48-909.01. Wastewater treatment facility; waterworks; sewer collection system and nonpoint source projects; financial assistance loan repayment agreements; definition

A. Notwithstanding any other law, a county improvement district, including a domestic wastewater improvement district, may construct or improve a wastewater treatment facility, sewer collection system, waterworks, including a drinking water treatment facility, or nonpoint source project or any combination of those projects with monies borrowed from or financial assistance provided by the water infrastructure finance authority of Arizona pursuant to title 49, chapter 8.

B. To repay financial assistance from the water infrastructure finance authority of Arizona, a county improvement district, including a domestic wastewater improvement district, may enter into a financial assistance loan repayment agreement with the authority to repay any financial assistance provided by the water infrastructure finance authority of Arizona. A financial assistance loan repayment agreement is payable from any revenues otherwise authorized by law to be pledged to repay long-term indebtedness. A financial assistance loan repayment agreement may be secured either by assessments or by a pledge of revenues of the district or any combination of those sources. If the financial assistance loan repayment agreement is secured in whole or in part by assessments levied pursuant to this article, the financial assistance loan repayment agreement shall be treated as a series of bonds to the extent that they are secured by those assessments and the board of directors of the district has all powers and duties to collect assessment installments and enforce delinquent assessments through sale and eventual issuance of deeds in the same manner as if the assessments were evidenced by bonds.

C. The board of directors of the district shall obtain approval for the financial assistance loan repayment agreement in the same manner provided by law for approving and issuing bonds or other long-term indebtedness that is secured by those assessments or revenues or a combination of assessments and revenues that are to be pledged to repay the loan.

D. A financial assistance loan repayment agreement entered into pursuant to this section shall contain the covenants and conditions pertaining to constructing a wastewater treatment facility, sewer collection system, waterworks, including a drinking water treatment facility, or nonpoint source project or any combination of those projects and repaying the loan as the water infrastructure finance authority of Arizona deems proper. Financial assistance loan repayment agreements may provide for paying interest on the unpaid principal balance of the agreement at the rates established in the agreement. The agreement may also provide for paying the district's proportionate share of the expenses of administering the clean water revolving fund established by section 49-1221 and may provide that the district pay financing and loan administration fees approved by the water infrastructure authority of Arizona. These costs may be included in the assessment and revenue amounts pledged to repay the financial assistance loan repayment agreement. Districts are bound by and shall fully perform the financial assistance loan repayment agreements, and the agreements are incontestable after the loan is funded by the water infrastructure finance authority of Arizona. The district shall also agree to pay the authority's costs in issuing bonds or otherwise borrowing to fund a loan.

E. The water infrastructure finance authority of Arizona shall not require that payment of a financial assistance loan repayment agreement be made from other than those sources permitted in subsection B of this section. The financial assistance loan repayment agreement may also include covenants concerning the operation of the system, the setting of rates and provisions for the appointment of a receiver to take charge of and operate a sewer collection system, a waterworks, including a drinking water treatment facility, and a wastewater treatment system if the financial assistance loan repayment agreement is not paid in a timely manner and, in the sole discretion of the water infrastructure finance authority of Arizona, if the district will not be able to cure the default.

F. A district may employ or contract for the services of attorneys, accountants, financial consultants and other experts in their fields as deemed necessary to perform services with respect to the financial assistance loan repayment agreement. These costs are incidental expenses and shall be included in any assessments.

G. This section is supplemental and alternative to any other law under which a district may borrow monies or issue bonds. This section is not the exclusive authorization to enter into loan agreements with the water infrastructure finance authority of Arizona.

H. A district may borrow additional monies or enter into additional financial assistance loan repayment agreements with the water infrastructure finance authority in an amount up to the amount approved pursuant to subsection C of this section less the amount that the district is obligated to repay to the water infrastructure finance authority of Arizona pursuant to a financial assistance loan repayment agreement.

I. For the purposes of this section, " nonpoint source project" has the same meaning prescribed in section 49-1201.