Arizona Revised Statutes Title 48. Special Taxing Districts § 48-3779. Annual membership dues

A. On or before the third Monday of August of each year beginning in 2011, the district may charge annual membership dues on all parcels of member lands and on all municipal providers having a member service area.

B. The annual membership dues shall be established annually by the district. The district shall use revenues from the annual membership dues, together with revenues from other revenue sources that are legally available to the district for those uses, solely to pay costs associated with the acquisition, lease or exchange of water or water rights and development of infrastructure necessary for the district to perform its replenishment obligations, including the payment of debt service expenses, and necessary reserves and coverage requirements, on bonds issued for replenishment purposes.

C. For any year in which the district has, or expects to have, any revenue bonds outstanding that were issued for replenishment purposes pursuant to § 48-3772, subsection B, paragraph 13, the annual membership dues shall be established in an amount determined by the district to be sufficient to provide, with other revenues legally available to the district for those purposes, and taking into account the requirements of § 48-3772, subsection A, paragraph 8, for the payment of all debt service expenses, including necessary reserves and coverage requirements with respect to the bonds.

D. When the district has determined the amount of revenues to be raised through the annual membership dues, the district shall allocate the amount to be raised between member lands and member service areas prorated on the basis of the following two volumes:

E. The total amount allocated to member lands in any year, as calculated pursuant to subsection D of this section, shall be prorated among the Phoenix, Pinal and Tucson active management areas based on the current and projected annual replenishment obligation of all member lands in that active management area as identified in the most recent plan of operation determined by the director of water resources to be consistent with achieving the management goal for the active management area pursuant to § 45-576.03, subsection M, O or R. The prorated amount within each active management area shall be further prorated among all parcels of member land located within that active management area based on a uniform fee per lot levied against the total number of residential, commercial and common area lots included, or intended to be included, in each parcel of member land. These dues are a lien on each parcel of member land and shall be certified, collected and enforced with respect to member land in the same manner as the annual assessment pursuant to § 48-3778. However, any parcel of member land that is included in the service area of a municipal provider that has been designated as having an assured water supply under § 45-576 is not subject to the annual membership dues.

F. The total amount allocated to member service areas in any year, as calculated pursuant to subsection D of this section, shall be prorated among all member service areas based on a uniform fee per acre-foot levied against the member service area's dues volume. The dues volume for a member service area is the greater of:

G. Except in the first full year following the year in which the director makes a determination that the district's most recent plan of operation is consistent with achieving the management goals of the active management areas pursuant to § 45-576.03, subsection M, for any year in which the dues volume for a member service area, as determined pursuant to subsection F of this section, exceeds the previous year's dues volume for the member service area, a makeup charge shall be added to the annual membership dues allocated under subsection F of this section to the member service area. The makeup charge shall become part of the member service area's annual membership dues for that year and is the sum of:

H. The annual membership dues become an obligation of each municipal provider that has a member service area and shall be stated, collected and enforced with respect to the municipal provider in the same manner as the annual replenishment tax pursuant to §§ 48-3781 and 48-3782.

I. Annual membership dues collected by the district shall be deposited in a special fund established by the state to be spent by the district only for the purposes authorized by this article, including:

J. Amounts collected may be transferred to a bank or trust company to be held in trust and spent with respect to bonds issued for replenishment purposes.