Assigned to FIN AS PASSED BY COW
ARIZONA STATE SENATE
Fifty-Sixth Legislature, First Regular Session
AMENDED
FACT SHEET FOR S.B. 1172
fire district bonding; limitation
Purpose
Caps the maximum bond principal amount that may be specified in a fire district board's
election order and prescribes additional information to be included in the election order.
Background
A fire district board may order an election to be held to approve the issuance of bonds. The
election order must specify the: 1) maximum principal amount of bonds to be issued; 2) maximum
number of years bonds of any issue or series may run from their date, not exceeding 30 years;
3) purpose for which the bonds are to be issued; 4) maximum rate of interest that the bonds are to
bear; and 5) date and hours of the election and the location of the polling places.
If approved by the qualified electors of the district, the fire district may issue bonds in an
aggregate principal amount of up to the lesser of six percent of the value of taxable property in the
fire district or the maximum amount specified in the election order. A fire district board must
annually determine the amount of the tax levy to pay the bonds and the county board of supervisors
must levy and collect a tax sufficient to pay the bond principal and interest as they become due
and payable (A.R.S. §§ 48-806 and 48-807).
There is no anticipated fiscal impact to the state General Fund associated with this
legislation.
Provisions
1. Caps the maximum bond principal amount that may be specified in an election order at 120
percent of the fire district's statutory debt limitation when combined with the district's current
outstanding general obligation debt amount.
2. Requires an election order by a fire district board to specify the:
a) minimum number of years bonds may run;
b) current outstanding general obligation debt amount; and
c) statutory debt limitation of the district.
3. Makes technical changes.
4. Becomes effective on the general effective date.
Amendments Adopted by Committee of the Whole
• Increases the maximum bond principal amount that may be specified in a fire district board's
election order. FACT SHEET – Amended
S.B. 1172
Page 2
Senate Action
FIN 1/30/23 DP 6-1-0
Prepared by Senate Research
February 28, 2023
MG/MC/sr