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ARIZONA STATE SENATE
Fifty-Sixth Legislature, First Regular Session
fire district bonding; limitation
Purpose
Caps the maximum bond principal amount that may be specified in a fire district board's election order and prescribes additional information to be included in the election order.
Background
A fire district
board may order an election to be held to approve the issuance of bonds. The
election order must specify the: 1) maximum principal amount of bonds to be
issued; 2) maximum number of years bonds of any issue or series may run from
their date, not exceeding 30 years;
3) purpose for which the bonds are to be issued; 4) maximum rate of interest
that the bonds are to bear; and 5) date and hours of the election and the
location of the polling places.
If approved by the qualified electors of the district, the fire district may issue bonds in an aggregate principal amount of up to the lesser of six percent of the value of taxable property in the fire district or the maximum amount specified in the election order. A fire district board must annually determine the amount of the tax levy to pay the bonds and the county board of supervisors must levy and collect a tax sufficient to pay the bond principal and interest as they become due and payable (A.R.S. §§ 48-806 and 48-807).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Caps the maximum bond principal amount that may be specified in an election order at the district's statutory debt limitation when combined with the district's current outstanding general obligation debt amount.
2. Requires an election order by a fire district board to specify the:
a) minimum number of years bonds may run;
b) current outstanding general obligation debt amount; and
c) statutory debt limitation of the district.
3. Makes technical changes.
4. Becomes effective on the general effective date.
Prepared by Senate Research
January 26, 2023
MG/MC/sr