Arizona Laws 48-724. Dissolution of district
A. The district may be dissolved by the district board by a resolution of the district board if the following conditions exist:
Terms Used In Arizona Laws 48-724
- County: means a county that forms a community facilities district pursuant to this article in an unincorporated area or in an incorporated area with the municipality's consent. See Arizona Laws 48-701
- District: means a tax levying community facilities district formed pursuant to this article by a municipality or formed pursuant to this article by a county in an unincorporated area or in an incorporated area with the municipality's consent. See Arizona Laws 48-701
- District board: means the board of directors of the district. See Arizona Laws 48-701
- Escrow: Money given to a third party to be held for payment until certain conditions are met.
- Governing body: means the body or board that by law is constituted as the legislative department of the municipality or county. See Arizona Laws 48-701
- Lien: A claim against real or personal property in satisfaction of a debt.
- Municipality: means an incorporated city or town. See Arizona Laws 48-701
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Property: includes both real and personal property. See Arizona Laws 1-215
- Revenue bonds: means those bonds that are issued pursuant to section 48-720 and that are secured by a pledge of revenues of the district or revenues collected by the county or municipality and returned to the district. See Arizona Laws 48-701
- Trustee: A person or institution holding and administering property in trust.
1. All of the property owned by the district has been or will be conveyed to the municipality, county or school district.
2. Either the district has no obligations or the municipality or county has assumed all of the obligations of the district.
B. The district board shall comply with the conditions prescribed by subsection A of this section and shall dissolve the district if both of the following occur:
1. The governing body has consented to comply with the conditions prescribed by subsection A of this section and either:
(a) Dissolution has been approved by a vote of the qualified electors of the district or by the persons who are qualified to vote pursuant to section 48-707, subsection G, voting in an election called for that purpose.
(b) The governing body determines that the district has been inactive for at least five consecutive years and has no future purpose.
2. The district board adopts a resolution dissolving the district and records the resolution in the office of the county recorder.
C. The district board may call such an election and shall call such an election if requested to do so in a petition signed by ten per cent of the qualified electors of the district, or by the persons who are qualified to vote pursuant to section 48-707, subsection G.
D. The election shall be called and held in the same manner as a bond or tax levy election, except that the ballot shall contain the words "dissolution, yes" and "dissolution, no".
E. All property in the district, except federal, state, county and municipal property, remains subject to the lien for the payment of general obligation bonds, and any property subject to a special assessment lien remains subject to the lien notwithstanding dissolution of the district. The district may not be dissolved if any revenue bonds of the district remain outstanding unless an amount of money sufficient, together with investment income thereon, to make all payments due on the revenue bonds either at maturity or prior redemption has been deposited with a trustee or escrow agent and pledged to the payment and redemption of the bonds. The district may continue to operate after dissolution only as needed to collect money and make payments on any outstanding bonds.