48-3779

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.