11-671

11-671. Financing wastewater treatment
facilities and nonpoint source projects; financial assistance loan
repayment agreements; definition

A. Notwithstanding any other law, a county authorized to operate a sewage system
pursuant to section 11-264 may construct or improve a wastewater treatment facility or
nonpoint source project with monies borrowed from or financial assistance provided by the
water infrastructure finance authority of Arizona.

B. To repay financial assistance from the water infrastructure finance authority of
Arizona a county may enter into a financial assistance loan repayment agreement with the
authority. A financial assistance loan repayment agreement is payable from any revenues
otherwise authorized by law to be used to pay long-term obligations. If revenue from a
property tax assessment is the designated source of repayment under the agreement, the
property tax assessed and levied is a secondary property tax levy for purposes of article
IX, Constitution of Arizona.

C. The county board of supervisors shall submit the question of entering and
performing a financial assistance loan repayment agreement to the qualified electors
voting at a regular or special general election in the county, except that if revenue
from a secondary property tax levy is the designated source of repayment or if the
project is constructed with an improvement district, the question shall be submitted to
the qualified electors at an election held on the first Tuesday following the first
Monday in November. Otherwise, an election is not required if voter approval has
previously been obtained for substantially the same project with another funding
source. If a majority of the qualified electors voting on the question:

1. Approves, the board of supervisors may execute, deliver and perform the
financial assistance loan repayment agreement.

2. Disapproves, the board of supervisors shall not execute a financial assistance
loan repayment agreement.

D. Payments made pursuant to a financial assistance loan repayment agreement are
not subject to section 42-17106.

E. A financial assistance loan repayment agreement entered into pursuant to this
section shall contain the covenants and conditions pertaining to the construction of a
wastewater treatment facility or nonpoint source project and repayment of the loan as the
water infrastructure finance authority of Arizona deems proper. Financial assistance loan
repayment agreements may provide for the payment of interest on the unpaid principal
balance of such agreement at the rates established in the agreement. The agreement may
also provide for payment of the county's proportionate share of the expenses of
administering the clean water revolving fund established by section 49-1221 and may
provide that the county pay financing and loan administration fees approved by the water
infrastructure finance authority. These costs may be included in the levy or assessment
amounts pledged to repay the financial assistance. Counties are bound by and shall fully
perform the loan repayment agreements, and the agreements are incontestable after the
loan is funded by the water infrastructure finance authority of Arizona. The county shall
also agree to pay the authority's costs in issuing bonds or otherwise borrowing to fund a
loan.

F. A financial assistance loan repayment agreement under this section does not
create a debt of the county, and the authority shall not require that payment of a
financial assistance loan agreement be made from other than those sources permitted in
subsection B of this section.

G. A county may employ attorneys, accountants, financial consultants and such other
experts in their field as deemed necessary to perform services with respect to the
financial assistance loan repayment agreement.

H. This section is supplemental and alternative to any other law under which a
county may borrow money or issue bonds. This section shall not be construed as the
exclusive authorization to enter into loan agreements with the authority.

I. A county may borrow additional monies or enter into additional financial
assistance loan repayment agreements with the water infrastructure finance authority in
an amount up to the amount approved by the voters pursuant to subsection C of this
section less the amount that the county is already obligated to repay to the water
infrastructure finance authority pursuant to a financial assistance loan repayment
agreement.

J. For purposes of this section, "nonpoint source project" has the same meaning as
prescribed in section 49-1201.