{"data":{"id":"us-az/a.r.s.-48-7006","jurisdiction":"us-az","citation":"A.R.S. § 48-7006","heading":"District powers","body":"A. In addition to the powers otherwise granted to a district pursuant to this chapter, a district, to further implement the general plan, may:\n\n1. Enter into contracts and expend monies for any public infrastructure purpose with respect to the district, including in connection with the acquisition, construction or installation of public infrastructure, provided that a district may not be the contracting party on any construction contract for public infrastructure and the district's role with respect to the construction of such public infrastructure shall be limited to acquiring or reimbursing the costs of such public infrastructure.\n\n2. Enter into intergovernmental agreements with this state, a county, a municipality or any other public agency that is authorized by law to enter into intergovernmental agreements for the planning, design, inspection, ownership, control, maintenance, operation or repair of public infrastructure.\n\n3. Enter into intergovernmental agreements with the county, a municipality or another qualified public entity for the administration of district elections, including agreements to reimburse the public entity for the reasonable costs of district elections.\n\n4. Sell, lease or otherwise dispose of district property if the sale, lease or conveyance is not a violation of the terms of any contract, bond resolution or trust indenture of the district.\n\n5. Operate, maintain and repair public infrastructure that is owned or operated by the district.\n\n6. Establish, charge and collect user fees, rates or other charges for the use of any service or public infrastructure of the district other than streets, roads or highways.\n\n7. Employ or contract for staff, counsel and consultants, including engineers, attorneys, accountants, financial advisors, underwriters, administrators and election officials, to assist with district and board administration, financing and election matters.\n\n8. Incur and repay loans, advances or other obligations for any public infrastructure purpose, including to provide for the present financing of costs to be reimbursed from future district revenues or reimbursements related to public infrastructure.\n\n9. Enter into agreements with landowners and with a municipality or county for the collection of fees and charges from landowners for public infrastructure purposes, for the advance of monies by landowners for public infrastructure purposes or for the granting of real property or interests in real property by a landowner for public infrastructure purposes, and recognize, assign, confirm or consent to the assignment by such landowners of their rights to receive any reimbursements or payments from the district for public infrastructure costs, including to or in favor of lenders, trustees or other financing parties.\n\n10. By resolution, levy and assess the costs of any public infrastructure purpose on any land that is benefited in the district, subject to the limitations and election requirements of this chapter, including the maximum authorized tax rate.\n\n11. Pay the financial, legal and administrative costs of the district.\n\n12. Enter into contracts, agreements and trust indentures to obtain credit enhancement or liquidity support for its bonds and to provide for the issuance, registration, transfer and payment of its bonds and for the disbursement and investment of bond proceeds.\n\n13. Enter into agreements with persons outside of the district to provide services to persons and property outside of the district and to receive compensation for those services.\n\n14. Use public easements and rights-of-way in or across public property, roadways, highways, streets or other thoroughfares and other public easements and rights-of-way, whether in or out of the geographical limits of the district, a municipality or a county, subject to applicable law, permitting restrictions and the rights of the public.\n\nB. In connection with any power authorized by statute, the district may:\n\n1. Contract.\n\n2. Enter into intergovernmental agreements pursuant to title 11, chapter 7, article 3.\n\n3. Adopt and change a seal.\n\n4. Sue and be sued.\n\n5. Enter into development agreements as defined in section 9-500.05.\n\nC. A district is not empowered to exercise land use or zoning authority and may not adopt, amend or enforce zoning ordinances or similar land use regulations.\n\nD. Public infrastructure other than personalty may be located only in or on lands owned by this state, a county, a municipality or the district or dedicated or otherwise designated as public roadways, highways, streets, thoroughfares, easements or rights-of-way, whether in or out of the district or a municipality. Personalty may be used only for purposes authorized by the board.\n\nE. An agreement pursuant to subsection A, paragraph 9 of this section may include agreements to repay all or part of such advances, fees and charges from the proceeds of bonds if issued or from advances, fees and charges collected from other landowners or users or those having a right to use any infrastructure. A person does not have authority to compel the issuance or sale of the bonds of the district or the exercise of any taxing power of the district to make repayment under any agreement.\n\nF. A construction contract for public infrastructure under this chapter is a private construction contract between an owner and the contractor for purposes of title 32, chapter 10, article 5, and any person furnishing labor, professional services, materials, machinery, fixtures or tools for that public infrastructure shall have such mechanics' and materialmen's lien rights that would otherwise apply to the construction contract and the public infrastructure subject thereto under title 33, chapter 7, article 6, and is subject to all requirements and limitations of that article.\n\nG. A construction contract for public infrastructure under this chapter shall include the following provisions:\n\n1. Before commencing construction, the owner shall provide a payment bond, letter of credit, guaranty, proof of funds or other comparable financial assurance that the owner can pay the full contract price as of the date of execution.\n\n2. Before commencing any work that is subject to owner-approved change orders that individually or collectively increase the aggregate construction contract price by more than ten percent, the owner shall provide a payment bond or payment bond rider, letter of credit, guaranty, proof of funds or other comparable financial assurance that the owner can pay the full amount of those change orders as of the date of approvaL.","path":["Title 48 Special Taxing Districts"],"source_url":"https://www.azleg.gov/ars/48/07006.htm","current_through":"57th Legislature, 2nd Regular Session (effective 2027-01-01); mirror section count 24991","vintage":"2026-09-15","retrieved_at":"2026-09-26T04:29:04Z","sha256":"f7ce714b81f7c9e75a9df3192f43d5f2a87202673508dab7d7114dcbea8bb039","source_id":"us-az","stale":false,"prev":"us-az/a.r.s.-48-7005","next":"us-az/a.r.s.-48-7007"},"notice":"GroundRules: Original legal text. Not legal advice."}