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ARIZONA HOUSE OF REPRESENTATIVESFifty-fourth Legislature Second Regular Session |
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HB 2787: water; augmentation authority; special districts
Sponsor: Representative Shope, LD 8
Committee on Natural Resources, Energy & Water
Overview
Requires a county water augmentation authority (Authority) to charge a voluntary assessment on certain lands within its active management area (AMA) and allows county improvement districts to undertake water supply development.
History
Authority
The Authority coordinates with state agencies, special districts, and other governmental entities on augmenting water supplies in Pinal County (A.R.S. §§ 45-1902(A) and 45-1941). It can plan, construct, operate and maintain water augmentation projects such as recharge and underground storage and recovery projects (A.R.S. § 45-1943). Additionally, it can sell, lease, exchange, hold, sever, transfer and retire water rights (A.R.S. § 45-1945). The Authority is governed by a board of directors whose member represent citizens, municipal governing bodies, irrigation and drainage districts and water companies of located in the Pinal County (A.R.S. § 45-1921).
The Authority has several revenue sources. The Authority can assess various service fees and sell water (A.R.S. § 45-1973). Additionally, each year, the ADWR Director must transfer to the Authority no more than $200,000 from the groundwater withdrawal fee monies collected in the AMA where the Authority is located (A.R.S. § 45-1972). Finally, the Authority can issue revenue bonds if other financing methods are not feasible (A.R.S. § 45-1991 et seq.).
County Improvement Districts
A county board of supervisors a can create a county improvement district to build and maintain roads and construct and operate facilities such as those that treat wastewater and convey water and make improvements and acquisitions that will benefit the district (A.R.S. § 48-902). There are several types of county improvement districts that can be formed, including:
1) A domestic water improvement district which is created to build, purchase or improve a domestic water delivery system; and
2) A domestic wastewater improvement district, which is formed to construct domestic wastewater treatment facilities or purchase an existing facility (A.R.S. § 48-1011).
The county board of supervisors serves as the board of directors for these districts (A.R.S. § 48-908). However, a domestic water improvement district can be governed by an elected board of directors (A.R.S. § 48-1012). These district are funded through a combination of secondary property tax levies, service fees bonds and assessments (A.R.S. §§ 48-910, 48-914, 48-933 and 48-955).
Certificate of Assured Water Supply (CAWS)
Someone who wants to offer subdivided lands for sale or lease in an AMA must receive a CAWS from the Arizona Department of Water Resources (ADWR). To qualify for a CAWS, someone must demonstrate that:
1) Sufficient groundwater, surface water or effluent of adequate quality that will be continuously available to meet proposed water needs for at least 100 years;
2) The projected groundwater use is consistent with the management plan and achieving the management goal for the AMA; and
3) They have the financial capability to build the facilities necessary to make the water available for the proposed use (A.R.S. § 45-576(L)).
Alternatively, a subdivider can become a member in the Central Arizona Groundwater Replenishment District to demonstrate that their proposed groundwater use is consistent with the AMA's management plan and goal.
A municipality or county will not approve that subdivision plat and the State Real Estate Commissioner will not authorize the sale or lease of the subdivided lands without a CAWS unless the subdivider has received a water service commitment from a municipality or private water company that is designated as having an assured water supply (A.R.S. § 45-576).
Provisions
Contract Lands for the Authority
1. Specifies that real property qualifies as contract land if:
a) It is in an AMA where the Authority is located; and
b) The property owners record a declaration approved by the Authority against the property in the official records of the county where the property is located that:
i. Describes the property;
ii. Declares their intent for the property to qualify as a contract land;
iii. Declares that each parcel of contract land will be subject to an assessment determined by the Authority;
iv. Declares that qualifying as a contract land and subjecting real property to an assessment increases the likelihood that the property will qualify for a CAWS;
v. Contains a covenant that binds against the real property and each contract land parcel to pay the Authority the assessment;
vi. Declares that the Authority can impose a lien on contract land to secure payment for the assessment and any applicable fees; and
vii. Declares that these covenants, conditions and restrictions remain with the land and bind to all successors. (Sec. 2)
2. Allows this declaration to:
a) Contain additional covenants, conditions and restrictions; and
b) Be an amendment or supplement to covenants, conditions and restrictions recorded against land. (Sec. 2)
3. Prohibits real property from qualifying as contract land unless its water provider enters into and records in the county's official records an agreement with the Authority that includes:
a) The real property's legal description and tax parcel numbers; and
b) An agreement by the water provider to annually submit the recordation of instrument information to the Authority by March 31. (Sec. 2)
4. Permits real property to terminate its contract land status if all the following apply:
a) No lot or parcel of subdivided land within the real property has been sold or leased to a retail purchaser or lessee;
b) The State Real Estate Commissioner has not issued a public report for real property;
c) The planning agency with authority over the property has approved a plat vacating the lot or parcel boundaries that were previously recorded for real property if those boundaries were previously recorded for the property; and
d) The property owners record a declaration executed by the Authority and the ADWR Director against the property in the official records of the county containing the property that:
i. Contains a legal description of the property that is similar to the description of the real property recorded in the contract lands declaration;
ii. Declares that the covenants, conditions, and restrictions recorded in the contract lands declaration are revoked;
iii. The agreement between the water provider and the Authority has been revoked by these parties' mutual agreement and the water provider has recorded this revocation notice in the records of the county containing the property; and
iv. If a CAWS was issued for the property, ADWR has revoked this certification through a written agreement entered between the agency and the certificate holder. (Sec 2)
5.
Defines annual contract assessment,
contract land and water provider. (Sec. 1).
Authority Assessments on Contract Lands (Sec. 4)
6. Requires the Authority to:
a) Charge an annual assessment against each contract land parcel that is subject to an annual assessment, which must be collected in the same manner as an ad valorem tax; and
b) Certify the assessments to the county board of supervisors where the Authority is established.
7. Directs the:
a) County Board of Supervisors where the Authority is established to collect these assessments; and
b) Authority's Secretary-Treasurer to deposit the assessments in the Authority's General Fund.
8. Declares that all provisions of general revenue laws for collecting taxes on real estate for county purposes apply to collecting contract land assessments.
Funding for the Authority (Sec. 3)
9. Directs the ADWR Director to annually transfer at least, instead of no more than, $200,000 to the Authority from the groundwater withdrawal fee monies collected in the AMA where the Authority is located.
County Improvement Districts
10. Allows a county improvement district board of directors to:
a) acquire, create, maintain, or pledge water assets for municipal, industrial, commercial or domestic development; (Sec. 6)
b) undertake water supply development; and (Sec. 7)
c) enter into a financial assistance loan repayment agreement with Water Infrastructure Finance Authority that can contain covenants and conditions relating to water supply development. (Sec. 7)
11. Defines:
a) water assets; and (Sec. 5)
b) water supply development. (Sec. 7)
12. Adds improvements including water assets and acquiring and creating any improvement to the definition of work and improvement. (Sec. 5)
13. Adds acquiring, creating, maintaining, or pledging water assets for municipal, industrial, commercial or domestic development to the powers and duties of a board of directors for a domestic water or wastewater improvement district. (Sec. 8)
14. Allows a domestic water or wastewater improvement district to undertake water supply development. (Sec. 9)
15. Defines water supply development. (Sec. 9)
Miscellaneous
16. Makes technical and conforming changes. (Sec. 1, 3, 5, 8, and 9)
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20. HB 2787
21. Initials PAB Page 0 Natural Resources, Energy & Water
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