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ARIZONA STATE SENATE
Fifty-Fourth Legislature, First Regular Session
fire districts; financial reports; alternatives
Purpose
Requires fire districts that are likely to experience adverse impacts to ongoing operations or liquidity to study merger, consolidation or joint operating alternatives.
Background
A fire district is required to produce financial reports each month and annual cash flow projection reports each fiscal year, to be updated monthly with the actual revenues and expenditures from the preceding month. A fire district board (board) must review the reports every month, although fire districts with a three-member board may review them every two months. If a report indicates an adverse impact on the ongoing operations or liquidity of the fire district, then the chairperson of the board must report the fire district to the county treasurer and the county Board of Supervisors within 10 days after the discovery (A.R.S. § 48-807). This reporting requirement can be triggered if the fire district is likely to incur debt or liabilities greater than taxes levied and monies actually available, or if the aggregate amount of warrants, substitute checks or electronic funds transfers drawn to operate the fire district exceeds 90 percent of the taxes levied by the county (A.R.S. § 48-805.02).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Requires a fire district that is reported as likely to experience adverse impacts to ongoing operations or liquidity to complete a study of merger, consolidation or joint operating alternatives (study) within 60 days after submittal of the report.
2. Requires the fire district to hold a special public meeting to present the findings of the study.
3. Requires the chairperson of the board to submit the findings of the study to the county treasurer and county Board of Supervisors within five days after the special public meeting.
4. Makes technical and conforming changes.
5. Becomes effective on the general effective date.
Prepared by Senate Research
February 4, 2019
CS/LC/kja