The bill modifies existing statutes to streamline the process by which cities and towns can finance their water infrastructure projects. For towns and cities with populations over 150,000, voter approval is required to enter into such agreements unless funding comes from a secondary property tax levy or similar conditions. The structure allows smaller cities or towns to pledge utility revenues without needing a public vote, thereby facilitating quicker project initiation.
Summary
SB1079 pertains to the financing of municipal water infrastructure projects in Arizona. Specifically, it allows cities and towns to construct, acquire, or improve facilities for wastewater treatment, drinking water treatment, and nonpoint source projects using funds borrowed from the Water Infrastructure Finance Authority. The bill emphasizes the statutory framework within which these municipalities can enter into financial assistance loan repayment agreements with the authority.
Contention
Notably, the timing and scope of such financing agreements under SB1079 may spark debate, particularly regarding how they might constrain local governments' fiscal responsibilities. Critics could express concerns about potential over-dependence on borrowed funds and the risks associated with pledged utility revenues. Furthermore, the measure specifies that payments on these financial assistance agreements are not classified as debts of the municipalities, which raises questions about long-term fiscal implications for local governance.