A.R.S. tit. 48 ch. 40 — Arizona Revised Statutes Title 48 Chapter 40 — State Affordability Infrastructure Districts

48-7001. Definitions In this chapter, unless the context otherwise requires: 1. "Ad valorem tax" means the secondary property taxes levied by a district against the net assessed limited property valuation of real and personal property in the district. 2. "Assessment" means a charge for the costs of any public infrastructure purpose levied by the district against specific real property within the district for the costs of any public infrastructure purpose based on the benefit determined by the board to be received by the specific real property against which the assessment is levied. 3. "Authority" means the Arizona finance authority established by section 41-5352. 4. "Board" means the board of directors of a district created pursuant to this chapter. 5. "Bonds": (a) Means any bond prescribed by this chapter and issued by a district. (b) Includes general obligation bonds, assessment bonds, revenue bonds and refunding bonds. 6. "Clerk" means the person appointed by the board to be the district clerk. 7. "County" means the county in which a district is formed pursuant to this chapter. 8. "Debt service" means the principal of, interest on and premium, if any, on the bonds, when due, whether at maturity or prior redemption and fees and costs of registrars, trustees, paying agents or other agents necessary to handle the bonds and the costs of credit enhancement or liquidity support. 9. "District" means a state affordability infrastructure district formed pursuant to this chapter. 10. "Executive director" means the executive director of the authority or the executive director's designee. 11. "Financing plan" means the district's capital plan containing financial projections, engineering studies, cost allocation, sequencing and market-value analyses. 12. "Formation order" means the written order issued by the authority evidencing its final approval of the formation of a district pursuant to this chapter. 13. "General plan" means the general plan described in section 48-7002, subsection B, as the plan may be amended. 14. "Market value" has the same meaning prescribed in section 28-7091, as indicated by an appraisal of the real property by an appraiser who is licensed or certified pursuant to title 32, chapter 36. 15. "Maximum authorized tax rate" means the maximum tax rate for ad valorem taxes pledged to secure general obligation bonds approved at an election authorizing the levy of ad valorem taxes and the issuance of general obligation bonds and indicated in the petition, provided that the maximum authorized tax rate shall not exceed $5 per $100 of net assessed limited property valuation of property within the boundaries of the district, except as prescribed in section 48-7021, subsection B. 16. "Municipality" means a city or town in which a district is formed pursuant to this chapter. 17. "Net premium" means the difference between the par amount of the general obligation bond issue and the general obligation bond issue price that is determined pursuant to United States department of the treasury regulations. 18. "O/M tax" means a secondary property tax levied to pay the expenses of operating, maintaining and administering the district and the public infrastructure financed by the district, including legal expenses and expenses associated with insurance coverage, as approved by the district in its budget. 19. "Owner" means the person or entity that, on the day the action, election or proceeding is begun or held, appears to be the fee title owner of real property as shown on the property tax assessment roll. 20. "Petition" means a petition submitted to the authority to initiate formation of a district pursuant to this chapter. 21. "Petitioner" means the person or entity that initiates the formation of a district by submitting a petition to the authority pursuant to this chapter and includes any successor or assignee of that person or entity that the authority recognizes as the petitioner for the purposes of the petition and formation order. 22. "Public infrastructure" means all improvements listed in this paragraph that will result in a beneficial use principally to land within the geographical limits of the district and may include a district's share of any improvements listed in this paragraph if the district board determines such share is proportionate to the beneficial use of such improvements to land within the geographical limits of the district, improvements within or outside the geographical limits of the district, necessary or incidental work, including land clearance and environmental remediation activities, whether newly constructed, renovated or existing, and all necessary or desirable appurtenances. For the purposes of this paragraph, adoption by the district board of a resolution of intent pursuant to section 48-7008 shall conclusively establish that the improvements or, if applicable, share of the improvements that are the subject of the resolution will result in a beneficial use principally to land within the geographical limits of the district. Public infrastructure improvements are: (a) Water, wastewater, sewer, stormwater and flood control facilities and appurtenances used for the development, treatment, storage, conveyance, control, reuse, distribution, connection and lawful disposition of potable and nonpotable water, wastewater, stormwater and floodwaters for residential, commercial, governmental, irrigation and fire-suppression uses, excluding infrastructure dedicated primarily to agricultural irrigation facilities impacted by other improvements authorized by this chapter, all to the extent located within or necessary to serve the district. Notwithstanding any other provision of this chapter, a district shall not finance, construct, acquire, install, own or operate any water, wastewater, sewer or related facilities described in this chapter if those facilities are located or will be located within the certificated service territory of any public service corporation that holds a certificate of convenience and necessity issued pursuant to title 40, chapter 2, article 4, unless the affected public service corporation has provided prior written authorization to the district. If the affected public service corporation provides that written authorization, the district must plan, design, engineer, construct and install the water, wastewater, sewer or related facilities in coordination with and to the standards of the affected public service corporation and shall convey ownership of these facilities to the public service corporation on completion. (b) Transportation and mobility facilities, improvements and appurtenances used to provide vehicular and nonvehicular circulation, access, egress and parking, including streets, roads, highways, bridges, alleys, parking facilities, sidewalks, trails, pathways, bicycle facilities, equestrian routes and other areas and improvements intended for motorized and nonmotorized travel and parking, and, if located within or necessary to serve the district, railway corridors, rail crossings, grade separations, sidings, signalization and related rail transportation facilities and traffic management and control facilities and devices, including signals, intelligent transportation systems, controls, pavement markings, wayfinding, signage and lighting and illuminations systems, including street lighting, pathway lighting, area lighting and related electrical and control facilities. (c) Public realm and open space amenities, including pedestrian malls, parks, plazas, recreational facilities other than stadiums, and other areas and improvements intended for public entertainment, assembly, and recreation, together with landscaping, grading, earthworks, structures, plantings, trees, irrigation and water delivery systems and related site improvements. Construction or maintenance of water parks or decorative water features, including lakes, ponds or lagoons, is prohibited, except as provided in section 45-132, subsection B, paragraph 4. (d) Public buildings and public safety facilities, including police, fire and emergency services facilities and related improvements. (e) Communications and digital infrastructure, including fiberoptic, wireless and broadband facilities, conduits, towers, antennas, data transmission systems, network equipment, public safety communications facilities, and related appurtenances and rights-of-way. (f) Equipment, vehicles, furnishings, technology and other personal property and appurtenances related to or necessary for the operation of any public infrastructure authorized by this chapter. (g) Refinancing any matured or unmatured bonds with new bonds. 23. "Public infrastructure purpose" means: (a) Planning, designing, engineering, constructing, acquiring or installing public infrastructure. (b) Acquiring, converting, renovating or improving existing facilities for public infrastructure. (c) Acquiring interests in real property for public infrastructure. (d) Establishing, maintaining and replenishing reserves in order to secure payment of debt service on bonds. (e) Funding and paying from bond proceeds interest accruing on bonds for a period of not to exceed three years after their date of issuance and costs of issuance of the bonds and underwriter and placement agent fees. (f) Providing for the timely payment of debt service on indebtedness of the district or of development fees or similar exactions imposed by a municipality or other public entity, to the extent those charges are imposed to fund public infrastructure that is located within, primarily serves or is necessitated by development within the district. (g) Refinancing any matured or unmatured bonds with new bonds. (h) Incurring expenses of the district that are incidental to and reasonably necessary to carry out the purposes specified in this paragraph. 24. "Qualified elector" means a person who is a qualified elector pursuant to title 16 and who resides within the boundaries of a district. 25. "Treasurer" means the person appointed by the board to be the district treasurer. 48-7002. Petition to form district; contents of petition; filings; limitation of liability A. A state affordability infrastructure district may be formed pursuant to this chapter by petition of all individuals and entities having fee title ownership of all real property in the proposed district. The petition shall be submitted to the authority. The district may include contiguous or noncontiguous property, provided that all noncontiguous property shall be located in the same county and shall lie within five miles of the boundary of other property within the district, measured in a straight line between such parcel boundaries. If any portion of a district is located within the corporate limits of a municipality, the entire district shall at all times be located within the corporate limits or within the adopted planning area of that municipality, as such limits or planning area may be amended from time to time. B. The petition shall contain all of the following: 1. A metes and bounds description and a map of the district boundaries. 2. The proposed name of the district. 3. A general plan setting out a general description of the public infrastructure for which the district is proposed to be formed and for which bonds may be issued, the general areas to be improved and the estimated costs of constructing or acquiring the public infrastructure to be financed, constructed or acquired by the district. 4. A general description of the estimated cost of engineering services, legal services, administrative services and other major expenses that are related to organizing and initially operating the district. 5. An engineer's estimate of the costs of the public infrastructure for which the district is proposed to be formed and for which bonds may be issued. 6. The maximum authorized tax rate, the maximum aggregate principal amount of general obligation bonds and the maximum aggregate assessment amount, if any. 7. The maximum O/M tax rate, if any. 8. A preliminary financing plan that includes the anticipated sources and uses of monies for the public infrastructure. 9. If the district proposes to issue assessment bonds, an appraisal or an opinion of value prepared by a licensed real estate broker indicating the aggregate as-is value of real property in the district and the projected value of the real property and improvements in the district after completion of the public infrastructure proposed to be financed with such assessment bonds. 10. If the district proposes to issue general obligation bonds, a third-party market study that includes projections of the limited property value of real property in the district for each year in which general obligation bonds are proposed to be outstanding, together with information demonstrating that debt service on such bonds can be supported within the maximum authorized tax rate. 11. A statement of all holders of fee title to all real property in the district, the initial board members, the initial terms of office of the initial board members and the district clerk and the district treasurer. 12. A statement of bond counsel indicating that the petition complies with the procedural requirements of this section. 13. A copy of any existing and applicable development agreement or other agreement with the municipality or the county that relates to public infrastructure and that is recorded against the land included within the boundaries of the district, and a certification by the petitioner that the formation of the district will not violate any such agreement. 14. A written statement, signed by an engineer, certifying that the estimated cost of the public infrastructure to be constructed in the proposed district exceeds $5,000,000. 15. A summary of the anticipated community benefits of forming the district, including expected impacts on public infrastructure timing, housing attainability and economic development, together with a description of any material risks associated with district formation and implementation of the general plan, including potential tax, assessment and fiscal impacts on owners of real property in the district. 16. A formation order in substantially final and recordable form. 17. A description of the petitioner, including: (a) The legal name of each entity or individual having fee title ownership of any real property in the proposed district. (b) The name, address and telephone number of the primary contact for the petitioner. (c) The names of any legal representatives, engineers, architects, financial consultants or other consultants that are significantly involved in the petition. (d) A general description of the petitioner's experience with similar types of developments that the district will support. C. Any financial burden of a district is borne solely by the district and is not borne by the authority, this state or any municipality, county or other political subdivision of this state. Any liability, judgment or claim against a district is the sole responsibility of the district and does not constitute a liability, judgment or claim against the authority, this state or any municipality, county or other political subdivision of this state. D. The petition shall be filed with the authority. The petitioner shall provide written notice of the filing of the petition to each affected municipality and, if the district is located in an unincorporated area, to the county. The notice shall state that the district will be formed not less than thirty days and not more than sixty days after submitting the petition, subject to approval by the authority, and that the municipality or the county, as applicable, may submit to the authority within thirty days after the filing of the petition a written notice that identifies a basis for denial of the petition pursuant to section 48-7003, subsection D, paragraph 4. E. If the authority determines that the petition is incomplete or deficient, the petitioner shall have a period of sixty days after written notice of the deficiencies to submit corrections of the deficiencies. If the corrections of the deficiencies are not submitted to the authority within sixty days after notice or do not correct the deficiencies, the authority may reject the petition pursuant to section 48-7003, subsection D. F. For the purposes of this chapter, all certifications, determinations, approvals, findings and actions required to be made by the authority shall be made by the executive director. No action, approval, resolution or vote of the board of directors of the authority is required for any certification, determination or action taken by the executive director pursuant to this chapter. Any action taken by the executive director pursuant to this chapter is deemed an action of the authority. 48-7003. Authority; formation order; limitations on rejection; fees A. A district shall be formed only on the issuance of a formation order by the authority. The authority shall review the petition submitted pursuant to section 48-7002 and accompanying materials to evaluate, solely on the basis of the information included with the petition, the following: 1. Whether any appraisal, third-party market study or opinion of value that is provided in connection with the petition is complete. 2. Whether the description of the proposed public infrastructure in the general plan appears complete on its face and does not contain obvious errors, without any independent engineering investigation, analysis or verification. 3. Whether the preliminary financing plan includes the anticipated sources and uses of monies for the public infrastructure. 4. Whether the district is reasonably expected to have the financial ability to discharge its proposed indebtedness within the maximum authorized tax rate and maximum aggregate assessment amount, as applicable. 5. Whether formation of the district will violate any existing and applicable development agreement or other agreement with the municipality or the county that relates to the land included within the boundaries of the district that was submitted to the authority in connection with the petition. B. The authority shall approve formation of the district and issue the formation order for the district if the authority finds that all of the following occurred: 1. All required documents have been submitted in the form prescribed by this chapter. 2. The proposed district meets all statutory eligibility and boundary requirements that are established under this chapter. 3. The notice to each affected municipality and, if the district is located in an unincorporated area, to the county has been provided as prescribed by section 48-7002, subsection D. 4. Solely on the basis of the information submitted in connection with the petition, including any appraisal, third-party market study or opinion of value, the district has, or will have, the financial ability to discharge its proposed indebtedness within the maximum authorized tax rate and maximum aggregate assessment amount, as applicable. C. If the requirements of subsection B of this section are satisfied, the authority shall issue a formation order within sixty days after the submission of a complete petition. The formation order shall include all of the following: 1. The name of the district. 2. A metes and bounds description and a map of the district's boundaries. 3. A general description of the public infrastructure that the district may finance. 4. A statement that a general plan and a preliminary financing plan for the district will be on file with the clerk. 5. The types of bonds that the district is authorized to issue. 6. The maximum authorized tax rate, the maximum authorized aggregate principal amount of general obligation bonds, the maximum aggregate assessment amount and the maximum O/M tax rate. 7. The names and initial terms of the initial board of directors and that the district will be governed by directors who are chosen pursuant to this chapter. 8. A statement that: (a) The formation of the district may result in the levy of ad valorem taxes or assessments to pay the costs of authorized public infrastructure that is constructed by the district and for operating and maintaining the authorized public infrastructure. (b) Any ad valorem tax that is levied for the payment of general obligation bonds may not be levied at a rate that exceeds the maximum authorized tax rate that is approved at the election that authorized the levy and the issuance of the bonds, except as prescribed in section 48-7021, subsection B. (c) Any bonds or other obligations of the district will not be a debt, legal or moral, of this state or any municipality or any county of this state, are not obligations of this state or any municipality or any county of this state, are obligations of the district and are payable only from the sources pledged for their payment. D. The authority shall approve formation of the district and issue the formation order if the authority determines that the petition and accompanying materials meet the statutory requirements of this chapter. The authority's review is limited to confirming that the statutory requirements of this chapter have been satisfied and the authority may deny a petition only on a written finding of one of the following: 1. The petition is incomplete. 2. The financial information submitted in connection with the petition, including any appraisal, third-party market study or opinion of value, is incomplete or illustrates that the district will not have the financial ability to discharge its proposed indebtedness within the maximum authorized tax rate and maximum aggregate assessment amount, as applicable. 3. The proposed district violates a statutory prohibition or boundary rule under this chapter, and in each case the petitioner failed to submit proposed corrections of the deficiencies within sixty days after notice. 4. The formation of the proposed district will materially violate any existing and applicable development agreement or other agreement with the municipality or the county that relates to public infrastructure and that is recorded against the land included within the boundaries of the district with respect to the design, construction, conveyance, operation or maintenance of the public infrastructure. E. If the authority does not issue the formation order within sixty days after submission of a complete petition, the authority shall provide a written basis for not adopting the formation order and shall identify the specific changes that are needed for the petition to be approved and for the district to be formed. Such action will not constitute a denial of the petition and the petition may be revised and resubmitted at any time. F. On issuance of the formation order by the authority, the district shall cause the formation order to be recorded in the real property records of the county in which the district is located and shall cause a copy of the formation order to be delivered to the county assessor and the board of supervisors of the county in which the district is located, to any municipality in which the district is located and to the department of revenue. On recording the formation order, the district is established as a political subdivision of this state. G. Before recording a formation order under this section, a general plan for the district shall be recorded with the county recorder of the county in which the district is located that sets out a general description of the improvements for which the district is proposed to be formed and the areas to be improved. H. On formation, the district is a special purpose district for the purposes of article IX, section 19, Constitution of Arizona, a tax levying public improvement district for the purposes of article XIII, section 7, Constitution of Arizona, and a municipal corporation for all purposes of title 35, chapter 3, articles 3, 3.1, 3.2, 4 and 5. A district that distributes or sells groundwater is a private water company only for the purposes of title 45, chapters 2 and 3.1. Except as otherwise provided in this section, a district is considered to be a municipal corporation and political subdivision of this state, separate and apart from any municipality or county in which the district is located. Notwithstanding any other law, a district formed pursuant to this chapter does not have the power of eminent domain and does not have the power to enact zoning ordinances. Notwithstanding any other law, this chapter does not impose any additional regulation or requirements on or alter the service territory, including certificates of convenience and necessity, of any county, irrigation district, electrical district, agricultural improvement district, municipality or public service corporation. I. On formation of the district, the board shall implement the general plan for the public infrastructure of the district. j. Fees and other charges assessed by the authority in connection with the submission and consideration of a petition to form a district may not exceed $15,000. If a petition is denied by the authority, it may not assess a fee or other charge in connection with submitting and considering a substantially similar petition that is submitted within ninety days after the denial. Fees and other charges assessed by a district in connection with administering the district, including the issuance and sale of bonds, may not exceed the actual expense incurred by the district for staff and consultant services and support facilities supplied by the district or the financial, legal and administrative costs of the district that are not reimbursed from proceeds of the bonds or other district revenue. K. After the formation order is issued, the owners of at least fifty percent of the land in the district may petition the authority to amend the formation order to modify the powers or financial parameters of the district, including any maximum authorized tax rate, maximum authorized aggregate principal amount of general obligation bonds, maximum aggregate assessment amount or maximum operations and maintenance tax rate. Any such petition for amendment shall: 1. Describe the proposed amendments to the formation order and general plan. 2. Include updated financial information, including an updated preliminary financing plan, sufficient to allow the authority to determine whether the district is reasonably expected to have the financial ability to discharge its proposed indebtedness within the revised maximum authorized tax rate and maximum aggregate assessment amount, as applicable. 3. Demonstrate that the proposed amendments do not violate any applicable statutory eligibility or boundary requirements or any development agreement or other agreement with the municipality or county relating to the land within the district. L. The authority shall review and act on a petition for amendment under the standards and within the time periods prescribed in subsections A through E of this section, and, if approved, shall issue and cause to be recorded an amended formation order reflecting the approved changes. M. Any petition to amend the formation order that increases the maximum authorized tax rate or maximum aggregate assessment amount shall be signed by all owners of all real property in the district. N. The authority’s issuance of a formation order pursuant to this chapter is a governmental determination of statewide financial compliance and does not constitute zoning, planning or land use approval. Any action of the authority or the executive director pursuant to this article is the exercise of an administrative function involving the determination of fundamental governmental policy as prescribed in section 12-820.01. 48-7004. District governance; board of directors; elections; powers and duties A. On issuance of the formation order, a district shall be governed by a board of directors that consists of three directors. The initial directors shall be appointed as set forth in the petition and formation order. B. Subject to subsection J of this section, each director shall either hold a fee title to real property within the district or be an individual who is designated or appointed by a holder of a fee title to real property within the district. A director will resign from the board of directors if at any time during such director's term the director is no longer an owner of real property within the district or, if such director was designated or appointed by an owner of real property within the district, such owner of real property within the district is no longer an owner of real property within the district. Such director's vacancy will be filled pursuant to subsection H of this section. C. The term of the initial directors begins on the date of the formation order. Of the initial directors, one director shall serve a term of three years, one director shall serve a term of four years and one director shall serve a term of five years, as specified in the petition. Thereafter, each subsequently elected director shall serve a term of three years. These subsequently elected directors shall be an owner of real property in the district who shall be elected at large by the owners of real property in the district, as shown on the property tax assessment roll, who are qualified to vote pursuant to section 48-7041. The board shall develop bylaws for the operation of the district. D. Only the owners that hold fee title to real property in the district and their respective designees and appointees are eligible to vote in: 1. An election regarding an ad valorem tax or an assessment to be levied against the real property in the district. 2. An election for the board of the district. 3. An election for dissolution of the district. E. Corporations, partnerships and other business entities are eligible to vote as property owners, but only one vote may be cast for each one-seventh of an acre of real property in the district, except that any fraction of ownership of real property that is less than one-seventh of an acre entitles the owner to cast one vote. A majority of the acreage, as represented by the votes cast at an election that is conducted solely under this acreage system, determines the result of the election. F. An election conducted under this section shall be held as a special election of the district and shall be noticed, called, conducted and canvassed by the board in the manner prescribed by this chapter. The board may enter into intergovernmental agreements with the county, a municipality or another public entity for election administration, including reimbursement of reasonable costs of district elections. G. The board shall: 1. Adopt and amend the general plan for the district. 2. Authorize and approve the issuance of bonds of the district as provided by this chapter. 3. Levy ad valorem taxes and assessments, subject to the limitations and election requirements of this chapter, including the maximum authorized tax rate. 4. Manage and administer the affairs of the district, including operating, maintaining and repairing public infrastructure that is owned or operated by the district. 5. Adopt annual budgets, statements and estimates for the district. 6. Administer district elections or enter into intergovernmental agreements with the county, a municipality or other qualified public entities to administer district elections. 7. Perform all other acts that are necessary or convenient to carry out the purposes of this chapter. H. If a vacancy occurs on the board because of a death, a resignation or an inability of the director to discharge the duties of director, the vacancy shall be filled by appointment made by the remaining directors within thirty days of a vacancy. The board shall provide written notice to the authority that the vacancy has been filled by appointment within thirty days of the appointment or, if the remaining directors have not filled the vacancy by appointment, written notice to the authority that the vacancy has not been filled by appointment within thirty days of the vacancy. A director appointed by the remaining directors shall hold office for the remainder of the unexpired term until the director's successor is elected as provided by article 3 of this chapter. A director shall not be an elected official of a municipality in which the district is located or an Indian tribe or community or an employee or agent of a municipality or Indian tribe or community but may be a director of more than one district. I. The members of the board are not eligible to receive compensation for their services as members of the board. J. If a vacancy occurs on the board because of death, resignation or inability of the director to discharge the duties of director, and there are no owners of real property within the district or individuals designated or appointed by an owner of real property within the district who are willing to fill such vacancy, the authority shall appoint a director to fill the vacancy. The director appointed by the authority is not required to be a fee title owner of real property within the district or an individual designated or appointed by a fee title owner of real property within the district. The director appointed by the authority shall hold office for the remainder of the unexpired term and until the director's successor is elected, unless a fee title owner of real property within the district submits a written request to the authority and the board to replace the director appointed by the authority. In that event, the authority, as soon as practicable, shall appoint that fee title owner of real property within the district to replace the director appointed by the authority. K. The board shall comply with title 38, chapter 3, article 3.1 as a separate political subdivision. 48-7005. Records; open meetings A. A district shall keep the following records, which shall be maintained by the clerk and open to public inspection: 1. Minutes of all board meetings. 2. All resolutions. 3. Accounts showing all monies received and disbursed. 4. The annual budget. 5. All other records required to be maintained by law. B. The board shall comply with the requirements of title 38, chapter 3, article 3.1 as a separate political subdivision. 48-7006. District powers A. In addition to the powers otherwise granted to a district pursuant to this chapter, a district, to further implement the general plan, may: 1. Enter into contracts and expend monies for any public infrastructure purpose with respect to the district, including in connection with the acquisition, construction or installation of public infrastructure, provided that a district may not be the contracting party on any construction contract for public infrastructure and the district's role with respect to the construction of such public infrastructure shall be limited to acquiring or reimbursing the costs of such public infrastructure. 2. Enter into intergovernmental agreements with this state, a county, a municipality or any other public agency that is authorized by law to enter into intergovernmental agreements for the planning, design, inspection, ownership, control, maintenance, operation or repair of public infrastructure. 3. Enter into intergovernmental agreements with the county, a municipality or another qualified public entity for the administration of district elections, including agreements to reimburse the public entity for the reasonable costs of district elections. 4. Sell, lease or otherwise dispose of district property if the sale, lease or conveyance is not a violation of the terms of any contract, bond resolution or trust indenture of the district. 5. Operate, maintain and repair public infrastructure that is owned or operated by the district. 6. Establish, charge and collect user fees, rates or other charges for the use of any service or public infrastructure of the district other than streets, roads or highways. 7. Employ or contract for staff, counsel and consultants, including engineers, attorneys, accountants, financial advisors, underwriters, administrators and election officials, to assist with district and board administration, financing and election matters. 8. Incur and repay loans, advances or other obligations for any public infrastructure purpose, including to provide for the present financing of costs to be reimbursed from future district revenues or reimbursements related to public infrastructure. 9. Enter into agreements with landowners and with a municipality or county for the collection of fees and charges from landowners for public infrastructure purposes, for the advance of monies by landowners for public infrastructure purposes or for the granting of real property or interests in real property by a landowner for public infrastructure purposes, and recognize, assign, confirm or consent to the assignment by such landowners of their rights to receive any reimbursements or payments from the district for public infrastructure costs, including to or in favor of lenders, trustees or other financing parties. 10. By resolution, levy and assess the costs of any public infrastructure purpose on any land that is benefited in the district, subject to the limitations and election requirements of this chapter, including the maximum authorized tax rate. 11. Pay the financial, legal and administrative costs of the district. 12. Enter into contracts, agreements and trust indentures to obtain credit enhancement or liquidity support for its bonds and to provide for the issuance, registration, transfer and payment of its bonds and for the disbursement and investment of bond proceeds. 13. Enter into agreements with persons outside of the district to provide services to persons and property outside of the district and to receive compensation for those services. 14. Use public easements and rights-of-way in or across public property, roadways, highways, streets or other thoroughfares and other public easements and rights-of-way, whether in or out of the geographical limits of the district, a municipality or a county, subject to applicable law, permitting restrictions and the rights of the public. B. In connection with any power authorized by statute, the district may: 1. Contract. 2. Enter into intergovernmental agreements pursuant to title 11, chapter 7, article 3. 3. Adopt and change a seal. 4. Sue and be sued. 5. Enter into development agreements as defined in section 9-500.05. C. A district is not empowered to exercise land use or zoning authority and may not adopt, amend or enforce zoning ordinances or similar land use regulations. D. Public infrastructure other than personalty may be located only in or on lands owned by this state, a county, a municipality or the district or dedicated or otherwise designated as public roadways, highways, streets, thoroughfares, easements or rights-of-way, whether in or out of the district or a municipality. Personalty may be used only for purposes authorized by the board. E. An agreement pursuant to subsection A, paragraph 9 of this section may include agreements to repay all or part of such advances, fees and charges from the proceeds of bonds if issued or from advances, fees and charges collected from other landowners or users or those having a right to use any infrastructure. A person does not have authority to compel the issuance or sale of the bonds of the district or the exercise of any taxing power of the district to make repayment under any agreement. F. A construction contract for public infrastructure under this chapter is a private construction contract between an owner and the contractor for purposes of title 32, chapter 10, article 5, and any person furnishing labor, professional services, materials, machinery, fixtures or tools for that public infrastructure shall have such mechanics' and materialmen's lien rights that would otherwise apply to the construction contract and the public infrastructure subject thereto under title 33, chapter 7, article 6, and is subject to all requirements and limitations of that article. G. A construction contract for public infrastructure under this chapter shall include the following provisions: 1. Before commencing construction, the owner shall provide a payment bond, letter of credit, guaranty, proof of funds or other comparable financial assurance that the owner can pay the full contract price as of the date of execution. 2. Before commencing any work that is subject to owner-approved change orders that individually or collectively increase the aggregate construction contract price by more than ten percent, the owner shall provide a payment bond or payment bond rider, letter of credit, guaranty, proof of funds or other comparable financial assurance that the owner can pay the full amount of those change orders as of the date of approvaL. 48-7007. District finances; revenue The projects to be constructed or acquired as shown in the general plan may be financed from the following sources of revenue: 1. Proceeds received from the sale of bonds of the district. 2. Monies of a municipality or Indian tribe or community that are contributed to the district. 3. Assessments. 4. Ad valorem taxes. 5. Private contributions. 6. User, landowner and other fees and charges. 7. Proceeds of loans or advances. 8. Any other monies available to the district by law. 48-7008. Project review by authority; hearing; notice; fees A. Before constructing or acquiring any public infrastructure, the board shall cause a study of the feasibility and benefits of the project that shall be prepared by engineers and other qualified persons and that shall include a description of the public infrastructure to be constructed or acquired and all other information useful to understand the project, a map showing, in general, the location of the project, an estimate of the cost to construct, acquire, operate and maintain the project, an estimated schedule for completion of the project, a map or description of the area to be benefited by the project and the financing plan for the project. Within sixty days after receiving the report, the board shall hold a public hearing on the report and provide notice of the hearing by publication not less than ten days in advance in the official newspaper of the municipality in which the district is located or, if none in the municipality or if the district is located in an unincorporated area, a newspaper of general circulation in the county and by mail to the governing body of the municipality. Within sixty days after the hearing, the board may reject, amend or approve the report. If the report is amended substantially, a new hearing shall be held within sixty days after the date the amended report is received and before approval. If the report is approved, the board shall adopt a resolution that identifies the public infrastructure of the project, the areas benefited, the expected method of financing, including the nature and timing of the issuance of bonds, if any, and an appropriate system of providing revenues to operate and maintain the project, if applicable. The board shall execute the provisions of the report within the time frames identified in the approved report. B. Before constructing or acquiring any public infrastructure and before the board has held the public hearing prescribed in subsection A of this section, the board shall cause the study of the feasibility and benefits of the project prescribed in subsection A of this section to be provided to the authority. In addition to the study of the feasibility and benefits of the project prescribed in subsection A of this section, the board shall cause the following information to be provided to the authority: 1. The proposed maximum principal amount of bonds to be issued, the maximum interest rate and a preliminary debt service schedule for the bonds. 2. If the public infrastructure to be constructed or acquired is proposed to be financed with the proceeds of general obligation bonds, a report indicating the projected market value of the real property and improvements in the district after the public infrastructure to be constructed or acquired by the district with the proceeds of such bonds is completed plus the value of the public infrastructure owned by the district and to be constructed or acquired by the district with the proceeds of such bonds. 3. If the public infrastructure to be constructed or acquired is proposed to be financed with the proceeds of general obligation bonds, a third-party market study that includes projections of the limited property value of real property in the district for each year in which general obligation bonds are proposed to be outstanding, together with a projection of the ad valorem tax rate that is required to support debt service on the general obligation bonds and that does not exceed the maximum authorized tax rate. 4. If the public infrastructure to be constructed or acquired is proposed to be financed with the proceeds of assessment bonds, an appraisal indicating the aggregate as-is market value of real property in the district and the projected market value of the real property and improvements in the district after completion of the public infrastructure proposed to be financed with such assessment bonds. 5. If the public infrastructure to be constructed or acquired is proposed to be financed with the proceeds of assessment bonds, the maximum aggregate assessment and the maximum per-lot assessment to be levied in connection with the assessment bonds. 6. The anticipated build-out schedule and associated valuation increases. 7. The currently outstanding aggregate principal amount of all bonds of the district and the current ad valorem tax rate of the district, if any. 8. The proposed financing team, including the underwriter or placement agent and the district's bond counsel. 9. A certification as to the reasonableness of assumptions that are used in the market value and growth projections and a certification that the ad valorem tax rate levied to pay the debt service on general obligation bonds of the district in the current and immediately preceding fiscal year is not in excess of the maximum authorized tax rate. 10. A certification that the construction or acquisition of the public infrastructure, as applicable, will not conflict with any existing and applicable development agreement or other agreement with the municipality or the county that relates to the land included within the boundaries of the district that was submitted to the authority in connection with the petition. C. The authority shall review the information submitted pursuant to subsection B of this section to confirm, solely on the basis of the information submitted and without any independent determination of feasibility or value, that all information required pursuant to subsection B of this section has been submitted and that the construction or acquisition of the public infrastructure, or both, as applicable, complies with the formation order and the general plan and does not otherwise violate the provisions of this chapter. D. The authority shall provide written notice to the district within thirty days after receiving the information submitted pursuant to subsection B of this section if the submitted information is incomplete or has not been submitted or if the submitted information indicates that the construction or acquisition of the public infrastructure does not comply with the formation order or the general plan or does not otherwise comply with the provisions of this chapter. The written notice shall identify any deficiencies. The board may not hold the public hearing described in subsection A of this section until thirty days has elapsed since the submission of the information submitted pursuant to subsection B of this section and the district has not received from the authority the notice prescribed in this subsection. E. Fees and other charges that are assessed by the authority in connection with the review of the information submitted pursuant to subsection B of this section shall not exceed $30,000 for each submission. Any such fees shall be in addition to the fees and other charges that are assessed by the authority in connection with the submission and consideration of an application and petition to form a district pursuant to section 48-7003, subsection J. 48-7021. General obligation bonds debt limitations; maximum authorized tax rate A. The total aggregate outstanding amount of general obligation bonds and any other indebtedness for which the ad valorem taxes of the district are pledged shall not exceed sixty percent of the aggregate of the projected market value of the real property and improvements in the district after the public infrastructure to be constructed or acquired by the district with the proceeds of such general obligation bonds is completed, plus the value of the public infrastructure owned by the district and to be constructed or acquired by the district with the proceeds of such general obligation bonds. B. Any ad valorem tax levied to pay the debt service on all general obligation bonds of the district shall not be levied at a rate that exceeds the maximum authorized tax rate of $5 per $100 of net assessed limited property valuation of property within the boundaries of the district. The maximum authorized tax rate shall be indicated in the petition and the formation order and shall be approved at an election held pursuant to section 48-7041. The maximum authorized tax rate is the maximum tax rate that may be used to price and size any issue of general obligation bonds of the district and the board may not assume an annual growth rate for limited property value in excess of five percent. If, in any fiscal year, application of the maximum authorized tax rate to the net assessed limited property valuation of real and personal property in the district, together with any monies from the sources described in section 48-7007, is insufficient to pay debt service on the bonds in the fiscal year, the district shall levy such additional ad valorem taxes as are necessary to pay such debt service when due, except that the levy of such additional ad valorem taxes shall not exceed a rate of $7.50 per $100 of net assessed limited property valuation of property within the boundaries of the district. The authority shall not otherwise restrict the maximum authorized tax rate, the maximum assessment assessed by a district or the maximum aggregate amount of bonds issued by a district except as expressly provided in this chapter. 48-7022. General obligation bonds; tax levy; security A. At any time after the formation of a district, the board may from time to time order and call a general obligation bond election to submit to the qualified electors of the district or to those persons who are qualified to vote pursuant to section 48-7041 the question of authorizing the board to issue general obligation bonds of the district to provide monies for any public infrastructure purposes consistent with the general plan and the question of authorizing an ad valorem tax to be levied. B. If general obligation bonds are approved at an election, the board may issue and sell general obligation bonds of the district, the term of which may not exceed thirty years, subject to the limitation that any ad valorem tax levied to pay the debt service on the general obligation bonds shall not be levied at a rate that exceeds the maximum authorized tax rate, except as prescribed in section 48-7021, subsection B. C. The district may issue and sell refunding bonds to refund any general obligation bonds of the district, the term of which may not exceed thirty years. If general obligation bonds are issued to refund any general obligation bonds of the district, an election on the issuance of such refunding bonds is not required, but any ad valorem tax levied to pay the debt service on such refunding bonds shall not be levied at a rate that exceeds the maximum authorized tax rate, except as prescribed in section 48-7021, subsection B. D. After the bonds are issued, the board shall enter in its minutes a record of the bonds sold and their numbers and dates and shall annually levy and cause an ad valorem tax to be collected, at the same time and in the same manner as other taxes are levied and collected on all taxable property in the district, sufficient, together with any monies from the sources described in section 48-7007, to pay debt service on the bonds when due. The annual levy shall not exceed the net amount necessary to meet annual payments of principal and interest, projected payments of principal and interest on new debt planned for the ensuing year, a reasonable delinquency factor, including an amount necessary to correct prior year errors or shortages in the levy, if applicable, and any expenses and fees required in conjunction with the authorization pursuant to section 35-512. The annual ad valorem tax rate levied pursuant to this subsection shall not exceed the maximum authorized tax rate, except as prescribed in section 48-7021, subsection B. The levy shall be the net of all cash in excess of ten percent of the annual payments of principal and interest in the current fiscal year from the previous year that remain in the fund or funds prescribed by subsection E of this section. E. Monies derived from the levy of the tax provided in this section when collected constitute funds to pay the debt service on the bonds and shall be kept separately from other funds of the district. Amounts levied for debt service on bonds payable from the secondary tax are and shall be considered special revenues of the district, shall be kept in a special, segregated fund, are not and shall not be general property taxes and may not be used for any other purpose of the district. F. All general obligation bonds, heretofore and hereafter issued, are secured by a lien on all revenues received pursuant to the ad valorem tax levy. The lien arises automatically without the need for any action or authorization by the district or the board. The lien is valid and binding from the time of the issuance of the general obligation bonds. The revenues received pursuant to the levy of the ad valorem tax are immediately subject to the lien. The lien attaches immediately to the revenues and is effective, binding and enforceable against the district, the district's successors, transferees and creditors and all other parties asserting rights in the revenues, irrespective of whether the parties have notice of the lien, without the need for any physical delivery, recordation, filing or further act. 48-7023. Assessments; assessment lien bonds; judicial review A. After approval of the assessment at an election held as prescribed by section 48-7041, and pursuant to the procedures prescribed by sections 48-576 through 48-589, as nearly as practicable, or such other procedures as the board provides, the board may levy by resolution an assessment of the costs of any public infrastructure purpose or any operation and maintenance of public infrastructure on any land in the district that is based on the benefit determined by the board to be received by the land. Before the issuance of 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 assessment 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 public infrastructure, on the merits, by special action filed with the court of appeals, within thirty days after the effective date of the resolution. B. After adoption by the board of a resolution levying an assessment on property in the district, the board may issue and sell assessment bonds, the term of which may not exceed thirty years, payable from amounts collected from the assessments, from amounts available from time to time in any reserve fund established for those bonds and from any other amounts available for those purposes as prescribed by section 48-7007. The district and the county treasurer for the county in which the district is located may enter into an agreement for the county treasurer to collect the district's assessments in the manner and by the officers provided by law for the collection and enforcement of general taxes. The district and the county treasurer may provide by agreement for the payment of the county treasurer's collection expenses directly related to the levy of the assessment and, if so provided, the levy of the assessment may include an amount for compensation of the county treasurer directly related to the collection of the assessment. The compensation received by the county treasurer pursuant to the agreement shall be governed by section 11-496. The board may also issue and sell bond anticipation notes pursuant to the procedures prescribed in section 48-2081 or with procedures as similar to those as is practicable. The assessment shall be a first lien on the property assessed subject only to general property taxes and prior assessments. In the event of nonpayment of an assessment and except as otherwise provided in an agreement between the district and the county treasurer pursuant to this section, 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, a municipality, a county or the state 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 board may provide procedures for the collection and enforcement of assessments as the board deems appropriate by contract with a landowner to allow 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 assessment 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 resolution 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. Assessment bonds may not be issued in an amount in excess of the amount assessed in the resolution 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 assessment bonds of the district, the term of which may not exceed thirty years. 48-7024. Revenue bonds A. At any ti