Ariz. Rev. Stat. § 48-5902 – Preliminary general plan; initial costs

A. Two or more municipal water providers may consider the formation of a multijurisdictional water facilities district for the purpose of mutual benefit in the construction, operation and maintenance of water related facilities and may participate in the preparation of a preliminary general plan for the district. The preliminary general plan for the district shall identify and describe at least the following:
1. 1. The specific project the district will undertake for the joint benefit of the participating municipal water providers.
2. 2. The geographical area of the district that may include all or any portion of the service area boundaries of a participating municipal water provider but shall not include any portion of the service area of a municipal water provider that is not participating in the district. The geographical area of the district is not required to be contiguous.
3. 3. A specific description of the water sources intended to be used by the municipal water providers and the district.
4. 4. A specific description of the governance for the district and the management of the project. The provisions regarding governance of the district shall include specific provisions regarding the number of members for the board of directors, whether those members will be elected by districts, at large or by another system of representation and shall include provisions to stagger the terms of office of the initial members of the board of directors.
5. 5. A specific description of the methods for financing the project.
B. On completion of the preliminary general plan for the district, the plan shall be filed with the clerk of each municipal water provider that is included in the preliminary general plan. If a participating municipal water provider is a private water company, the plan shall be filed in the administrative office of the private water company and the city, town and county clerk for any city, town or county in which any portion of the service area of the private water company is located.
C. The participants in the preliminary general plan may agree to allocate among themselves the costs of district formation and the costs for any initial feasibility studies that are incurred before formation of the district. Participants may agree to pay the costs even if those costs extend beyond the then current fiscal year and those costs are not subject to inclusion in the annual budget for the participant pursuant to title 42, chapter 17, article 3. On formation of the district, the district board may reimburse the participants for costs incurred, except that costs for initial feasibility studies shall not be reimbursed until after completion of those studies.