Arizona Revised Statutes Title 11. Counties § 11-378. Issuance of bonds for public improvements; limitations of amount; successive borrowings; annual interest

A. No county may issue bonds under this article unless the aggregate amount of the revenues received by it from highway user taxes, including motor vehicle fuel taxes, and all other taxes, fees, charges or other monies returned to the county pursuant to title 28, chapter 18, article 2  1 and § 42-6107, in the year preceding the borrowing of money under this article is equal to at least one and one-half times the highest annual principal and interest requirements thereafter to come due on all such bonds to be outstanding after the borrowing occurs, provided that for bonds that are issued under this article where the aggregate amount of monies returned to the county pursuant to title 28, chapter 18, article 2 and § 42-6107, in the year preceding the borrowing of money under this article, is not equal to at least two times the highest annual principal and interest requirements thereafter to become due on all such bonds to be outstanding after the borrowing occurs, shall bear a rating at the time of issuance of “A” or better by at least one nationally recognized credit rating service taking into account any credit enhancement facility in effect with respect to those bonds. Subject to such limitation, successive borrowings may be made under this article.

B. In computing the annual interest requirements of bonds described in § 11-377, subsection F the board of supervisors shall determine a rate that is not more than the maximum rate permitted under the terms of their issuance. In making the determination, the board of supervisors shall set a rate that is not less than one hundred twenty-five per cent of the rate in effect on the date of determination or, if the bonds are not then issued, one hundred twenty-five per cent of the initial rate on the bonds, except that if this determination exceeds the maximum rate permitted under the terms of issuance, the rate shall be the maximum rate. Notwithstanding the provisions of any reimbursement obligation, the bonds remain outstanding until the stated maturity of the bonds.