A.R.S. tit. 48 ch. 5 — Arizona Revised Statutes Title 48 Chapter 5 — Fire Districts

48-802. Election procedures; qualifications A. All elections held pursuant to this article shall conform to the requirements of this section. B. Except as otherwise provided in this article, the manner of conducting and voting at an election, contesting an election, keeping poll lists, canvassing votes and certifying returns shall be the same, as nearly as practicable, as in elections for county officers. After consultation with the officer in charge of elections, a fire district may divide itself into precincts. To the extent practicable, the precincts shall be equal or as nearly equal in population and shall conform to the boundaries of precincts adopted by the board of supervisors of the county. The fire district shall thereafter conduct its elections using those precincts. C. No person may vote at the election other than a qualified elector of this state who has registered to vote at least twenty-nine days before the election as a resident within the district boundaries, proposed district boundaries created by the merger of fire districts or the proposed district boundaries created by a consolidated district. A person offering to vote at a fire district election for which no fire district register has been supplied shall sign an affidavit stating the person's address and the fire district in which the person resides and swearing the person is qualified to vote and has not voted at the fire district election being held. A person offering to vote at a fire district election for which a fire district register has been supplied shall proceed as required for voting at any election at which precinct registers are used. D. In elections for district board members: 1. The person or persons within the district or precinct, as applicable, receiving the highest number of votes shall be declared elected. 2. Candidates must be, and during incumbency must remain, qualified electors of the fire district and, except for a district formed pursuant to article 3 of this chapter, must be a resident of the district for at least one year immediately preceding the date of the election. In a fire district that is divided into precincts as prescribed by subsection B of this section, candidates shall be qualified electors of the precinct in which they are candidates and during incumbency must remain qualified electors of that precinct. Except for a district formed pursuant to article 3 of this chapter, a person is not eligible to be a candidate for election to the fire district board if that person is related by affinity or consanguinity within the third degree to a person who serves on the board during the potential candidate's term of office. Any person who violates this paragraph is not eligible to serve on the board. 3. Elections, other than special elections to fill a vacancy or elections to merge or dissolve fire districts, shall be held on the first Tuesday after the first Monday in November of the first even numbered year following the year the district is declared organized by the board of supervisors and every two years thereafter on the first Tuesday after the first Monday in November. 4. Except for an election to reorganize a fire district, nominating petitions shall be filed with the board of supervisors as prescribed by title 16, chapter 3. If only one person files or no person files a nominating petition for an election to fill a position on the district board for which the term of office is to expire, the board of supervisors may cancel the election for that position and appoint the person who filed the nominating petition to fill the position. If no person files a nominating petition for an election to fill a district office, the board of supervisors may cancel the election for those offices and those offices are deemed vacant and shall be filled as otherwise provided by law. A person who is appointed pursuant to this paragraph is fully vested with the powers and duties of the office as if elected to that office. 5. Except for a district organized pursuant to article 3 of this chapter, for an election to reorganize a fire district, any person seeking election to the governing body that would be formed or expanded if the reorganization is approved shall comply with the nomination requirements for a candidate as prescribed by title 16, chapter 3, including filing a nomination paper and nomination petition to appear as a candidate on the reorganization election ballot. 6. The names of all nominated persons for office within the district or precinct, as applicable, shall appear on the ballot without partisan designation. E. In an election to reorganize, notice of the appropriate order of the board of supervisors or governing body of the district shall be given as prescribed by title 16, chapter 2. F. In an election to merge fire districts, notice of the appropriate order of the board of supervisors shall be given as prescribed by title 16, chapter 2. In addition, notice of the election with an accurate map of the territory proposed to be merged shall be sent by first class mail to each owner of property that would be subject to taxation by the merged district at least sixty days before the election. An order to hold an election shall be issued not more than thirty days after the receipt of the resolution to merge fire districts pursuant to section 48-820. G. In an election to consolidate fire districts, notice of the appropriate order of the board of supervisors shall be given as prescribed by title 16, chapter 2. In addition, notice of the election with an accurate map of the territory proposed to be consolidated shall be sent by first class mail to each owner of property that would be subject to taxation by the consolidated district at least sixty days before the election. An order to hold an election shall be issued not more than thirty days after the receipt of the resolution to consolidate fire districts pursuant to section 48-822. 48-803. District administered by a district board; report A. In a district that the board of supervisors estimates has a population of less than four thousand inhabitants, the district board may consist of three or five members. In a district that the board of supervisors estimates has a population of four thousand or more inhabitants, the district board shall consist of five members, and for a noncontiguous county island fire district formed pursuant to section 48-851, the board shall consist of five members. The estimate of population by the board of supervisors is conclusive and shall be based on available census information, school attendance statistics, election or voter registration statistics, estimates provided by state agencies or the county assessor, or other information as deemed appropriate by the board of supervisors. If the board of supervisors determines, at any time prior to one hundred twenty days before the next regular scheduled election for members of a district board, that the population of a fire district administered by a district board consisting of three members exceeds four thousand inhabitants, estimated as provided in this section, the board of supervisors shall order an increase in the number of members of the district board. If the board of supervisors determines at any time prior to one hundred eighty days before the next regularly scheduled election for members of a district board that the population of a fire district administered by a district board that consists of five members exceeds fifty thousand inhabitants as prescribed in this section, the board of supervisors shall inform the district board that it may expand to seven members. Any expansion to seven members shall occur by majority vote of the district board. The increase is effective for the election of the additional members at the next regular election of members of the district board. B. If a vacancy occurs on the district board other than from expiration of a term, a quorum of the board members shall fill the vacancy by appointment of an interim member and, except for a district formed pursuant to article 3 of this chapter, a quorum of the board members shall fill the vacancy within ninety days after the date the vacancy occurs. Except for a district formed pursuant to article 3 of this chapter, if the quorum of district board members does not appoint an interim member within that ninety-day period, the board of supervisors shall appoint an interim member to the district board within sixty days after expiration of the ninety-day period, and if the district is located in more than one county, the board of supervisors of the county in which the majority of the assessed valuation of the district is located shall make the appointment after the expiration of the ninety-day period. If the entire board resigns or for any reason cannot fulfill its duties, or does not have a number of remaining board members sufficient to constitute a quorum of the board, the board of supervisors shall appoint interim district board members to fill the vacancies, or an administrator to administer the district with the same duties and obligations of the elected board to serve until the next election. A majority of the board constitutes a quorum for the transaction of business. C. On expiration of a board member's term of office, the position is declared vacant unless otherwise filled at a general election or as provided in section 48-802, subsection D, paragraph 4. A vacancy that occurs on expiration of a term of office shall be filled by appointment by a quorum of the district board within ninety days after the first day of the beginning of the new term of office. If the district board is unable to establish a quorum, the vacancy shall be filled by the board of supervisors as prescribed by subsection B of this section. D. Members of the district board shall serve without compensation, but may be reimbursed for actual expenses incurred in performing duties required by law. E. The board of a fire district shall appoint or hire a fire chief. A fire district that contracts for fire and emergency medical services may designate the fire chief of the service provider as the fire chief of the fire district. F. The district board shall elect from its members a chairperson and a clerk. Except for a district formed pursuant to article 3 of this chapter, the election of the chairperson and the clerk must occur at the district board meeting that first occurs in the month immediately following each general election. G. For districts formed under article 3 of this chapter, of the members first elected to district boards consisting of three members, the two people receiving the first and second highest number of votes shall be elected to four-year terms, and the person receiving the third highest number of votes shall be elected to a two-year term. Of the members first elected to district boards consisting of five members, the three people receiving the first, second and third highest number of votes shall be elected to four-year terms, and the two people receiving the fourth and fifth highest number of votes shall be elected to two-year terms. Thereafter, the term of office of each district board member shall be four years from the first day of the month next following such member's election. Of the members elected as additional members to a five-member district board, the person with the highest number of votes is elected to a four-year term and the person with the second highest number of votes is elected to a two-year term. If a district resolves to increase the governing board to seven members pursuant to subsection A of this section, the governing board may appoint two additional members to serve until the next general election. After the general election at which the two additional members are elected, the newly elected member with the highest number of votes serves a four-year term and the other member serves a two-year term. Thereafter, the term of office for these two new members is four years. H. For any fire district that is administered by a three-member board and that levies taxes in a fiscal year in the amount of $500,000 or more, the district must be administered by a five-member board. Beginning with the first general election held after the end of the fiscal year in which the district levied the prescribed amount, the change to a five-member board must occur as prescribed in this subsection. On levying the prescribed amount, the district may not reorganize as a three-member board regardless of any subsequent change in the district's levy. For three-person boards with a single vacancy for an existing board membership position and that are adding two additional members, the three persons with the highest number of votes are elected to a four-year term of office. For three-person boards with two vacancies for existing board membership positions and that are adding two additional members, the three persons with the first, second and third highest numbers of votes are elected to four-year terms of office and the person with the fourth highest number of votes is elected to a two-year term of office. Thereafter, all terms of office for members of these five-person boards of directors must be four years. This subsection applies to any three-member board that is expanding to a five-member board, regardless of whether the expansion is the result of the amount of the district's levy. This subsection does not apply to districts formed under article 3 of this chapter. I. Except for a district formed pursuant to article 3 of this chapter, all persons who are elected or appointed to a fire district board and the fire chief who is appointed or hired by the district board shall attend professional development training that is provided by an association of Arizona fire districts. District board members and the fire chief shall complete at least six hours of professional development training, with board members completing their training within one year after the date of the certification of their election and for the fire chief, within one year after the date of hiring. The fire district shall reimburse board members and the fire chief for the reasonable costs of the training. The professional development training must include training on open meetings laws, finance and budget matters and laws relating to fire district governance and other matters that are reasonably necessary for the effective administration of a fire district. J. On or before December 31 of each year, the fire district association that has provided training required pursuant to subsection I of this section shall submit a report that lists the elected officials and fire chiefs who attended the training to the county board of supervisors for every county in which the fire district operates. The annual report must include at least the following: 1. A compilation of the professional development training delivered by the association pursuant to this section and the names of the fire district board members and fire chiefs who attended training as required by this section. 2. Recommendations regarding improvements to the laws of this state or to administrative actions that are required under the laws of this state pertaining to fire districts. K. For fire district governing board members and fire chiefs who are required to attend professional development training pursuant to subsection I of this section, a fire district governing board member or fire chief who fails to complete the professional development training within the time prescribed in this section is guilty of nonfeasance in office. Any person may make a formal complaint to the county board of supervisors regarding this failure to comply, and the county board of supervisors may submit the complaint to the county attorney for possible action. The county attorney may take appropriate action to achieve compliance, including filing an action in superior court against a fire district governing board member or a fire chief for failure to comply with the professional development training requirements prescribed in this section. If the court determines that a fire district governing board member or fire chief failed to comply with the professional development training requirements prescribed in this section, the court shall issue an order removing the fire district governing board member from office or the fire chief from employment or appointment with the district. Any vacancy in the office of a fire district governing board as a result of a court order that is issued pursuant to this subsection must be filled in the manner provided by law. 48-804. District administered by elected chief and secretary-treasurer A. Beginning with the first term of office that commences immediately after the next regular election for that fire district after July 29, 2010, all districts that are administered by an elected chief and secretary-treasurer shall be administered by a three-member elected board of directors or a five-member elected board of directors as provided in section 48-803, subsection A and the positions of elected chief and elected secretary-treasurer no longer exist for that district and have no legal or administrative authority for and in the district. Persons elected to a three-member board of directors or a five-member board of directors pursuant to this subsection shall be designated to serve staggered terms of four years, with the initial terms of office for the three-member board or five-member board determined as prescribed in section 48-803, subsection H. Thereafter, all terms of office for members of these three-person or five-person boards of directors shall be four years. B. Beginning July 29, 2010, no new fire district may be established with an elected chief and secretary-treasurer and no existing fire district may be reorganized into a district with an elected chief and secretary-treasurer. 48-805. Fire district; powers and duties; definition A. A fire district, through its board, shall: 1. Hold public meetings at least once each calendar month except as follows: (a) If a board consists of three members and the fire district levies less than $500,000 annually, the board shall meet in July and at least every two months thereafter. (b) A board for a district organized pursuant to article 3 of this chapter shall hold public meetings at least every two months. 2. Determine the compensation payable to district personnel. 3. Require all current and prospective employees and volunteers to submit a full set of fingerprints to the fire district, joint powers authority, fire authority, fire and medical authority or fire and ambulance authority that is formed with that fire district pursuant to section 48-805.01. The fire district, joint powers authority that is formed pursuant to section 48-805.01, fire authority, fire and medical authority or fire and ambulance authority shall submit the fingerprints to the department of public safety to obtain a state and federal criminal records check pursuant to section 41-1750 and Public Law 92-544. The department of public safety may exchange this fingerprint data with the federal bureau of investigation. B. A fire district, through its board, may: 1. Employ any personnel and provide services deemed necessary for fire protection, for preservation of life and for carrying out its other powers and duties, including providing ambulance transportation services when authorized to do so pursuant to title 36, chapter 21.1, article 2, but a member of a district board shall not be an employee of the district. The merger of two or more fire districts pursuant to section 48-820 or the consolidation with one or more fire districts pursuant to section 48-822 shall not expand the boundaries of an existing certificate of necessity unless authorized pursuant to title 36, chapter 21.1, article 2. 2. Construct, purchase, lease, lease-purchase or otherwise acquire the following or any interest in the following and, in connection with the construction or other acquisition, purchase, lease, lease-purchase or grant a lien on any or all of its present or future property, including: (a) Apparatus, water and rescue equipment, including ambulances and equipment related to any of the foregoing. (b) Land, buildings, equipment and furnishings to house equipment and personnel necessary or appropriate to carry out its purposes. 3. Lease, lease-purchase or grant a lien on any or all of its present or future property to pay amounts to the public safety personnel retirement system pursuant to section 38-843, pension prefunding plan investment accounts pursuant to section 35-314.04 and the Arizona employers' pension prefunding plan established by section 38-932 and to create reserves to supplement such payments as deemed necessary by the board. 4. Finance the acquisition of property as provided in this section and costs incurred in connection with the issuance of bonds as provided in section 48-806. Bonds shall not be issued without the consent of a majority of the electors of the district voting at an election held for that purpose. For the purposes of an election held under this paragraph, all persons who are eligible to vote in fire district elections under section 48-802 are eligible to vote. 5. Enforce the fire code adopted by the district, if any, and assist the office of the state fire marshal in the enforcement of fire protection standards of this state within the fire district including enforcement of a nationally recognized fire code if expressly authorized by the office of the state fire marshal. 6. After the approval of the qualified electors of the fire district voting at a regular district election or at a special election called for that purpose by the district board, as appropriate, or at any election held in the county that encompasses the fire district, adopt the _______ fire code, which is a nationally recognized fire code approved by the state fire marshal. The words appearing on the ballots shall be "should __________ fire district adopt the __________ fire code, which is a nationally recognized fire code approved by the state fire marshal--yes", "should ____________ fire district adopt the __________ fire code, which is a nationally recognized fire code approved by the office of the state fire marshal--no". The code shall be enforced by the county attorney in the same manner as any other law or ordinance of the county. Any inspection or enforcement costs are the responsibility of the fire district involved. The district shall keep the code on file, which shall be open to public inspection for a period of thirty days before any election for the purpose of adopting a fire code. Copies of the order of election shall be posted in three public places in the district at least twenty days before the date of the election, and if a newspaper is published in the county having a general circulation in the district, the order shall be published in the newspaper at least once a week during each of the three calendar weeks preceding the calendar week of the election. 7. Amend or revise the adopted fire code, including replacement of the adopted fire code with an alternative nationally recognized fire code, with the approval of the office of the state fire marshal and after a hearing held pursuant to posted and published notice as prescribed by section 48-805.02, subsection A. The district shall keep three copies of the adopted code, amendments and revisions on file for public inspection. 8. Enter into an agreement procuring the services of an organized private fire protection company or a fire department of a neighboring city, town, district or settlement without impairing the fire district's powers. 9. Contract with a city or town for fire protection services for all or part of the city or town area until the city or town elects to provide regular fire department services to the area. 10. Retain a certified public accountant to perform an annual audit of district books. 11. Retain private legal counsel. 12. Accept gifts, contributions, bequests and grants and comply with any requirements of those gifts, contributions, bequests and grants that are not inconsistent with this article. 13. Appropriate and expend annually monies as are necessary for the purpose of fire districts belonging to and paying dues in the Arizona fire district association and other professional affiliations or entities. 14. Adopt resolutions establishing fee schedules both within and outside of the jurisdictional boundaries of the district for providing fire protection services and services for the preservation of life, including emergency fire and emergency medical services, plan reviews, standby charges, fire cause determination, users' fees or facilities benefit assessments or any other fee schedule that may be required. 15. With the approval of two of the three members of a three-member board, four of the five members of a five-member board or five of the seven members of a seven-member board, change the district's name and on so doing shall give written notice to the board of supervisors of the change. The governing board of a fire district may place a question on the general election ballot as to whether the fire district shall change its name. 16. Require all employees to submit a full set of fingerprints as prescribed by subsection A, paragraph 3 of this section. 17. Enter into intergovernmental agreements or contracts as follows: (a) Enter into an intergovernmental agreement with another political subdivision for technical or administrative services or to provide fire services to the property owned by the political subdivision, including property that is outside the district boundary. (b) Enter into a contract with individuals to provide technical or administrative services. (c) Enter into a contract with individuals to provide fire protection services or emergency medical services, or both, to the extent not regulated by title 36, chapter 21.1 to property owned by the individual located outside the district boundaries if the individual's property is not located in a county island as defined in section 11-251.12 and at least one of the following apply: (i) The existing fire service provider where the individual's property is located has issued a notice to the individual that the provider plans to discontinue service. (ii) Fire service is not available to the individual's property. (iii) Fire service is offered pursuant to a contract or subscription and the individual has not obtained service for a period of twenty-four months before the date of the contract with the district. (d) Enter into a contract with individuals to provide fire services to property owned by the individual located outside the district boundaries, where the individual's property is located in a county island as defined in section 11-251.12, if both of the following apply: (i) The existing fire service provider where the individual's property is located has issued a notice to the residents of the county island and the individual that the provider plans to discontinue or substantially reduce service. (ii) The district offers contracts to all residents and property owners of the county island who will be affected by the discontinuance or substantial reduction in service by the current fire service provider. (e) For the purposes of subdivision (a), (b), (c) or (d) of this paragraph, a district may contract with any public or private fire service provider to provide some or all of the contractual services the district is contracting to deliver. (f) Any contract entered into pursuant to subdivisions (b), (c) and (d) of this paragraph shall include a provision setting forth the cost of service and performance criteria. 18. Sell or otherwise dispose of any real property, facilities or equipment if the district board determines the real property, facilities or equipment to be surplus as follows: (a) For the sale of real property, the board shall obtain an appraisal of the real property by an appraiser who is licensed or certified pursuant to title 32, chapter 36. The appraiser shall determine market value as defined in section 28-7091 for the real property. The board may not accept a bid for the purchase of the real property that is less than seventy-five percent of the appraised market value of the property except that if the property has no market value or a net value as defined in section 28-7095, subsection F of $10,000 or less, the board may value the property by using a market analysis that is based on comparable sales. (b) Notwithstanding subdivision (a) of this paragraph, the board may sell or lease any district property to any other duly constituted governmental entity, including this state, a city, town or county or any other political subdivision of this state, including a special taxing district, on any terms deemed to be advantageous to the fire district. The board may grant by unanimous consent an easement on district property for public purposes to a utility as defined in section 40-491. C. A fire district may not administratively add or annex additional property or delete property or otherwise modify its boundaries except in a merger or consolidation pursuant to this chapter or in a boundary change made pursuant to section 48-262. This subsection does not apply to a district organized pursuant to article 3 of this chapter. D. The chairperson and clerk of the district board or their respective designees, as applicable, shall draw warrants, substitute checks or electronic funds transfers on the county treasurer for money required to operate the district in accordance with the budget and, as so drawn, the warrants, substitute checks or electronic funds transfers shall be sufficient to authorize the county treasurer to pay from the fire district fund. E. For any fire district that designates one or more board members to have access to the financial books and records of the district, those board members are authorized by law to have full access to those financial books and records. F. The district board may assess and levy a secondary property tax pursuant to this article to pay for the costs of fire protection services or emergency medical services except for services regulated pursuant to title 36, chapter 21.1. G. The county attorney may advise and represent the district if in the county attorney's judgment the advice and representation are appropriate and not in conflict with the county attorney's duties under section 11-532. If the county attorney is unable to advise and represent the district due to a conflict of interest, the district may retain private legal counsel or may request the attorney general to represent it, or both. H. If a district's fire code requires the use of a fire watch, an employee who works at the building in which a fire watch is required may serve as the fire watch. A person who is designated as a fire watch shall be equipped with the means to contact the local fire department, and the person's only duty while keeping watch for fires shall be to perform constant patrols of the protected premises. The district shall provide the fire watch with printed instructions from the office of the state fire marshal and may provide a free training session before the person's deployment as the fire watch begins. I. For the purposes of this section, "fire watch" means a person who is stationed in a building or in a place relative to a building to observe the building and its openings when the fire protection system for the building is temporarily nonoperational or absent. 48-805.01. Separate legal entities; joint exercise of powers A. If public agencies identified in subsection B of this section form a separate legal entity pursuant to section 11-952, the entity has the powers common to the contracting powers specified in the agreement and may jointly exercise powers held in common by the contracting parties in a manner or according to the method provided in the agreement. Notwithstanding title 38, an officer or elected member of the governing body of a party to the agreement may also act in the capacity of a member of the governing body of the separate legal entity. In its own name and subject to the agreement, the separate legal entity, subject to existing applicable law, may: 1. Make and enter into contracts, including contracts, leases or other transactions with one or more of the parties to the agreement forming the separate legal entity. 2. Employ agents and employees. 3. Acquire, hold or dispose of property. 4. Acquire, construct, manage, maintain and operate buildings, works, infrastructure, apparatus, equipment and improvements. 5. Incur debts, liabilities and obligations. 6. Sue and be sued. 7. Require all current and prospective employees and volunteers to submit a full set of fingerprints to the joint powers authority, fire authority, fire and medical authority or fire and ambulance authority. The joint powers authority, fire authority, fire and medical authority or fire and ambulance authority shall submit the fingerprints to the department of public safety for the purpose of obtaining a state and federal criminal records check pursuant to section 41-1750 and Public Law 92-544. The department of public safety may exchange this fingerprint data with the federal bureau of investigation. B. Cities, towns, counties and fire districts established pursuant to this title may form a separate legal entity pursuant to section 11-952, for the purposes of jointly exercising powers held in common by the contracting parties. Common powers of the contracting parties when otherwise authorized pursuant to state law may include fire protection, the preservation of life, providing emergency medical services, and carrying out its other powers and duties, including providing ambulance transportation services when authorized to do so pursuant to title 36, chapter 21.1, article 2. Any separate legal entity formed pursuant to this section shall include a fire district. The intergovernmental agreement must state the intent to form a separate legal entity pursuant to this subsection. The governing body of a separate legal entity formed pursuant to this subsection shall be composed of officials elected to one or more of the governing bodies of the political subdivisions that are parties to the agreement, or their designees. A separate legal entity identified pursuant to this subsection: 1. Is a political subdivision of this state having: (a) The governmental and proprietary powers that are common to the contracting parties specified in the agreement and those powers provided for in section 11-952 and this section. (b) The rights and immunities of the parties that are granted by the constitution and statutes of this state, including immunity of its property from taxation. 2. May separately contract for an undertaking with any two or more of the parties or other public agencies or other entities. Limitations on the exercise of common powers shall be applicable only to the parties to the agreement participating in the undertaking. 3. May establish any governance and board structure necessary to carry out its powers and duties subject to the requirements of section 11-952 and this section. 4. If specified in the agreement, is the authority that has jurisdiction for the purpose of fire code administration and enforcement for the parties to the agreement. 5. Shall be provided a .gov identifier for the website used to carry out its powers and duties by the applicable governmental issuer. 6. In addition to other powers provided for in the agreement by a vote of its governing body, may incur obligations payable from the entity's revenues, to pay the costs and expenses of acquiring or constructing any structures, facilities or equipment necessary to effectuate the purposes of the agreement subject to the following conditions and requirements: (a) The parties to the agreement, with the approval of each participating entity's voters, may issue general obligation bonds for the purpose of funding the costs and expenses of acquiring or constructing any structures, facilities or equipment necessary to effectuate the purposes of the agreement. Each of the participating party's general obligation bonding authority is limited to that of each party's enabling legislation. (b) The general obligation bonds are payable from the taxes or assessments paid to, or to be levied or collected by, the entity or the political subdivisions that are parties to the agreement that forms the entity. (c) The general obligation bonds are limited to an amount as authorized by the qualified electors that are parties to the agreement and are subject to the requirements of sections 35-431 and 48-806. 7. May use the title fire authority, fire and medical authority, fire and emergency medical services authority, fire and ambulance authority or ambulance authority to identify the separate legal entity formed pursuant to this section. The titles prescribed in this paragraph may not be used in the name, title or designation of other state or local agencies, business entities or nonprofit organizations. C. For the purposes of subsection B of this section, "undertaking": 1. Means one or more of the following: (a) Purchasing, constructing, leasing or acquiring any real or personal property, works, apparatus, equipment or facilities that the political subdivisions that formed the entity are authorized by law to purchase, construct, lease or otherwise acquire. (b) Improving, reconstructing, extending or adding to any real or personal property, works, apparatus, equipment or facilities owned or operated by the entity. (c) Any program of development involving real or personal property, works, apparatus, equipment or facilities that the entity is authorized by law to purchase, construct, lease or otherwise acquire or the improvement, reconstruction, extension or addition to the program. (d) Providing fire protection, for the preservation of life, for providing emergency medical services and for carrying out its other powers and duties, including providing ambulance transportation services when authorized to do so pursuant to title 36, chapter 21.1, article 2 and purchasing, constructing, leasing or acquiring, or the extension or addition of, works, apparatus, equipment or facilities designed to serve areas or territories already being served by any of the parties to the agreement. 2. Does not include the acquisition by eminent domain of existing works or facilities of a political subdivision. D. The exercise of joint powers does not create any expansion of a certificate of necessity issued pursuant to title 36, chapter 21.1, article 2 or the operating rights as defined by the certificate of necessity held by one or more of the entities entering into a joint powers authority. The operating rights remain the same as those rights granted to the certificate of necessity holder at the date of the establishment of the joint powers authority unless modified pursuant to title 36, chapter 21.1, article 2. E. A fire district board that participates in an agreement to form a separate legal entity pursuant to this section: 1. Is not subject to the public meeting requirements provided in section 48-805. 2. Shall hold a public meeting at least once every ninety days or as necessary to carry out its powers and duties. 3. If a cumulative financial report review occurs at least once every ninety days, is considered compliant with section 48-807, subsection P, except that adverse financial impact reporting shall be reported as provided by section 48-807, subsection P. F. A municipality that participates in an agreement to form a separate legal entity pursuant to this section is not subject to a limit on the duration of the agreement. 48-805.02. Fire district annual budget; levy; requirements A. A fire district shall prepare an annual budget that contains detailed estimated expenditures for each fiscal year as prescribed by subsection D of this section. The proposed budget shall be posted in three public places and shall be posted in a prominent location on the district's official website for at least twenty days before a public hearing at a meeting called by the board to adopt the budget. Copies of the proposed budget shall also be available to members of the public on written request to the district. Following the public hearing, the district board shall adopt a budget. A complete copy of the adopted budget shall be posted in a prominent location on the district's official website within seven business days after final adoption and shall be retained on the website for at least sixty months. For any fire district that does not maintain an official website, the fire district shall comply with this subsection by posting on a website of an association of fire districts in this state. B. Not more than ten days after the organization of a fire district and not later than August 1 of each year after the organization, the chairperson of the district board shall submit to the county board of supervisors a budget estimate that contains certifications by item and that specifies the amount of monies required for the maintenance and operation of the district for the ensuing year as prescribed by subsection D of this section. C. Based on the budget submitted by the district, the board of supervisors shall levy the tax as prescribed in section 48-807, subsection F. D. Every budget adopted by a fire district shall include the annual estimate of revenues and expenses of the fire district for the preceding and current fiscal year fully itemized as prescribed on forms provided by the auditor general and shall include the following: 1. A certification by the chairperson and clerk of the district board as to both of the following: (a) That the district has not incurred any debt or liability in excess of taxes levied and to be collected and the monies actually available and unencumbered at that time in the district general fund, except for those liabilities as prescribed in section 48-805, subsection B, paragraphs 2 and 3 and sections 48-806 and 48-807. (b) That the district complies with subsection F of this section. 2. The estimated number of full-time employees. 3. The total estimated personnel compensation, which shall separately state the employee salaries and employee-related expenses for retirement costs and health care costs. 4. The amounts necessary to pay the interest and principal of outstanding bonds, as approved by the voters pursuant to section 48-806, the fire district proposes to raise by secondary property tax levies. 5. The amounts necessary to construct, purchase, lease and lease-purchase property of the district as authorized under section 48-805, subsection B. 6. An amount for unanticipated contingencies or emergencies. 7. The amounts that are estimated to be received from sources other than direct property taxes. 8. The amounts levied for fire district operations on the secondary property tax roll. 9. The amounts levied by the fire district assistance tax for distribution to the fire district. 10. A separate statement of the secondary property tax rate for fire district operations and the repayment of bonds. 11. Any amounts to procure services, including those of an organized private fire protection provider or a fire department of a neighboring city, town or fire district, or for emergency medical services. 12. Any amounts of all other services as authorized under section 48-805, as applicable. 13. The beginning fund balance, which shall reflect the restricted and unrestricted unencumbered balance from the preceding fiscal year. 14. For each of the items listed in the proposed budget approved pursuant to subsection A of this section, an estimate of the revenue or expense for the next two fiscal years. The district shall base the estimate on the average increase or decrease of the item for the previous two fiscal years unless more certain information is available to the district. Estimates shall include any applicable levy or rate limitations. 15. If a district's total estimate of expenses exceeds its total estimate of revenues for any fiscal year, a study of merger, consolidation or joint operating alternatives. The study required by this paragraph shall be presented to the fire district board in a special public meeting called for the sole purpose of evaluating the study. The study shall include an identification of districts available for merger, consolidation or joint operations and an analysis of the level of service and cost of service that may be provided to the residents of a merged, consolidated or jointly operated district as compared to the level and cost of service to the residents of the districts without any merger, consolidation or joint operations. E. For any district that amends its budget after its initial adoption, the district board shall hold a public hearing on the proposed revision of the budget. The proposed revised budget must be considered and adopted during a public meeting immediately following the public hearing on the proposal. The public hearing on the proposed revised budget may be held at a regularly scheduled public meeting of the board of directors of the district. A fire district that proposes to amend its budget after its initial adoption shall comply with the posting and hearing notice requirements prescribed in subsection A of this section. This subsection does not apply to a district organized pursuant to article 3 of this chapter. F. If a fire district has adopted a budget, the board of supervisors has levied a fire district tax as provided in subsection C of this section and the district has insufficient monies in its general fund with the county treasurer to operate the district, the chairperson of the fire district board of directors, on or after August 1 of each year, may draw warrants, substitute checks or electronic funds transfers for the purposes prescribed in section 48-805 on the county treasurer, payable on November 1 of that year or on April 1 of the succeeding year. The aggregate amounts of the warrants, substitute checks or electronic funds transfers may not exceed ninety percent of the taxes levied by the county for the district's current fiscal year. If the treasurer cannot pay a warrant, substitute check or electronic funds transfer for lack of monies in the fire district general fund, the warrant or substitute check shall be endorsed and registered, or the electronic funds transfer shall be recorded, and the warrant, substitute check or electronic funds transfer shall bear interest and be redeemed as provided by law for county warrants, substitute checks or electronic funds transfers, except that the warrants, substitute checks or electronic funds transfers are payable only from the fire district general fund. G. Any audit, report or review of a fire district made pursuant to section 48-253 shall be presented to the district board by the auditor telephonically or in another live electronic format during a public meeting of the board or, as directed by the board, in person at a public meeting of the board. The district board shall take formal action at the public meeting to review and receive the audit, report or review. The audit, report or review shall be posted in a prominent location on the district's website. For any fire district that does not maintain an official website, the fire district shall comply with this subsection by posting the audit, report or review on a website of an association of fire districts in this state. The audit, report or review shall include an attestation by the auditor of the district as to all of the following: 1. That the district has not incurred any debt or liability in excess of taxes levied and to be collected and the monies actually available and unencumbered at that time in the district general fund, except for those liabilities as prescribed in section 48-805, subsection B, paragraphs 2 and 3 and sections 48-806 and 48-807. 2. That the district complies with subsection F of this section. 3. Whether the audit, report or review disclosed any information contrary to the certification made as prescribed by subsection D, paragraph 1 of this section. 48-805.03. Employment of relatives; violation; classification A. It is unlawful for an elected or appointed officer or employee of a fire district to do any of the following: 1. Appoint or vote for appointment of any person who is related to that officer or employee by affinity or consanguinity within the third degree to any clerkship, office, position, employment or duty in any department of that fire district when the salary, wages or compensation of that appointee is to be paid from public monies or fees. 2. Appoint, vote for or agree to appoint or to work for, suggest, arrange or be a party to the appointment of any person in consideration of the appointment of a person who is related to that officer or employee within the degree prescribed by this section. B. An employee of a fire district or the spouse of an employee of a fire district may not hold membership on the governing board of the fire district that employs that employee. C. This section does not apply to a fire district formed pursuant to article 3 of this chapter. D. A person who violates this section is guilty of a class 2 misdemeanor. 48-806. Bond election; issuance and sale of bonds; security A. Except for a district formed pursuant to section 48-851, the district board may order an election by the qualified electors of the district to be held pursuant to title 16, chapter 2, article 1 to determine whether bonds shall be issued on behalf of the district. The order shall specify the maximum principal amount of bonds to be issued, which shall not exceed one hundred and twenty percent of the district's statutory debt limitation when combined with the district's current outstanding general obligation debt amount, the minimum and maximum number of years bonds of any issue or series may run from their date not exceeding thirty years, the purpose for which the bonds are to be issued, the maximum rate of interest that the bonds are to bear, the current outstanding general obligation debt amount, the statutory debt limitation of the district, the date and hours of the election and the location of the polling places. Copies of the order shall be posted in three public places within the district not less than twenty days before the date of the election, and if a newspaper is published within the county having a general circulation within the district, the order shall be published in the newspaper not less than once a week during each of the three calendar weeks preceding the calendar week of the election. B. A district board formed pursuant to section 48-851 shall not order an election for or issue bonds under this section. C. Instead of publishing the notice described in subsection A of this section, the board of directors may mail a notice of election to each household containing a qualified elector of the district. The notice shall contain the same information described in subsection A of this section except that the notice shall not contain the location of all the polling places for that election. The notice shall contain the location of the polling place for that household's qualified electors. The notice shall be mailed at least thirty-five days before the election. D. At the election the ballot shall contain the phrases "for the bonds" and "against the bonds". There shall be placed a square or other designated marking space in the same manner as used for candidates on ballots. The voter shall indicate a vote "for the bonds" or "against the bonds". No other question, word or figure need be printed on the ballot. The ballot need not be any particular size, nor need sample ballots be printed, posted or distributed but ballots shall comply with standards otherwise provided by law, including requirements for electronic voting, if applicable. E. If a majority of the qualified electors of the district voting at the election approves the issuance of bonds, the district board may issue bonds in an aggregate principal amount not exceeding the lesser of six percent of the value of the taxable property in the district as shown on the last property tax assessment roll before issuing the bonds or the maximum amount specified in the election order. F. Bonds may be in such denominations, may be in registered or bearer form either as to principal or interest, or both, may mature at such times not exceeding the maximum maturity specified in the election order and may be subject to redemption before maturity, all as specified by the district board as provided in subsection E of this section. The district may engage the services of a depository to administer a book entry system for the bonds. The costs and expenses of such depository and any registrar or paying agent for the bonds shall be deemed to be interest expenses that may also be paid from the tax levy made pursuant to subsection I or J of this section. G. Bonds shall be executed by the manual or facsimile signatures of the chairperson and clerk of the district board. Coupons attached to the bonds shall bear the facsimile signature of the chairperson of the district board. H. The district board may sell the bonds at public or private sale or through an online bidding process. In addition, the district board may negotiate loan agreements or loan repayment agreements with the greater Arizona development authority in lieu of selling bonds where authority to sell bonds has been granted by the district's voters. The proceeds of sale on the bonds shall be deposited in an account of the fire district fund to be known as the capital fund to be applied for the purpose for which the bonds were issued. I. After the bonds are issued, the district board shall enter on the district's minutes a record of the bonds sold and shall annually determine the amount of the tax levy to pay the bonds and certify such amount to the board of supervisors of the county. The board of supervisors shall annually cause to be levied and collected a tax, at the same time and in the same manner as other taxes are levied and collected on all taxable property in the district, sufficient to pay the principal of and interest on the bonds as they become due and payable. Monies derived from the levy of the tax when collected shall be deposited in the debt service fund and shall be applied only to payment of the principal of and interest on the bonds. On payment of the outstanding bonded indebtedness of the district, any monies remaining in the debt service fund shall be used to reduce the district's property tax levy in the next fiscal year. Amounts levied for debt service on bonds issued pursuant to this section 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. J. If a district with outstanding bonded indebtedness is merged pursuant to section 48-820 or consolidated pursuant to section 48-823, the indebtedness shall not be assumed by all of the resulting district and shall be deemed an ongoing indebtedness of only that portion of the resulting district that originally approved the bonds for the purposes of subsection E of this section. In order to pay the principal of and interest on the bonds as they become due and payable, the board of supervisors shall annually cause to be levied and collected a tax on the taxable property of only that portion of the resulting district that approved the bonds as determined on the date of the merger or consolidation of the district and may not levy taxes on the remainder of the taxable property of the newly merged or consolidated district. K. All bonds, heretofore and hereafter issued, are secured by a lien on all revenues received pursuant to the tax levy made pursuant to subsection I or J of this section. The lien arises automatically without the need for any action or authorization by the district or the district's governing board. The lien is valid and binding from the time of the issuance of the bonds. The revenues received pursuant to the levy of the tax made pursuant to subsection I or J of this section 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. 48-807. County fire district assistance tax; annual budget; override; monthly financial reports A. The board of supervisors of a county shall levy, at the time of levying other property taxes, a county fire district assistance tax on the taxable property in the county of not more than $.10 per $100 of assessed valuation. The tax levy provided for in this subsection shall be a levy of secondary property taxes and shall not be subject to title 42, chapter 17, article 2. The county treasurer shall pay to each fire district, including a fire district formed pursuant to section 48-851, in the county from the proceeds of the tax an amount equal to twenty percent of the property tax levy adopted by the district for the fiscal year in which the tax will be levied, except that: 1. The amount of assistance from the county to a fire district shall be reduced as follows: (a) Through the fiscal year that ends June 30, 2012, by the dollar amount that the fire district receives from the fire district assistance tax that exceeds $300,000 from and after June 30 of each fiscal year. (b) Beginning with the fiscal year that starts July 1, 2012, by the dollar amount that the fire district receives from the fire district assistance tax that exceeds $400,000 from and after June 30 of each fiscal year, without regard to whether the district is located in more than one county. (c) Except as provided in paragraph 2 of this subsection, if the total amount to be paid to all districts in the county under this paragraph exceeds the amount to be raised by the levy of $.10 per $100 assessed valuation, then the county treasurer shall pay an amount less than twenty percent of the property tax levy of each district. The amount to be paid by the county treasurer to each district shall be determined by multiplying the proceeds of the county fire district assistance tax against the proportion that twenty percent of the property tax levy of each district bears to the total of twenty percent of the property tax levies of all fire districts in the county. 2. For fiscal years beginning from and after July 1, 1992, the amount of assistance from the county to a fire district shall not be less than the assistance provided from and after June 30, 1991 through June 30, 1992, if, for the fiscal year in which the tax will be levied, the district levies a tax, in addition to any tax levied under section 48-806, of $3 per $100 of assessed valuation and the assessed valuation is at least ninety percent of the assessed valuation for the 1991 tax year. This paragraph does not apply to fire districts subject to paragraph 1, subdivision (a) or (b) of this subsection. B. For the purpose of subsection A of this section, the property tax levy of the fire district shall include in lieu contributions pursuant to chapter 1, article 8 of this title but shall not include property tax levies to be applied to the pay