A.R.S. tit. 48 ch. 22 — Arizona Revised Statutes Title 48 Chapter 22 — Multi-County Water Conservation Districts

48-3701. Definitions In this chapter, unless the context otherwise requires: 1. "Active management area" means an active management area established under title 45, chapter 2, article 2. 2. "Board" means the board of directors of a multi-county water conservation district. 3. "Contract replenishment obligation" means an amount of groundwater that the district contracts to replenish in a year on behalf of a municipal provider pursuant to a contract authorized under section 48-3772, subsection B, paragraph 9. 4. "Credits" means any groundwater in addition to the amount of groundwater that may be used at a member land or delivered within a member service area for use within the member service area pursuant to the applicable assured water supply rules adopted by the department of water resources. 5. "Declaration" means an instrument recorded against real property and conforming to the requirements prescribed by section 48-3774, subsection A, paragraph 5. 6. "District" means a multi-county water conservation district organized under the authority of this chapter. 7. "Excess groundwater" means an amount of groundwater equal to that amount of groundwater delivered to a member land in a calendar year or delivered within a member service area by the municipal provider for that member service area in a calendar year in excess of the amount of groundwater that may be used at the member land in that calendar year or that may be delivered by the municipal provider for use within the member service area in that calendar year and consistent with the applicable assured water supply rules adopted by the department of water resources for the active management area where the member land or the member service area is located. 8. "Excess groundwater increment" means the amount by which excess groundwater reported for a member service area under section 48-3775, subsection B in any year exceeds the maximum amount of excess groundwater reported for that member service area in any prior year. 9. "Groundwater replenishment obligation" means, for each active management area in which member lands or member service areas are or may be located, the total of the cumulative parcel replenishment obligation of all parcels of member land in that active management area for a particular calendar year plus the cumulative service area replenishment obligation of all member service areas in that active management area for a particular calendar year. 10. "Member land" means any real property that meets the requirements of section 48-3774. 11. "Member service area" means the service area of a municipal provider that qualifies as a member service area under section 48-3780, including any additions to or extensions of the service area. 12. "Multi-county water conservation district" means a district composed of three or more counties that have joined together for the creation of a district. 13. "Municipal provider" means a city, town or private water company or an irrigation district that supplies water for non-irrigation use. 14. "Parcel of member land" means any portion of member land for which the tax assessor for the county in which the member land is located has issued a separate county parcel number. 15. "Parcel replenishment obligation" means, with respect to any particular parcel of member land, an amount of groundwater that is equal to the amount of groundwater delivered to the parcel of member land in a calendar year multiplied by the percentage that the excess groundwater of the applicable member land for that year bears to the total amount of groundwater delivered to the applicable member land during that year. 16. "Population" means the population determined in the most recent United States decennial census. 17. "Private water company" has the same meaning prescribed in section 45-402. 18. "Projected replenishment obligation" means for each active management area, the district's total projected annual groundwater replenishment obligation for each of the one hundred years following submission of the district plan of operation. 19. "Replenish" means to increase the amount of groundwater in an aquifer through water storage pursuant to title 45, chapter 3.1 for the purpose of meeting the obligations of article 4 of this chapter. 20. "Reserve target" means the volume calculated for each active management area as prescribed by section 48-3772, subsection E. 21. "Resolution" means a resolution adopted by the governing body of a city or town, by the board of directors of a private water company that is a corporation, by the general partners of a private water company that is a partnership or by the individual owners of a private water company that is individually owned. 22. "Secretary" means the secretary of the interior of the United States of America. 23. "Service area" has the same meaning prescribed in section 45-402. 24. "Service area replenishment obligation" means, with respect to any particular member service area, the excess groundwater of that member service area in a particular calendar year reduced by the replenishment credits, if any, applied by the municipal provider with respect to the member service area under section 48-3772, subsection H. 25. "Water storage" has the same meaning prescribed in section 45-802.01. 48-3702. District as municipal corporation A multi-county water conservation district is a tax-levying public improvement district of the state and a municipal corporation to the extent of the powers and privileges conferred by this chapter or granted generally to municipal corporations by the constitution and statutes of the state, including the immunities and exemptions provided by article 13, section 7, of the Constitution of Arizona. 48-3703. Purposes for which district may be organized If three or more counties petition for the formation of a district, a district may be formed for the following purposes: 1. To levy an ad valorem tax of not to exceed ten cents per one hundred dollars of assessed valuation against all taxable property within the boundaries of such counties in order to pay administrative costs and expenses of the district and to assist in repayment of central Arizona project costs undertaken to be repaid by the district to the United States in accordance with the terms of contractual obligations of the district and to authorize payment of the tax so collected to the United States as a contribution to the discharge of such contractual obligations. 2. To contract with the secretary for the repayment of the cost and for the delivery of water supply in accordance with the provisions of PL 90-537, and to subcontract for such water supply. 48-3704. Petition for formation of district A. Petitions for the formation of a district may be signed by either the chairman of the board of supervisors of a county, pursuant to a resolution adopted by the board of supervisors, or by a number of qualified electors of the county equal to at least one per cent of the votes cast for governor in such county at the last preceding general election. B. The petitions shall set forth: 1. The name of the proposed district, which shall include the words "water conservation district". 2. A statement to the effect that the public convenience and welfare will be promoted by the establishment of the district. 3. The counties proposed to be included in the district. C. Such petitions shall be filed with the director of water resources. 48-3705. Notice; hearing on petitions; transcript A. Upon receipt of petitions from three or more counties, the director shall set a date for hearing on the petitions not less than thirty days nor more than sixty days after the date of filing of such petitions. The director shall cause a signed notice giving the time and place of the hearing on the petitions to be: 1. Mailed by certified mail to the board of supervisors of each county in the state. 2. Published at least once each week for two consecutive weeks in newspapers of general circulation published in each of the counties of the state, or, if no newspaper is published in a particular county, in a newspaper published in an adjoining county. 3. Posted in three or more conspicuous places in each county in the state at least two weeks before the date set for hearing. B. Any county not included in the petitions for which notice of the hearing has been given may file with the director a petition to be included in such district. Such petition may be filed at any time up to ten days prior to the date of the hearing on the original petitions and, if filed, shall be considered as though filed with such petitions. The petitioners so filing shall serve notice of such filing on the clerks of the boards of supervisors of the original petitioning counties, and shall publish a copy of such notice in a newspaper of general circulation in the county which they represent not less than five days prior to the date of the hearing. No further notice of the inclusion of additional counties shall be required. C. At the hearing, any affected person may appear and be heard on any matter relating to the establishment of the proposed district. D. The director shall cause a transcript to be made of all proceedings. 48-3706. Establishment of district; appeal A. Upon the hearing, if it appears that the petitions conform to the provisions of this chapter and that the public convenience and welfare will be served by the establishment of the district, the director shall make a final written order to declare his findings, designate the counties to be included, and declare the district organized under a corporate name by which it shall be known in all proceedings. B. Not less than ten days after the date of the final order, the director shall cause a certified copy of such final order to be: 1. Filed in the office of the board of supervisors of each county. 2. Recorded in the office of the county recorder in each county included in the district. 3. Filed in the office of the secretary of state. C. Any affected person who made an appearance before the director may seek a review of such final order within thirty days from the date of the order by filing a petition for a special action writ in the supreme court. The special action shall be given precedence over other civil actions. D. If such appeal is taken from the director's final order, a certified copy of the order or judgment of the supreme court shall be filed and recorded, as provided in subsection B, within ten days after the final determination of the appeal. 48-3707. Areas outside of district; inclusion of additional counties A. Water users outside the district may contract for a water supply from the central Arizona project directly with the secretary or with the district on the basis of paying costs allocated by the secretary. B. A county not originally included in the district may petition for inclusion in the district upon agreement to pay the county's accrued equitable share of construction costs previously paid by the district and interest thereon. Such petition shall be filed with the director and a copy served upon the district. The proceedings and hearings shall be in all respects the same as in the organization of districts. After inclusion within the district, the taxable property within the petitioning county is subject to a tax levy as provided for by this chapter. Notwithstanding any other provision of law, the board of supervisors of a petitioning county may levy an additional tax to accomplish the purposes of this section. 48-3708. Board of directors; weighted voting; members; term; compensation A. A district shall be administered by a board of directors to be determined as follows: 1. The qualified electors from each county in the district that has a population of less than six hundred thousand persons shall elect one director. 2. The qualified electors from each county in the district that has a population of at least six hundred thousand persons but not more than two million one hundred thousand persons shall elect four directors. 3. The qualified electors from each county in the district that has a population of more than two million one hundred thousand persons shall elect ten directors. B. Each director is entitled to a weighted vote that is determined as follows: 1. The director from a county represented by one director is entitled to one vote. 2. The directors from a county represented by four directors are each entitled to a vote equal to the population of that county divided by the population of the least populous county and divided by four. 3. The directors from a county represented by ten directors are each entitled to a vote equal to the population of that county divided by the population of the least populous county and divided by ten. C. A director shall be a qualified elector of the county from which the director is elected and shall serve a term of six years. Each director shall assume his duties on January 1 after the director's election. D. A vacancy on the board of directors shall be filled by appointment by the governor. E. Each director shall serve without compensation, except that the director shall be reimbursed for travel and subsistence while engaged in the business of the district in the same manner as is provided by law for state officers. F. An employee of the district or the spouse of an employee of the district is not eligible to serve as a member of the board of directors of the district. G. Members of the board and officers are public officers and are subject to all provisions of law applicable to such officers. The provisions of title 38, chapter 3, article 8, relating to conflict of interest, apply to all officers and employees of the district. 48-3709. District elections; nominating petitions A. Candidates for election to the board of directors of a district shall be nominated by a petition that is signed by not less than two hundred qualified electors of the county in which the candidate resides and that is filed as prescribed by title 16, chapter 3. B. The names of candidates for election to the board of directors of a district shall be included on the general election ballot of the county in which the candidate resides, without party designation, and the candidates receiving the highest number of votes for the number of directors to be elected from such county shall be declared elected. The manner of voting and conducting the elections for directors of a district shall conform to the provisions of the law relating to the general election of county officers. 48-3710. Organization of board; oath; Arizona water banking authority A. Not later than thirty days after appointment of the initial board, and after each election for directors, the board shall meet and select a president, vice-president and a secretary from its membership. Each director shall qualify by taking and subscribing an official oath of office as prescribed by title 38. B. The president of the board shall serve or appoint a representative to serve on the Arizona water banking authority commission. If the president appoints a representative, that representative shall serve on the Arizona water banking authority commission until removed by the president. 48-3711. Meetings of the board The board shall hold its regular annual meeting at such time and place as may be fixed by the board and shall hold special meetings as necessary for the transaction of business. Special meetings shall be called by the president of the board or upon request of any two members. No business shall be transacted at any special or regular meeting of the board in the absence of a quorum which shall consist of not less than a majority of the appointed or elected members of the board. 48-3712. Powers and duties of the board A. The board shall: 1. Manage and conduct the affairs and business of the district. 2. Make and execute all necessary contracts and other instruments which shall be signed by the president or, in the president's absence, by another member of the board designated for that purpose, and attested by the secretary. 3. Establish bylaws and rules for the governing of the board and for the functions of the district. 4. Perform all acts necessary to carry out the purposes of this chapter. 5. Except as provided in subsection C of this section and in sections 48-3713.03, 48-3715.01, 48-3715.03, 48-3715.05, 48-3772 and 48-3773, require that all funds received on behalf of the district shall be deposited, pursuant to sections 35-146 and 35-147, in a special fund established by the state to be expended at the direction of the board to effectuate the provisions and purposes of this chapter. On notice from the board, the state treasurer shall invest and divest monies in the fund as provided by section 35-313, and monies earned from investment shall be credited to the fund. 6. Adopt an ordinance or ordinances to establish a revenue bonding program that pledges to bond repayment any monies received or to be received by the district from any source except ad valorem tax revenues. 7. Employ such agents, engineers, attorneys and employees not readily available from existing state agencies. B. The board may: 1. Accept grants, gifts or donations of money or other property from any source which may be expended for any purpose consistent with the provisions of this chapter. 2. Establish a revolving fund for the purpose of defraying the costs and expenses of the district. 48-3713. Powers of district A. The district, acting through its board, shall: 1. Enter into a contract or contracts with the secretary to accomplish the purposes of this chapter. 2. Provide for the repayment of construction costs, interest and annual operation, maintenance and replacement costs allocated to the district and payment of administrative costs and expenses of the district. 3. Levy an annual tax to defray district costs and expenses and to effect repayment of a portion of the district's obligation to the United States. Such tax levy shall not exceed ten cents per each one hundred dollars of assessed valuation of the taxable property within the district. 4. Establish and cause to be collected charges for water consistent with federal reclamation law and contracts entered into between the district and the secretary pursuant to this chapter. 5. Cooperate and contract with the secretary to carry out the provisions of the reclamation act of June 17, 1902 (32 Stat. 388), and acts amendatory thereof or supplementary thereto, including the Colorado River basin project act (82 Stat. 885). 6. Establish and maintain reserve accounts in amounts which may be required by any contract between the district and the secretary and in such additional amounts as may be deemed necessary to accomplish the purposes of this chapter. 7. Coordinate and cooperate with the Arizona water banking authority. B. The district, acting through its board, may: 1. Contract with the United States to be the operating agent of the central Arizona project and to maintain all or portions of the project and subcontract with others for the operation or maintenance of portions of the project. 2. Acquire in any lawful manner real and personal property of every kind necessary or convenient for the uses and purposes of the district. 3. Acquire electricity or other forms of energy necessary for the operation of the central Arizona project. Effective retroactively to taxable years beginning from and after December 31, 1984, the acquisition of electricity or other forms of energy by the district for the purposes of pumping central Arizona project water shall not be subject to any state or municipal transaction privilege or use tax. 4. Contract for or perform feasibility studies of water storage, storage facilities and recovery wells. 5. Acquire, develop, construct, operate, maintain and acquire permits for water storage, storage facilities and recovery wells pursuant to title 45, chapter 3.1 using surplus central Arizona project water. 6. Enter into contracts to acquire, permit, develop, construct, operate and maintain water storage, storage facilities and recovery wells with any person pursuant to title 45, chapter 3.1. Such projects may utilize water, including central Arizona project water, which such persons have the right to store pursuant to title 45, chapter 3.1. 7. Plan, analyze, propose, apply for, construct, operate, maintain and dismantle state demonstration projects for water storage and recovery under title 45, chapter 3.1, article 6. 8. Acquire real property for state demonstration projects for water storage and recovery under title 45, chapter 3.1 by purchase, lease, donation, dedication, exchange or other lawful means in areas suitable for demonstration projects for water storage and recovery of state water in counties in which the district has water transportation facilities. 9. Advance monies necessary for the installation, construction, repair, maintenance or replacement of capital improvements related to any water storage, storage facilities and recovery wells or any other replenishment activities of the district undertaken pursuant to article 4 of this chapter. Monies advanced under this paragraph bear interest as determined by the board. Repayment of the advances shall be amortized over the useful life of the capital improvements, as determined by the board. Utilization of excess capacity in a state demonstration project for replenishment purposes pursuant to section 48-3772, subsection B, paragraph 8 does not constitute the advancement of monies under this paragraph. Monies advanced under this paragraph shall not be used to pay the principal of, or interest or premium on, revenue bonds issued pursuant to article 3 of this chapter to acquire, lease or exchange water or water rights and develop infrastructure necessary for the district to perform its replenishment obligations. 10. Advance monies for the payment of the operation and administrative costs and expenses of the district relating to performance of the groundwater replenishment obligations under article 4 of this chapter, including replenishment reserve activities and reasonable reserves. Monies advanced under this paragraph shall bear interest as determined by the board. Repayment of the advances may be amortized over a reasonable period, as determined by the board. Monies advanced under this paragraph shall not be used to pay the principal of, or interest or premium on, revenue bonds issued pursuant to article 3 of this chapter to acquire, lease or exchange water or water rights and develop infrastructure necessary for the district to perform its replenishment obligations. 11. Assign to the account of the district at fair value long-term storage credits, as defined in section 45-802.01, held by the district. 12. Provide technical and operational support to the Arizona water banking authority and shall be reimbursed by the Arizona water banking authority for providing that support. 13. Appoint certain employees of the district as peace officers only for purposes of providing law enforcement on property which is under the control of the district. The district shall not have any more than ten employees designated as peace officers at any one time. 14. Except for electric capacity and energy allocated to the Arizona power authority under the Hoover power plant act of 1984 (P.L. 98-381; 98 Stat. 1333), sell, resell, deliver or distribute electricity or other forms of energy acquired by the district for purposes of operating the central Arizona project but not needed by the district for such purposes, except that the district may not sell, resell, deliver or distribute electricity to a retail electric customer as defined in section 30-801. C. The authority granted under title 45, chapter 3.1, article 6 does not authorize the district to withdraw and use groundwater that exists naturally in the basin in which the stored water is located. The authority provided in subsection B, paragraph 7 of this section is in addition to and distinct from any authority granted to the district by subsection B, paragraphs 5 and 6 of this section. D. The functions of the district under subsection B, paragraph 5 of this section may be performed on behalf of the district by other persons under contract with the district. E. The district may enter into and carry out subcontracts with water users for the delivery of water through the facilities of the central Arizona project. Such contracts as may be entered into between the district and the secretary and between the district and water users shall be subject to the provisions of the Colorado River basin project act (P.L. 90-537; 82 Stat. 885). Before entering into such contracts the district shall determine that the proposed contract or proposed amendment, and all related exhibits and agreements, have been submitted to the director of water resources as required by section 45-107, subsection D. F. The district may in conjunction with any other marketing entity or entities be a marketing entity under section 107 of the Hoover power plant act of 1984 (P.L. 98-381; 98 Stat. 1333) solely for the limited purposes of establishing and collecting the additional rate components authorized by that act and may enter into contracts for that purpose. This subsection does not limit the authority of the district under subsection B, paragraph 3 of this section and does not prohibit the United States western area power administration or the Arizona power authority from making incidental disposition of power acquired by the district for purposes of operating the central Arizona project but not needed by the district for such purposes. G. Persons who are appointed as peace officers by the district pursuant to subsection B of this section shall provide law enforcement on the property which is under the control of the district. District peace officers shall not preempt the authority and jurisdiction of other police agencies of this state or its political subdivisions. A district peace officer shall notify appropriate agencies of this state and its political subdivisions after making a felony arrest or beginning a felony investigation within the jurisdiction of that agency. District peace officers shall have at least those qualifications prescribed by section 41-1822 and are not eligible to participate in the public safety personnel retirement system. The district is not eligible to receive funds from the peace officers' training fund specified in section 41-1825. The district shall reimburse the Arizona peace officer standards and training board for all training expenses incurred by the board for the district and all audit expenses incurred by the board in reviewing compliance by the district with peace officer standards and law enforcement standards established by the board. 48-3713.01. Additional authority and limitations regarding water storage A. Except for water storage undertaken for replenishment purposes pursuant to article 4 of this chapter and water storage undertaken in cooperation with the Arizona water banking authority pursuant to title 45, chapter 14, water storage undertaken by the district pursuant to section 48-3713, subsection B, paragraph 5 shall be limited to that which benefits holders of central Arizona project water services subcontracts. B. The charges to be assessed to the purchasers of water recovered pursuant to title 45, chapter 3.1 shall include the cost of acquiring, developing, constructing, operating and maintaining the water storage. C. The revenues obtained pursuant to subsection B of this section shall be placed into a separate account by the district. Revenues shall be used to offset the levy of the district pursuant to section 48-3715 on a schedule adopted by the district to the extent that revenues from levies made pursuant to section 48-3715 were used to acquire, develop, construct, operate or maintain the water storage. D. Water storage of central Arizona project water by the district pursuant to this section is limited to water which would otherwise not be delivered to central Arizona project subcontractors for direct use. E. In connection with the development and operation of water storage, the district may acquire outside of an active management area by purchase, donation, dedication, exchange or other lawful means, except by eminent domain, authority to recover stored water pursuant to title 45, chapter 3.1. F. The district may enter into an intergovernmental agreement, pursuant to title 11, chapter 7, article 3, with the county in which any property, or interest in property, acquired under this section is located to require the district to pay to the county contributions in lieu of taxes on the property, or interest in property. The amount of the contribution shall be determined according to the procedures in title 42, chapter 15, article 6. If the district and the county have entered into such an intergovernmental agreement, the property, or interest in property, acquired under this subsection is deemed to be taxable property in the county only for purposes of determining the county's levy limit under section 42-17051 and the distribution of state transaction privilege tax revenues to the counties under section 42-5029, subsection D, paragraph 3, subdivision (a), item (i). G. The district may expend any money received to pay any cost of acquisition, development, construction, operation and maintenance for water storage, storage facilities and recovery wells authorized pursuant to this section from sources including district taxes, bond proceeds from bonds authorized pursuant to section 48-3713, subsection B, paragraph 5 and municipal and industrial water service contract revenues not otherwise pledged to other obligations of the district. H. The board may authorize, issue and sell negotiable revenue bonds to provide monies to acquire, develop, construct, operate and maintain by purchase or lease any water storage, storage facilities and recovery wells authorized by section 48-3713, subsection B, paragraph 5. The bonds may be in one or more series and may be secured by revenues received pursuant to the contracts authorized by this section or section 48-3713.02. The district shall not have outstanding at any one time bonds issued pursuant to this section having an aggregate par value in excess of thirty-five million net of original use discount and any reserve and sinking funds securing said bonds. The bonds may have different dates, be payable in a medium and at different places, have reserve or sinking funds, carry registration privileges, bear a rate or rates of interest which may vary from time to time, but which shall not exceed twelve per cent per annum, contain terms, covenants and conditions, be in a form, be executed in a manner and sold at prices as the board may prescribe. The issuer may assign its interest in any or all revenues, contracts and reserve or sinking funds securing any bonds to a bank or trust company doing business in this state that shall act as indenture trustee. The resolution of the board or the trust indenture authorizing the issuance of the bonds may contain such covenants, conditions and provisions as the board deems necessary to secure the bonds. The board is also authorized to purchase credit or liquidity enhancement and to expend bond proceeds or contract revenues to aid such purchase. The board is authorized, in its discretion, to employ such consultants, experts or agents and to expend bond proceeds or contract revenues to pay any and all fees and expenses of bond issuance and administration. I. Bonds issued under the provisions of this section shall be legal investments for all banks, trust companies and insurance companies organized and operating under the laws of this state. The bonds and interest thereon shall be paid solely in accordance with their terms and shall not be obligations general, special or otherwise of this state or any political subdivision other than the issuer. The issuer shall not in any event be liable for the payment of the principal of or interest on the bonds from any source of revenues other than those pledged for the payment of the bonds. The holder of the bonds shall never have the right to compel any exercise of the taxing power of the state, any political subdivision thereof or the issuer to provide for payment of the bonds or to pay any claim arising of any nature with respect to the issuance or sale of the bonds. The bonds shall never be construed to constitute an indebtedness of the issuer within the meaning of any constitutional or statutory debt or spending limitations. 48-3713.02. Additional authority regarding water storage A. The district may enter into a contract with the state, the Arizona water banking authority, a county, a municipality or another person to develop, acquire, construct, operate or maintain water storage, storage facilities and recovery wells pursuant to title 45, chapter 3.1 on behalf of the state, the Arizona water banking authority, a county, a municipality or any other person. With respect to such agreements or contracts, the state, the Arizona water banking authority, a county, a municipality or any other persons shall pay all costs relating to such water storage, storage facilities and recovery wells, including their proportional share of the costs that the district incurred under section 48-3713.01. B. The contract shall contain the further provision that use of central Arizona project facilities for any purpose under this section shall not interfere with deliveries to central Arizona project subcontractors for direct use. C. Any contract executed by the district under this section with a central Arizona project subcontractor shall contain the provision that in any year in which the amount of Colorado River water available for delivery to central Arizona project subcontractors is one million five hundred thousand acre-feet or less, central Arizona project water allocated to the subcontractor to be used for any water storage under this section will be limited to water which would otherwise not be delivered for direct use to other central Arizona project subcontractors, except that after December 31, 1993, central Arizona project water allocated to the subcontractor to be used for any water storage under this section will be limited to water which would otherwise not be delivered for direct use to other central Arizona project subcontractors serving water in the same active management area. Nothing in this subsection shall be construed to affect the subcontract rights of central Arizona project subcontractors. D. The contract may include a provision to require the district to pay to the county contributions in lieu of taxes on any property, or interest in property, acquired under this section. The amount of the contribution shall be determined according to the procedures in title 42, chapter 15, article 6. If the contract contains such a provision, the property, or interest in property, acquired under this section is deemed to be taxable property in the county only for purposes of determining the county's levy limit under section 42-17051 and the distribution of state transaction privilege tax revenues to the counties under section 42-5029, subsection D, paragraph 3, subdivision (a), item (i). 48-3713.03. Lower Colorado River multispecies conservation program; definition A. The board may enter into agreements with this state, an agency or political subdivision of this state, the federal government, an agency of the federal government and any other person for participation in the lower Colorado River multispecies conservation program under this section, including the payment, collection, management, investment and distribution of monies for the program. B. The agreements may designate the state treasurer or private financial institutions as fiscal agents or trustees for collection, management, investment and distribution of monies for the lower Colorado River multispecies conservation program. C. Monies collected for the lower Colorado River multispecies conservation program shall be used only for activities and administrative costs directly related to the multispecies conservation program and may include: 1. Monies appropriated by the legislature. 2. Additional watercraft registration fees, if assessed pursuant to section 5-321, subsection C. 3. Surcharges on Arizona-Colorado River special use permits, California-Colorado River special use permits and Nevada-Colorado River special use permits, if imposed pursuant to section 17-345, paragraph 2. 4. Colorado River water use fees, if assessed pursuant to section 45-333. 5. Gifts, grants and donations from any public or private sources. 6. Payments by any person under any agreement to fund all or part of the program. D. For the purposes of this section, "lower Colorado River multispecies conservation program" or "program" means the cooperative effort among agencies of the federal government and agencies and political subdivisions of the states of Arizona, California and Nevada and other local public and private parties with a common interest in the water and related resources of the lower Colorado River, including the historic floodplain and reservoirs to the full pool elevations, to provide the basis for compliance with sections 7 and 10(a)(1)(B) of the endangered species act of 1973 (P.L. 93-205; 87 Stat. 884; 16 United States Code sections 1536 and 1539). 48-3714. Authority of political subdivisions to enter into long-term contracts Notwithstanding any provision of law to the contrary, the governing body of an incorporated city or town, the board of supervisors of any county or the governing body of any other political subdivision of the state is authorized to enter into and perform long-term contracts for a period of more than one year with any multi-county water conservation district or the secretary or both for the delivery of water from the central Arizona project or the district and for the payment of the costs thereof and for the storage and recovery or recharge of water pursuant to sections 48-3713.01 or 48-3713.02. 48-3715. Tax levy A. On or before the second Monday in August of each year, the clerk of the county board of supervisors of each county within the district shall certify to the district board the total assessed valuation of all taxable property in the county. On or before the third Monday in August of each year, the district board shall fix the amount to be raised by direct taxation for the purpose of carrying out the provisions of this chapter and shall levy a tax sufficient to raise such amount. Such tax shall not exceed ten cents on each one hundred dollars of assessed valuation in the district. The district board shall forthwith certify such tax rate to the board of supervisors of each county within the district, which boards at the time of levying general county taxes shall levy and cause to be collected taxes on the taxable property within such county at the tax rate fixed by the district board. The tax when collected shall be deposited, pursuant to sections 35-146 and 35-147, in the district fund to be expended by the district only for purposes authorized by this chapter, which shall include costs and expenses of administration. B. The district board shall charge and collect a fee in lieu of taxes paid pursuant to subsection A for each acre-foot of central Arizona project water purchased or leased and delivered to or credited to a purchaser or lessee. The amount of this fee shall be computed by dividing the sum of the taxes levied in each county within the district pursuant to subsection A in the previous year in which the fee is charged by the average annual amount of Colorado River water delivered through the central Arizona project system for nonfederal municipal and industrial and agricultural use over the previous three years. This fee does not apply to: 1. Indian tribes with respect to water used directly on Indian reservation land in this state or on land owned in this state by the Indian tribe. 2. Water service providers whose customers are real property owners within the service area of the district and who pay the tax levied pursuant to subsection A. For purposes of this paragraph, "water service provider" means any person that has any obligation or duty of any nature to deliver water within the district's service area. 3. Persons who have entered into a contract with the district under which they agree to make payments in lieu of the tax levied pursuant to subsection A. 4. Persons that are real property owners within the service area of the district and that will use the water within the district's service area. 5. The Arizona water banking authority if that authority is acquiring water that will be used for the benefit of those persons prescribed in this subsection. 48-3715.01. Fund for acquiring and conserving supplemental water In order to carry out the purposes and provisions of section 7 of Public Law 98-530, the district may establish, administer, and make a contribution in the amount of one million dollars to a separate fund, which shall consist of any monies received from the United States under section 7 of Public Law 98-530 and monies contributed to the fund by the district pursuant to this section. Monies from this fund are to be expended by the district at the direction of the board for the voluntary acquisition or conservation of water for use in central Arizona to supplement project water supplies in years when water supplies from the central Arizona project are insufficient to meet the water delivery schedules of non-Indian municipal and industrial users of project water supplies. Supplemental water acquired or conserved pursuant to this section shall be obtained exclusively from water users in this state holding decreed or contract rights to the waters of the mainstream of the Colorado River as of September 30, 1968. 48-3715.02. Tax levy for water storage (Rpld. 1/2/35) A. Until January 1, 1997, the following applies: 1. On or before August 19, 1991, August 17, 1992, August 16, 1993, August 15, 1994 and August 21, 1995 the district board shall fix the amount to be raised by direct taxation in the respective tax year for the purpose of carrying out section 48-3713, subsection B, paragraphs 7 and 8 and shall levy a tax, based on the assessed valuation certified under section 48-3715, sufficient to raise that amount, except that this tax shall not: (a) Exceed $.04 per $100 of assessed valuation in the district. (b) Be levied in any county in the district in which the annual water allocation by the United States secretary of the interior of central Arizona project water for municipal and industrial uses is less than fifty thousand acre-feet. 2. The district board shall certify the tax rate to the board of supervisors of each county in the district in which the district board levies this tax, and the boards of supervisors at the time of levying general county taxes shall levy and cause to be collected taxes on the taxable property in the county at the tax rate fixed by the district board. The tax when collected shall be deposited, pursuant to sections 35-146 and 35-147, in the state water storage fund established by section 45-897.01. All taxes levied pursuant to this section in counties having a population greater than five hundred thousand but less than one million five hundred thousand persons shall be deposited in account A of the fund established by section 45-897.01. All taxes levied pursuant to this section in counties having a population greater than one million five hundred thousand persons shall be deposited in account B of the fund. B. Beginning in 1996, in addition to the tax authorized in sections 48-3713 and 48-3715, on or before the second Monday in August of each year, the district board shall fix the amount to be raised by direct taxation in the respective tax year for the purpose of carrying out section 48-3715.03 and shall levy a tax based on the assessed valuation certified under section 48-3715 sufficient to raise that amount, except that through December 31, 2029, this tax shall not exceed $.04 per $100 of assessed valuation in the district. Beginning from and after December 31, 2029, the tax levied pursuant to this subsection shall not exceed $.03 per $100 of assessed valuation in the district. C. The district board shall certify the tax rate fixed pursuant to subsection B of this section to the board of supervisors of each county in the district, and the boards of supervisors at the time of levying general county taxes shall levy and cause to be collected taxes on the taxable property in the county at the tax rate fixed by the district board. The tax when collected shall be deposited, pursuant to sections 35-146 and 35-147, and credited as prescribed by section 48-3715.03. 48-3715.03. Arizona water banking fund; disbursement of monies A. The district's board of directors shall annually determine by resolution whether all or any part of the tax levied pursuant to section 48-3715.02, subsections B and C shall be applied to the repayment of the construction costs of the central Arizona project including interest owed on district repayment contracts or to the annual operation, maintenance and replacement costs of the central Arizona project. When the district's board adopts such a resolution, a certified copy of the resolution shall be delivered to the department of water resources and those monies specified in the resolution shall be deposited, pursuant to sections 35-146 and 35-147, in the district fund established pursuant to section 48-3712, subsection A, paragraph 5. B. Any taxes that are levied pursuant to section 48-3715.02, subsections B and C and that are not deposited in the district fund established pursuant to section 48-3712, subsection A, paragraph 5 shall be deposited, pursuant to sections 35-146 and 35-147, in the Arizona water banking fund established by section 45-2425. 48-3715.05. Contribution for water protection A. On or before the second Monday in July of each year, the department shall transfer from amounts credited to the district the amounts that have been collected by the district pursuant to section 48-3715, subsection B, during the fiscal year immediately preceding the year in which the transfer is made. B. The amounts transferred pursuant to subsection A of this section shall be deposited in the Arizona water protection fund established pursuant to title 45, chapter 12, article 2. 48-3716. Dissolution of district A. When all indebtedness and legal obligations of every nature whatever have been fully satisfied and paid, a district organized under this chapter may, after approval of such dissolution by the attorney general and the secretary, be dissolved by resolution of its board. A certified copy of the resolution shall, within fifteen days after its adoption, be filed with the clerk of the board of supervisors of each county in the district. B. If, after dissolution of a district, it is found that there remains unpaid a legal indebtedness of the district, the board of supervisors of each county in which the district was located shall continue annually to levy a tax, as provided by this chapter, upon the property within each such county sufficient to meet the indebtedness and interest thereon. C. If a district, after dissolution, has any assets, such assets shall be distributed and paid into the general fund of the counties within the district at the time of dissolution based on each county's assessed valuation. 48-3717. Construction and limitation of chapter A. Nothing contained in this chapter shall be construed to restrict the authority of the secretary to enter into contracts with water users in this state, including exchange contracts authorized by Public Law 90-537. B. Nothing contained in this chapter shall be construed as authorizing the district to determine how the central Arizona project water is to be allocated among water users of this state. 48-3718. Reimbursement for county services Services provided by a county to a multi-county water conservation district are subject to reimbursement pursuant to section 11-251.06. 48-3731. Proceedings to test validity of contracts; petition A. After the execution of any contract between a multi-county water district organized under article 1 of this chapter and the United States or the execution of any contract between any such multi-county conservation district or the United States and any water user in Arizona for central Arizona project water, the governing body of the district or such water user may file a petition in the superior court in the county in which the office of the district or water user is located to determine the validity of such contract and each of the provisions thereof. B. The action shall be in the nature of a proceeding in rem and jurisdiction of all parties interested shall be acquired by notice given as provided in section 48-3732. The petition shall allege: 1. That the petitioner is a district organized under this chapter or is a water user who has contracted for the delivery of water from the central Arizona project. 2. That the contract or agreement to be validated is attached as an exhibit to the petition. 3. That all resolutions adopted by the governing body in connection with the contract are attached as exhibits to the petition. C. The petition shall pray that the contract be examined by the court and be found to be in substantial compliance with law, and that it be ratified, confirmed and validated. 48-3732. Time for hearing; notice; summons; parties; pleadings A. Upon filing of the petition in the superior court, the court shall fix a time for the hearing on the petition, which shall be not less than sixty days from the date of filing the petition, and shall order the clerk of the court to issue summons directed to all persons whose rights may be affected by any judgment rendered in the proceeding. The court shall also order the clerk to give notice of the filing of the petition and the date of the hearing thereon by publishing the summons at least once a week for four consecutive weeks in a newspaper published or of general circulation in the county in which the office of the petitioner is located, and such other counties as the court may order, the last of the publications to be not less than fifteen days prior to the date fixed for the hearing. B. The summons shall state the time and place fixed for hearing the petition and that any person whose rights may be affected by any judgment rendered may not less than ten days before the date fixed for hearing the petition answer the petition and after such answer, may appear at the hearing and contest the granting of the petition and the entry of any order of confirmation or validation. 48-3733. Hearing; determination of validity A. At the hearing on the petition, the superior court shall examine the contract and the proceedings of the petitioner or other body in connection with the execution of such contract and shall hear all testimony that may be offered by the petitioner or any other party with reference to the validity of the contract. The court shall find and determine whether the proceedings had for the organization of the petitioner are in compliance with all applicable laws of the state, whether the proceedings leading up to the making of the contract are valid and whether the proceedings in connection with the filing of the petition in the action and the giving of notice of hearing thereon comply with the provisions of this article and whether the contract is valid and binding upon and enforceable against the petitioner. No other issues shall be considered or determined by the court. The court shall cause the findings and determinations to be entered in the record of the hearing. B. In hearing the petition and in preparing its findings and determinations thereon, the court shall disregard any error, omission or other irregularity which in the opinion of the court does not adversely affect the substantial rights of interested parties. 48-3734. Review; res judicata A. The petitioner or any other party who appeared in the superior court may seek a review of the judgment entered by the court within thirty days from the date of such judgment by filing a petition for a special action writ in the supreme court. The special action writ shall be given precedence over other civil actions. B. If no petition for a special action writ is filed in the supreme court within such thirty-day period or if filed and the judgment of the superior court is affirmed by the supreme court, the judgment shall be conclusive as to the validity of the contract. All issues which were or might have been raised at the hearing on the petition shall thereafter be res judicata. 48-3751. Ordinances; revenue bonds A. An ordinance adopted pursuant to section 48-3712 shall set forth a plan for the district to borrow money and issue its negotiable revenue bonds. The ordinance may determine the maximum amount of bonds, the maximum rate of interest and the time of payment of the bonds. B. The principal of and interest and premiums, if any, on bonds are payable solely from revenues of the district as may be pledged by the district including monies received from the sales of services or from contracts of every nature. Ad valorem property taxes shall not be pledged to, levied for or used to pay principal, interest or premiums on any bonds issued under this article. Payment is not enforceable out of any monies other than the revenues pledged to the payment. No referendum or election is required for the issuance of bonds authorized in this article. C. Bonds may bear interest at rates that may fluctuate below a maximum interest rate established in the ordinance. The board may designate a remarketing agent to set and reset interest rates in accordance with the ordinance or any authorizing resolution or trust indenture adopted or entered into by the district in accordance with the ordinance. The district may contract for and purchase credit enhancement in the form of letters of credit, surety bonds, bond insurance policies, bond purchase agreements and other contractual arrangements providing either credit for the bonds, liquidity to the bondholders or credit facilities obtained in lieu of reserves. D. Subject to the limitations of this article, the district may do all things, enter into all contracts and dispose of bond proceeds in the manner deemed necessary by the board to effectuate the purpose for which the bonds are issued and secure payment of the principal and interest on the bonds. 48-3752. Terms, conditions and forms of bonds A. A bond may be issued in one or more series, bear a date or dates, mature at a time or times, be in a denomination or denominations, be in a form, carry a registration, exchangeability and interchangeability privileges, be executed in a manner, be payable in a medium of payment and at a place or places, within or without this state, be subject to terms of redemption prior to maturity at times with or without premium, be subject to terms of tender by the bondholder prior to maturity at those times, be equally and ratably secured without priority or be entitled or subject to priorities on all or any portion of those revenues and receipts of the district and contain other terms, conditions and covenants as the board provides. B. A bond shall bear interest at a rate or rates and be payable at a time or times and in a manner as the board determines. C. A bond is fully negotiable within the meaning of and for all the purposes of the uniform commercial code, subject only to any provisions for registration. D. The governing body may retain and pay a registrar, paying agent, transfer agent, securities custodian, depositary, authenticating agent, indexing agent, remarketing agent and bond trustee to authenticate and administer the bonds and any collateral agreements. The board may make conditions and requirements respecting the bonds as it deems appropriate. 48-3753. Resolution and trust agreements; adoption The board may provide that any series of bonds may be secured by a trust agreement by and between the district and one or more corporate trustees or fiscal agents, which may be any trust company or bank having the powers of a trust company in this state. A resolution is effective on its adoption unless otherwise specified. 48-3754. Resolution and trust agreements; covenants A. Any ordinance, resolution, contract, indenture or trust agreement pertaining to the bonds may contain covenants and contractual arrangements as to the following: 1. The purpose to which the proceeds of the sale of the bonds may be applied and the use and disposition. 2. The segregation of any or all revenues of the district into a special fund or funds and the pledging of all or any part of the revenues to the payment of the principal of and interest and premium, if any, on the bonds and for the reserves and other funds as may be deemed necessary or advisable. A pledge may include a deposit with a trustee or a pledge, assignment, pawn, mortgage or sale of any contracts that pertain to the payment of revenues to the district not pledged to other holders of obligations issued by the district. 3. Limitations or restrictions on the issuance of additional bonds or other obligations payable from all or part of the revenues or then securing any bonds of the district and the rights and remedies of the holders of additional bonds or refunding bonds issued for that purpose. 4. The procedure, if any, by which the terms of any covenant with the holder or holders of bonds issued pursuant to this article may be amended, abrogated or altered. 5. The rank or priority as to lien and source of security for payment from the revenues between and among bonds issued pursuant to this article and bonds issued pursuant to other lawful authority. 6. The appointment of a trustee or trustees to hold and apply any revenues derived from the undertaking. 7. The appointment of a trustee or trustees to act for and on behalf of bondholders, the manner and terms of the appointment and the powers of the trustee or trustees. 8. The keeping of books of account relating to the undertaking and any contracts providing revenues to pay the bonds and the audit and inspection of these records. 9. Rights and remedies of the holders of bonds and the manner of exercising and enforcing rights and remedies. 10. Other and additional covenants deemed necessary or appropriate to achieve the purpose for which the bonds are issued or for the security of the holders of bonds or other obligations issued pursuant to this article. B. All covenants and agreements constitute valid and binding contracts between the district and the holders of any bonds or other obligations issued pursuant to the resolution, regardless of the time of its issuance, and, subject to any limitations contained in the resolution or trust agreement or this article, are enforceable by any holder or holders of the bonds or other obligations, acting either for himself or themselves alone or acting in behalf of all other holders of the bonds or other obligations, by appropriate proceedings in any court of competent jurisdiction. C. Notwithstanding any law to the contrary, any pledge, assignment, pawn, mortgage or sale of any contract or the district's right to receive revenues from any source whatsoever except ad valorem taxes is fully effective and fully enforceable from and after the initial delivery of any bond. A recording, filing or other notice