A. The engineer shall make duplicate diagrams of the property fronting upon the proposed work or improvement, or contained within the assessment district when the expenses of the proposed improvement are to be assessed upon a district. The diagrams shall show each separate lot, numbered consecutively, the approximate area in square feet of each lot, and the location of the lot in relation to the work proposed to be done.

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B. When the diagrams have been approved by the governing body, and the clerk has certified that fact and the date thereof, the diagrams shall be delivered to the superintendent of streets.

C. At any time after bids have been received for the construction of the work or the municipality has entered into a contract to purchase an existing facility, the superintendent shall estimate on the lots fronting on the work when no district has been established, or, when a district has been established, upon each of the lots within the district, the benefits arising, or expected to arise, from the work. The superintendent shall thereupon make an assessment to cover the sum due for the work performed and specified in the bid of the person to whom the contract was awarded, including incidental expenses, and shall assess upon and against the lots the total amount of the costs and expenses of the work. In so doing the superintendent shall assess the total sum upon the several lots, each respectively in proportion to the benefits to be received by each lot.

D. When the work has not been declared by the resolution of intention to be of more than local or ordinary public benefit, and has not been made assessable upon a district, the lots liable to be assessed for the improvement shall be those fronting upon the street or streets improved, and those situated in the quarter blocks and irregular blocks adjoining and cornering upon the crossings, or where there is a termination in the two quarter blocks adjoining and cornering thereon, halfway to the next main street crossing and all the way to a boundary line of the municipality when no cross street intervenes.

E. The assessment shall cover the sum due for the work performed or to be performed as specified in the bid of the person to whom the contract may be awarded, and shall also include incidental expenses. The incidental expenses shall include the compensation of the city or town engineer for work done by him, the cost of printing, advertising and posting, the compensation of the person appointed by the superintendent to take charge of and superintend the work of constructing the improvements and the expenses of making the assessment, interest on the bonds for a period not longer than the expected period of construction and six months beyond and all legal and financial fees, expenses and costs incurred in drafting the proceedings and in the sale of the bonds. The amount of incidental expenses shall be settled and allowed by the superintendent upon verified itemized bills. If deemed necessary by the governing board, a reserve fund and additional, similar funds may be established either with proceeds from the sale of the bonds and that will be covered by the assessment or by increasing the collections of the annual installments of principal, over and above the amounts required to pay maturing principal on the bonds. The monies in those funds may be used only to cure deficits in the principal and interest funds or to pay interest and principal on the final maturity or maturities of the bonds.

F. The assessment shall briefly refer to the award of the contract or to the contract if it has then been executed and shall name the person to whom the contract has been awarded and such person’s surety, and the amount to be paid therefor as stated in the winning bid or as finally computed by the engineer, if the assessment is not made until the work is completed, together with the incidental expenses, the amount of each assessment, the name of the owner of each lot, if known, and if unknown the word "unknown" shall be written opposite the number of the assessment, together with the amount assessed thereon. The superintendent of streets shall list the names of owners as shown on the most recently certified property tax assessment roll and any other person of whom the superintendent has personal knowledge that such other person may be the owner of the respective lot. The assessments upon the lots assessed shall be consecutively numbered, and the diagram shall be numbered to correspond with the numbers of the assessments.

G. There shall be attached to the assessment a warrant signed by the superintendent and countersigned by the mayor, which shall be substantially in the following form: "By virtue hereof, I (name of superintendent of streets), of the (name of municipality and county), and state of Arizona, by virtue of the authority vested in me as said superintendent of streets, do authorize and empower (name of contractor or the municipality, if the municipality elects to sell the bonds instead of delivering the bonds to the contractor), or the contractor’s agents or assigns, to demand and receive the several assessments upon the assessment hereto attached, and this shall be the contractor’s warrant for the same."

H. The warrant and assessment shall be recorded in the office of the superintendent not earlier than the date of execution of the construction contract and one diagram shall be there filed. When so recorded, the several amounts assessed shall be a first lien on the lots assessed subject only to the lien for general property taxes and prior special assessments for a period terminating on the date the assessment against the respective lot is paid in full, and such recording shall be notice to all persons interested of the contents of the record.

I. For a community facilities district and in compliance with section 48-721, subsection A, after adoption by the district board of a resolution that levies a special assessment on property in the district for a public infrastructure purpose pursuant to section 48-709, subsection A but before the issuance of special assessment bonds, the district may enter into a written agreement with a landowner as to the manner in which the assessment is to be allocated if the land is to be divided into more than one parcel. Based on that agreement, the district may provide that the collection of installments of assessments be paid to that landowner for the costs of public infrastructure purposes on the same basis that payments would be made on bonds, until the district board determines, if ever, that bonds should be issued. Until bonds are issued, assessments may bear interest at the rate specified by the district board in the written agreement. Installments on assessments or principal that are paid to the landowner shall be credited against the costs of public infrastructure purposes, including incidental expenses as provided in the written agreement.