Arizona Revised Statutes § 48-3713.01 Additional Authority And Limitations Regarding Water Storage

48-3713.01. Additional authority and limitations regarding water storage

A. Except for water storage undertaken for replenishment purposes pursuant to article 4 of this chapter and water storage undertaken in cooperation with the Arizona water banking authority pursuant to title 45, chapter 14, water storage undertaken by the district pursuant to section 48-3713, subsection B, paragraph 5 shall be limited to that which benefits holders of central Arizona project water services subcontracts.

B. The charges to be assessed to the purchasers of water recovered pursuant to title 45, chapter 3.1 shall include the cost of acquiring, developing, constructing, operating and maintaining the water storage.

C. The revenues obtained pursuant to subsection B of this section shall be placed into a separate account by the district. Revenues shall be used to offset the levy of the district pursuant to section 48-3715 on a schedule adopted by the district to the extent that revenues from levies made pursuant to section 48-3715 were used to acquire, develop, construct, operate or maintain the water storage.

D. Water storage of central Arizona project water by the district pursuant to this section is limited to water which would otherwise not be delivered to central Arizona project subcontractors for direct use.

E. In connection with the development and operation of water storage, the district may acquire outside of an active management area by purchase, donation, dedication, exchange or other lawful means, except by eminent domain, authority to recover stored water pursuant to title 45, chapter 3.1.

F. The district may enter into an intergovernmental agreement, pursuant to title 11, chapter 7, article 3, with the county in which any property, or interest in property, acquired under this section is located to require the district to pay to the county contributions in lieu of taxes on the property, or interest in property. The amount of the contribution shall be determined according to the procedures in title 42, chapter 15, article 6. If the district and the county have entered into such an intergovernmental agreement, the property, or interest in property, acquired under this subsection is deemed to be taxable property in the county only for purposes of determining the county's levy limit under section 42-17051 and the distribution of state transaction privilege tax revenues to the counties under section 42-5029, subsection D, paragraph 3, subdivision (a), item (i).

G. The district may expend any money received to pay any cost of acquisition, development, construction, operation and maintenance for water storage, storage facilities and recovery wells authorized pursuant to this section from sources including district taxes, bond proceeds from bonds authorized pursuant to section 48-3713, subsection B, paragraph 5 and municipal and industrial water service contract revenues not otherwise pledged to other obligations of the district.

H. The board may authorize, issue and sell negotiable revenue bonds to provide monies to acquire, develop, construct, operate and maintain by purchase or lease any water storage, storage facilities and recovery wells authorized by section 48-3713, subsection B, paragraph 5. The bonds may be in one or more series and may be secured by revenues received pursuant to the contracts authorized by this section or section 48-3713.02. The district shall not have outstanding at any one time bonds issued pursuant to this section having an aggregate par value in excess of thirty-five million net of original use discount and any reserve and sinking funds securing said bonds. The bonds may have different dates, be payable in a medium and at different places, have reserve or sinking funds, carry registration privileges, bear a rate or rates of interest which may vary from time to time, but which shall not exceed twelve per cent per annum, contain terms, covenants and conditions, be in a form, be executed in a manner and sold at prices as the board may prescribe. The issuer may assign its interest in any or all revenues, contracts and reserve or sinking funds securing any bonds to a bank or trust company doing business in this state that shall act as indenture trustee. The resolution of the board or the trust indenture authorizing the issuance of the bonds may contain such covenants, conditions and provisions as the board deems necessary to secure the bonds. The board is also authorized to purchase credit or liquidity enhancement and to expend bond proceeds or contract revenues to aid such purchase. The board is authorized, in its discretion, to employ such consultants, experts or agents and to expend bond proceeds or contract revenues to pay any and all fees and expenses of bond issuance and administration.

I. Bonds issued under the provisions of this section shall be legal investments for all banks, trust companies and insurance companies organized and operating under the laws of this state. The bonds and interest thereon shall be paid solely in accordance with their terms and shall not be obligations general, special or otherwise of this state or any political subdivision other than the issuer. The issuer shall not in any event be liable for the payment of the principal of or interest on the bonds from any source of revenues other than those pledged for the payment of the bonds. The holder of the bonds shall never have the right to compel any exercise of the taxing power of the state, any political subdivision thereof or the issuer to provide for payment of the bonds or to pay any claim arising of any nature with respect to the issuance or sale of the bonds. The bonds shall never be construed to constitute an indebtedness of the issuer within the meaning of any constitutional or statutory debt or spending limitations.

Section: Previous  48-3707  48-3708  48-3709  48-3710  48-3711  48-3712  48-3713  48-3713.01  48-3713.02  48-3713.03  48-3714  48-3715  48-3715.01  48-3715.02  48-3715.03  Next

Last modified: October 13, 2016