly examined and draft legislation suggested to rernedy
observed defects.
The second section deals with a variety of other special d i s t r i c t concerns including
further refinernent of the impact statement in special district formation and annexation
practices, reilnbursernent for county services to special districts, the fire district
assistance tax, and a statutory definition of just what a special district is as opposed t o
other types of local government entities. For quick reference to the gist of these issues,
each i s presented in summary outline form accompanied by proposed draft legislation in
Appendix F in behalf of further resolution of the issue(s) involved.
By most any measure, this report should be viewed as a "technical" report not
intended nor suited for widespread distribution. It is simply a checklist of selected special
district issues with proposed solutions offered for speculation of County Issues Cornrnittee
~nembers and others already familiar with the subject of special district government in
~ r i z o n a . 4
Funding for this study was underwritten by the University of Arizona through the
Office of Corninunity and Public Service, Bruce A. Wright, Director. Report views and
findings are not necessarily those of either the University or the Office of Community and
Public Service. They are the authors1 own and for them they accept custornary
responsibility.
SPECIAL DISTRICT REPORTING REQUIREMENTS
Statutory special d i s t r i c t reporting requirements are of two sorts. One requires an
annual report frorn the board of supervisors of each county to the State Treasurer by
October 1, listing new special d i s t r i c t creations under Title 48 for the prior year (see
Appendix B, Part 1). Another stipulates t h a t all of the following special districts are
required to file an annual financial statement and other information with the clerk of the
board of supervisors in the county in which they a r e located and with the State Treasurer
(see Appendix B, Part 2).
District
Antinoxious Weed Districts
Pest Control Districts
Fire Districts
T.V. Districts
Cornmunity Park Districts
Recreation Center Districts
Special Road Districts
Power Districts
Electrical Districts
Hospital Districts
Sanitary Districts
Pest Abaternent Districts
Health Service Districts
Drainage and Flood Protection Districts
Irrigation and Water Conservation Districts
Irrigation Water Delivery Districts
County Flood Control Districts
County Free Library Districts
Title 48
Chapter No.
Preparation for Securing Special District Reports. Submission date f o r reports from
counties and their special districts i s no later than 150 days a f t e r close of the district
fiscal year (June 30). For the first year of implementation of this reporting requirement,
this meant subrnission by Novernber 28, 1987. Report forms with instructions were
prepared by the Auditor General in accord with statutory provisions. Forms were mailed
to the counties in August 1986 asking that the counties provide the forms t o special
districts in the county for completion (see Appendix C). On October 28, 1986 a reminder
rnemo clarifying sotne instructional iterns of the earlier prepared reporting form was sent
to the counties by the Auditor General (see Appendix D). And on November 2, 1987 the
Deputy State Treasurer sent a further reminder notice t o each clerk of the boards of
supervisors (see Appendix E).
Number of Special District Reporting Forms Submitted. An examination of reports
received by the State Treasurer was conducted for those received prior t o July 1, 1988,
which began the new 150 day reporting period for FY 1987-88. The Treasurer's s t a f f has
established a filing system f o r a l l reports received and has developed and committed t o
computer disc two rnaster indexes, one alphabetically by county and a second
alphabetically by special district name. The filing system and indexes do much t o
f a c i l i t a t e review of reports. As of this review date a total of 173 special district reports
had been received distributed as follows:
fire district reports
irrigation d i s t r i c t reports
sanitary d i s t r i c t reports
county flood d i s t r i c t reports
county library d i s t r i c t reports
electrical d i s t r i c t reports
special road d i s t r i c t reports
hospital d i s t r i c t reports
irrigation water delivery d i s t r i c t reports
drainage and flood protection d i s t r i c t report
Other Observations. These 173 reports represent only about one-half of the special
districts in the state.5 Quality of reports received was generally satisfactory -- readily
readable and complete with the exception of approximately a half dozen t h a t were
incomplete to the point of negligible utility f o r any sort of ana1~sis.6 As provided by law,
an independent audit by a CPA may be substituted for financial information requested by
the Auditor General and 26 did so, seven districts submitting both. Bulk of the reports,
111, were submitted by the November 28, 1987 reporting d a t e . The rest were l a t e , some
by several months.7
Reco~nrnendation. Legislation is recommended t o address certain problems as
follows:
Annual County Report:
a. Should exclude reporting of municipal and county improvement districts,
except for domestic water improvement d i s t r i c t s which by s t a t u t e are
designated as improvement districts, but which in point of f a c t a r e
endowed with additional characteristics that give them -de -fac to special
district status. Such improvement d i s t r i c t s are merely taxing authorities
of cities, towns, and counties.
b. Should include a copy of the district impact staternent required by certain
special districts pursuant t o Section 48-261.
c. Should be expanded t o include special districts whose boundaries have
changed plus a copy of any boundary change irnpact statement required by
Section 48-262.
Annual Special District Report:
a. When the financial staternent requirement is being satisfied by the
independent audit of a CPA, the audited financial staternent should
include not less than the information requested on the Auditor General
forms.
b. Exempted from the regular report deadline should be the television
district, county free library district, and county flood control district and
instead included with the annual county audit to be submitted at the tirne
of audit completion by the Auditor General.
c. The special district official submitting the report and completing the
financial statement should be identified.
d. The State Treasurer should make an annual report to the legislature and
governor on compliance with respect t o the annual county and special
district reporting requirements.
e. The county treasurer should not distribute special district revenues
collected by the county t o a district without certification of t h e S t a t e
Treasurer t h a t t h e annual special district report has been received. An
exception would be allowed by d i s t r i c t appeal to the board of supervisors.
Draft of Proposed Legislation. See Appendix F, Exhibit I.
OTHER SPECIAL DISTRICT ISSUES
AND RECOMMENDATIONS
In addition t o requirements for special district reporting, the introductory section of
this report identified four other areas of report coverage. These four deal with (a) role of
the i m p a c t s t a t e m e n t in formation and annexation practices, (b) special district
reimbursement for county services, (c) county assistance tax for fire districts, and (d)
special district definition and board of supervisors formation authority.
SPECIAL DISTRICT IMPACT STATEMENT
IN FORMATION AND ANNEXATION ACTIVITY
Summary. The purpose of this recommendation is to clarify and enhance the current
special district impact statement required of certain special districts with respect t o
proposed district creations and boundary changes. The specific provisions are:
1. District creations (A.R.S. Section 48-261):
a. Provides t h a t the board of supervisors may assist in completion of the
irnpact statement when those proposing formation are unable t o do so.
b. Adds the requirernent of explaining the benefits and injuries listed in the
irnpact statement for the proposed district.
c. Requires "taxable" property owners t o be noticed on proposed forrnation
instead of only "real" property owners.
d. Clarifies how t o count petition signatures of property owners of property
held in joint tenancy by allowing one signature t o suffice t o include the
property in the petition.
e. Permits the board of supervisors to require forrnation petitioners t o file a
bond with the board to cover county costs if the district i s ultimately not
formed.
2. District boundary changes (A.R.S. Section 48-262):
a. Adds the requirement of explaining the benefits and injuries listed in the
irnpact statement for the proposed district.
b. Clarifies how to count petition signatures of property owners of property
held in joint tenancy by allowing one signature t o suffice to include the
property in the petition.
3. The special district impact statement for district creations and boundary
changes is extended to most other special districts by a new A.R.S. Section
48-263.
Justification. The reasons for the changes proposed in the above summary are noted
below:
1. District creations (A.R.S. Section 48-261):
a. Experience of counties with impact statements indicates that those
proposing formation are generally neither capable of producing nor in
possession of the data required by the impact statement. The need for a
special district i s n o t r e l a t e d t o the ability of those proposing formation to
justify forrnation, nor should formation be predicated on such capability.
b. A simple l i s t of the benefits and injuries resulting from forrnation is
insufficient. An explanation of them is necessary.
c. Notice of a proposed district's formation hearings should not be limited t o
real property owners. In the fire and hospital districts, all taxable property
is taxed. In the sanitary district, real property and mobile homes a r e
taxed. Thus, all owners of property to be taxed in the district should be
noticed on the hearings so that equal opportunity i s given to all who would
be affected by the district.
d. Present law does not specify how property held in joint tenancy should be
counted toward petition requirements. This area of confusion needs t o be
clarified.
e. Some special d i s t r i c t formation proposals are without solid support. To
ensure the good faith of the petitioners, a bond should be required t o cover
county costs for a proposed district which fails t o form.
2. District boundary changes (A.R.S. Section 48-262):
a. A simple list of the benefits and injuries resulting from the boundary
change is insufficient. An explanation of them is necessary.
b. Present law does not specify how property held in joint tenancy should be
counted toward petition requirements. This area of confusion needs t o be
clarified.
3. I t i s a reasonable extension of special district reform to subject a l l types of
special districts t o the impact statement requirements for formations and
boundary changes contained in A.R.S. Sections 48-261 and 48-262. This new
requirement is in keeping with the reform objectives of consistency,
governmental control, and public accountability.
Draft of Proposed Legislation. See Appendix F, Exhibit 11.
SPECIAL DISTRICT REIMBURSEMENT FOR COUNTY SERVICES
Surnrnary. This proposed legislation adds the county free library district to the list
of special districts which rnay be charged for county services. In addition, a provision is
made for the board of supervisors t o require r e i ~ n b u r s e ~ n e nftr om newly formed special
districts for county services rendered prior t o and during organization.
Justification. The county free library district was unintentionally omitted from the
reitnbursernent list when the authorizing legislation was enacted in 1986. It should be
added to the reimbursement list. Also, presently, the board of supervisors cannot seek
reiinbursement from a district for services rendered prior to and during i t s organization.
This is often the most intense period of county service delivery which the d i s t r i c t may
experience. It was never viewed nor touted as an objective of the reimbursernent s t a t u t e
t o exclude the formation time period. Rather, i t was assumed all county services were
included as reimbursable.
Draft of Proposed Legislation. See Appendix F, Exhibit 111.
COUNTY FIRE DISTRICT ASSISTANCE TAX
Surnrnary. Certain revenues are excluded frorn the total of revenges on which the
20% county contribution is computed:
1. State and federal subventions and grants.
2. Contracted reimburseinents and payments from cities, towns and other fire
districts.
3. Fire district bond sale receipts.
4. Property tax collections applied t o bond repayment.
Justification. The revenues t o be excluded frorn the 20% county contribution do not
represent fire district "local e f f o r t " f o r d i s t r i c t maintenance and operation. As such, they
should not be included in the 20% contribution. The intent of the original enactrnent was
to provide a 20% match frorn a countywide levy for fire d i s t r i c t maintenance and
operation revenues raised locally.
Draft of Proposed Legislation. See Appendix F, Exhibit IV.
SPECIAL DISTRICT DEFINITION
Surnmary. This proposal creates a special district definition (New A.R.S. Section
48-271). The following are characteristics of the special d i s t r i c t prototype envisioned by
this definition. They are currently substantially present in most existing special districts
including antinoxious weed, pest control, f i r e , domestic water, television, community
park, recreation center, special road, power, electrical, hospital, sanitary, pest
abatement, health services, agricultural improvement, drainage and flood protection,
irrigation and water conservation, irrigation water delivery, county flood control districts,
multi-county water conservation, and county free library, and rnust be substantially
present in any new special district authorizations by the legislature. Only the municipal
improvement and typical county i~nprovementd istricts are excluded frorn the definition.
The required characteristics for new statutory special district creations are:
1. Political subdivision of the state with municipal status which may include
characteristics such as the power t o prepare and execute budget, t o enter into
contracts with individuals and other organized entities, sue and be sued, acquire
and dispose of property, incur and retire debt, and rnaintain organizational
records available for public inspection.
2. Single or limited governmental function.
3. Independently elected governing board or board of supervisors designated as
governing board by district authorizing statute.
4. Ultirnate authorization of formation process requires approval of the board of
supervisors.
5. Territorial jurisdiction (geographical boundaries) within county or coterrninous
with county boundaries.
6. Taxing authority to include ad valorem property taxes, special assessments,
service fees, or other revenue raising powers as prescribed by statute.
7. Corporate existence separate and apart from any other government or political
unit of government.
8. Perpetual existence subject to dissolution in accord with statutory provisions.
Justification. The special district definition i s necessary to:
1. Provide a benchinark by which t o identify what Arizona law intends a special
district to be and to f a c i l i t a t e public understanding and legislative, executive,
and judicial special d i s t r i c t oriented acts.
2. Conforrn t o Arizona court rulings, viz:
a. Mountain States Legal Foundation et a1 v. Apache County et a1 which set
forth specific c r i t e r i a for a special district (Appeals Court ruling, 1985).
b. George R. Renner et a1 v. Hon. Jeffrey S. Cates et a1 (1987) which upheld
the Superior Court ruling that the county free library district is a
constitutional special district (Superior Court ruling 1986).
3. Enhance user utility and understanding of Title 48.
4. Aid in identification of special district governrnents by federal agencies such as
the U. S. Bureau of the Census and the U. S. Advisory Commission on
Intergovernmental Relations and other national and regional bodies concerned
with information, bonding, and related special district activity.
Draft of Proposed Legislation. See Appendix F, Exhibit V.
BOARD OF SUPERVISORS
SPECIAL DISTRICT FORMATION AUTHORITY
Summary. This new provision will place ultimate authority over special district
formations in the board of supervisors. Thus, during any point in the formation process
the board may call a halt to establishment.
Justification. The dual purposes of good government and protecting citizens from
unnecessary, frivolous, or unduly cumbersome new government are served by placing more
authority in the board of supervisors. The board is the most appropriate level of review of
d i s t r i c t formations and may serve this important protector r o l e where no other general
purpose governrnent could.
Draft of Proposed Legislation. See Appendix F, Exhibit V.
NOTES
1 The f i r s t three of these measures were enacted in 1986. The fourth was adopted in
1984. See Appendix A for a brief chronology of these and other special district
oriented measures 1983- 1987.
2 One of the most important of these enactments dealt with voter registration and
related special district election procedures -- Laws 1986, Chapter 320 (H.B. 2362).
Regrettably, tirne and space limitations do not permit treatment of t h i s important
aspect of Committee interest in this report.
Laws 1954, Chapter 338 (S.B. 1124).
4 One background source for considering special district issues dealt with in this report
is Don L. Bowen, SPECIAL DISTRICT GOVERNMENT IN ARIZONA: A REPORT WITH
RECOMMENDATIONS (University of Arizona, Tucson, 1982), 253 pages.
5 A recent estimate indicates there are approximately 320 special districts in Arizona.
And here i t is well t o emphasize that because of the way in which i t was constructed,
the 320 figure is subject t o error. The process by which i t was deduced began with a
count of 280 special districts as of June 30, 1981 (Bowen, op cit, page 5). Since this
last comprehensive count of special districts, some reductions and increases in the
count have occurred. A county-by-county survey conducted for t h i s report in May,
1985 yielded numerous new special d i s t r i c t creations f o r the period July 1, 1981
through June 30, 1987. Because the recent survey count made no attempt to duplicate
the thoroughness or comprehensiveness of the original count, neither d i s t r i c t s
becoming inactive o r those being reactivated are included. Likewise, the tight
controls of the original survey were not replicated. Both these factors contribute t o a
perhaps minor, but nonetheless admittable, margin of error in the 1987 total count.
The primary purpose of the recent survey count serves t o illustrate both the a t t r i t i o n
e f f e c t due to legislative changes and the growth attributable to new formations. The
approximation of the special d i s t r i c t count follows.
Total
June 30, 1981 (Survey conducted 1982) 280
Reductions
Laws 1934, Chapter 259 (H.B. 2534) - 4
Repeal of special flood control d i s t r i c t s t a t u t e s .
Laws 1936, Chapter 366 (H.B. 2372) - 5
Sec. I I of this act effectively repealed the existing
five county free library "systems" by mandating
their conversion t o the new county library "districts."
This actually resulted in a net increase of four,
from five t o nine, included in the May 1988 count.
June 30, 1987 (Survey conducted May, 1988)
Current Estirnated Total
6 Some other minor glitches: Mountainaire Fire District in Coconino County reported
the average aggregate tax r a t e of the county instead of the district rate; the Why Fire
District in Pirna County listed zero as i t s 1956-87 tax rate, although i t actually levied
28.18C; Wickenburg Fire District in Maricopa County didn't know i t s t a x r a t e and so
indicated; Yarnell Fire District in Yavapai County failed to list i t s t a x rate; Gila and
Cochise reported several county iinprovement districts not required t o be reported,
and which are not special districts in accordance with the focus of this report.
1 7 The formal report submission requests by the Auditor General and Deputy State
Treasurer were supplemented on occasion by informal submission requests, rnost
notably the Arizona Fire District Association. AFDA has a large and generally
cohesive mernbership base and its officers have taken substantial interest in supporting
special district reporting requirements.
Appendix A
CHRONOLOGY OF SPECIAL DISTRICT LEGISLATION 1983 - 87
The following brief summaries are of special district legislative enactments frorn 1983
through 1987. Additionally, brief sum~nariesa r e included for 1988 proposed legislation,
sorne of which became law as indicated.
-1983
Chapter 51 (HB 2218) Fire Protection Services; Cost; Reimbursement
Prescribes conditions when the owner 01 property outside of a fire district must
reimburse the fire d i s t r i c t f o r fire protection services.
Chapter 74 (SB 1308) Agricultural Improvement Districts; Revenue Bonds
New notice, forms, interest and payment requirements f o r d i s t r i c t revenue bonds
prescribed.
Chapter 243 (SB 1026) Recreation Center District; Establishment
Provides for establishment of a recreation center district for the school district a t
Grand Canyon Village to support school recreation and library services, previously
funded by the National Park Service, by the imposition of a I c sales tax.
Chapter 261 (HB 2216) County Television Improvement District; Formation
Provides for establishment of a TV district in Mohave County, supported by a
countywide property tax, t o acquire, operate and maintain television translator
facilities in the county.
Chapter 270 (HB 2090) Fire District Operations
Several conforming and other provisions relating t o use and investment of funds, fire
district premiurn tax rnonies, district elections, district warrants, fire district
association dues and the annual budget estimates.
Chapter 276 (HB 2258) P e s t Abatement District
Provides for establishment of a pest abatement district, supported by district
property tax collections, t o permit localized control of certain public nuisances, viz.
r a t s , mice and non-agricultural arthropods.
-1984
Chapter 106 (HB 2162) Hospital h i s t r i c t Authority
Allows hospital districts to operate ambulance services.
Chapter 100 (HB 2395) Irrigation District Authority
Perrnits certain irrigation districts t o provide water for municipal and industrial
purposes.
Chapter 157 (SB 1133) Special District County Cost
Creates authority for counties t o establish a schedule for reimbursement of county
services rendered t o 26 enumerated entities, including most special districts, certain
county tax assessment districts and other non-taxing entities.
Chapter 161 (SB 1197) Hospital District Elections
Major provisions rewritten relating t o district board member vacancies and annual
and alternate organization elections.
Chapter 207 (SB 1405) Pinal and Cobre Sanitary Districts
By legislative dictate the boundaries of Pinal and Cobre sanitary districts are
altered. A special election called in both districts to certify the changes.
Chapter 259 (HB 2534) County Flood Control District
Major provisions of county flood district s t a t u t e s and floodplain regulations
rewritten dealing with repeal of special flood district statutes, municipal flood
regulation options, state assistance in delineating floodplains, repealing flood
advisory boards and making numerous conforming changes.
Chapter 338 (SB 1124) Special District Moratorium
Institutes a moratoriurn on special d i s t r i c t creations and establishes special district
report requirements by counties f o r 1984 and 1986. Names a joint legislative
committee on special districts t o report 12/31/55.
Chapter 10 (SB 1134) City Annexation & Fire District Moratoriu!n
City and town annexation powers suspended/restricted. Fire d i s t r i c t creation and
annexation moratoriurn irnposed until 08/31/86.
Chapter 18 (HB 2308) Flood Control Boards
All counties permitted to appoint county flood control d i s t r i c t advisory boards.
Forrnerly limited to Maricopa County.
Chapter 42 (SB 1143) Gila Fire District Assessrnent
L)OR deadline for submitting tax data extended for Tonto Village Fire D i s t r i c t t o
allow for a FY 85-86 property tax levy.
Chapter 165 (SB 1074) Domestic Water District Tax
Establishes a petition process to allow assessrnent on the basis of proportional
square footage or metered water usage.
Chapter 187 (HB 2350) SRP In-Lieu Tax Contributions
Voluntary SRP contributions may be made t o special districts as well as to other
political subdivisions. A 3-year phase-in beginning with FY 86-87.
Chapter 190 (SD 1139) Special District Statutes Recodification
Creates a new A.R.S. Title 48 for inclusion of all special district statutes. All
current special d i s t r i c t authorities transferred.
Chapter 278 (HB 2355) Fire District Withdrawal Petitions
Prescribes petition process for withdrawal from certain fire districts in Pima
County.
Chapter 303 (SB 1261) County Flood Control District Zones
Puts back into law taxation power for flood control zones inadvertently striken by
Laws 1984, Chapter 259. Also assures orderly transfer of repealed special flood
d i s t r i c t authority t o flood zones.
Chapter 361 (SB 1186) Sanitary District Sewers
Allows for collector sewer construction by the district and for private financing and
operation of systems. For~nerly both sanitary and county irnprovernent district
powers were needed in tandem to accornplish total sewer construction project needs.
Noncontiguous land annexations also permitted.
1986
Chapter 87 (SB 1122) Health Service District; Tax Rate
Increases M & 0 levy lirnit r a t e from 30c t o 45c per $100 assessed value.
Chapter 141 (HB 2206) County Flood Control Districts; Property Acquisition
Specifies methods for acquisition and disposal of land. Also allows for groundwater
recharge.
Chapter 229 (HB 2025) Sanitary District IGAs
Provides for IGAs between sanitary d i s t r i c t s and DHS f o r assistance t o district in
regulating waste water t r e a t m e n t and sewage disposal. Authority given t o boards of
supervisors to enforce sanitary d i s t r i c t s t a t u t e s . Other changes.
Chapter 290 (HB 2312) Special District Annual Reports
Prescribes annual financial report of most special districts to be submitted t o board
of supervisors and state treasurer. Repeals special d i s t r i c t formation rnoratoriurn
imposed by Laws 1984, Chapter 338, e f f e c t i v e 05/05/86.
Chapter 291 (HB 2354) County Assistance Tax for Fire Districts
Establishes a new contribution to fire d i s t r i c t s from a countywide property tax levy
and repeals the contribution from the county general fund.
Chapter 320 (HB 2362) Elections; Nonpartisan; Other Revisions
Notwithstanding existing Title 48 provisions, Title 16 election provisions will apply
t o nine special districts. Standardization of these districts' election requirernents.
Chapter 366 (HR 2372) County Free Library Districts
New body of law establishes the county free library district as a special district.
Funding by countywide property tax levy. Board of supervisors is board of directors.
Chapter 390 (HB 2367) Creating Special Districts; Fire Districts
For f i v e types of special districts, a uniform procedure for fortnation and boundary
changes by petition is prescribed, and an irnpact statement additionally required.
Numerous other organizational and board membership requirernents for fire
districts. Fire d i s t r i c t creation and annexation rnoratorium imposed by Laws 1955,
Chapter 10, i s repealed effective 08/01/86.
1987
Chapter 3 (Sf3 1013) Pest Control District Maximum Assessment
Cap on district acreage assessment raised from $5/acre t o $25/acre.
Chapter 41 (SR 1046) Irrigation Districts; Contracts; Ridding Exceptions
New guidelines established for irrigation districts for awarding contracts without
advertising.
Chapter 151 (I-IB 238 1) Election Dates; Consolidation; Study Commission
A lbrnernber study cominission on election dates to study possible legislative
reforms to consolidate election dates for state and local (including special districts)
elections. Report due 12/31/87.
Chapter 170 (SB 1004) Appeals of Sanitary District Resolutions
Certain objections of a district property owner or owners against a district board's
actions may be contested in superior court by protest petition or t o board of
supervisors.
Chapter 227 (SB 1157) Ornnibus Sanitary District Statute Revisions
Nurnerous changes made t o sanitary d i s t r i c t powers including bids, elections, bond
elections, taxable property, fees and formation.
Chapter 280 (HB 21 17) Joint Special goad Districts
Allows formation of a joint special road district by combining two o r more
contiguous districts. Written for Fountain Hills where four d i s t r i c t s e x i s t side-by-side.
Also provides for joint special road district bonding authority.
Chapter 299 (SB 1244) Fire District Procedures
Includes changes for fire districts and do~nesticw ater irnprovernent districts:
Fire district changes include annual financial report, election to merge districts,
fire codes, fee schedules and fire district assistance tax.
Domestic water irnprove~nent district changes include criteria for district
establishment and eminent domain.
Chapter 304 (SB 1449) Irrigation Districts; Ornnibus Statutory Revisions
Nutnerous changes involving board membership, water delivery assessrnents, loan
repayment rates and bonding provisions.
NOTE: The foregoing list includes only those chapter laws which deal directly with
special districts. Not included are nuinerous enactments relating t o
municipal and county improvement d i s t r i c t s
1988 Proposed Legislation
SB 1004 Maximum Flood Control District Tax
Liinits the countywide and zone taxes to 50c per $100 assessed valuation. Presently
not limited.
SB 11 50 Hospital Districts; Costs
Expands hospital board of directors powers to fund operation or maintenance of
hospital through irnposition of a property tax, both directly or through lease of
hospital t o a hospital management company. (Became law as chapter 141.)
SB 1262 Comrnunity Facilities Districts
Adds a new body of special district law to provide infrastructure for a planned
community. Funded by property taxes. Tax exempt bonding authority. Special
district formation authorized within incorporated as well as unincorporated areas.
(Becarne HB 2400 and signed into law as chapter 320.)
SB 1315 Hospital Districts; aoard; Term
Provides new qualifications and terrn of office for boards of directors. (Became law
as chapter 138.)
SB 1338 County Fire District Tax
Lirnits county fire district assistance tax t o property not in incorporated cities and
towns.
SD 1398 Flood District Mobile Home Taxation
Adds rnobile homes t o the property which may be taxed in a countywide flood
control district.
SB 1465 Special Road Districts
A comprehensive re-write of the special road district s t a t u t e s including new
provisions on formation, structure, powers, road standards and bonding authority.
Ha 2086 Special Road Districts; Technical Corrections.
Technical change t o hold bill as a vehicle for a future strike-all amendment.
HB 2106 Rural Road Irnprovement Districts
Creates a rural road district to issue C.O. bonds to pay for paving of Maricopa Road
in Pinal County. (Recarne law as chapter 233.)
HR 2219 County Fire Oistrict Assistance; Computation
In counties under 500,000 population, a cap on fire district assistance i s imposed
equal t o 20% of the district's prior year M & 0 levy.
HB 2232 Fire District Tax; County Use
Amounts of the countywide fire d i s t r i c t assistance tax collected frorn areas not
presently served by fire districts would go t o the county board of supervisors t o
provide fire services in those areas.
HB 2306 Pest Abatement Districts; Formation; Operation
Approval of a city or town in which proposed area of district in located is no longer
required, and allows for inclusion of noncontiguous lands in district. Also raises
property tax r a t e from 25C t o 50c. (Became law as chapter 283.)
HB 2308 Irrigation District Fiscal Year
District board of directors may adopt a different fiscal year than the state fiscal
year of July 1 through June 30. (Became law as chapter 200.)
H B 2393 Optional Special District Mail Ballots
Allows rnail ballot elections for certain special districts.
Appendix B
SPECIAL DISTRICT STATUTORY REPORTING REQUIREMENTS
PART I
ANNUAL COUNTY REPORT REQUIREMENTS
Q 11-251.07. Report of special taxing distrieta in the county
On or before October 1 of each year the board of supe'rvisors shall submit to the state
treasurer a list of all special taxing districts organized under title 48 in the county
during the preceding fiscal year. The list shall include for each district:
1. The date of formation.
2. The total assessed valuation of the district.
3. The tax rate levied by the district for the current tax year.
4. The estimated budget for the district for the current f ~ c ayle ar.
5. A map of the district.
Added by Laws 1986, Ch. 290, 8 1, eff. May 5, 1986.
1 Section 48-101 et seq.
Laws 1986, Ch. 290, g 8, effective May 5,1986, nues and expenditures and tax rate for the most
~rovides: recent fiscal year of the district, and the total r - "The board of supenisors of each county shall a~mocuntFt oanr dd ikstirnidc tso f pauibl liinshdienbgt eadnn easns nouf alt hree pdoir-t
by December 31, 1986 submit to the auditor containing this information the board of supervi-general
a detailed listing of all special districts sors may submit the annual report of the district
which were formed in the county between Au- for the most recent fiscal year to satisfy the
gust 3, 1984 and the effective date of this act. requirements of this section-with respect & that
The detailed listing shall include the total reve district"
PART I1
SPECIAL DISTRICT REPORTING REQUIREMENTS
9 48-251. Annual report
A. Each district organized under this title and not exempted under subsec-tion
C of this section shall submit an annual report as prescribed by this
section which contains the following information:
1. A schedule of the beginning and ending fund balances and all revenues
and expenditures for the preceding fiscal year on a form prescribed by the
auditor general or a financial statement for the preceding fiscal year that has
been attested to by an independent certified public accountant. The schedule
or statement shall include all monies, gifts or donations received from all
sources which have a value exceeding one hundred dollars.
2. Legal descriptions of any boundary changes occurring during the pre-ceding
fiscal year.
3. The names, occupations and business telephone numbers of all mem-bers
of the governing board and officers of the district on the last day of the
preceding fiscal year.
4. The schedule and location of regular meetings of the district governing
board.
5. The location or locations where public notices of meetings are posted
pursuant to 5 38-431.02.
B. The secretary or other officer of the district governing board shall
submit the report within one hundred fifty days of the close of the district's
fiscal year to the clerk of the board of supervisors of each county in which the
district is located. At the same time the secretary or other officer shall also
mail a copy of the report to the state treasurer.
C. Districts organized under chapters 4, 6, 17 and 22 of this title ' are
exempt from the requirements of this section.
D. If a district fails to submit a report as required by this section, any
taxpayer residing in the district may petition the superior court in a county in
which the district is organized to order the district to show cause why the
report has not been submitted. On a failure to show cause the court shall
order the district to file all reports as required by this section. A failure to
obey the order of the court is punishable as contempt of court.
E. If the court finds that a district has violated this section, it shall award
the taxpayer attorney fees and costs associated with bringing the action.
Added by Laws 1986, Ch. 290,s 2, eff. May 5, 1986. Amended by Laws 1987, Ch. 299,
§ 1.
1 Sections 48-501 et seq., 48-901 et seq., 48-2301 et seq. and 48-3701 et scq.
Appendix C
SPECIAL DISTRICT REPORTING FORM PREPAREL) BY THE AUDITOR GENERAL
DOUGLAS R NORTON. CPA
AUDITOR GENERAL
STATE OF ARIZONA
OFFICE OF THE
AUDITOR GENERAL
August 27, 1 986
TO: County Officials
FROM: Douglas R. Norton
Auditor General.
Deputy ~ f dtoi r General
SUBJECT: Special District Annual Report
Arizona Revised Statutes (A. R.S. ) $48-251, which was added to statutory
law by House Bill 2312 (37th Legislature, Second Regular Session, 1986)
prescribes that special d i s t r i c t s not exempted under A.R.S. $48-251 .C must
prepare an annual report for a l l fiscal years ending on or after June 30,
1987. The report form and instructions for special d i s t r i c t s t o prepare
such annual report have been developed by my Office as prescribed by House
Bill 2312. The enclosed copies of this report form and instructions
should be distributed by you to all d i s t r i c t s within your County required
to f i l e a report.
Questions or comments should be referred to Magdalene D. Haggerty or
Marese Barrier of the Accounting Services Division of my Office, 255-4385.
Encl osures
2700 NORTH CENTRAL AVE. SUITE 700 PHOENIX, ARIZONA 85004 (602) 255-4385
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I DOUGLAS R NORTON. CPA
4UDITOR GEWERAL
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STATE OF ARIZONA
OFFICE OF THE
AUDITOR GENERAL
August 27, 1986
TO: Arizona Special Districts
FROM: Douglas R. Norton
Auditor General
Deputy h d i tor General "
The enclosed annual report form and instructions for fiscal year 1986-87
have been developed by my Office as prescribed by House Bill 2312 (37th
Legislature, Second Regular Session, 1986).
Questions or comnents should be referred to Magdalene D. Haggerty or
Marese Barrier of the Accounting Services Division of my Office, 255-4385.
Enclosures
SPECIAL DISTRICT
ANNUAL REPORT
INSTRUCTIONS
Arizona Revised Statutes (A.R.S. ) $48-251, which was added to statutory
law by House B i l l 2312 (37th Legislature, Second Regular Session, 1986)
prescribes that special d i s t r i c t s not exempted under A.R.S. $48-251 .C must
prepare an annual report.
The report must be f i l e d by the appropriate d i s t r i c t s for a l l f i s c a l years
ending on or a f t e r June 30, 1987, and must be submitted to the Clerk o f
the Board o f Supervisors o f the county i n which the d i s t r i c t i s located
and to the State Treasurer, within 150 days a f t e r the d i s t r i c t ' s f i s c a l
year-end.
Additionally, an accurate map o f the d i s t r i c t showing the d i s t r i c t
boundaries as o f the l a s t day o f the preceding calendar year must
accompany the f i r s t report f i l e d by the d i s t r i c t .
D i s t r i c t s may submit a f i n a n c i a l statement f o r the preceding f i s c a l year
attested t o by an independent c e r t i f i e d public accountant i n l i e u o f the
schedule o f revenues and expenditures required to be included i n t h i s
report. The financial statement must include a l l revenues and
expenditures o f the preceding f i s c a l year.
The f o l l owing detailed i ns tructions address possible probl em areas and are
provided to assist i n preparation o f the report.
GOVERNING BOARD MEMBERS AND OFFICERS
Enter the names, occupations and business telephone numbers o f a l l members
o f the governing board and o f f i c e r s o f the d i s t r i c t as of the l a s t day o f
the f i s c a l year reported on.
PART A - LEGAL DESCRIPTION OF BOUNDARY CHANGES
If the boundaries of the d i s t r i c t changed during the calendar year
imnediately preceding the f i s c a l year reported on, enter the legal
description o f the boundary changes.
PART B - SCHEDULE OF DISTRICT GOVERNING BOARD REGULAR MEETINGS
Enter the date, time and 1 ocation o f a l l regular governing board meetings
held during the f i s c a l year reported on. Also, enter the location or
locations where public notices o f these meetings were posted pursuant to
A.R.S. $38-431.02.
INSTRUCTIONS (Cont'd)
PART C - BASIS OF ACCOUNTING
Check the appropriate box indicating whether the d i s t r i c t u t i l izes the
modified accrual or cash basis o f accounting.
Under the modified accrual basis o f accounting, revenues are recognized i n
t h e f i s c a l year i n which they become measurable and available to pay
l i a b i l i t i e s o f the current f i s c a l year, and expenditures are recognized i n
the f i s c a l year i n which the l i a b i l i t y i s incurred.
Under the cash basis of accounting, only cash receipts and disbursements
should be recognized.
PART D - SCHEDULE OF REVENUES AND EXPENDITURES
REVENUES
Special d i s t r i c t revenues should be recorded on page 3 o f the report.
Revenues o f the f i s c a l year reported on should be recorded on the
appropriate l i n e s f o r each o f the four revenue categories. The taxes,
intergovernmental revenues, charges for services and other revenues should
be totaled and the amount should be recorded on the t o t a l revenues l i n e .
Descriptions o f some revenues are provided below.
Taxes
Special road tax - Special Road D i s t r i c t s should record revenue received
from the levy o t a special road tax on a l l real property and mobile homes
within the d i s t r i c t i n t h i s category.
Interaovernmen t a l revenues
County contribution - D i s t r i c t s shoul d record monies received from the
county i n t h i s category. For example, the county board o f supervisors must
pay from i t s General Fund t o the F i r e D i s t r i c t Fund an amount determined
pursuant t o A.R.S. $9-1005.
Charaes f o r Services
D i s t r i c t s should record revenue received f o r services provided by the
d i s t r i c t , such as f i r e protection and sewer user fees i n t h i s category.
Services provided outside d i s t r i c t boundaries shoul d a1 so be itemized and
recorded here.
INSTRUCTIONS (Cont'd)
Other Revenues
Miscellaneous - D i s t r i c t s shoula record revenues t h a t do not meet the
c r i t e r i a o f other reported revenues, which individual ly are not
s i g n i f i c a n t i n d o l l a r amount, i n t h i s category.
Other - D i s t r i c t s should record revenues t h a t do not meet the c r i t e r i a of
other revenues, which i n d i v i d u a l l y are s i g n i f i c a n t i n d o l l a r amount, i n
t h i s category. Such revenues may include dispatch services provided by
f i r e d i s t r i c t s t o police departments, and i n v e s t i g a t i v e and inspection
services provided t o businesses. These revenues should be itemized on the
blank l i n e s provided.
EXPENDITURES
Special d i s t r i c t expenditures should be recorded on pages 4 and 5 of the
report. Expenditures o f the f i s c a l year reported on should be recorded on
the appropriate l i n e s f o r each o f the f i v e expenditure categories. The
personal services, operations, other services and charges, capital out1 ay
and debt service expenditures should be totaled and the amount recorded on
the t o t a l expenditures 1 i ne.
Descriptions o f some expenditures are provided be1 ow.
Personal Services
Retirement contributions - D i s t r i c t s should record ex~enditures
representing the d i s t r i c t ' s contribution t o an employees' retirement fund
i n t h i s category.
FICA - D i s t r i c t s shoul d record expenditures representing the d i s t r i c t ' s
matching portion o f s o c i a l s e c u r i t y taxes i n t h i s category.
Insurance - D i s t r i c t s should record expenditures f o r insurance premiums
f o r 1 i fe, medical and workers' compensation insurance i n t h i s category.
Federal unemployment and State unempl oyment insurance payments shoul d a1 so
be recorded here.
Operations
Purchased u t i l i t i e s - D i s t r i c t s should record expenditures for
e l e c t r i c i t y , natural gas and water d i r e c t l y related t o operations i n t h i s
category. Expenditures f o r u t i l i t i e s re1 ating t o d i s t r i c t administrati on
should be recorded as public u t i l i t y costs under the other services and
charges category .
Repai r s and mai ntenance - D i s t r i c t s shoul d record expenditures f o r
repairing or maintaining d i s t r i c t buildings, structures, improvements,
vehicles and equipment used i n operations i n t h i s category.
INSTRUCTIONS (Con t 'd)
Suppl ies and material s - D i s t r i c t s shoul d record expenditures f o r suppl ies
and materials related to operations i n t h i s category.
Small tools and minor equipment - D i s t r i c t s should record expenditures f o r
items o f a durable, nonconsuma6le nature t h a t do not meet the d i s t r i c t ' s
asset c a p i t a l i z a t i o n policy i n t h i s category. Items that meet the
d i s t r i c t ' s capi ta1 i z a t i o n pol i c y should be recorded as machinery and
equi p e n t under the capital outlay category.
Communications and dispatch - D i s t r i c t s should record expenditures f o r
radio communications and emergency telephones i n t h i s category. Office
telephone expenditures should be recorded as administrative costs under
the other services and charges category.
M i scell aneous - D i s t r i c t s shoul d record expenditures d i r e c t l y re1 ated t o
operations that do not meet the c r i t e r i a o f other reported expenditures,
which i n d i v i d u a l l y are n o t s i g n i f i c a n t i n d o l l a r amount, i n t h i s
category. Such expenditures may include n ~ i s c e laln eous operating suppl ies
such as oxygen, bandages and uniforms.
Other - D i s t r i c t s shoul d record expenditures d i r e c t l y related to
operations that do not meet the c r i t e r i a o f other reported expenditures,
which i n d i v i d u a l l y are s i g n i f i c a n t i n d o l l a r amount, i n t h i s category.
These expenditures should be itemized on the blank l i n e s provided.
Other Services and Charges
Adninistration - D i s t r i c t s shoul d record expenditures f o r o f f i c e suppl ies,
telephones, postage, p r i n t i n g and duplicating, administrative t r a v e l ,
dues, subscriptions, governing board members' and o f f i c e r s ' fees, and
election costs i n t h i s category.
Professional services - D i s t r i c t s shoul d record expenditures for
protessional services rendered by persons not on the d i s t r i c t payroll,
such as legal, data processing, accounting, auditing and other contract
services i n t h i s category. Expenditures by f i r e d i s t r i c t s f o r f i r e
protection contracted by the d i s t r i c t with an outside f i r e protectiorl
service should be recorded here.
Training - D i s t r i c t s shoul d record expenditures f o r t u i t i o n , per diem,
transportation costs, instructors, textbooks, f i l m rental , etc. , re1 ated
t o t r a i n i n g i n t h i s category.
Insurance - D i s t r i c t s should record expenditures for insurance premi ums,
other than those related t o personnel, including coverage on buildings,
vehicles and employees' l i a b i l i t y i n t h i s category.
INSTRUCTIONS (Cont Id)
Public u t i l i t y costs - D i s t r i c t s should record the cost o f e l e c t r i c i t y ,
natural gas, water and sewage disposal related to administration i n t h i s
category. F i r e hydrant maintenance should be reported here if f i r e
hydrants are not maintained by a f i r e d i s t r i c t .
Repairs and maintenance - D i s t r i c t s should record expenditures for
repairing or maintaining d i s t r i c t buildings, structures, improvements and
equipment other than that used i n operations i n t h i s category.
Interest expense - D i s t r i c t s should record i n t e r e s t expense, i n c l udi ng
7nterest on capital leases but excluding bond i n t e r e s t , i n t h i s category.
Capi t a l Out1 ay
Land - D i s t r i c t s shoul d record expenditures for real property purchased
for use by the d i s t r i c t , including related costs of escrow, closing,
attorneys' fees, survey fees, and grading and clearing p r i o r to
construction i n t h i s category.
Bui 1 dings - D i s t r i c t s shoul d record expenditures f o r the purchase,
construction, rehabi 1 i t a t i o n or conversion o f buildings f o r the d i s t r i c t ' s
use i n t h i s category. A1 so, recorded are architectural and engineering
fees r e l a t i n g t o a construction project, and improvements such as heating
and cool ing equipment, pl umbing, and other imnovabl e fixtures.
Improvements other than buildings - D i s t r i c t s should record expenditures
f o r items such as sewer and water 1 ines, parking l o t s , fences, flagpoles,
roads, bridges, and sidewalks i n t h i s category.
Leasehold improvements - D i s t r i c t s should record expenditures for
permanent improvements t o land or buildings under lease t o the d i s t r i c t i n
t h i s category.
Construction i n progress - D i s t r i c t s shoul d record expenditures for
construction undertaken but not y e t completed i n t h i s category.
Vehicles - D i s t r i c t s should record expenditures f o r the purchase o f
d i s t r i c t motor vehicles i n t h i s category.
Machinery and equipment - D i s t r i c t s should record expenditures f o r
machinery and equipment items that meet the d i s t r i c t ' s asset
c a p i t a l i z a t i o n policy i n t h i s category. Items that do not meet the
d i s t r i c t ' s c a p i t a l i z a t i o n pol i c y should be recorded as small tools and
m i nor equipment under the operations category.
Debt Service
D i s t r i c t s should record expenditures for bond principal retirement during
the f i s c a l year and f o r i n t e r e s t paid on outstanding bonded debt i n t h i s
category .
INSTRUCTIONS (Concl ' d l
PART E - TOTAL INDEBTEDNESS AND TAX RATE
House B i l l 2312 (37th Legislature, Second Regular Session, 1986), Section
8, requires the Board of Supervisors o f each county to submit a detailed
l i s t i n g o f a l l special d i s t r i c t s t h a t were formed i n the county between
August 3, 1984 and May 5, 1986, t o the Auditor General.
The detailed l i s t i n g must include the t o t a l revenues and expenditures and
tax rate f o r the most recent f i s c a l year o f the d i s t r i c t , and the t o t a l
amount and kind of a1 1 indebtedness o f the d i s t r i c t .
To f a c i l i t a t e the county's compliance with the requirements o f HB 2312,
Section 8, d i s t r i c t s formed between August 3, 1984 and May 5, 1986, may
complete an annual r e p o r t , i n c l u d i n g Part D, f o r f i s c a l year ended June
30, 1986.
Total Indebtedness
D i s t r i c t s should record t o t a l indebtedness a t the end o f the f i s c a l year
reported on f o r each category provided. A l l other indebtedness should be
itemized on the blank l i n e s provided.
Tax Rate
D i s t r i c t s should record a l l tax rates o f the d i s t r i c t f o r the f i s c a l year
reported on.
ARIZONA SPECIAL DISTRICT ANNUAL REPORT
YEAR ENDED
COUNTY
DI STRICT NAME
STREET OR P .O. BOX
CITY ZIP CODE
BUS1 NESS TELEPHONE
Governing Board Members and Officers o f the D i s t r i c t :
Name Occupation Business Telephone
COUNTY, ARIZONA
DISTRICT
ANNUAL REPORT
YEAR ENDED
PART A
Legal Descri ption o f Boundary Changes During the Preceding Cal endar Year:
PART B
Schedule o f D i s t r i c t Governing Board Regular Meetings:
Date Ti me Location o f Meeting
Location o f
Pub1 i c Notices
COUNTY, ARIZONA
DISTRICT
ANNUAL REPORT
YEAR ENDED
PART C
Basis o f Accounting:
Cash
Mod i f i ed Acc rual
PART D
Sc hedul e o f Revenues and Expenditures :
Revenues
Taxes :
PReearsl oensatl aptero tpaexretsy t.ax.es. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. Central l y assessed property taxes . . . . . . . . . . . . Special assessments . . . . . . . . . . . . . . . . . . . Special road tax. . . . . . . . . . . . . . . . . . . . . Total taxes . . . . . . . . . . . . . . . . . . . . .
Intergovernmental revenues: Federal grants. . . . . . . . . . . . . . . . . . . . . . State grants. . . . . . . . . . . . . . . . . . . . . . . County contribution . . . . . . . . . . . . . . . . . . . Total intergovernmental revenues. . . . . . . . . . .
Charges f o r services: FEmi reerg pernocyt emcteidoinc a.l (.EM.S). .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. Water . . . . . . . . . . . . . . . . . . . . . . . . . .
P o w e r . . . . . . . . . . . . . . . . . . . . . . . . . .
Other (itemize):
Total charges for services. . . . . . . . . . . . . .
Other revenues : I n t e r e s t earnings . . . . . . . . . . . . . . . . . . . .
RLPLeieceanesannel sstte.i ess s..a .an.n.dd ..p .1e..a n..tnei. t. s.fe... e.s... ..... .... ..... .... ..... ......... ......... ... ... ... ... ... ... ... ...
COUNTY, ARIZONA
DISTRICT
ANNUAL REPORT
YEAR ENDED
Revenues (Concl 'd)
Contributions, g i f t s and donations from private sources .
PLoroacneperdosc efreodms t.he. s.a.le .o.f b.on.ds. .. .. .. .. .. .. .. .. .. .. .. .. .. Miscellaneous . . . . . . . . . . . . . . . . . . . . . .
Other (itemize):
Total other revenues. . . . . . . . . . . . . . . . .
Total Revenues. . . . . . . . . . . . . . . . . . . . . . .
Expenditures
Personal services :
RSaeltai rreimese natn cdo wnatgriebsu. ti.on.s.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..
F I C A . . . . . . . . . . . . . . . . . . . . . . . . . . . Insurance . . . . . . . . . . . . . . . . . Ernpl oyee benefi t s . . . . . . . . . . . . . . . . . . . . Total personal services . . . . . . . . . . . . . . .
Operations : Purchased u t i l i t i e s . . . . . . . . . . . . . . . . . . . Fuel, o i l and 1u bricants. . . . . . . . . . . . . . . . . SRueppapil riess a anndd m maaintteerniaanl sc. e .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. Small tools and minor equi pment . . . . . . . . . . . . . MCEonismgcinenulelnaeincrieanotgiou ns.s ..an..d. .di..sp..at..ch.. ... ... ... ... ... ... ... ... ... ... ... ... ... ... ...
Other ( itemize):
Total operations. . . . . . . . . . . . . . . . . . .
COUNTY. ARIZONA
Ex~endtui res
DISTRICT
ANNUAL REPORT
YEAR ENDED
Other services and charges: Administration. . . . . . . . . . . . . . . . . . . . . . Professional services . . . . . . . . . . . . . . . . . .
TInrsauinrainngc.e .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..........
JLuicdegnmseensts aanndd t a1x oesss.e s.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. Public u t i l i t y costs. . . . . . . . . . . . . . . . . . . Leases and rental s (equi pnen t and housing) . . . . . . . .
RInetpearierss ta enxdp menasien.t en.an.ce. .. .. .. .. .. .. .. .. .. .. .. .. .. ........
PDeenparle tci ieasti oann.d 1.a .te. fe.es. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..
Miscellaneous . . . . . . . . . . . . . . . . . . . . . .
Other (itemize 1:
Total other services and charges. . . . . . . . . . .
Capital outlay:
BLaunidld. in.gs. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..
LImeparsoevheomlde nimts porotvheemr etnhtas.n b.u.ild.in.gs. .. .. .. .. .. .. .. .. .. .. .. .. .. Construction i n progress. . . . . . . . . . . . . . . . . .
VMeahcihcilneesr.y a.nd. e.q.ui p.m.en.t .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. Total capital outlay. . . . . . . . . . . . . . . . . .
Debt service: Bond principal. . . . . . . . . . . . . . . . . . . . . . . Bond i n t e r e s t . . . . . . . . . . . . . . . . . . . . . . . Total debt service. . . . . . . . . . . . . . . . . . .
Total Expenditures. . . . . . . . . . . . . . . . . . . . . .
COUNTY, ARIZONA
DISTRICT
ANNUAL REPORT
YEAR ENDED
PART E
Total Indebtedness and Tax Rate:
Total Indebtedness
Accounts payable
Notes payable
Deposits he1 d i n custody f o r customers/others
Taxes payable
Empl oyee benefi t s payable
Contracts payabl e
Bonds payable
Interest payabl e on bonds
Other:
Amount
The tax rate(s) f o r the f i s c a l year ended ¶ - , was (were):
Appendix D
AUDITOR GENERAL REMINDER MEMO TO COUNTIES CLARIFYING
SOME SPECIAL DISTRICT REPORTING FORM INSTRUCTIONS
DOUGLAS R. NORTON. CPA
AUDITOR GENERAL
STATE OF ARIZONA
OFFICE OF THE
,AUDITOR GENERAL
October 28, 1986
TO: County Official s
FROM:
~udwor General
SUEJ ECT: Special Oi s t r i c t Arinual Report
House Bill 2312 (37th Legislature, Second Regular Session, 1986)
prescribes that special districts not exempted urlcier A. R.S. 548-251. C must
prepare an annual report for all fiscal years ending on or after June 30,
1987. The report form and instructions were developed by my Office and
mailed to you on August 27, 1986, for distribution to all special
districts within your county required to f i l e a report. This nienio is t o
clarify certain items in those instructions. Please notify those special
districts withirl your County that are required to f i l e a report of these
clarifications.
The following references to page, paragrapti arla part refer to the contents
of the Special District Annual Report.
1. Page 1 , Paragraph 3 and Part A - The preceding calendar year, for
purposes of preparing a map of d i s t r i c t boundaries and a legal
description of boundary changes, i s the calendar year ended during tile
fiscal year reported on. For example, if the fiscal year reported on
i s 1986-87, the preceding cal erlaar year i s 1986.
2. Page 6, Part E - HB 2312, Section 8, requires a detailed listing of
all special districts that were formed in the county between August 3,
1984, and May 5, 1986, to be submitted to the Auditor General. Such
l i sting must be submitted by December 51, 1986.
Ouestions or comnents should be referred to Bob Alexander or Marese
Earrier of the Accounting Services Division of niy Office, 255-4385.
2700 NORTH CENTRAL AVE. SUITE 700 PHOENIX, ARIZONA 85004 (602) 255-4385
Appendix E
DEPUTY STATE TREASURER REMINDER NOTICE -RE SPECIAL
DISTRICT REPORTING SUBMISSION
OFFICE O F T H E
C RAY ROTTAS
TREASURER
(602)2 55-1463
STATE CAPITOL
~lloenixA, ri~~trt8n5 010 7
Novmeber 02, 1987
RICHARD J. PETRENKA
DEPUTY TREASURER
ADMINISTRATION & OPERATIONS
(602)2 55-1448
NEALE . HELM
DEPUTY TREASURER
INVESTMENTS
(602)2 55-1495
Ms. Deborah Kay Gale
Clerk o f the Board
Greenlee County Courthouse
Post O f f i c e Box 908
C l i f t o n , Arizona 85533
Dear Ms. Gale:
As you are already aware a change i n the Arizona Revised Statutes made i n
1986 now requires, pursuant t o Senate B i l l 2312 11-251.07 (attached) t h a t each
year the c l e r k o f the Board of Supervisors submit t o the State Treasurer a
l i s t of a l l special taxing d i s t r i c t s organized under T i t l e 48 during the
preceding f i s c a l year. This report i s i n a d d i t i o n t o the copies sent t o our
o f f i c e o f the i n d i v i d u a l reports f i l e d by the d i s t r i c t s .
If you have not y e t submitted t h i s report we request t h a t you do so as
e a r l y as possible. If you no new d i s t r i c t s were created, please inform us of
t h a t f a c t i n a l e t t e r . Please c a l l me a t 255-1448 i f .you have any questions
regarding the r e p o r t and thank you f o r your cooperation.
Sincerely,
RICHARD 3. PETRENKA
Deputy State Treasurer
RJP/ag
Attachment
(Sent t o a l l c l e r k s o f the board)
Appendix F
DRAFTS OF PROPOSED LEGISLATION
Exhibit I -- Special District Reports
Exhibit I1 -- Special District Impact Statement Use in
Fortnation and Annexation Activity
Exhibit 111 -- Special District Reirnburse~nent for
County Services
Exhibit IV -- County Fire District Assistance Tax
Exhibit V -- Special District Definition and Board
of Supervisors Fortnation Authority
EXHIBIT I
REFERENCE TITLE: special d i s t r i c t reports
State of Arizona
Thirty-ninth Legislature
First Regular Session
1989
AN ACT
RELATING TO SPECIAL TAXING DISTRICTS; PRESCRIBING REQUIREMENTS FOR
ANNUAL COUNTY REPORT; PRESCRIBING REQUIREMENTS FOR ANNUAL
SPECIAL DISTRICT REPORT; PRESCRIBING ADDITIONAL REPORT BY STATE
TREASURER; PRESCRIBING PENALTY FOR NONCOMPLIANCE BY DISTRICT,
AND AMENDING SECTIONS 11-251.07 AND 48-251, ARIZONA REVISED
STATUTES.
Be i t enacted by the Legislature of the State of Arizona:
Section I. Section 11-25 1.07, Arizona Revised Statutes, is amended to read:
11-251.07. Report of special taxing d i s t r i c t s in the county
A. On or before October 1 of each year the board of supervisors shall
subrnit to the state treasurer a &a REPORT of all special taxing d i s t r i c t s
organized under t i t l e 48 in the county during the preceding fiscal year? EXCEPT
FOR THOSE ORGANIZED UNDER CHAPTER 4 AND CHAPTER 6, ARTICLES 1
AND 2 OF TITLE 48. The 2EPORT shall include for each district:
1. The date of formation.
2. The total assessed valuation of the district.
3. The tax r a t e levied by the d i s t r i c t f o r the current tax year.
4. The estimated budget for the district for the current fiscal year.
5. A map of the district.
6. A COPY OF THE DISTRICT IMPACT STATEMENT REQUIRED FOR
CERTAIN DISTRICTS WHEN THEY ARE ORGANIZED.
B. THE ANNUAL REPORT SHALL ALSO INCLUDE FOR ANY DISTRICT
ORGANIZED UNDER TITLE 45 WHOSE BOUNDARIES CHANGED DURING THE
PRECEDING FISCAL YEAR, EXCEPT FOR DISTRICTS ORGANIZED UNDER
TITLE 48, CHAPTERS 4 AND 6. A CURRENT MAP OF THE DISTRICT'S
ROUNOARIES PLUS A COPY OF ANY BOUNDARY CHANGE IMPACT
STATEMENT REQUIRED FOR CERTAIN DISTRICTS WHEN BOUNDARY
CHANGES ARE MADE.
Sec. 2. Section 48-251, Arizona Revised Statutes, is amended to read:
48-251. Special district annual report; state treasurer annual report;
special district penalty for noncoinpliance
A. Each district organized under this t i t l e and not exempted under
subsection C of this section shall subrnit an annual report as prescribed by this
section which contains the following information:
1. A schedule of the beginning and ending fund balances and a l l revenues
and expenditures for the preceding fiscal year on a form prescribed by the auditor
general or THE SAME INFORMATION CONTAINED IN a financial s t a t e m e n t f o r
the preceding fiscal year that has been a t t e s t e d t o by an independent certified
public accountant. The schedule or statement shall include all monies, gift or
donations received from all sources which have a value exceeding one hundred
dollars.
2. Legal descriptions of any boundary changes occurring during the
preceding fiscal year.
3. The names, occupations and business telephone numbers of all rnembers
of the governing board and officers of the district on the l a s t day of the preceding
fiscal year.
4. The schedule and location of regular rneetings of the district governing
board.
5. The location or locations where public notices of meetings are posted
pursuant to section 38-43 1.02.
6. THE NAME AND TITLE OF THE INDIVIDUAL OR INDIVIDUALS
COMPLETING THE REPORTING REQUIREMENTS PURSUANT TO THIS
SUBSECTION.
B. The secretary or other officer of the district governing board shall
subrnit the report within one hundred fifty days of the close of the district's fiscal
year to the clerk of the board of supervisors of each county in which the district
i s located. At the same time, the secretary or other officer shall also [nail a copy
of the report t o the state treasurer. FOR ANY DISTRICT FOR WHICH THE
BOARD OF SUPERVISORS IS THE BOARD OF DIRECTORS AND FOR WHICH
THE DISTRICT IS INCLUDED AS A PART OF THE COUNTY'S ANNUAL AUDIT
AND REPORT BY THE AUDITOR GENERAL, A COPY OF THE ANNUAL AUDIT
REPORT SHALL BE SUBMITTED BY THE AUDITOR GENERAL UPON ITS
COMPLETION TO THE STATE TREASURER.
C. Districts organized under chapters 4, 6 17, and 22, 24 AND CHAPTER
6, ARTICLES 1 AND 2 of this t i t l e a r e exempt frorn the requirements of this
section.
D. If a district fails to submit a report as required by this section, any
taxpayer residing in the d i s t r i c t may petition the superior court in a county in
which the district i s organized t o order the district t o show cause why the report
has not been submitted. On a failure to show cause t h e c o u r t shall order the
district to f i l e a l l reports as required by this section. A failure t o obey the order
of the court is punishable as contempt of court.
E. If the court finds that a d i s t r i c t has violated this section, i t shall award
the taxpayer attorney fees and costs associated with bringing the action.
F. THE STATE TREASURER SHALL ANNUALLY BY DECEMBER 31
SUBMIT A REPORT ON COMPLIANCE WITH THE REQUIREMENTS OF THIS
SECTION TO THE PRESIDENT OF THE SENATE, THE SPEAKER OF THE HOUSE
OF REPRESENTATIVES AND THE GOVERNOR. THE ANNUAL REPORT SHALL
INCLUDE A LISTING OF ALL THOSE DISTRICTS REQUIRED TO COMPLY WITH
THE REQUIREMENTS OF THIS SECTION, THE DISTRICTS IN COMPLIANCE
AND NOT IN COMPLIANCE WITH SUCH REQUIREMENTS AND AN ANALYSIS
OF THE SUFFICIENCY OF EACH DISTRICT REPORT.
G. THE COUNTY TREASURER SHALL NOT HONOR WARRANTS FOR
ANY DISTRICT WHICH IS NOT IN COlMPLIANCE WITH THE REPORTING
1 REQUIREMENTS OF THIS SECTION UNTIL SUCH TIME AS CERTIFICATION IS
2 RECEIVED BY THE STATE TREASURER OF SUCH COMPLIANCE. THE BOARD
3 OF SUPERVISORS MAY AUTHORIZE THE COUNTY TREASURER TO HONOR
4 WARRANTS FOR A DISTRICT NOT IN COMPLIANCE WITH REPORTING
I 5 REQUIREMENTS IF THE DISTRICT BOARU MAKES A REQUEST TO THE
6 BOARD OF SUPERVISORS AND THE BOAR0 OF SUPER'JISORS DEEMS
7 EXTENUATING OR MITIGATING CIRCUMSTANCES TO EXIST.
EXHIBIT I1
REFERENCE TITLE: special district
irnpact statement
State of Arizona
Thirty-ninth Legislature
First Regular Session
1989
AN ACT
RELATING TO SPECIAL TAXING DISTRICTS; PRESCRIBING REQUIREMENTS FOR
SPECIAL DISTRICT IMPACT STATEMENT FOR PROPOSED DISTRICT
FORMATION AND DISTRICT BOUNDARY CHANGES; AMENDING SECTIONS
48-261 AND 43-262, ARIZONA REVISED STATUTES, AND AMENDING TITLE 48,
CHAPTER 1, ARTICLE 10, ARIZONA REVISED STATUTES, BY AODING
SECTION 48-263.
1 Be i t enacted by the Legislature of t h e S t a t e of Arizona:
2 Section 1. Section 48-261, Arizona Revised Statutes, is arnended t o read:
48-261. District creation; procedures; bond requirement; notice;
hearing; determinations; petitions
A. A fire district, community park maintenance d i s t r i c t , sanitary
district, hospital district, or health services district shall be created by the
following procedures:
1. Any person desiring to propose creation of a district shall prepare and
subrnit a district irnpact staternent to the board of supervisors of the county in
which the district is to be located. If a proposed district i s 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 i s located. The boards of supervisors of any other counties in which a
portion of the district is located shall provide information and assistance to the
responsible board of supervisors. IF THE PERSON OR PERSONS 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 CDMPLETION OF THE IMPACT STATEMENT IF REQUESTED TO
DO SO, PROVIDING 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 description of the boundaries of the proposed district and a
detailed, a c c u r a t e map of the area t o be included in the district.
(b) An estirnate of the assessed valuation within the proposed district.
(c) An estirnate of the change in the property tax liability, as a result of
the proposed district, of a typical resident of the proposed district.
(d) A list AND EXPLANATION of benefits t h a t will result frorn the
proposed district.
(e) A list AND EXPLANATION of the injuries that will result frorn the
proposed district.
(I) The names, addresses and occupations of the proposed members of
the district's organizing board of directors.
2. On receipt of the district irnpact staternent, the board of supervisors
shall set a day, not fewer than ten nor inore than thirty days from that date, for a
hearing on the irnpact staternent. The board of supervisors may, at any time prior
to malting a determination pursuant to paragraph 4 of this subsection, require that
an impact statement be amended t o include any information that the board of
supervisors deems t o be relevant and necessary.
3. Upon receipt of the district impact s t a t e m e n t , the clerk of the board
of supervisors shall rnail, by first class mail, written notice of the staternent, its
purpose and notice of the day, hour and place of the hearing on the proposed
district to each owner of ~ e a Tl AXABLE property and each qualified elector
within the boundaries of the proposed district. 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 weekly 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 d i s t r i c t , then at l e a s t twice a t any time before the date of the
hearing, a notice s e t t i n g f o r t h the purpose of the irnpact staternent, the
description of the area of the proposed district and the day, hour and place of the
hearing.
4. At the hearing called pursuant t o paragraph 2 of this subsection, the
board of supervisors shall hear those who appear for and against the proposed
district and shall deterrnine whether the creation of the district will promote
public health, comfort, convenience, necessity or welfare. If the board of
supervisors d e t e r ~ n i n e st h a t t h e public health, comfort, convenience, necessity or
welfare will be promoted, i t shall approve the district irnpact staternent and
authorize the persons proposing the district t o circulate petitions as provided in
this subsection. The order of the board of supervisors shall be final, but if the
request to circulate petitions is denied, a subsequent request f o r a similar district
may be refiled with the board of supervisors a f t e r six months frorn the date of
such denial.
5. After receiving the approval of the board of supervisors as provided
in paragraph 4 of t!lis subsection, the person proposing the district may circulate
and present petitions to the board of supervisors of the county in which the
district is located.
6. The petitions presented pursuant to paragraph 5 of this subsection
shall:
(a) At all times, contain a description of the boundaries of the proposed
district and a detailed, accurate rnap of the proposed district and the names,
addresses and occupations of the proposed members of the district's organizing
board of directors. No alteration of the proposed district shall be made a f t e r
receiving the approval of the board of supervisors as provided in paragraph 4.
(b) Be signed by more than one-half of the property owners in the area of
the proposed district.
(c) Be signed by persons owning collectively more than one-half of the
assessed valuation of the property in the area of the proposed district.
(d) Be signed by more than one-half of the qualified electors within the
boundaries of the proposed district.
7. On receipt of the petitions, the board of supervisors shall set a day,
not fewer than ten nor rnore than t h i r t y days frorn that date, for a hearing on the
petition.
8. Prior to the hearing called pursuant to paragraph 7 of this subsection,
the board of supervisors shall determine t h e validity of the petitions presented.
9. At the hearing called pursuant to paragraph 7, the board of
supervisors shall, if the petitions are valid, order the creation of the district. The
board of supervisors shall enter i t s order s e t t i n g f o r t h its detertnination in the
minutes of the meeting, not later than ten days frorn 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 final and the proposed district shall be created thirty
days a f t e r the board of supervisors votes to c r e a t e t h e district. A decision of the
board of supervisors under this subsection i s subject to judicial review under t i t l e
12, chapter 7, article 6.
6. For the purpose of deter~niningth e validity of the petitions presented
pursuant t o subsection A, paragraph 5 of this section:
1. Qualified electors shall be those persons qualified to vote pursuant to
Title 16.
2. FOR THE PURPOSES OF FULFILLING THE REQUIREMENTS OF
SUBSECTION A, PARAGRAPH 6, SUBDIVISIONS (b) and (c) OF THIS SECTION,
PROPERTY HELD IN JOINT TENANCY SHALL BE TREATED AS IF IT HAD
ONLY ONE PROPERTY OWNER, SO THAT THE SIGNATURE OF ONLY ONE OF
SUCH OWNERS OF PROPERTY HELD IN JOINT TENANCY SHALL BE
REQUIRED ON THE FORMATION PETITION.
2? 3. The value of property shall be determined as follows:
(a) In the case of property assessed by the county assessor, values shall
b e t h e same as those shown on the last assessment roll of the county containing
such property.
(b) In the case of property valued by the department of revenue, the
values shall be those determined by the department in the manner provided by
law, for rnunicipal assessment purposes. The county assessor and the department
of revenue, respectively, shall furnish to the board of supervisors, within twenty
days a f t e r such a request, a statement in writing showing the owners, the address
of each owner and the appraisal or assess~nent value of properties contained
within the boundaries of the proposed district as described in subsection A of this
section.
C. THE BOARD OF SUPERVISORS MAY REQUIRE OF THE PERSON
OX PERSONS 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 INCURREL) BY THE COUNTY IN THE EVENT THAT 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 AND ELECTORS, PUBLICATION OF THE NOTICE OF
HEARING AND OTHER EXPENSES REASONABLY INCURRED AS A XESULT OF
ANY REQUIREMENTS OF THIS SECTION.
Gt O. If a district i s created pursuant to this section, the cost of
publication of the notice of hearing, the [nailing of notices to electors and
property owners and a l l o t h e r c o s t s incurred by the county as a result of the
provisions of this section shall be a charge against the district.
B, 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 t h e c i t y or town has by ordinance or
resolution endorsed such creation.
Bt F. Except as provided in section 48-2001, subsection A, the area of a
district created pursuant t o this section shall be contiguous.
FZ G. A district organized pursuant to this section shall have an
organizing board of directors t o administer t h e a f f a i r s of the district until a duly
constituted board of directors i s e l e c t e d as provided in this t i t l e . The organizing
board shall have a l l the powers, duties and responsibilities of an elected board.
The organizing board shall consist of three individuals narned in the district
irnpact statement and the petitions presented pursuant t o subsection A of this
section. If a vacancy occurs on the organizing board, the remaining board
mernbers shall fill the vacancy by appointing an interim member. Mernbers of the
organizing board shall serve without compensation but may be reimbursed for
actual expenses incurred in perforining their duties. The organizing board shall
elect from its members s chairman and a clerk.
Sec. 2. Section 48-262, Arizona Revised Statutes, is amended t o read:
48-262. District boundary changes; procedures; notice; hearing;
determination; petitions
A. A fire district, community park maintenance district, sanitary
d i s t r i c t o r health services district shall change its boundaries by the following
procedures:
1. Any person desiring t o propose any change t o the boundaries of a
district shall prepare and submit a boundary change irnpact statement to the
governing body of the district. The boundary change impact statement shall
contain at least the following information:
(a) A description of the boundaries of the area to be included within the
proposed change and a detailed, accurate map of the area.
(b) An estirnate of the assessed valuation within the boundaries of the
proposed change.
(c) An estirnate of the change in the tax r a t e of the district if the
proposed change is made.
(d) An estirnate of the change in the property tax liability, as a result of
the proposed change, of a typical resident of a portion of the district, not in the
area of the proposed change, before and a f t e r t h e proposed change and of a
typical resident of the area of the proposed change.
(e) A list AND EXPLANATION of benefits that will result from the
proposed change t o the residents of the area and of the rernainder of the district.
(f) A list AND EXPLANATION of the injuries t h a t will result froin the
proposed change t o residents of the area and of the rernainder of the district.
2. On receipt of the boundary change impact s t a t e m e n t , the governing
body shall set a day, not fewer than twenty nor more than t h i r t y days from that
date, for a hearing on the boundary change irnpact staternent. The board of
supervisors may a t any time prior to making a deterinination pursuant t o
paragraph 5 of this subsection require t h a t t h e irnpact staternent be amended t o
include any information t h a t t h e board of supervisors d e e ~ n st o be relevant and
necessary.
3. Upon receipt of the boundary change impact staternent, the clerk of
the governing body shall mail, by first class rnail, written notice of the staternent,
its purpose and notice of the day, hour and place of the hearing on the proposed
change t o each owner of ~ea4 TAXABLE property and each qualified elector
within the boundaries of the proposed change. The clerk of the governing body
shall post the notice in at least three conspicuous public places in the area of the
proposed change and also publish twice in a daily newspaper of general circulation
in the area of the proposed change, at least ten days before the hearing, or if no
daily newspaper of general circulation exists in t h e a r e a of the proposed change,
then at l e a s t twice at any tirne before the date of the hearing, a notice setting
forth the purpose of the itnpact staternent, the description of the boundaries of
the proposed change and the day, hour and place of the hearing.
4. Upon receipt of the boundary change impact staternent the clerk
shall also mail notice, as provided in paragraph 3 of this subsection, t o the
chairman of the board of supervisors of the county in which the district is located.
The chairman of the board of supervisors shall order a review of the proposed
change and rnay submit written comrnents to the governing body of the district
within ten days of receipt of the notice.
5. At the hearing called pursuant to paragraph 2 of this subsection, the
governing body shall consider the cornrnents of the board of supervisors, hear
those who appear f o r and against the proposed change and determine whether the
proposed change will prornote the public health, cornfort, convenience, necessity
or welfare. If the governing body determines t h a t t h e public health, comfort,
convenience, necessity or welfare will be promoted, i t shall approve the irnpact
statement and authorize the persons proposing the change t o circulate petitions as
provided in this subsection. The order of the governing body shall be final, but if
the request to circulate petitions is denied, a subsequent request f o r a similar
change may be refiled with the governing body a f t e r six months from the date of
such denial.
6. A person aggrieved by a decision of the governing body under this
section rnay appeal to the board of supervisors of the county in which the district,
or a majority of the district, is located, and a person aggrieved by a decision of
the board of supervisors may appeal to the superior court in the county in the
manner prescribed by t i t l e 12, chapter 7, article 6 and by posting a bond equal t o
the probable costs conditioned t h a t t h e appellant will prosecute his appeal and
will pay a l l costs that accrue in the court if a judgment is rendered affirming the
decision of the board of supervisors. The court shall require the district governing
body t o pay all costs t h a t a c c r u e in the court, including reasonable attorney fees,
and the bond shall be returned t o the appellant, if a judg~nelit is rendered in favor
01 the appellant.
7. After receiving approval of the governing body as provided in
paragraph 5 of this subsection and provided no appeal filed pursuant t o paragraph
6 of this subsection remains unresolved, the person proposing the change may
circulate and present petitions t o the governing body of the district.
8. The petitions presented pursuant t o paragraph 7 of this subsection
shall:
(a) At all tiines, contain a description of the boundaries of t h e a r e a t o be
included within the proposed change and a detailed, accurate map of the area
included within the proposed change. No alteration of the described area shall be
made a f t e r receiving the approval of the governing body as provided in paragraph
5 of this subsection.
(b) Be signed by more than one-half of the property owners within the
boundaries of the proposed change.
(c) Re signed by persons owning collectively more than one-half of the
assessed valuation of the property within the boundaries of the proposed change.
(d) Re signed by more than one-half of the qualified electors within the
boundaries of the proposed change.
9. On receipt of the petitions, the governing body shall set a day, not
fewer than ten nor more than t h i r t y days from that date, for a hearing on the
request.
10. Prior to the hearing called pursuant to paragraph 9 of this subsection,
the board of supervisors shall determine the validity of the petitions presented.
11. At the hearing called pursuant to paragraph 9 of this subsection, the
governing body shall, if the petitions are valid, order the change t o the
boundaries. The governing body shall enter its order s e t t i n g f o r t h i t s
determination in the rninutes of the ineeting, n o t l a t e r than ten days frorn the day
of the hearing, and a copy of the order shall be filed in the county recorder's
office. The order of the governing body shall be final and the proposed change
shall be made t o the district boundaries thirty days a f t e r the governing body
votes. An appeal of the order to change the boundaries to the board of
supervisors pursuant t o paragraph 6 of this subsection must be filed with the board
of supervisors during such thirty day period.
9. For the purpose of determining the validity of the petitions presented
pursuant t o subsection A, paragraph 7:
1. Qualified electors shall be those persons qualified to vote pursuant to
t i t l e 16.
2. FOR THE PURPOSES OF FULFILLING THE REQUIREMENTS OF
SUBSECTION A, PARAGRAPH 8, SUBDIVISIONS (b) and (c) OF THIS SECTION,
PROPERTY HELD IN JOINT TENANCY SHALL BE TREATED AS IF IT HAD
ONLY ONE PROPERTY OWNER, SO THAT THE SIGNATURE OF ONLY ONE OF
SUCH OWNERS OF PROPERTY HELD IN JOINT TENANCY SHALL BE
REQUIRED ON THE BOUNDARY CHANGE PETITION.
?Z 3. The value of property shall be deterrnined as follows:
(a) In t!~ec ase of property assessed by the county assessor, values shall
be the sarne as those shown on the l a s t assessment roll of the county containing
such property.
(b) In the case of property valued by the departrnent of revenue, the
values shall be those deterrnined by the departrnent in the manner provided by
law, for rn unicipal assessment purposes. The county assessor and the departrnent
of revenue, respectively, shall furnish t o the governing body, within twenty days
a f t e r such a request, a statement in writing showing the owner, the address of
each owner and the appraisal or assessrnent value of properties contained within
t h e a r e a of a proposed change as described in subsection A.
C. If the change in the boundaries proposed pursuant t o subsection A
would result in a withdrawal of territory frorn an existing district, the petitions
shall be approved by the governing body only if the proposed withdrawal would not
result in a noncontiguous portion of the district that is less than one square rnile
in size.
11). If the iinpact statement described in subsection A relates t o the
withdrawal of property frorn a district, in addition to the other requirements of
subsection A, the governing body shall also deterrnine:
1. If the district has any existing outstanding bonds or other evidences
of indebtedness.
2. If those bonds were authorized by an election and issued during the
time the property t o be withdrawn was lawfully included within the district.
E. If the conditions of subsection D are met:
1. The property withdrawn from the district shall remain subject t o
taxes, special assessinents or fees levied or collected t o meet the contracts and
covenants of the bonds. The board of supervisors shall provide for the levy and
collection of such taxes, special assessrnents or fees.
2. The governing body shall:
(a) Annually, deterrnine the amount of special property taxes, special
assessments, or f e e s t h a t must be levied and collected frorn property withdrawn
froin the district and the rnechanisrn by which such arnount is to be collected.
(b) Notify the board of supervisors on o r before the third Monday in July
of the amount determined in subdivision (a).
3. Property withdrawn froin an existing district shall not be subject to
any further taxes, special assesslnents or fees arising from the indebtedness of
such district except as provided in this subsection.
F. If the statement described in subsection A, paragraph 1 requests the
annexation of property located within an incorporated city or town, in addition t o
the other requiretnents of subsection A, the governing body shall approve the
district boundary change impact statement and authorize the circulation of
petitions only if the governing body of the city o r town has by ordinance or
resolution endorsed such annexation and such annexation i s authorized pursuant t o
this title.
G. Except as provided in subsection C, no change in the boundaries of a
district pursuant to this section shall result in a district which contains area that
is not contiguous.
Sec. 3. Title 48, chapter 1, article 10, Arizona Revised Statutes, is
amended by adding section 43-263, t o read:
48-263. Special district impact stateinent; d i s t r i c t creation; district
boundary change; bond requirernent
A. NOTWITHSTANDING ANY OTHER SPECIAL DISTRICT
ORGANIZATION OR BOUNDARY CHANCE REQUIREMENTS, A SPECIAL
DISTRICT IMPACT STATEMENT IS REQUIRED OF EACH ANTINOXIOUS WEED
DISTRICT, PEST CONTROL DISTRICT, RECREATION CENTER DISTRICT,
SPECIAL ROAD DISTRICT, POWER DISTRICT, ELECTRICAL DISTRICT, PEST
ABATEMENT DISTRICT, AGRICULTURAL IMPROVEMENT DISTRICT,
DRAINAGE AND FLOOD PROTECTION DISTRICT, IRRIGATION AND WATER
CONSERVATION DISTRICT AND IRRIGATION WATER DELIVERY DISTRICT, AS
FOLLOWS:
1. IN THE CASE OF A SPECIAL DISTRICT FORMATION PROPOSAL
AND PRIOR TO THE CIRCULATION OF ORGANIZATION PETITIONS
OTHERWISE REQUIRED, THE SPECIAL DISTRICT IMPACT STATEMENT AND
HEARING REQUIREMENTS PURSUANT TO SECTION 48-261, SUBSECTION A,
PARAGRAPHS 1 THROUGH 4, AND SUBSECTIONS C, D AND E MUST FIRST BE
COMPLIED WITH.
2. IN THE CASE OF A PROPOSED SPECIAL DISTRICT BOUNDARY
CHANGE TO AN EXISTING DISTRICT AND PRIOR TO THE CIRCULATION OF
BOUNDARY CHANGE PETITIONS OTHERWISE REQUIRED, THE BOUNDARY
CHANGE IMPACT STATEMENT AND HEARING REQUIREMENTS PURSUANT
TO SECTION 48-252, SUBSECTION A, PARAGRAPHS 1 TI-IROUGH 7, AND
SUBSECTIONS D AND F MUST FIRST BE COMPLIED WITH.
B. THE BOARD OF SUPERVISORS MAY REQUIRE OF THE PERSON
OR PERSONS DESIRING TO PROPOSE CREATION OF A DISTRICT
ENUMERATED IN SUBSECTION A OF THIS SECTION A REASONABLE BOND TO
BE FILED WITH THE BOARD, IN ACCORDANCE WITH THE PROVISIONS OF
SECTION 48-261, SUBSECTION C.
EXHIBIT 111
REFERENCE TITLE: special district reirnbursetnent
for county services
State of Arizona
Thirty-ninth Legislature
First Regular Session
1939
AN ACT
RELATING TO COUNTIES; PROVIDING FOR REIMBURSEMENT FOR COUNTY
SERVICES TO SPECIAL DISTRICTS; PRESCRIBING REIMBURSEMENT FOR
CERTAIN DISTRICTS; AMENDNG SECTION 11-251.06, ARIZONA REVISED
STATUTES, AND AMENDING TITLE 48, CHAPTER 24, ARTICLE I, ARIZONA
REVISE0 STATUTES, BY ADDING SECTION 48-3906.
1 Be i t enacted by the Legislature of t h e S t a t e of Arizona:
2 Section 1. Section 11-251.06, Arizona Revised Statutes, is arnended to
3 read:
11-251.06 Reimbursement for county services t o special districts
A. Notwithstanding any o t h e r s t a t u t e , the board of supervisors may
require the following s p e c i ~ l districts to reirnb;rse the county for the cost of
services provided to the special districts:
1. Antinoxious weed districts forrned pursuant to t i t l e 48, chapter 2.
2. Pest control d i s t r i c t s formed pursuant to t i t l e 48, chapter 3.
3. Fire d i s t r i c t s formed pursuant to t i t l e 48, chapter 5.
4. County iinprovement districts forrned pursuant t o t i t l e 48, chapter 6.
5. County improvement d i s t r i c t s f o r lighting formed pursuant t o 48-950
and 48-961.
6. Domestic water improvement districts forrned pursuant to t i t l e 48,
chapter 6, article 4.
7. County television improvement d i s t r i c t s formed pursuant t o t i t l e 48,
chapter 7.
8. Community park maintenance d i s t r i c t s formed pursuant t o t i t l e 48,
chapter 8.
9. Recreation center d i s t r i c t s formed pursuant t o t i t l e 48, chapter 9.
10. Special road districts forrned pursuant to t i t l e 48, chapter 10.
11. Power d i s t r i c t s formed pursuant to t i t l e 48, chapter 11.
12. Electrical d i s t r i c t s formed pursuant to t i t l e 48, chapter 12.
13. Hospital districts pursuant to t i t l e 48, chapter 13.
14. Sanitary d i s t r i c t s formed pursuant to t i t l e 48, chapter 14.
15. Pest abatement d i s t r i c t s formed pursuant t o t i t l e 48,chapter 15.
16. Health service d i s t r i c t s forrned pursuant to t i t l e 48,chapter 16.
17. Agricultural improveinent d i s t r i c t s formed pursuant to t i t l e 48,
chapter 17.
18. Drainage and flood protection districts forrned pursuant t o t i t l e 48,
chapter 18.
19. Irrigation and water conservation districts forrned pursuant to t i t l e
48, chapter 19.
20. Irrigation water delivery d i s t r i c t s formed pursuant to t i t l e 48,
chapter 20.
21. County flood control d i s t r i c t s forrned pursuant to t i t l e 48, chapter
2 1.
22. Multi-county water conservation districts formed pursuant t o t i t l e
43, chapter 22.
23. COUNTY FREE LIBRARY DISTRICTS FORMED PURSUANT TO
TITLE 48, CHAPTER 24.
B. The board of supervisors shall establish a schedule for reimbursernent
of county services and shall distribute this schedule to the special districts prior
to providing any service named in the schedule. THE SCHEDULE MAY INCLUDE
CHARGES TO NEWLY ORGANIZED SPECIAL DISTRICTS FOR COUNTY
SERVICES RENDERED TO SUCH DISTRICTS PRIOR TO AND DURING
ORGANIZATION. The reimbursement schedule shall not exceed the a c t u a l c o s t s
for the services provided by the county.
C. If the board of supervisors requires reimbursernent for county services
pursuant t o subsections A and B of this section, the governing body of a special
district listed in subsection A of this section (nay elect to perform for itself any
of the services provided by the county in lieu of reimbursement, except election
and financial services provided by the county.
D. Subsection C of this section does not authorize the governing board of
any of the named special districts to levy any additional taxes not otherwise
specified by statute.
Section 2. Title 48, chapter 24, article 1, Arizona Revised Statutes,is
amended by adding section 48-3906, t o read:
48-3906. Reimbursement for county services
SERVICES PROVIDED BY A COUNTY TO A COUNTY FREE LIBRARY
DISTRICT ARE SUBJECT TO REIMBURSEMENT PURSUANT TO SECTION 11-
25 1.06.
EXHIBIT IV
REFERENCE TITLE: county fire district
assistant tax
State of Arizona
Thirty-ninth Legislature
First Regular Session
1989
AN ACT
RELATING TO SPECIAL TAXING DISTRICTS; PROVIDING FOR A COUNTY FIRE
DISTRICT ASSISTANCE TAX; PRESCRIBING EXCLUSION OF CERTAIN
REVENUES WHEN COMPUTING AMOUNT OF FIRE DISTRICT ASSISTANCE,
AND AMENDING SECTION 48-807, ARIZONA REVISED STATUTES.
Be it enacted by the Legislature of t h e S t a t e of Arizona:
Section 1. Section 48-807, Arizona Revised Statutes, is amended to read:
48-807. County fire district assistance tax; coinputation and levy;
annual budget
A. The board of supervisors of a county shall, at t h e t i m e of levying,
collecting and distributing other property taxes,. levy, -collect and distribute -a
county fire district assistance tax on the taxable property in the county of not t o
exceed, except as otherwise provided, t e n c e n t s per one hundred dollars of
assessed valuation. The tax levy provided for in this subsection shall be a levy of
secondary property taxes and shall not be subject to section 42-301. The county
treasurer shall pay t o each district in the county from the proceeds of the tax an
amount equal to twenty per cent of the annual budget adopted by the district for
services provided inside fire district boundaries for the fiscal year in which the
tax will be levied, except that:
I. The amount of assistance from the county t o a fire district shall Se
reduced as follows:
(a) If the fire district assistance tax received by a fire district in the
preceding fiscal year exceeds twenty per cent of the district's actual total
expenditures for services provided inside fire district boundaries for the preceding
year, the current year's fire district assistance tax shall be reduced by the dollar
amount by which the previous year's contribution exceeded twenty per cent of
such actual total expenditures.
(b) The amount of assistance to a fire district shall be reduced by the
sarne percentage as the amount of district rnonies for services provided inside fire
district boundaries, from any source, remaining unexpended and unencumbered at
the end of the preceding fiscal year represents of the current year's budget for
services provided inside fire district boundaries. For purposes of this subdivision,
fire district rnonies are not unexpended and unencumbered if they a r e capital
reserve monies set aside by the fire district t o pay for the capital acquisitions
pursuant t o 48-805, subsection B, paragraph 2 or if they are monies necessary t o
pay for goods and services received in the preceding fiscal year for which
payrnent will not be tnade until the current fiscal year.
(c) If the total arnount to be paid t o a l l districts in the county under this
paragraph exceeds the amount to be raised by the levy of ten cents per one
hundred dollars assessed valuation, then the county treasurer shall pay an ainount
less than twenty per cent of the annual budget of each district. The amount t o be
paid by the county treasurer t o each district shall be determined by lnultiplying
the proceeds of the county fire district assistance tax against the proportion t h a t
the budget of each such d i s t r i c t bears t o t h e t o t a l of all fire district budgets in
the county.
2. FOR THE PURPOSES OF THIS SUBSECTION THE ADOPTED
BUDGET OF THE FIRE DISTRICT SHALL NOT INCLUDE:
(a) SUBVENTIONS OR GRANTS OF ANY KIND RECEIVED BY THE
DISTRICT FROM ANY AGENCY, DEPARTMENT OR OTHER AUTHORITY OF
THIS STATE OK THE FEDERAL GOVERNMENT.
(b) PAYMENTS RECEIVED FROM A CITY, TOWN OR FIRE DISTRICT
PURSUANT TO A CONTRACT OR OTHER AGREEMENT TO PROVIDE
SERVICES WITHIN SUCH CITY, TOWN OR FIRE DISTRICT.
(c) PROCEEDS FROM THE SALES OF BONDS PURSUANT TO SECTION
48-806.
(d) PROPERTY TAX PROCEEDS TO BE APPLIED TO THE PAYMENT
OF PRINCIPAL OF AND INTEREST ON BONDS ISSUED PURSUANT TO
SECTION 48-306.
2;. 3. Notwithstanding paragraph 1 of this subsection, if t h e t a x r a t e
levied by the board pursuant t o subsection C of this section is equal t o two dollars
sixty cents per one hundred dollars of taxable valuation and the amount to be paid
to the district under this subsection is less than the amount paid to the district in
the preceding year, then the county shall levy an additional amount f o r the
district equal t o the difference between the amount to be paid pursuant to this
subsection and the arnount paid to the district in the preceding year.
& 4. Beginning with the 1988-1989 fiscal year, the amount of
assistance t o a fire district shall not exceed one hundred ten per cent of the
arnount of county fire d i s t r i c t assistance monies paid to the district in the
preceding fiscal year. Every fifth successive fiscal year the base amount
prescribed by this paragraph shall he recolnputed to the full amount allowed as if
this paragraph did not apply.
R. Not rnore than ten days a f t e r the perfection of the organization of a
fire district, and thereafter not later than July 10 of each year, the chief and the
secretary-treasurer of the district, or if there is a district board, the chairman of
such board, shall subrnit to the board of supervisors an estirnate, certified by
items, of the arnount of money required f o r the equipment and maintenance of the
district for the ensuing year, less the arnount derived frorn the county fire district
assistance tax as provided by subsection A of this section. The estirnate may also
include amounts necessary to pay the reasonable value of organizational and legal
services and expenses rendered or paid by others in the fiscal year iinrnediately
prior to the fiscal year for which t h e e s t i m a t e i s submitted, If the estirnate is not
submitted by July 10, the fire district is not eligible to receive county fire dis-t
r i c t assistance tax monies until the estimate is received by the board of
supervisors.
C. The board, based on the budget submitted by the district, shall, in
addition t o any tax levied as provided in section 45-806, levy a t a x , not to exceed
two dollars sixty cents per one hundred dollars of taxable valuation, against all
property situated within the district boundaries and appearing upon the last
assessment roll. The levy shall be made and the taxes collected in the manner, a t
the time and by the officers provided by law f o r t h e collection of state and county
taxes.
11. The county treasurer shall keep the money received frotn such taxes
in a separate fund known as the "fire district fund" of the town o r settlernent f o r
which collected. Any surplus remaining in the fund at the end of the fiscal year
shall be credited t o the fire district fund of the town or settlernent for which
collected for the succeeding fiscal year.
E. When a fire district has adopted a budget and the board of supervisors
has levied a fire district tax as provided in subsection C of this section and the
district has insufficient money in i t s fund with the county treasurer t o operate the
district, the elected chief and the secretary-treasurer, o r if there is a district
board, the chairman of the board, may, on or a f t e r July 10 of each year, draw
warrants for the purposes prescribed in section 48-805 on the county treasurer,
payable on November 1 of t h a t year or on April 1 of the succeeding year. The
aggregate amounts of the warrants may not exceed ninety per cent of the taxes
levied by the county f o r the district's current fiscal year. If the treasurer cannot
pay a warrant f o r lack of funds in t h e f i r e district fund, the warrant shall be
endorsed, be registered, bear interest and be redeemed as provided by law for
county warrants, except that the warrants are payable only from the fire district
fund.
Section 2. Retroactivity
This act is effective retroactively t o July 1, 1989.
EXHIBIT V
REFERENCE TITLE: special district definition;
district fortnation approval
State of Arizona
Thirty-ninth Legislature
First Regular Session
1989
AN ACT
RELATING TO SPECIAL TAXING DISTRICTS; PROVIDING A DEFINITION FOR SPECIAL
DISTRICTS; PRESCRIBING A PURPOSE; PRESCRIBING SPECIAL DISTRICT
CHARACTERISTICS; PRESCRIBING RETROACTIVITY OF DEFINITION;
PROVIDING FOR AUTHORITY OF BOARD OF SUPERVISORS TO APPROVE OR
DISAPPROVE FORVATION OF A DISTRICT, AND AIMENDING TITLE 45,
CHAPTER 1, ARIZONA REVISED STATUTES, BY ADDING ARTICLES 11 AND
12.
1 Be it enacted by the Legislature of t h e S t a t e of Arizona:
2 Section 1. Title 48, chapter 1, Arizona Revised Statutes, is arnended by
3 adding article 11, t o read:
4 ARTICLE 1 I. SPECIAL DISTRICT DEFINITION
48-271. Definition of special district; purpose; characteristics;
retroactivity
A. THE PURPOSE OF THE SPECIAL DISTRICT DEFINITION SET
FORTH IN THIS SECTION IS TO ENHANCE UNDEIISTANDING OF AND TO
FACILITATE USEFULNESS OF THIS TITLE. IT IS FURTHER INTENDEIJ THAT
THE DEFINITION RE USED AS A LEGISLATIVE GUIDE FOR FUTURE SPECIAL
UI5TRICTS LAWS, THEIR IMPACT ON AND PLACEMENT IN THIS TITLE.
R. UNLESS Ti4E CONTEXT DICTATES OTHERWISE, A DISTRICT
ORGANIZED PURSUANT TO REQUIREMENTS CONTAINEI) IN THIS TITLE
AFTER JANUARY 1, 1989 IS A SPECIAL DISTRICT IF IT POSSESSES
SUBSTANTIALLY THE FOLLOWING CHARACTERISTICS:
1. POLITICAL SUBDIVISION STATUS OF THIS STATE VESTED, TO
THE EXTENT CONSISTENT WITH ITS STATED PURPOSES, WITH THE RIGHTS,
PRIVILEGES AND BENEFITS GRANTED TO MUNICIPALITIES OF THIS STATE.
2. A SINGLE OR LIMITED PURPOSE AS SPECIFIED IN ITS
AUTHORIZING STATUTORY AUTHDRITY.
3. AN INDEPENDENTLY ELECTED GOVERNING BODY.
4. AN ESTABLISHMENT PROCESS SUBJECT TO THE DISCRETION OF
THE BOARO OF SUPZRVISORS PURSUANT TO SECTION 43-281.
5. EXTERIOR BOUNDARIES WITI-IIN OR COTERMINOUS WITH A
SINGLE COUNTY.
6. THE POWER TO LEVY AND COLLECT TAXES.
7. AFTER ESTABLISHMENT, PERPETUAL SUCCESSION OF: ITS
GOVERNMENTAL EXISTENCE, PURPOSE, POWERS AND GOVERNING BOARD,
SUBJECT TO A PRESCRIBED DISSOLUTION PROCEDURE.
8. CaRPORATE EXISTENCE SEPARATE AND APART FROM ANY
OTHER UNIT OF GOVERNMENT.
C. THE SPECIAL DISTRICT DEFINITIOV SET FORTH IN THIS SECTION
APPLIES TO ALL SPECIAL DISTRICT AUTHORIZATIONS OF THIS TITLE PRIOR
TO JANUARY 1, 1989 EXCEPT THOSE DISTRICTS AUTHORIZED PURSUANT
TO CHAPTER 4 AND ARTICLE5 1, 2 AND 3 OF CHAPTER 6 OF Tt-115 TITLE.
Section 2. Title 48, chapter 1, Arizona Revised Statutes, is amended by
adding article 12, to read:
ARTICLE 12. BOARD OF SUPERVISORS
DISCRETION IN AUTHORIZING DISTRICT FORMATIOLU.
48-281. Special district formation; board of supervisors autl-lorizing
authority
A. NOTWITHSTANDING ANY OTHER SPECIAL DISTRICT FORMATION
REQUIREMENT, LIMITATION OR OTHER PRO'JISION IN THIS TITLE, THE
BOARD OF SUPERVISORS SHALL HAVE AND RETAIN AT ANY POINT DURING
THE FORMATION PROCEDURE THE AB5OLUTE AUTHORITY TO APPROVE OR
DISAPPXOVE THE FORMATION OF SUCH DISTRICT.
8. THIS SECTION DOES NOT APPLY TO CHAPTERS 4, 22 AND 23 OF
THIS TITLE.