This bill proposes updates to current statutes regarding municipal improvement financing in Arizona by introducing new definitions and processes for establishing improvement areas. It includes new terms such as "assessed value," "municipal improvement area," and "project costs," and allows municipalities to designate development areas for up to thirty years, with requirements for local governing body approval, joint review board oversight, and public hearings. The bill also outlines how tax increment financing will be managed, emphasizing the need for municipalities to adopt development and financial plans that reflect community needs and ensure compliance with statutory requirements. Additionally, the bill implements old restrictions on the use of tax increment funds, prohibiting their use for debt service on bonds or to circumvent tax laws, and requiring separate tax increment funds for each improvement area. It mandates annual audits of financial transactions and reporting to a joint review board, clarifies the termination process for improvement areas, and ensures that municipalities are liable for unpaid costs upon termination. Overall, these updates aim to enhance transparency, accountability, and the effective management of tax increment financing in municipal improvement areas.

Statutes affected:
Introduced Version: 42-17052, 42-17251, 9-442.05, 9-442.08, 9-442.03, 42-11001, 9-442.07, 9-442.01, 9-442.02, 9-442.04, 9-442.06, 9-442.12, 42-17255, 9-442.09, 9-442.10, 16-204, 9-442.11, 9-442.13, 42-17051, 48-807, 42-17053, 15-991, 41-1276