A.R.S. § 48-2063: Issuance of improvement bonds; fund for payment of bonds

A. The board may determine that improvement bonds shall be issued for the cost and expense of the improvement. The bonds shall be issued in the name of the sanitary district but shall be made payable only from the special fund collected by the sanitary district from special assessments levied and assessed on the lots fronting on the improvement and those benefited or, if an assessment district has been created by the resolution of intention for the work, on the lots included in the assessment district.

B. All amounts collected from the special assessment shall be placed in the special fund and shall not be used for any purpose other than payment of the principal and interest of the bonds.