A. The board may authorize, issue and sell negotiable revenue bonds for any lawful district purpose. The bonds may be in one or more series and may be secured by revenues received pursuant to this article. The bonds may have different dates, be payable in a medium and at different places, have reserve or sinking funds, carry registration privileges, bear a rate or rates of interest that may vary from time to time but shall not exceed twelve per cent per year, and contain terms, covenants and conditions, be in a form, be executed in a manner and be sold at prices as the board may prescribe. The issuer may assign its interest in any or all revenues, contracts and reserve or sinking funds securing any bonds to a bank or trust company doing business in this state that acts as indenture trustee. The resolution of the board or the trust indenture authorizing the issuance of the bonds may contain such covenants, conditions and provisions as the board deems necessary to secure the bonds. The board is also authorized to purchase credit or liquidity enhancement and to spend bond proceeds or contract revenues to aid such purchase. The board is authorized, in its discretion, to employ such consultants, experts or agents and to spend bond proceeds or contract revenues to pay any and all fees and expenses of bond issuance and administration.

Ask a legal question, get an answer ASAP!
Click here to chat with a lawyer about your rights.

B. Bonds issued under this section shall be legal investments for all banks, trust companies and insurance companies organized and operating under the laws of this state. The bonds and interest on the bonds shall be paid solely in accordance with their terms and shall not be obligations general, special or otherwise of this state or any political subdivision of this state other than the issuer. The issuer shall not be liable in any event for the payment of the principal of or interest on the bonds from any source of revenues other than those pledged for the payment of the bonds. The holder of the bonds shall never have the right to compel any exercise of the taxing power of this state, any political subdivision of this state or the issuer to provide for payment of the bonds or to pay any claim arising of any nature with respect to the issuance or sale of the bonds. The bonds shall never be construed to constitute an indebtedness of the issuer within the meaning of any constitutional or statutory debt or spending limitations.

C. The board shall hold a public hearing before issuing bonds pursuant to this section. Any resident in the district may appear and be heard in favor of or against any proposed bonds.

D. Except as provided in subsection E of this section, the board shall publish a notice of a public hearing held pursuant to subsection C of this section that meets the following requirements:

1. The notice shall be published twice in a newspaper of general circulation in the district. The first publication shall be at least fourteen but not more than twenty days before the date of the hearing. The second publication shall be at least seven but not more than ten days before the date of the hearing.

2. The notice shall be published in a location other than the classified or legal advertising section of the newspaper in which it is published.

3. The notice shall be at least one-fourth page in size and shall be surrounded by a solid black border at least one-eighth inch in width.

4. The notice shall be in the following form, with the "public hearing notice of bond issuance" headline in at least eighteen point type:

Public hearing notice of bond issuance

In compliance with section 48-6433, Arizona Revised Statutes, the upper San Pedro water district ("District") is notifying residents in the district of its intention to issue bonds. The district is proposing to issue up to $ _____________ in bonds to be secured by revenue from __________ (source of revenue).

All interested persons are invited to attend the public hearing on the issuance of bonds that is scheduled to be held __________ (date and time) at __________ (location).

E. Instead of publishing the notice prescribed by subsection D of this section, the board may mail the notice described in subsection D, paragraph 4 of this section to all registered voters in the district at least ten but not more than twenty days before the date of the hearing pursuant to subsection C of this section.

F. In addition to publishing the public hearing notice under subsection D of this section or mailing the notice under subsection E of this section, the board shall issue a press release containing the public hearing on bond issuance notice.