48-708
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48-708. Formation; debt limitation A. If the formation of the district is approved by a majority of the votes cast at the election, the governing body shall order the formation, appoint the initial directors of the district board if the district will be governed by an appointed board, set the district boundaries and order that a map showing the district boundaries be drawn and a copy of the order forming the district be delivered to the county assessor and the board of supervisors of the county in which the district is located and to the department of revenue. A notice of the formation showing the number and date of the order and giving a description of the land included in the district shall be recorded with the county recorder. B. On its formation, the district is a special purpose district for 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 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 the municipality or county. Under no circumstances may the amount of indebtedness evidenced by general obligation bonds issued pursuant to section 48-719 and revenue bonds issued pursuant to section 48-720 exceed the estimated cost of the public infrastructure improvements plus all costs connected with the public infrastructure purposes and issuance and sale of bonds, including, without limitation, credit enhancement and liquidity support fees and costs. The total aggregate outstanding amount of bonds and any other indebtedness for which the full faith and credit of the district are pledged shall not exceed sixty per cent of the aggregate of the estimated market value of the real property and improvements in the district after the public infrastructure of the district is completed plus the value of the public infrastructure owned or to be acquired by the district with the proceeds of the bonds. C. On formation of the district, the district board shall administer, in a reasonable manner, the implementation of the general plan for the public infrastructure of the district and any development agreement entered into pursuant to section 9-500.05 between the governing body and owners of land in the district. The district board shall be considered a party to that agreement. D. Fees and other charges assessed by a municipality or county in connection with the submission and consideration of an application or petition to form a district, or by a municipality, county or district in connection with the administration of a district, including the issuance and sale of bonds, shall not exceed the estimated actual expense incurred by the municipality, county or district for staff and consultant services and support facilities supplied by the municipality, county or district or the financial, legal and administrative costs of the district that are not reimbursed from proceeds of the bonds or other district revenue. |