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9-101.02. Alternate method of incorporation for certain areas; definition

A. As an alternate procedure for incorporation, any unincorporated community containing a population of seventy-five hundred persons or more, if such community includes all of the territory of a district organized under title 48, chapter 19, which itself includes all of the territory of a district organized under title 48, chapter 14, may incorporate as a city or town if each of the following events occurs:

1. At least twenty per cent of the qualified electors of the community petition the board of supervisors, setting forth the metes and bounds of the community, the name proposed for such city or town, praying for the incorporation of the community into a city or town and praying for the calling of an election for the purpose of deciding the question of whether to incorporate. The board shall within sixty days after filing the petition call the election, and the election shall take place on a date prescribed by section 16-204 but not more than one hundred eighty days after the petition is filed, except that no such election shall be called within twelve months from the date of a previous election for incorporation of substantially the same territory. Only qualified electors of the community shall vote on the question. If a majority of qualified electors voting thereon votes for incorporation, then the board of supervisors shall, by an order entered of record, declare the community incorporated as a city or town, if the provisions of paragraph 2 of this subsection are complied with.

2. When, on the basis of a sufficient petition therefor under paragraph 1 of this subsection, an election is required upon the question of incorporation the board of supervisors shall also call, at the same time as the incorporation election is called, separate elections among the qualified electors of each of such districts on the question of ultimate dissolution of the district. For the purposes of such elections, a qualified elector of a district shall be a person who is qualified to vote at the incorporation election called pursuant to paragraph 1 of this subsection and who resides within the district, and shall not be required to meet any additional qualifications. If a majority of the qualified electors of each district voting on the question approves it, each district shall be dissolved at the time and as otherwise provided in title 48, chapter 14 and chapter 19, respectively. Pending dissolution, the administration of district affairs shall vest in trust in the governing body of the city or town created pursuant to the election conducted under paragraph 1. Members of the governing body of such city or town are trustees of the districts for all purposes of such districts and as such have the powers and duties prescribed for the boards of directors of the districts organized pursuant to title 48, chapters 14 and 19. Such trustees may, without limitation, except as provided by law and within this section, operate the facilities of the district, may cause the levy of district taxes and assessments to pay debts and operating charges of the district and may issue and sell bonds previously authorized for improvements prior to dissolution of the district. Indebtedness and obligations of or issued by or on behalf of such districts shall not thereby become indebtedness or obligations of such city or town, except that such city or town shall be responsible as trustees to insure that all obligations and debts of the district shall be paid when due from funds available to the trustees from the district. Until dissolution, nothing shall be deemed to preclude such a district from otherwise continuing to carry on its activities and transacting its business, or from entering into contracts and agreements otherwise authorized with such city or town, or from transferring streets and other property to such city or town. At elections conducted after incorporation in districts to which this section applies the electors shall be qualified electors of the city or town who reside within the district, shall be fully qualified to vote in a city or town election were one conducted at the same time, and shall not be required to meet any additional qualifications.

B. Members of the boards of directors of the districts, if the terms of such members have not expired, shall serve as an advisory board to the trustees until expiration of the terms or earlier vacancy, and thereafter the office shall be deemed abolished.

C. If the qualified electors voting in the election conducted pursuant to subsection A, paragraph 1 of this section fail to approve incorporation or if the qualified electors voting in either of the elections conducted pursuant to subsection A, paragraph 2 of this section fail to approve dissolution, the community shall not at that time become an incorporated city or town.

D. If incorporation is accomplished pursuant to this section, the order of the board of supervisors shall designate the name of the city or town and its metes and bounds, and thereafter the inhabitants within the area so defined shall be a body politic and corporate by the name designated.

E. An area to be incorporated shall not include large areas of uninhabited, rural or farm lands, but it shall be urban in nature.

F. Prior to the beginning of the first full fiscal year in which a city that is incorporated under this section assumes the financial responsibility for a dissolved special taxing district or districts formerly within the city's boundaries, the economic estimates commission, pursuant to section 41-563, shall add to the city's 1979-1980 base limit, for purposes of determining its expenditure limitation pursuant to article IX, Constitution of Arizona, the actual expenditures of the district or districts for fiscal year 1979-1980 as set forth in an audit by a certified public accountant done for fiscal year 1979-1980. For purposes of making the adjustment to the city's expenditure limitation pursuant to this subsection, notice shall be provided by a city to the economic estimates commission no later than January 1 prior to the beginning of the fiscal year in which a city proposes to assume the responsibility for a dissolved district.

G. For the purposes of this section, "community" means a locality in which a body of people resides in more or less proximity having common interests in such services as public health, public protection, fire protection and water which bind together the people of the area and where the people are acquainted and mingle in business, social, educational and recreational activities.