Forming a Domestic Wastewater Improvement District

A domestic wastewater improvement district is a county improvement district that is formed for the purpose of constructing a wastewater treatment system, purchasing an existing domestic wastewater treatment facility within the proposed district and if necessary making improvements to that facility, or a county improvement district that is converted to a domestic wastewater improvement district. (A.R.S. §48-1011).

Formation of a domestic wastewater improvement district is the same as that for a County improvement district:

Petitions containing the signatures of a majority of the persons owning real property in the proposed district or by the owners of 51% or more of the real property in the proposed district are filed with the Board of Supervisors, along with a check or bond to cover the County’s expenses in the event the district is not formed. If 100% of the property owners sign the petition and the petitioners provide a records search showing the names of all the property owners in the proposed district, the Board of Supervisors may establish the district without going through the notice and formal hearing process. The petitions include information such as statements that establishment of the district will benefit property owners in the district and serve the public convenience, necessity and welfare; the boundaries of the proposed district, along with a map of the same; a general description of the proposed improvements; and the names and addresses of the individuals who will serve as the organizing board of directors.
The Board of Supervisors sets a hearing on establishment of the proposed district and mails notice of the hearing to each property owner of record within the proposed district. Persons wishing to object to establishment file written objections with the Clerk of the Board of Supervisors prior to the hearing date.
The Board of Supervisors holds the hearing on establishment, at which it hears comments from the public, determines if the petition has been signed by the requisite number of property owners, determines if there is any property within the proposed boundaries of the district that would not benefit from establishment and excludes it from the boundaries, and determines whether establishment of the district will promote the public convenience, necessity and welfare.
Upon establishment of the District, the County will request taxing authority for the District from the Arizona Department of Revenue and will also submit the necessary paperwork to the U.S. Justice Department for election purposes.

State law grants to the Board of Supervisors the authority to revoke the authority of an elected board of directors of a domestic wastewater improvement district at any time in order to protect the residents of the district. The Board of Supervisors may then continue to act as the district’s board of directors or may call for new elections for the district board.

The Board of Supervisors also has the authority to review, but not to veto, any financial transactions of a domestic wastewater improvement district.

Dissolution of a domestic wastewater improvement district may occur when all bonds and other obligations of the district are paid or have become barred by the statute of limitations, and the operation and maintenance functions of the district or the major part of the district have been taken over by an incorporated city or town, or by the County.

Powers of Domestic Wastewater Improvement Districts

The powers granted to domestic wastewater improvement districts are not as extensive as those granted to sanitary districts, nor are they as well-defined in statute (Arizona Revised Statutes, Title 48, Chapter 6). The board of directors of a domestic wastewater improvement district has all the powers and duties of the Board of Supervisors sitting as the board of directors of a county improvement district. Some of these powers include:

Acquisition, construction, reconstruction, maintenance or repair of wastewater treatment facilities and related appurtenances such as sewers, ditches, pipelines and so on through any street or any land of the district or through any right-of-way granted or obtained for such purposes, either inside or outside of the district boundaries.
Borrow money from the Water Infrastructure Finance Authority of Arizona (WIFA).
Set user fees which may include the cost of administrators, surveyors, sanitation experts, engineers, legal counsel, or contractual amounts.
Hook-up fees for connection to the district’s system, not including the cost of the actual physical connection.
Lateral fees for the cost of constructing a water or wastewater lateral from the property line of the user to the middle of the easement or right-of-way in which the wastewater system is located.
A capacity fee based on the cost of developing the wastewater collection, treatment and disposal facilities that are required to treat the flows into the system from a particular wastewater connection.
An availability fee that is charged on all property in the district that is not connected to the existing wastewater treatment system but that is adjacent to a wastewater line and is based on the cost of having the line and treatment facility capacity to accommodate that property if it is developed. The availability fee is limited to 50% of the user fee.
File a lien on property for the nonpayment of user fees if the fees are more than 90 days delinquent. The lien is inferior to the lien for general taxes and to all prior recorded mortgages and encumbrances of record. In filing the lien, the district will add all costs incurred by the district, including interest, attorney fees and the costs of filing and enforcing the lien. However, the district may not file a lien against a residential property that is occupied by a lessee if the lessee is responsible for the payment of the user fees.
Issue bonds, levy and collect taxes for the payment of the general obligations of the district.
Annex territory to the district, or de-annex territory from the district.

For questions on the County’s role in the establishment of a domestic wastewater improvement district, please contact the Special Districts Coordinator.