48-1019. Drinking water facility and wastewater facility projects; financial assistance loan repayment agreements; definition

A. Notwithstanding any other law, a domestic water or wastewater improvement district may construct, acquire, or improve a drinking water, wastewater or water reclamation facility with monies borrowed from or financial assistance, including forgivable principal, provided by the water infrastructure finance authority of Arizona pursuant to title 49, chapter 8.

B. To repay financial assistance from the authority a district 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.

C. For a district with a population of more than fifty thousand persons, the board of directors of the district shall submit the question of entering and performing a financial assistance loan repayment agreement to the qualified electors voting at a regular or special election in the district. An election is not required if voter approval has previously been obtained for substantially the same project with another funding source. For a district with a population of fifty thousand persons or less, the board may enter into the financial assistance loan repayment agreement on the approval of the board and an election is not required.

D. A financial assistance loan repayment agreement entered into pursuant to this section shall contain the covenants and conditions pertaining to the construction, acquisition or improvement of a drinking water, wastewater or water reclamation facility and repayment of the loan as the authority deems proper. Financial assistance loan repayment agreements may provide for the payment of interest on the unpaid principal balance of the agreement at the rates established in the agreement. The agreement may also provide for payment of the domestic water or wastewater improvement district's proportionate share of the expenses of administering the drinking water revolving fund established by sections 49-1221 and 49-1241 and may provide that the domestic water or wastewater improvement district pay financing and loan administration fees approved by the authority. These costs may be included in the assessment or revenue amounts pledged to repay the loan. Districts are bound by and shall fully perform the loan repayment agreements, and the agreements are incontestable after the loan is funded by the authority. The domestic water improvement district shall also agree to pay the authority's costs in issuing bonds or otherwise borrowing to fund a loan.

E. A financial assistance loan repayment agreement under this section does not create a debt of the domestic water or wastewater improvement district, and the authority shall not require that payment of a loan agreement be made from other than those sources permitted in subsection B of this section.

F. A domestic water or wastewater improvement district may employ or contract for the services of attorneys, accountants, financial consultants and other experts in their field as deemed necessary to perform services with respect to the financial assistance loan repayment agreement.

G. This section is supplemental and alternative to any other law under which a district may borrow money or issue bonds. This section shall be construed as the exclusive authorization to enter into loan agreements with the authority.

H. A district 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 pursuant to subsection C of this section less the amount that the district is obligated to repay to the water infrastructure finance authority pursuant to a financial assistance loan repayment agreement.

I. For the purposes of this section " authority" means the water infrastructure finance authority of Arizona.