48-2011.01. Wastewater treatment facility and nonpoint source projects; financial assistance loan repayment agreements; definition

A. Notwithstanding any other law, a sanitary district 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 sanitary 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, including a special assessment on a designated area that is levied and collected pursuant to article 2 of this chapter.

C. The board of directors shall submit the question of entering and performing a financial assistance loan repayment agreement to the qualified electors in the district. Elections under this subsection must be held on the first Tuesday following the first Monday in November as prescribed by section 16-204, subsection B, paragraph 1, subdivision (d). An election is not required if the financial assistance provided by the water infrastructure finance authority of Arizona is for the purpose of planning and designing the purchase of or an improvement to the system or if voter approval has previously been obtained for substantially the same project with another funding source or if the project is constructed with an assessment levied against a designated area pursuant to article 2 of this chapter. If a majority of the qualified electors voting on the question:

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

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

D. 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 sanitary district's proportionate share of the expenses of administering the clean water revolving fund established by section 49-1221 and may provide that the sanitary district 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. Districts 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 sanitary 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 sanitary 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 sanitary district may employ or contract for the services of 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. Charges for these services may be included in the assessment amounts pledged to repay the loan.

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

H. Any financial assistance loan repayment agreement between the district and the water infrastructure finance authority of Arizona may be secured by unpaid assessments certified in the manner prescribed by section 48-2067. The financial assistance loan repayment agreement may provide for different due dates for annual installments of principal, different interest payment dates, different dates of delinquency and different dates for holding sales of delinquent properties than otherwise provided for in article 2 of this chapter. The financial assistance loan repayment agreement may also provide for mailed notice to property owners in lieu of the publication requirement prescribed by sections 48-2068 and 48-2069.

I. 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.

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