Arizona Revised Statutes § 48-3779 Annual Membership Dues

48-3779. Annual membership dues

A. On or before the third Monday of August of each year beginning in 2011, the district may charge annual membership dues on all parcels of member lands and on all municipal providers having a member service area.

B. The annual membership dues shall be established annually by the district. The district shall use revenues from the annual membership dues, together with revenues from other revenue sources that are legally available to the district for those uses, solely to pay costs associated with the acquisition, lease or exchange of water or water rights and development of infrastructure necessary for the district to perform its replenishment obligations, including the payment of debt service expenses, and necessary reserves and coverage requirements, on bonds issued for replenishment purposes.

C. For any year in which the district has, or expects to have, any revenue bonds outstanding that were issued for replenishment purposes pursuant to section 48-3772, subsection B, paragraph 13, the annual membership dues shall be established in an amount determined by the district to be sufficient to provide, with other revenues legally available to the district for those purposes, and taking into account the requirements of section 48-3772, subsection A, paragraph 8, for the payment of all debt service expenses, including necessary reserves and coverage requirements with respect to the bonds.

D. When the district has determined the amount of revenues to be raised through the annual membership dues, the district shall allocate the amount to be raised between member lands and member service areas prorated on the basis of the following two volumes:

1. Total current and projected annual replenishment obligation of all member lands as identified in the most recent plan of operation determined by the director of water resources to be consistent with achieving the management goal for the active management areas pursuant to section 45-576.03, subsection M, O or R.

2. Total planned annual service area replenishment obligations for all member service areas. The planned annual service area replenishment obligation for a member service area is the lesser of:

(a) The annual service area replenishment obligation, as determined by the district, associated with the current and committed water demands projected within the member service area as of December 31 of the year following the year in which the district is required to submit its next plan under section 45-576.02, subsection C.

(b) The maximum amount of excess groundwater that may be reported to the district as delivered by the municipal provider within the member service area in any year as established in an agreement executed between the municipal provider and the district.

E. The total amount allocated to member lands in any year, as calculated pursuant to subsection D of this section, shall be prorated among the Phoenix, Pinal and Tucson active management areas based on the current and projected annual replenishment obligation of all member lands in that active management area as identified in the most recent plan of operation determined by the director of water resources to be consistent with achieving the management goal for the active management area pursuant to section 45-576.03, subsection M, O or R. The prorated amount within each active management area shall be further prorated among all parcels of member land located within that active management area based on a uniform fee per lot levied against the total number of residential, commercial and common area lots included, or intended to be included, in each parcel of member land. These dues are a lien on each parcel of member land and shall be certified, collected and enforced with respect to member land in the same manner as the annual assessment pursuant to section 48-3778. However, any parcel of member land that is included in the service area of a municipal provider that has been designated as having an assured water supply under section 45-576 is not subject to the annual membership dues.

F. The total amount allocated to member service areas in any year, as calculated pursuant to subsection D of this section, shall be prorated among all member service areas based on a uniform fee per acre-foot levied against the member service area's dues volume. The dues volume for a member service area is the greater of:

1. The planned annual service area replenishment obligation as established pursuant to subsection D, paragraph 2 of this section for the member service area.

2. Five per cent of the service area's annual estimated water demand to be satisfied with excess groundwater as identified in the service area's most recent designation order issued by the director of water resources. If the service area's most recent designation order issued by the director of water resources does not identify the annual estimated water demand to be satisfied with excess groundwater, the service area's annual estimated water demand to be satisfied with excess groundwater shall be calculated consistent with the rules adopted by the director pursuant to section 45-576, subsection H.

G. Except in the first full year following the year in which the director makes a determination that the district's most recent plan of operation is consistent with achieving the management goals of the active management areas pursuant to section 45-576.03, subsection M, for any year in which the dues volume for a member service area, as determined pursuant to subsection F of this section, exceeds the previous year's dues volume for the member service area, a makeup charge shall be added to the annual membership dues allocated under subsection F of this section to the member service area. The makeup charge shall become part of the member service area's annual membership dues for that year and is the sum of:

1. The difference between the current year's dues volume and the previous year's dues volume, in acre-feet, multiplied by the sum of the uniform fees per acre-foot established pursuant to subsection F of this section for each year since the later of:

(a) The first full year following the year of the director's determination that the district's most recent plan of operation is consistent with achieving the management goals of the active management areas pursuant to section 45-576.03, subsection M.

(b) The year in which the service area qualified as a member service area pursuant to section 48-3780.

2. Interest on the amount established in paragraph 1 of this subsection calculated at an interest rate determined by the district.

3. The amounts established in paragraphs 1 and 2 of this subsection multiplied by ten per cent.

H. The annual membership dues become an obligation of each municipal provider that has a member service area and shall be stated, collected and enforced with respect to the municipal provider in the same manner as the annual replenishment tax pursuant to sections 48-3781 and 48-3782.

I. Annual membership dues collected by the district shall be deposited in a special fund established by the state to be spent by the district only for the purposes authorized by this article, including:

1. The payment of debt service expenses and funding reserves for bonds issued for replenishment purposes.

2. The payment of the costs of acquiring, leasing or exchanging water or water rights and development of infrastructure necessary for the district to perform its replenishment obligations.

J. Amounts collected may be transferred to a bank or trust company to be held in trust and spent with respect to bonds issued for replenishment purposes.

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Last modified: October 13, 2016