Ariz. Rev. Stat. § 48-5912 – Modification of boundaries; impact statement; hearing;recording

A. Except as provided in subsection G of this section, after district formation and after the elected board of directors takes office, any person who desires to propose any change to the boundaries of the district shall prepare and submit to the district board a boundary change impact statement that contains at least the following information:
1. 1. A list and explanation of benefits that will result for residents in the area of the proposed change and for residents of the remainder of the district.
2. 2. A list and explanation of the injuries that will result for residents in the area of proposed change and for residents of the remainder of the district.
3. 3. For any proposed modification to remove real property from the district, an analysis of the impact of that removal on district revenue debt and other obligations and a proposed mechanism to ensure the continued payment of debt and other obligations that were incurred while that property was within the district.
B. Any proposed modification to the district boundaries requires the approval of the governing body of each municipal water provider and each jurisdiction that would be affected by each proposed addition to or deletion from the district. If any portion of the proposed modifications to the district boundaries include an area that is within the service area of a municipal water provider but that area is located outside the jurisdiction of that municipal water provider's governing body, that portion of the service area may be included in the boundaries of the district if the city, town or county governing body with jurisdiction over that portion of the service area approves. If the municipal water provider is a private water company, that portion of the service area may be included in the boundaries of the district if the city, town or county governing body with jurisdiction over that portion of the service area approves but only after receipt of written approval of the modification from the private water company.
C. On receipt by the district board of a boundary change impact statement and certified copies of the resolutions of approval by the governing body of any affected municipal water provider or a copy of the written approval of the modification from the private water company, if applicable, and any affected jurisdiction as prescribed by this section, the district board of directors may adopt a resolution of intent to modify the district boundaries.
D. At least twenty days and not more than forty-five days after adoption of a resolution of intent to modify the district boundaries, any person who claims an interest in real property that is to be located in the modified district may file a written objection not later than 5:00 p.m. on the last business day immediately preceding the date of the hearing. The objection may raise one or more of the following:
1. 1. That the objector's property would not be benefited from the improvements set forth in the general plan and that the property should be excluded from the proposed area of change.
2. 2. That the district boundary should not be changed, stating the specific reasons.
E. Within sixty days after completion of any hearings held pursuant to this section and a determination of any objections to the modification of the district boundaries, the district board of directors shall vote to approve or disapprove the modification of the district boundaries. If the district board approves the modification of the boundary, the district board shall request the county board of supervisors of any affected county to call an election on the issue of modification of district boundaries.
F. The boundary modification election shall be conducted in the same general manner as prescribed by section 48-5905 and the election laws of this state, except that the words to appear on the ballots for a modification election shall be "district addition, yes" and "district addition, no" or "district deletion, yes" or "district deletion, no", as applicable. For a boundary modification election, all of the qualified electors in the existing district are eligible to vote on the issue and all of the qualified electors of the area to be included or deleted are eligible to vote. Passage of the measure requires a majority of the qualified electors voting on the question in the area to remain in the district and a majority of the qualified electors in the area to be deleted or added. On certification of the results of any election that requires a change in the boundaries of the district, the district board shall record in the office of the county recorder for each county in which the modified district is located a certified copy of the board's resolution confirming the results of the election and describing the modified boundaries of the district.
G. On formation or modification of the district to include a municipal water provider, a municipal water provider shall not subsequently be removed from the district.