A.R.S. tit. 48 ch. 35 — Arizona Revised Statutes Title 48 Chapter 35 — Recreational Corridor Channelization Districts

48-6001. Definitions In this chapter, unless the context otherwise requires: 1. "Assessment" means a tax assessment made under this chapter for the purpose of financing the maintenance and operating costs of the district. 2. "Chairman of the board" means the person designated to preside over meetings of the board of directors of the district. 3. "District" means a recreational corridor channelization district established pursuant to this chapter. 4. "Owner" means the person in whose name legal title appears by recorded deed, or the person in possession under claim of title, as the person exercising acts of ownership for himself or as the personal representative of the owner, including the governing boards of school districts owning property within the district. 5. "Watercourse master plan" means a hydraulic plan for a watercourse that is prepared by a county flood control district, that examines the cumulative impacts of existing development and future encroachment in the floodplain and future development in the watershed on potential flood damages and that establishes technical criteria for subsequent development so as to minimize potential flood damages for all flood events up to and including the one hundred-year flood. 48-6002. District establishment; memorandum of intent; petition; hearing A. A recreational corridor channelization district may be established in an area that is the subject of a watercourse master plan by the following procedures: 1. Any person desiring to propose the establishment of a district shall prepare and submit a memorandum of intent to the board of supervisors of the county in which the district is to be located. The memorandum of intent shall contain at least the following information: (a) A description of the boundaries of the proposed district and a detailed, accurate map of the area to be included in the district. The boundaries shall be of a width no smaller than the floodplain as identified by the national flood insurance program. (b) An estimate of the assessed valuation within the proposed district. (c) A planning agreement for the formation of the district. The planning agreement shall contain at least the following: (i) A description of the planned cost sharing agreements between the cities, towns and counties and other government entities and private parties regarding project planning and preparation. (ii) A description of the concept plan for initial improvements for the area in the district and a description of the preliminary long-term plan for the proposed district. (iii) A description of the proposed structure and membership for the project management oversight committee. (d) A copy of the watercourse master plan. 2. Presentation to the board of supervisors of a petition that purports to be signed by the number of property owners that own more than twenty-five per cent of the real property in the proposed district and that shall be verified by the board of supervisors, which shall make a finding of fact as to the petition at the hearing called pursuant to paragraph 3. The district shall not be formed if a sufficient number of property owners do not sign the petition. 3. On receipt of the memorandum of intent, the board of supervisors shall set a day for a hearing on the memorandum of intent. At any time before making a determination pursuant to paragraph 4, the board of supervisors may require that the memorandum of intent be amended to include any information that the board of supervisors deems to be relevant and necessary. For any memorandum of intent that requires cost sharing by the county, the board of supervisors shall hold a hearing and approve or deny cost sharing. For any other memorandum of intent, the board of supervisors may comment on the matter for up to ninety days after receipt of the memorandum. 4. At any hearing called pursuant to paragraph 3, the board of supervisors shall hear those who appear for and against the proposal and may issue a preliminary approval for the district and for the furtherance of planning and project preparation. B. If a proposed district would include property located in an incorporated city or town, in addition to the other requirements of subsection A, the board of supervisors shall give final approval to the establishment and authorize the formation only if the governing body of the city or town has by ordinance or resolution endorsed the establishment. 48-6003. Design concept report; watercourse, land, financial and governance plans; board A. On preliminary approval by the county board of supervisors for a plan for a district that provides for county cost sharing or on receipt of any comment from the county board of supervisors for a plan that does not provide for county cost sharing, the district's initial management oversight committee shall obtain monies for and prepare a district concept report. Cities, towns, counties and other government entities and private parties may provide monies for the costs of preparing the district concept report. The district concept report shall include provisions regarding the watercourse master plan for the district, the land use plan for the district, the financial plan for the district and the governance plan for the district. B. The watercourse master plan shall be revised and updated as appropriate by the county flood control district and, in conjunction with other plans in the district concept report, shall provide for at least the following: 1. Floodplain boundary delineation. 2. Floodway boundary delineation. 3. Establishment of hydrologic requirements for the activities of the district including the construction of any structures and coordination of hydrologic planning for existing and planned uses within the district. 4. Establishment of requirements for submittal and receipt of any permits required under section 404 of the clean water act (33 United States Code sections 1251 through 1376). 5. Coordination of the various phases of activity planned for the district in order to maintain appropriate hydrologic standards. C. The land use plan for the district shall include provisions for at least the following: 1. The preparation of draft specific area plans in conjunction with city, town and county participation. The draft specific area plans shall include detailed boundary descriptions, plans for mining operations, including reclamation activities, if applicable, and access plans, recreational opportunity plans and recharge opportunity plans. 2. In conjunction with the district planning process, preparations for city, town or county general plan updates, as appropriate. 3. The separation of the district's boundaries into a proposed legal boundary for the preliminary phase of the district for purposes of planning for the district, for financing and constructing floodway improvements and protections and that is limited to the area that is contained within the floodplain. Areas that are outside of the floodplain may not be included in the legal boundary for the district but may be considered for planning purposes. D. The financial plan shall include estimates for the costs of forming the district, performing any related planning and construction and for ongoing operations and maintenance activities. The financial plan shall include a description of the financing mechanisms to be used by the district and provided for in this chapter. E. The governance plan for the district shall include at least the following: 1. A five member board of directors who shall be appointed by the county board of supervisors and who shall serve staggered terms of four years. 2. At the option of the county board of supervisors, an advisory board to assist the board of directors in carrying out the provisions of this chapter. 3. An appropriate process for the governance of the district that is consistent with the financing mechanisms to be used by the district. 48-6004. Report submittal; petition; formation of district A. On completion of the design concept report, including finalization of the finance and governance plan, the initial management oversight committee shall submit the report to the county board of supervisors for its approval. The design concept report shall be accompanied by a petition that purports to be signed by a number of property owners that own more than fifty per cent of the real property in the revised boundaries of the proposed preliminary phase of the district. On completion of the filing and a determination by the board of supervisors that the requisite number of property owners has signed the petition and that the public health, comfort, convenience, necessity or welfare would be promoted by the formation of the district, the county board of supervisors may approve the district and, if approved, shall appoint five persons to be the board of directors for the district. The county board of supervisors may also appoint an advisory board for the district. B. On approval by the county board of supervisors, the legal description of the preliminary phase of the district shall be recorded in the office of the county recorder for the county in which the district is located. On recording the district description, the district is formed. 48-6005. Board of directors; qualifications; expenses A. A district shall be governed by a board of five directors. Members of the board of directors shall be registered voters of the county. District directors shall serve four year terms. B. Members of the board of directors are not eligible to receive compensation but are eligible for reimbursement of expenses. C. The board of directors shall annually elect from among its members a chairman of the board to serve as the chief executive officer of the board of directors of the district. 48-6006. Powers and duties of recreational corridor channelization district A. A recreational corridor channelization district, acting through its board of directors, may: 1. Acquire in the name of the district any real or personal property or interest in property by gift, purchase or otherwise and own, control, manage or dispose of such property or interest. Private monies or contributions received by a district for the purpose of defraying expenses of work done under its direction may be spent by the district in compliance with the terms and conditions under which the monies are received if the terms and conditions meet the approval of the board of directors and are within the scope of the statutory powers and duties of the district. 2. Construct, operate and maintain flood conveyance facilities and recreational facilities in a floodway or floodplain both during and after the operation of aggregate mining activities and mining reclamation. The design and construction of the flood conveyance facilities shall be conducted in cooperation with all operators of a planned or permitted underground storage and recovery project pursuant to section 45-811.01 that may be affected by the proposed district as determined by the operator of the project. 3. Sell, lease or otherwise dispose of any property of the district or interest in the property if the property is no longer required for the purposes of the district or if use of it may be permitted without interfering with the use to which it is put by the district. 4. Sell or otherwise dispose of any by-product resulting from the maintenance of recreational facilities within the district. 5. Contract with any governmental entity, association, corporation or individual to finance, construct, maintain and operate recreational facilities, channels, levies and appurtenant flood control or drainage features in a floodway or floodplain within the district. 6. Pay expenses incidental to the exercise of its powers. 7. Employ staff to conduct operations and perform maintenance of district property. 8. Enter into intergovernmental agreements with other government entities to provide for the financing, establishment, maintenance, operation and other activities of the district. 9. Finance its planning and the construction of its improvements through the use of a special assessment on the properties contained within the boundaries of the district's preliminary phase. A special assessment shall not be imposed on lands located outside of the district's preliminary legal boundary or outside of the floodplain delineation. B. A recreational corridor channelization district, acting through its board of directors, shall: 1. Comply with all applicable federal, state and local laws and regulations, including those regarding floodplain management and land use. 2. Follow the watercourse master plan in implementing any recreational facilities or other development. 3. Assure hydraulic conveyance onto, across and from the district property and in any recreational facility or other development. 4. Operate in a manner consistent with the activities of planned or permitted underground water storage facilities in the district. Any construction project, operation effort or other activity conducted or authorized by a recreational corridor channelization district shall not reduce the effectiveness, increase the cost or in any way impede the operations of any underground storage and recovery project that is planned or permitted pursuant to section 45-811.01. A recreational corridor channelization district and any of its contractors, permittees or licensees are deemed to have waived any claim for damages or other relief against an underground storage and recovery project permit holder that is operating under the terms of its permit if the permit was issued before the formation of the district. 48-6007. Dissolution of recreational corridor channelization district; disposition of property; tax for outstanding indebtedness A. A district that is organized under this chapter and that has no outstanding legal indebtedness may be dissolved after a vote of a majority of the registered voters of the district at a special election called by the board of directors on the question of dissolution. If a majority of the votes cast favors dissolution, the district shall submit to the county board of supervisors and cities or towns in which the district is organized a detailed statement showing the lands owned by the district and the political jurisdictions in which they are located. The district shall also submit an audited statement showing that the district has no unpaid legal or other indebtedness or contingent liabilities, including claims for damages or injuries. After the board of supervisors has received this information and found the dissolution to be in the best interest of the public, the board of directors shall by resolution declare the district dissolved. Within fifteen days after its adoption, a certified copy of the resolution shall be filed with the clerk of the board of supervisors of the county in which the district was located. B. On dissolution of a district, ownership of any property owned by the district and developed as a recreational corridor shall be transferred without compensation to the county, city or town in which it is located if the county, city or town agrees in writing to accept the property. Before dissolution, the district shall sell any property not transferred to the county, city or town. Any monies of the district at the time of dissolution shall be held by the county for two years and, if not needed to pay any indebtedness or contingent liabilities of the district, shall be transferred to the county, city or town in which the district lies in direct proportion to the assessed valuation of taxable real property within the city, town or county, respectively, as it appears on the current assessment rolls. C. After dissolution of a district, if it appears that there remains unpaid a legal indebtedness, the board of supervisors of the county in which the district was located shall levy a tax on the real property within the district, as it existed at the time of dissolution, sufficient to pay the indebtedness and interest on the indebtedness and shall pay the indebtedness and interest from the proceeds of the tax. 48-6008. Reimbursement for county services Services provided by a county to a recreational corridor channelization district are subject to reimbursement pursuant to section 11-251.06. 48-6009. Termination of formation authority; existing districts; effect on financial provisions A. Beginning July 1, 2015, a new district may not be formed pursuant to this chapter. B. This section shall not be construed to: 1. Limit the authority or otherwise affect the validity of any district formed pursuant to this chapter before July 1, 2015. 2. Affect the validity or enforceability of any legal or financial obligation or benefit incurred by a district formed pursuant to this chapter before July 1, 2015 without regard to when the legal or financial obligation or benefit is incurred. 48-6021. Special assessments; assessment lien bonds A. For purposes of financing its planning and the construction of its preliminary phase of improvements as prescribed by section 48-6006, subsection A, paragraph 9, the district board, by resolution and pursuant to the procedures as the district board provides, may levy an assessment of the costs of any public purpose, any operation and maintenance of the district or any enhanced services on any land in the district based on the benefit determined by the district board to be received by the land. Before the issuance of special assessment bonds, the district may enter into a written agreement with a landowner as to the manner in which the assessment is to be allocated if the land is to be divided into more than one parcel. If an issue of special assessment lien bonds finances more than one purpose or service, the benefit received by the land, in the discretion of the district, may be determined by reference to the purposes and services as a whole or individually. The assessment may be based on estimated costs and amended to reflect actual costs, and the preparation of plans and specifications and the awarding of the contract are not a prerequisite to the levying of the assessment. An owner of land on which an assessment has been levied may seek judicial review of whether the land is benefited by the proposed infrastructure, on the merits, by special action filed with the court of appeals within thirty days of the effective date of the resolution. B. After adoption by the district board of a resolution levying a special assessment on property in the district, the district board may issue and sell special assessment lien bonds payable from amounts collected from the special assessments, from amounts available in any reserve fund established for those bonds and from any other amounts available for those purposes as prescribed by law. The district board may also issue and sell bond anticipation notes. The assessment shall be a first lien on the property assessed subject only to general property taxes and prior special assessments. In the event of nonpayment of an assessment, the procedures for collection of delinquent assessments, sale of delinquent property and issuance and effect of the deed prescribed by sections 48-601 through 48-607 apply, as nearly as practicable, except that the district is not required to purchase the delinquent land at the sale if there is no other purchaser. If the landowner owns more than one parcel in the district, the district board may provide procedures for the collection and enforcement of assessments as the board deems appropriate by contract with a landowner to permit the sale of any or all of the landowner's parcels in the district if the landowner becomes delinquent as to any parcel that the landowner owns in the district. C. On adoption of the resolution, but before issuance of the special assessment lien bonds, the district may direct the treasurer to make demand on the owners of the property so assessed, as shown on the property tax roll, for advance payment of the amount assessed. The demand shall state a date not less than twenty days after the date of adoption of the demand after which the treasurer may refuse to accept advance payments of the assessment. The treasurer shall certify to the clerk on or after the date specified in the demand the amount collected and the assessments remaining unpaid against each parcel of land assessed. Special assessment lien bonds may not be issued in an amount in excess of the amount assessed in the demand or, if advance payments are demanded, the amount certified to the clerk. The district may adopt procedures for prepayment and provisions for payment and reallocation of assessments. D. The district may issue and sell refunding bonds to refund any special assessment bonds of the district. 48-6022. Terms of bonds With respect to any bonds, the district board shall prescribe the denominations of the bonds, the size of each issue and the form of the bonds and shall establish the maturities, interest payment dates and interest rates, whether fixed or variable, not exceeding the maximum rate stated in the notice of the election or the resolution of the district board. The bonds may be sold by competitive bid or negotiated sale for public or private offering at, below or above par. If the bonds are sold below par, the aggregate amount of discount and interest to be paid on the bonds shall not exceed the amount of interest which would have been payable on those bonds pursuant to the maturity schedule prescribed by the district board at the maximum rate set out in the bond resolution. The proceeds of the sales shall be deposited with the treasurer, or with a trustee or agent designated by the district board, to the credit of the district to be withdrawn for the purposes provided by this article. Pending that use, the proceeds may be invested as determined by the district. The bonds may contain such terms, conditions, covenants and agreements as the district board deems proper. The bonds may be payable from any combination of revenues or special assessments of the district on real property and as specified in the bonds provided that all applicable requirements of those sections are met. 48-6023. Annual financial estimate and budget The district board shall make annual statements and estimates of the operation and maintenance expenses of the district, the costs of capital improvements to be financed by the district and the amount of all other expenditures for district purposes and enhanced services proposed to be paid from assessments. The district board shall file the annual statements and estimates with the clerk. The district board shall publish a notice of the filing of the estimate, shall hold hearings on the estimate and shall adopt a budget. The board, on or before the date set by law for certifying the annual budget of the county, shall fix, levy and assess the amounts to be raised by assessments of the district and shall cause certified copies of the order to be delivered to the board of supervisors. All statutes relating to the levy and collection of assessments and sale of property for nonpayment of assessments apply to the district assessments provided for by this section.