48-986.01. Limited infrastructure construction finance revolving fund; definition

A. The board of supervisors may establish a revolving fund in the county treasury to finance infrastructure construction in the unincorporated areas of the county. The board may provide for payments into the fund from any lawful source including payments from the county general fund, payments from the sale of county bonds for street improvement purposes, forest reserve monies and monies returned to the county from motor vehicle fuel and user taxes collected by this state. Revolving fund monies that are monies returned to the county from motor vehicle fuel and user taxes can only be used for purposes consistent with article IX, section 14, Constitution of Arizona.

B. The county may advance monies from the fund to an improvement district established under this chapter to finance the construction of infrastructure having a total cost of three hundred thousand dollars or less. Notwithstanding section 35-323, subsection A, the advance may be through the purchase of bonds or on notes or evidence of indebtedness of the district for a term of not more than ten years to be repaid from assessments on real property in the district. Notes or evidence of indebtedness on which an advance to the district is made shall be treated as if they were bonds issued under this article and the district may collect assessments and apply the assessment revenue toward repayment of the advance and interest to the fund in the same manner as repayment of bonds. The district shall collect assessments to repay advances from the fund in the same manner and under the same procedures as collecting assessments to repay bonds.

C. The district shall pay interest on an advance of monies under this section at the rate of earnings of the state treasurer s local government investment pool computed pursuant to section 35-316, subsection C for the month preceding the date of the advance, plus one per cent.

D. All unexpended balances of appropriations from the fund remaining after the appropriations lapse according to law revert to the fund.

E. The county treasurer shall keep the fund established under this section separate from all other funds.

F. For purposes of this section, " infrastructure" means nonbuilding improvements that an improvement district is authorized to construct, operate and maintain such as utility systems, roads, street lighting systems, sidewalks and parking lots.