Assigned to FIN                                                                                                                 AS PASSED BY COW

ARIZONA STATE SENATE

Fifty-Sixth Legislature, First Regular Session

AMENDED

FACT SHEET FOR s.b. 1172

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 120 percent of the fire 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.

Amendments Adopted by Committee of the Whole

· Increases the maximum bond principal amount that may be specified in a fire district board's election order.

Senate Action

FIN                  1/30/23      DP    6-1-0

Prepared by Senate Research

February 28, 2023

MG/MC/sr