Ariz. Rev. Stat. § 48-6802 – Resolution of intent; eligible participants; district board

A. If the public convenience and necessity require, and on presentation of a petition signed by the owners of at least fifty-one per cent of the net assessed value of the property proposed to be included in the district and a petition signed by at least fifty-one per cent of the property owners in the area proposed to be included in the district, the governing body of one or more municipalities may adopt a resolution declaring its intention to form a district to include property within the corporate boundaries of the district. The resolution shall state the following:
1. 1. The area or areas to be included in the district.
2. 2. The purposes for which the district is to be formed.
3. 3. That a general plan for the district is on file with the clerk.
4. 4. The date, time and place of the hearing to be held on the formation of the district.
5. 5. The place where written objections to the formation of the district may be filed.
6. 6. That formation of the district may result in the levy of taxes or assessments to pay the costs of improvements constructed by the district and for their operation and maintenance.
7. 7. A reference to this article.
8. 8. That the district will be governed by directors chosen pursuant to this article.
B. Before adopting a resolution under this section, a general plan for the district shall be filed with the clerk setting out a general description of the improvements for which the district is proposed to be formed and the areas to be improved.
C. The district shall be governed by an initial district board appointed by the governing body of each participating entity as follows:
1. 1. If one municipality is participating in the district, the governing body of that municipality shall appoint three persons to serve on the initial board of directors. The three directors shall own real property in the district.
2. 2. If two municipalities are participating in the district, the governing body of each municipality shall each appoint one person to serve on the initial board of directors and those two initial board members shall name a third member. The three directors shall own real property in the district. If three or more municipalities are participating in the district, the municipalities shall agree on how to appoint three directors who own real property in the district.
D. The initial board of directors shall serve a term of one year. Subsequent members of the board of directors shall be real property owners in the district who shall be elected at large by the real property owners in the district as shown on the property tax assessment roll who are qualified to vote pursuant to section 48-6818. The board of directors shall develop bylaws for the operation of the district. Subsequent members of the board of directors shall serve a term of four years.