A.R.S. tit. 11 ch. 4 — Arizona Revised Statutes Title 11 Chapter 4 — Fiscal Provisions

11-601. County charges County charges are: 1. Charges against the county incurred by virtue of any provision of this title. 2. Salaries of county and precinct officers, deputies and employees and necessary expenses incurred in the conduct of their offices. 3. Expenses necessarily incurred in the support of persons charged with or convicted of crime and committed therefor to the county jail. 4. Sums required by law to be paid to grand and trial jurors and indigent witnesses in criminal actions. 5. Compensation of interpreters in the prosecution or defense of criminal actions who have been appointed by the presiding judge of the superior court as official interpreters for justice courts and courts of record of their county. Such interpreters shall be paid such salaries as the board of supervisors may determine. 6. Necessary expenses for the support of county hospitals and indigent sick whose support is chargeable to the county. 7. Compensation of physicians for making examinations in insanity cases upon the request or order of the superior court. 8. Contingent expenses necessarily incurred for the use and benefit of the county. 9. Every other sum directed by law to be raised for a county purpose or declared to be a county charge. 11-602. Expense fund; estimate of expenses; transfer of funds; retransfer of excess A. The board of supervisors shall create a fund known as the expense fund, and shall order, when necessary, the transfer of money into such fund from the general fund of the county sufficient to pay the expenses of maintaining the government of the county until additional revenues may be collected to defray such expenses. B. Before making the order the board shall make an estimate of the amount required, for what purpose, and the amount available for the purposes of such fund from taxes or otherwise, and when the estimate is made, shall enter the whole of the itemized estimate in the minutes of the board. C. The county treasurer shall make the transfer when ordered by the board, and pay from the expense fund orders drawn thereon by the board for the maintenance of the county government. The orders shall be drawn and signed as county warrants. The board shall not issue an order on the fund until there is sufficient money therein to pay and redeem the order. Orders shall be issued on the fund in the order of their allowance by the board. D. If at any time the board believes there is more money in the expense fund than necessary to pay the expenses of maintaining the government of the county, it shall make an order directing the treasurer to transfer such excess to the general fund of the county, and the treasurer shall make the transfer so ordered. The money so retransferred shall be available for redemption of outstanding warrants against the county. 11-603. Expense of maintaining government defined The expense of maintaining the government consists of official salaries, fees and mileage, fees and mileage of jurors and witnesses, county printing and advertising, books and stationery, feeding county prisoners, the care of the indigent sick, water, wood, lights and like supplies for county institutions and insurance and repairs of county buildings. 11-604. Salary fund; sick pay fund; other funds A. The board may create a salary fund and pay therefrom the salaries of officials and employees, and fees and mileage of jurors. After the transfer of funds to the expense fund, the board may transfer from the expense fund to the salary fund, as provided for transfer of funds from the general fund to the expense fund, an amount sufficient to pay the salaries of officials and employees, and fees and mileage of jurors, and may authorize and order payments from the salary fund in like manner as on the expense fund. B. The board may establish a county sick pay fund and pay compensation from the fund to an official or employee who is absent from work due to illness. The board shall transfer from the expense fund to the sick fund an amount sufficient to pay the sick leave of officials and employees. Budget units as part of the payroll reporting procedure shall report hours of sick leave earned by the county officials and employees and of absences due to illness. Compensation paid to employees due to illness shall be separately identified in the accounting records of the county. C. The board may, in like manner, create and make payments from such other county funds as necessary for the proper transaction of the business of the county. 11-604.01. Revolving line of credit; uses; procedures; bids; application of revenues; exception A. The board of supervisors may enter into agreements with a financial institution authorized to do business in this state for the purpose of obtaining a separate and distinct revolving line of credit for the county and each individual political subdivision of that county for the current fiscal year to pay the lawful claims and obligations of that political subdivision until sufficient monies for payment from property taxes and other nonrestricted revenues are received by the treasurer in accordance with the following: 1. The county treasurer is the agent for the county and any political subdivision of this state for which the county treasurer acts as treasurer for any agreement entered into under this section and may take any action required under an agreement without further approval of any governing body of a political subdivision. 2. Any agreement entered into under this section shall not be for a term exceeding the period contracted for in section 35-325, subsection C. 3. The agreement shall provide that the financial institution may not charge the county a rate of interest in excess of ten per cent per year for a tax exempt obligation pursuant to the internal revenue code of 1986. 4. The maximum rate permissible for the financial institution to charge for taxable obligations shall be one hundred ten per cent of the previous quarter's weighted average prime rate among this state's top three financial institutions by asset size. 5. The revolving line of credit agreement shall be for an amount of not more than forty-five per cent of the total amount of nonrestricted operating revenues received by each political subdivision in the preceding year. 6. For those political subdivisions which have not received nonrestricted operating revenues in the preceding year, the revolving line of credit agreement shall provide that the maximum revolving line of credit of such political subdivisions shall not exceed forty-five per cent of their estimated first year nonrestricted operating revenues. 7. The revolving line of credit agreement shall provide that the financial institution is entitled to a security interest in the nonrestricted operating revenues received by the treasurer on behalf of each political subdivision to the extent of any credit extended under the commitment made by the financial institution. B. For a county that uses the procedures provided for by this section, the board of supervisors shall receive bids for the services provided in subsection A as part of the bid process for servicing banks pursuant to title 35, chapter 2, article 2.1. C. All nonrestricted operating revenues received by each political subdivision shall be applied by the county treasurer on behalf of each political subdivision to any unpaid advances which the political subdivision received pursuant to an agreement entered into under this section. The treasurer shall apply such nonrestricted operating revenues received by the political subdivision to repay advances received by the political subdivision without any further action by the governing body of any political subdivision. These nonrestricted operating revenues shall be applied in the following order according to the order which the advances were made by the financial institution or the warrants registered by the county treasurer: 1. Warrants registered by the county treasurer before September 15, 1989. 2. Advances made pursuant to this section. 3. Warrants registered after September 15, 1989. D. This section shall not be construed to authorize the extension of credit to a political subdivision for those obligations of the political subdivision in which the monies for repayment are subject to restrictions preventing their use as repayment for such obligations or to require a financial institution to extend credit to any political subdivision. E. A revolving line of credit agreement entered into under this section shall provide that any political subdivision which exceeds the maximum line of credit provided for the political subdivision shall register any warrants issued in excess of its unpaid maximum line of credit in the manner provided for in this article. 11-605. Warrants, substitute checks or electronic funds transfers drawn on fund Warrants, substitute checks or electronic funds transfers drawn by a political subdivision on the county treasurer shall be paid in the order of presentation to the treasurer. If the fund is insufficient to pay a warrant, substitute check or electronic funds transfer, it shall be paid from monies obtained by the treasurer on behalf of each political subdivision pursuant to this article. If no agreement has been entered into under this article, the fiscal provisions prescribed in section 11-635 are applicable. 11-606. Collection and disposition of groundwater transportation fees; economic development fund A. The board of supervisors may collect groundwater transportation fees paid to the county pursuant to section 45-556. B. The board of supervisors shall transmit all monies collected under this section to the county treasurer for deposit in a groundwater basin economic development fund. The board shall use monies in the fund to enhance economic development in the groundwater basin or sub-basin with respect to which the monies were collected, including water acquisition or other mitigation activities for remaining water users in the groundwater basin or sub-basin, economic planning, business and industrial recruitment and retention and other necessary and appropriate economic development activities. If the groundwater basin or sub-basin is completely dedicated for purposes of transporting groundwater away from the basin or sub-basin, the monies collected under this section may be used for such economic development activities anywhere in the county. 11-621. Payments from treasury on demand; exception; duty of auditor general; payment of loss; alternative procedure A. A payment exceeding five hundred dollars may be made from the treasury of the county upon demand duly presented and allowed, but compensation due to jurors and witnesses and official salaries shall be paid without presentation of a claim. B. A demand is not required to authorize payment if all other required documentation as prescribed in the uniform system of bookkeeping for counties is maintained to support the payment. C. No demand shall be necessary for the board of supervisors to draw warrants upon the county treasury in amounts not exceeding five hundred dollars for the purpose of paying for goods and services costing five hundred dollars or less. The auditor general shall prescribe the manner in which the warrants described in this subsection shall be drawn and issued. Any loss arising out of the issuance of a warrant drawn and issued in the manner prescribed by the auditor general shall be a county charge. 11-622. Demand; time limit for presentation of claim A. A person having a claim against a county shall present to the board of supervisors of the county against which the demand is held an itemized claim executed by the person under penalties of perjury, stating minutely what the claim is for, specifying each item, the date and amount of each item and stating that the claim and each item of the claim is justly due. B. Sellers of goods or services to a county may submit claims in writing or by electronic data interchange if such method is approved by the county board of supervisors. All other claims shall be submitted in writing. C. The board of supervisors shall not pay any claim unless demand for payment is made within six months after the last item of the account accrues. 11-623. Record of demands and warrants The board shall cause to be entered separately in the minute book of the board: 1. The number of each demand allowed. 2. By whom presented. 3. The amount of the demand. 4. From what fund the demand is payable. 5. The number of each warrant ordered drawn by them and to whom payable. 6. The amount of each warrant. 7. For what service or supplies the warrant is drawn. 11-624. Audit of nonprofit corporations receiving county monies; definition A. All county contracts with nonprofit corporations for assistance shall include requirements concerning financial and compliance audits. B. Each nonprofit corporation that receives in excess of one hundred thousand dollars in county assistance in any fiscal year shall file for each such fiscal year at the corporation's expense with the board of supervisors either audited financial statements prepared in accordance with federal single audit regulations or financial statements prepared in accordance with generally accepted accounting principles and audited by an independent certified public accountant. C. Each nonprofit corporation receiving fifty thousand dollars to one hundred thousand dollars in county assistance in any fiscal year shall file biennially at the corporation's expense with the board of supervisors either an audited annual financial statement for the most recently completed even-numbered year prepared in accordance with federal single audit regulations or a financial statement for the most recently completed even-numbered year prepared in accordance with generally accepted accounting principles audited by an independent certified public accountant. D. Each nonprofit corporation receiving less than fifty thousand dollars in county assistance in any fiscal year shall comply with contract requirements concerning financial and compliance audits contained in contract agreements governing such programs. E. For the purposes of this section, "nonprofit corporation" means a corporation as defined in section 10-3140. 11-624.01. Procedure for payment of obligations after close of fiscal year A. Annually on or before June 30, each county department or agency having outstanding liabilities attributable to the budgetary allotments of the fiscal year just ending shall file with the county board of supervisors for that county, in the manner and upon a form prescribed by the board and under oath, an "advice of encumbrance" for each item of outstanding liability the board of supervisors shall encumber such funds as are necessary and available to pay such properly entered encumbrances. Any encumbrances outstanding at the end of sixty days shall lapse and the remaining fund balance shall revert to the appropriate county fund. B. The county board of supervisors may draw warrants against the available balances of the budgetary items made for a fiscal year for a period of sixty days after the close of such fiscal year. Warrants may be drawn after the close of a fiscal year only for payment of liabilities incurred during the fiscal year for which such budget was approved. C. After expiration of the period of sixty days from the beginning of each fiscal year, the balance shall lapse and be applied as provided in subsection A of this section and no further payments shall be made on any claim for expenditures of such prior fiscal year. 11-625. Consideration of claim A demand shall not be considered by the board unless prepared as prescribed in section 11-622 and filed by the clerk at least one day prior to the session at which it is to be considered. Demands so filed shall be considered and passed upon at the next regular session after they are presented, unless for good cause the board postpones consideration of them to a future session. 11-626. Claims by supervisors A claim against the county presented by a member of the board of supervisors shall be verified as other claims, and shall bear the written approval of at least one member of the board other than the claimant, and of the county treasurer. 11-627. Effect of personal interest of county officer A demand in which a county officer is personally interested, or arising out of a contract to which a county officer while in office has been a party or otherwise personally interested, shall not be approved, allowed or paid, and every such contract, claim or demand is null and void, except for official compensation of the persons in whose name it is presented. 11-628. Allowance of demands; limitation; hearing A. A demand shall not be allowed by the board in favor of a person indebted to the county without first deducting such indebtedness, or in favor of an officer whose accounts have not been rendered and approved, or who has neglected or refused to make his official returns or report in writing, as required by law, or in favor of any officer who wilfully neglects or refuses to perform the duties of his office. The board may examine the claimant on oath, or any other person, to determine the justness of the demand. B. A citizen or taxpayer of the county may appear before the board and oppose the allowance of any demand. 11-629. Rejection or partial allowance of demand When the board finds that a demand is not a proper county charge, it shall reject the demand. If the demand is a proper county charge, but larger than is just, the board may allow the claim in part and draw a warrant for the part allowed. 11-630. Action upon rejected or partially allowed demand A. A claimant dissatisfied with the rejection of his demand, or with the amount allowed thereon, may sue the county therefor at any time within six months after final action of the board, but not afterward. If in the action judgment is recovered for more than the board allowed, the board shall allow and pay the judgment, together with the costs adjudged, but if no more is recovered than was originally allowed by the board, the board shall pay the claimant only such amount. B. A claimant may accept the amount allowed and sue for the balance of his demand, and this action shall not be barred by the acceptance of the amount allowed. 11-631. Warrants; record A. Warrants on the county treasury shall be drawn and signed by the chairman and either the clerk of the board or the finance director in favor of the persons entitled to the warrants and shall distinctly specify the liability for which they are drawn. B. The warrants shall, commencing with the first Monday in July of each year, be numbered consecutively, and the number, date and amount of each, the name of the person to whom payable, and the purpose for which drawn shall be stated on the warrant. The clerk or the finance director shall keep a record of each warrant in the warrant book. 11-632. Issuance of duplicate warrant A. When it appears to the satisfaction of the board or county school superintendent by affidavit or otherwise that a warrant on the county treasurer has been lost or destroyed prior to payment and there is no reasonable probability of its being found or presented, the board may direct the issuance to the owner of a duplicate of the lost or destroyed warrant. Before issuing the duplicate, however, the board or county school superintendent shall send a written stop payment notice to the county treasurer, giving the number, amount and date of the warrant, the payee and the fund on which drawn. Such duplicate warrant issued under authority of this section shall constitute full and sufficient authority to the county treasurer for disbursement of public monies in the amount set forth on the duplicate warrant. The county treasurer shall not pay any warrant on which a stop payment notice has been made unless the board has released the stop payment in writing. B. The board of supervisors shall establish procedures for issuing duplicate warrants that protect the county and provide the owner with a duplicate warrant within a reasonable time. 11-633. Warrants receivable for debt or taxes due county Warrants issued by the board shall be receivable in payment of debts to the county, and taxes assessed against property in the county. Upon tender of a warrant in payment of a debt or tax, the county treasurer shall, if the warrant is less than the amount of the debt or tax, and is accompanied by sufficient money to make up the full amount of the debt or tax, credit the amount of the warrant upon the debt or tax. If the amount of the warrant is greater than the amount of the debt or tax, he shall mark the debt or tax paid, and endorse the amount thereof upon the back of the warrant as a partial payment thereof. Only the person named as payee in the warrant may use it in payment of a debt or tax. 11-634. Payment of warrants, substitute checks and electronic funds transfers; definitions A. If the board of supervisors, the county superintendent of schools or a special district presents a warrant, substitute check or electronic funds transfer for payment, the county treasurer shall pay it and make a charge against the appropriate account. An electronic image of the original warrant or an electronic record of the electronic funds transfer provided by or made available by the servicing bank in a format approved by the county treasurer is deemed properly presented. B. For the purposes of this section: 1. "Substitute check" has the same meaning prescribed in section 9-249. 2. "Warrant" has the same meaning prescribed in section 9-249 and includes a record from which an electronic funds transfer may be made. 11-635. Warrants, substitute checks and electronic funds transfers unpaid for lack of monies; interest; definitions A. If a revolving line of credit has not been obtained for a political subdivision or if the revolving line of credit has been spent and if there are insufficient monies in the issuer's account, the county treasurer may invest in the warrant, substitute check or electronic funds transfer prescribed in section 35-323, subsection A, paragraph 7. B. The county treasurer shall keep a register of warrants and substitute checks and a record of electronic funds transfers presented for payment. C. If the county treasurer does not invest in the presented warrant, substitute check or electronic funds transfer, the county treasurer shall notify the servicing bank that the warrant or substitute check will not be paid for lack of monies and from that time until there are sufficient monies to pay the original warrant, the original warrant may not bear more than ten percent interest per year. D. For the purposes of this section: 1. "Substitute check" has the same meaning prescribed in section 9-249. 2. "Warrant" has the same meaning prescribed in section 9-249 and includes a record from which an electronic funds transfer may be made. 11-636. Effect on interest after notice of readiness to pay unpaid warrants; notice requirements A. If there are sufficient monies in the treasury to pay the warrants that have been returned and are drawing interest, the county treasurer shall give notice thereof by publication in a newspaper published in the county or by posting written notice at the courthouse door or on the county's website stating that the county treasurer is ready to pay the warrants. From the first publication or posting of the notice the warrants cease to draw interest. B. In the notice published in a newspaper, the county treasurer shall not publish the warrants in detail, but shall give notice that only county warrants presented for payment before the date stated in the notice are payable. If only part of the warrants presented on the same day are payable, the county treasurer shall designate the payable warrants in the notice. 11-637. Effect of priority of presentment on preference of payment Warrants are entitled to preference of payment from monies applicable to the warrants according to priority of presentment. 11-639. Redemption of unpaid warrants As monies become available and are in amounts sufficient to justify redeeming unpaid warrants, the county treasurer shall redeem these unpaid warrants in the date order in which they were originally registered. 11-640. Record of interest paid If the county treasurer pays a warrant on which interest is due, the treasurer shall record the amount of interest paid. The amount of the interest shall be entered on the account separate from the principal. 11-641. Monies illegally paid; liability; recovery A. If a board of supervisors or a county or school district officer, employee or agent, without authority of law, orders or causes any public monies to be paid, the board or county or school district officer, employee or agent and the party in whose favor the order is made are jointly and severally liable for the monies with interest at the legal rate, and twenty percent additional on the principal amount. If the monies are paid on a claim presented by a member of the board, the supervisor presenting the claim and the board are jointly and severally liable for the monies with interest at the legal rate, and twenty percent additional on the principal amount. B. A county or school district officer, employee or agent who is responsible for disbursing public monies pursuant to a warrant or other form of claim that does not originate from the officer, employee or agent making the disbursal may not be held liable under subsection A of this section for an illegal payment of public monies unless the county or school district officer, employee or agent responsible for disbursing public monies knew or should have known that a warrant or other claim would result in an illegal payment. C. If an illegal payment of monies is made as described in subsection A of this section, the county attorney may institute an action in the name of the county, against the board of supervisors or county or school district officer, employee or agent, to enjoin the payment of the monies, or if paid, to recover the monies with interest at the legal rate, and twenty percent additional on the principal amount, to be paid into the county treasury to the credit of the fund from which the allowance was made. D. The board of supervisors may not dismiss, compromise or in any way control such an action. A bond is not required of a county in the action, on an injunction or on an appeal. 11-642. Action by taxpayer; recovery of monies illegally paid A taxpayer of the county may request, in writing, the county attorney to institute an action pursuant to section 11-641. If the county attorney fails for twenty days after the written request to institute an action, any taxpayer of the county may bring the action in the taxpayer's own name and at the taxpayer's own cost, with the same effect as if brought by the county attorney, to recover public monies from the public body of the county that ordered or caused the illegal payment. The person instituting the action shall execute a bond with two or more sureties, made payable to the defendant and conditioned that if the plaintiff fails to prosecute the action with diligence and to effect, the plaintiff will pay all damages sustained by the defendant by reason of the action and all costs incurred in the action. If the taxpayer prevails in the action, the court shall allow the taxpayer costs and a reasonable attorney fee not to exceed forty percent of the amount recovered or saved to the county. 11-643. Nonliability of dissenting supervisor A supervisor may relieve himself from liability under sections 11-641 and 11-642 by dissenting from the order, and having his dissent entered on the minutes of the board at the time. 11-644. Failure to present county check or warrant for payment A. A check that is drawn by the county treasurer in the treasurer's official capacity or a warrant that is drawn on the county general fund and that is not presented for payment within one year after the date of issuance is void, is deemed to have been paid and is not subject to section 44-302. A check or warrant that is not presented for payment within one year has no further force or effect and any monies shall be transferred or revert to the county general fund or other appropriate fund. B. At any time within one year after an unpresented check or warrant has been voided as provided in subsection A of this section, the person in whose favor the check or warrant was drawn, or the person's personal representative, successors or assignees, may present a claim for the amount of the check or warrant to the board of supervisors. If the board finds that the claim is legitimate and that there is good and sufficient reason for failure to present the original check or warrant, the board may allow the claim and order it to be paid from the county general fund or other appropriate fund. 11-645. Warrants, substitute checks and electronic funds transfers unpaid for lack of monies; interest; notice; reissued warrants; definitions A. Notwithstanding sections 11-635 and 11-636, this section applies to each county treasurer of a county in this state that has a population of two million or more persons. B. If a revolving line of credit has not been obtained for a political subdivision or if the revolving line of credit has been spent and if there are insufficient monies in the issuer's account, the county treasurer may invest in the warrant, substitute check or electronic funds transfer prescribed in section 35-323, subsection A, paragraph 7. If the county treasurer does not invest in the presented warrant, substitute check or electronic funds transfer, the county treasurer shall notify the servicing bank that the warrant or substitute check will not be paid for lack of monies and from that time until there are sufficient monies to pay the original warrant, the original warrant may not bear more than ten percent interest per year. If a physical warrant is not presented to the county treasurer but the county treasurer receives an electronic notice that the warrant was issued, the treasurer shall notify the servicing bank that the warrant will not be paid for lack of monies, and from that time until there are sufficient monies to pay the original warrant, the original amount of the warrant may not bear more than ten percent interest per year. C. The county treasurer shall keep a register of warrants and substitute checks presented for payment and a record of electronic funds transfers. D. If there are sufficient monies in the treasury to pay the warrants drawing interest and registered pursuant to this section, the county treasurer shall notify the issuing entity of the availability of the monies. The monies shall be placed in a clearing fund or other appropriate fund that is agreed on by the county treasurer and district. The issuing entity shall issue new warrants that include the original principal amount and any accrued interest, and notify the county treasurer of the warrant numbers, amounts and payees. E. If only part of the warrants presented on the same day are payable, the county treasurer shall designate the payable warrants and notify the issuing entity of the warrants to be paid and the warrants to be registered. F. A warrant that is reissued pursuant to this section shall be processed pursuant to section 11-644. G. For the purposes of this section: 1. "Substitute check" has the same meaning prescribed in section 9-249. 2. "Warrant" has the same meaning prescribed in section 9-249 and includes a record from which an electronic funds transfer may be made. 11-651. Lease-purchase agreements; terms and conditions The board of supervisors of a county may enter into agreements for the lease-purchase of equipment for a period in excess of one year under the following terms and conditions: 1. The lease-purchase agreement shall be executed for the period of one fiscal year only and, if a longer period is needed to complete purchase of the equipment, the board of supervisors shall have the right, at the end of each fiscal year, to enter into an agreement for continuation of the agreement for succeeding one-year periods until complete payment has been made. 2. If, at the end of the first one-year period and prior to payment of the total purchase price, the board of supervisors does not agree to a continuation of the lease-purchase agreement, the seller may repossess the equipment and the agreement shall be deemed terminated. 11-652. Title to equipment Title to the equipment which is the subject of a lease-purchase agreement made under the terms of this article shall be maintained in the seller until payment of the full purchase price has been made by the county. 11-653. Cancellation of agreement The board of supervisors may, at any time and by giving written notice to the seller, cancel any lease-purchase agreement made under the terms of this article. 11-661. Posting of financial statements; budget; accepting audit results A. The financial statements required to be filed with the auditor general pursuant to section 41-1279.07 must be posted in a prominent location on the official website of the county not later than seven business days after the date of filing the financial statements with the auditor general. The financial statements must be retained and accessible in a prominent location on the official website for at least sixty months. If the financial statements are not filed pursuant to section 41-1279.07, the form as prescribed by subsection B of this section shall be posted on the website of the county in place of the financial statements until the financial statements are filed. B. If the financial statements for a county are not completed and filed as prescribed by section 41-1279.07 on or before the adoption of the county budget in the subsequent fiscal year, the board of supervisors must include a form, prescribed by the auditor general, in the published budget in the subsequent fiscal year pursuant to sections 42-17103 and 42-17105 stating that the financial statements required to be filed with the auditor general pursuant to section 41-1279.07 are pending, the reasons for the delay and the estimated date of completion. C. If the board of supervisors of a county is required to complete the form as prescribed by subsection B of this section, the board of supervisors shall send a copy of the form to the auditor general, the speaker of the house of representatives and the president of the senate. D. Within ninety days after completing an audit pursuant to this section, the board of supervisors shall require the auditor who performed the audit to present the audit results and any findings to the board in a regular meeting without the use of a consent agenda, and the board shall demonstrate compliance with section 41-1494. 11-663. Annual statements to state treasurer A. The board shall have prepared by the clerk, under its direction, prior to its regular January meeting, a statement in duplicate showing: 1. The indebtedness of the county, funded and floating, the amount of each class of indebtedness, the rate of interest borne by each class or any part thereof and the amount of money in the county treasury subject to payment of the indebtedness. 2. A concise description of all property owned by the county with an estimate of the value thereof. 3. The rate of taxation for county purposes, as shown by the last levy made by the board. B. One of the statements shall be filed with the board at the opening of the January meeting, and the other forwarded immediately to the state treasurer, who shall include in his report to the governor a digest and synopsis, in tabular form, of the reports received by him naming therein the counties failing to make such reports. 11-664. Suspension of county assessor or county treasurer; due process A. The board of supervisors may suspend the county assessor or county treasurer for defalcation or neglect of duty. The board shall give notice to the affected officer including reasons for the suspension at least five calendar days before the meeting at which the matter is to be considered. If the action of the board is a unanimous vote of the entire board, the suspension shall be immediate. If the action of the board is not a unanimous vote of the entire board, the suspension shall not be effective until either ten days after the action of the board if no hearing is requested by the affected officer or the conclusion of a hearing if one is requested, and the board sustains its prior action. B. Either prior to an action for a suspension of a county treasurer or county assessor or upon a request for hearing after an affirmative vote to suspend, the board of supervisors may request the county attorney to conduct an investigation. If an investigation is requested, the county attorney shall provide a written notice and report of findings, including a statement of charges, to the assessor or treasurer and the board. C. If the board of supervisors votes to suspend the county assessor or county treasurer, the assessor or treasurer has the right to a hearing before the board upon filing a written request with the board within ten days after action by the board. The assessor or treasurer may be represented by counsel at the hearing. The board shall allow the assessor or treasurer, counsel, witnesses and members of the public to testify on the assessor's or treasurer's behalf. At the conclusion of the hearing the board may sustain or reverse its prior suspension. If the prior action has not become effective, the suspension shall become effective upon a majority vote of the board. D. Upon the earlier of a unanimous vote of the entire board of supervisors, expiration of the time to request a hearing after an affirmative vote of a majority of the board or the affirmation of the suspension at the conclusion of the hearing, the board shall immediately appoint a person to fill the office. The appointed person shall immediately give bond and qualify as provided by law. E. No suspension of the county assessor or county treasurer under this section shall be for a period of longer than one hundred twenty days unless within that period removal of the officer is sought pursuant to title 38, chapter 2, article 8. If removal of the suspended officer is not sought within the period of suspension, the suspended officer shall be reinstated. The person appointed by the board of supervisors shall provide an account of activities during the period of suspension and vacate the office. 11-665. Vacancy in treasurer's office; duty of board Upon the death or absconding of a county treasurer, the board shall follow the proceedings in regard to the monies and effects of his office, and the statement and inventory thereof, as provided in section 11-664, and shall retain possession until a successor of the treasurer is elected or appointed. Upon the qualifying of such treasurer, the monies, books and effects shall be delivered to him. 11-671. Financing wastewater treatment facilities and nonpoint source projects; financial assistance loan repayment agreements; financial assistance; definitions A. Notwithstanding any other law, a county that is authorized to operate a sewage system pursuant to section 11-264 or that identifies and remediates a cesspool pursuant to subsection G of this section may construct or improve a wastewater treatment facility or nonpoint source project with monies borrowed from or financial assistance provided by the water infrastructure finance authority of Arizona. B. To repay financial assistance from the water infrastructure finance authority of Arizona, a county may enter into a financial assistance loan repayment agreement with the authority. A financial assistance loan repayment agreement is payable from any revenues otherwise authorized by law to be used to pay long-term obligations. If revenue from a property tax assessment is the designated source of repayment under the agreement, the property tax assessed and levied is a secondary property tax levy for the purposes of article IX, Constitution of Arizona. C. The county board of supervisors shall submit the question of entering and performing a financial assistance loan repayment agreement to the qualified electors voting at a regular or special general election in the county, except that if revenue from a secondary property tax levy is the designated source of repayment or if the project is constructed with an improvement district, the question shall be submitted to the qualified electors at an election held on the first Tuesday following the first Monday in November. Otherwise, an election is not required if voter approval has previously been obtained for substantially the same project with another funding source. If a majority of the qualified electors voting on the question: 1. Approves, the board of supervisors may execute, deliver and perform the financial assistance loan repayment agreement. 2. Disapproves, the board of supervisors shall not execute a financial assistance loan repayment agreement. D. Payments made pursuant to a financial assistance loan repayment agreement are not subject to section 42-17106. E. A financial assistance loan repayment agreement entered into pursuant to this section shall contain the covenants and conditions pertaining to the construction of a wastewater treatment facility or nonpoint source project and repayment of the loan as the water infrastructure finance authority of Arizona deems proper. Financial assistance loan repayment agreements may provide for the payment of interest on the unpaid principal balance of such agreement at the rates established in the agreement. The agreement may also provide for payment of the county's proportionate share of the expenses of administering the clean water revolving fund established by section 49-1221 and may provide that the county pay financing and loan administration fees approved by the water infrastructure finance authority of Arizona. These costs may be included in the levy or assessment amounts pledged to repay the financial assistance. Counties are bound by and shall fully perform the financial assistance loan repayment agreements, and the agreements are incontestable after the loan is funded by the water infrastructure finance authority of Arizona. The county shall also agree to pay the authority's costs in issuing bonds or otherwise borrowing to fund a loan. F. A financial assistance loan repayment agreement under this section does not create a debt of the county, and the authority shall not require that payment of a financial assistance loan agreement be made from other than those sources allowed in subsection B of this section. G. A county may apply for and receive financial assistance, including forgivable principal, from the water infrastructure finance authority of Arizona for the remediation, closure or replacement of cesspools that present a demonstrated risk to surface water, groundwater or public health. The water infrastructure finance authority of Arizona may award financial assistance, including forgivable principal, using monies from the clean water revolving fund established by section 49-1221 or the drinking water revolving fund established by section 49-1241. Financial assistance, including forgivable principal, received pursuant to this subsection may be used only for projects that eliminate existing cesspools and replace the existing cesspool with an on-site wastewater system that is approved by the department of environmental quality or that has a connection to a wastewater treatment facility. A county that receives financial assistance, including forgivable principal, pursuant to this subsection shall prioritize the remediation, closure or replacement of cesspools that are located within areas of known groundwater vulnerability, that are near surface waters or that are in communities with low-to-moderate income households. A county may establish income-based eligibility criteria for owner-occupied properties but may not apply means testing to the remediation of abandoned or uninhabitable properties. A county shall coordinate with the department of environmental quality to ensure that each project that has received financial assistance, including forgivable principal, pursuant to this subsection is consistent with the county's water quality management plan or the department of environment quality's nonpoint source management plan developed pursuant to section 319 of the clean water act. A county that receives financial assistance, including forgivable principal, pursuant to this subsection is not required to obtain voter approval to accept the financial assistance, including forgivable principal. H. A county may employ attorneys, accountants, financial consultants and other experts in their field as deemed necessary to perform services with respect to the financial assistance loan repayment agreement. I. This section is supplemental and alternative to any other law under which a county may borrow monies or issue bonds. This section is not the exclusive authorization to enter into loan agreements with the authority. J. A county may borrow additional monies or enter into additional financial assistance loan repayment agreements with the water infrastructure finance authority of Arizona in an amount up to the amount approved by the voters pursuant to subsection C of this section less the amount that the county is already obligated to repay to the water infrastructure finance authority of Arizona pursuant to a financial assistance loan repayment agreement. K. For the purposes of this section: 1. "Clean water act" has the same meaning prescribed in section 49-1201. 2. "Nonpoint source project" has the same meaning prescribed in section 49-1201. 11-681. Definitions In this article, unless the context otherwise requires: 1. "Board" means the county board of supervisors. 2. "Bond related expenses" means any expenses incurred by the county to issue and administer bonds issued under this article, including underwriting fees and costs, trustee fees, financial consultant fees, printing and advertising costs, paying agent fees, transfer agent fees, legal, accounting, feasibility consultant and other professional fees and expenses, credit enhancement fees, attorney and accounting fees and expenses related to credit enhancement, bond insurance or liquidity enhancement, remarketing fees, rating agency fees and costs, travel and telecommunications expenses and all other expenses considered necessary by the county board of supervisors in order to market and administer the bonds. 3. "Bonds" means the bonds issued pursuant to this article. 4. "County judgment purpose" includes the following purposes: (a) The payment of obligations of the county resulting from a final court judgment against the county, court costs and attorney fees, including outside legal counsel retained by the county, but not costs incurred by the county attorney in connection with the judgment. (b) The payment of bond related expenses. 11-681.01. Authorization of county judgment bonds A. The board of supervisors may issue negotiable bonds pursuant to this article in such principal amount as, in the opinion of the board is necessary to: 1. Provide sufficient monies for any county judgment purpose. 2. Pay necessary bond related expenses. 3. Establish and fully or partially fund any reserves or sinking accounts established by the bond resolution. 4. Issue refunding bonds if the board considers refunding to be expedient. The board may provide for investing and holding the proceeds of the refunding bonds in trust for the benefit of the holders of the bonds being refunded. 5. Refund any bonds issued pursuant to this article if the bonds are secured from the same source of revenues as the bonds authorized in this article by issuing new bonds, whether the bonds to be refunded have or have not matured. 6. Issue bonds partly to refund outstanding bonds and partly for any county judgment purpose consistent with this article. B. The board shall authorize the bonds by resolution. The resolution shall prescribe: 1. The manner and method of sale. 2. The rate or rates of interest, which may be fixed or variable, the date or dates on which interest is payable and the denominations of the bonds. 3. The date or dates of the bonds and maturity. 4. The manner of executing the bonds. 5. The medium and place of payment. 6. The terms of redemption, which may provide for a premium for early redemption. 11-681.02. Issuance and sale of bonds; notice A. The board shall issue the bonds in the manner, method, number and amount provided in the resolution. B. The board shall provide notice of its intention to issue bonds in a manner consistent with market practice. C. The bonds may be sold by competitive bid, including an online bidding process, or by negotiated sale for public or private offering at the price and on the terms prescribed in the resolution. If bonds are sold through an online bidding process, bids for the bonds that are entered into the system may be concealed until a specified time or disclosed in the bidding process. For the purposes of this subsection, "online bidding process" means a procurement process in which the board receives bids electronically over the internet in a real-time, competitive bidding event. D. The net proceeds from the sale of the bonds shall be deposited in the bond proceeds fund established pursuant to section 11-681.03. E. Title 35, chapter 3, article 7 applies to the board and to bonds issued under this article. 11-681.03. Bond proceeds fund; debt service fund A. If the county issues bonds under this article, the board shall establish a bond proceeds fund consisting of the net proceeds received from the sale of the bonds. The county may use monies in the bond proceeds fund only for county judgment purposes. B. The board shall establish a debt service fund designated and dedicated for repayment of the bonds, bond related expenses and related expenses associated with redeeming the bonds, consisting of county excise tax revenues pursuant to section 42-6112 and any other excise tax revenues pledged by the county for that purpose. Monies in the debt service fund may be used only for the purposes authorized by this article. The board may segregate the debt service fund into any number of accounts or subaccounts considered necessary to secure bonds issued under this article. C. The county treasurer shall administer and account for the bond proceeds fund and the debt service fund. D. No monies derived from selling bonds under this article or pledged or assigned to or in trust for the benefit of the holder or holders of the bonds may be paid into, or commingled with monies in, the county general fund. The treasurer shall deposit all such monies in special accounts or in separate financial institutions that the board designates. E. The monies in the bond proceeds fund and debt service fund shall be disbursed only as the board directs and according to the terms of any agreements with the holder or holders of the bonds. F. This section does not limit the power of the board to agree in connection with the issuance of the bonds as to the custody and disposition of the monies received from selling bonds or from the county excise tax revenues pledged or assigned to or in trust for the benefit of the holder or holders of the bonds. 11-681.04. Securing principal and interest In connection with issuing bonds authorized by this article and to enhance the security of the bonds, the board by resolution may: 1. Segregate the debt service fund into one or more accounts and subaccounts. 2. Provide that the bonds issued under this article are secured by a first lien on the monies paid into the debt service fund and pledge and assign to or in trust for the benefit of the holder or holders of the bonds all or part of the monies in the debt service fund or an account or subaccount as necessary to secure and pay the principal, the interest and any premium on the bonds as they come due. 3. Establish priorities among bondholders based on criteria adopted by the board. 4. Set aside, regulate and dispose of reserves and sinking accounts. 5. Prescribe the procedure, if any, by which the terms of any contract with bondholders may be amended or abrogated, the amount of bonds the holders of which must consent to and the manner in which the consent may be given. 6. Provide for payment of bond related expenses from the proceeds of the sale of the bonds or other revenues available to the board. 7. Provide for the services of trustees, cotrustees, agents, consultants and other specialized services with respect to the bonds. 8. Provide additional security for the bonds in the form of a line of credit, letter of credit, insurance policy or other security and: (a) Pay the cost of the additional security from amounts produced from the bond issue or from other available sources. (b) Enter into reimbursement obligations in connection with the additional security. 9. Refund any bonds issued pursuant to this article, if the new bonds are secured from the same source of revenues as the original bonds, by issuing new bonds, whether at or before maturity of the bonds being refunded. 10. Issue bonds partly to refund outstanding bonds and partly for any other purpose consistent with this article. 11. Take any other action that in any way may affect the security and protection of the bonds or interest on the bonds. 11-681.05. Lien of pledge A. Any pledge made under this article is valid and binding from the time when the pledge is made. B. The monies pledged and received by the board to be placed in the debt service fund are immediately subject to the lien of the pledge without any future physical delivery or further act. Any lien of any pledge is valid and binding against all parties who have claims of any kind against the county, regardless of whether the parties have notice of the lien. The official resolution or trust indenture or any instrument by which this pledge is created, when adopted by the board, is notice to all concerned of the creation of the pledge, and those instruments need not be recorded in any other place to perfect the pledge. 11-681.06. Bond purchase; cancellation The board may purchase bonds for cancellation, using any available monies, at a price not exceeding the following: 1. If the bonds are redeemable at the time of purchase, the applicable redemption price plus accrued interest to the next interest payment date. 2. If the bonds are not redeemable at the time of purchase, the applicable redemption price on the first date on which the bonds become subject to redemption plus accrued interest to that date. 11-681.07. Payment of bonds A. The bonds shall be paid solely from monies from the debt service fund. B. The county treasurer shall cancel all bonds when paid. 11-681.08. Use of surplus monies A. If a balance remains in the bond proceeds fund after all county judgment purposes have been paid, the remaining balance shall be used to reduce the county primary property tax levy in the following year. B. If a balance remains in the debt service fund after the retirement and payment of all bonds, interest and other charges related to bonds issued under this article, the remaining balance shall be used to reduce the county primary property tax levy in the following year. 11-681.09. Investment of monies in the bond proceeds fund and the debt service fund A. The board may authorize the county treasurer to invest monies in the bond proceeds fund in the manner prescribed by this section. The order directing an investment shall state a date on which the proceeds from the sale of the bonds will be needed for use, and the treasurer shall make the investment in such a way as to mature at the specified date. All monies earned as interest or otherwise derived from the investment of the monies in the bond proceeds fund shall be credited to the debt service fund. B. The board may authorize the county treasurer to invest and reinvest any monies in the debt service fund as provided by this section. All monies earned as interest or otherwise derived from the investment of the monies in the debt service fund shall be credited to that fund. C. The monies in either the bond proceeds fund or the debt service fund may be invested and reinvested in any of the following: 1. United States treasury obligations. 2. Consolidated farm loan bonds. 3. Obligations issued by the federal intermediate credit banks or by bonds for cooperatives on authority of the farm credit act of 1933. 4. Any other obligations guaranteed by the United States government. 5. Any investments that are authorized by any other agencies of the United States government and that are authorized to secure public deposits. 6. State and local government series United States treasury securities. 7. The pooled investment funds established by the state treasurer pursuant to section 35-326. 8. State, county or municipal bonds issued in this state and on which the payments of interest have not been deferred. 9. Investment agreements and repurchase agreements collateralized by investments described in paragraphs 1 through 5. D. The board may place any restrictions on reinvestment yield on the bonds or on any monies pledged to pay the bonds if necessary to comply with federal income tax laws and regulations to gain any federal tax benefits available with respect to the bonds. Monies shall be invested under this section in a manner that avoids arbitrage penalties prescribed by federal law. E. The purchase of the securities shall be made by the county treasurer on authority of a resolution of the board. The treasurer shall act as custodian of all securities purchased. 11-681.10. Characteristics of bonds; negotiable; obligation; legal investments; exemption from taxation A. Subject to any registration requirements, the bonds issued under this article are fully negotiable within the meaning and for all purposes of the uniform commercial code regardless of whether the bonds actually constitute negotiable instruments under the uniform commercial code. B. The bonds, their transfer and the income from the bonds are at all times free from taxation in this state. C. Bonds issued under this article: 1. Are payable only according to their terms. 2. Are obligations of the county, and are not general, special or other obligations of this state. 3. Do not constitute a general obligation debt of this state or of the county. 4. Are not enforceable against this state or the county nor is payment of the bonds enforceable out of any monies other than the revenue pledged and assigned to, or in trust for the benefit of, the holder or holders of the bonds. 5. Are government obligation securities suitable for investment by: (a) Public officers and bodies of this state and of counties, municipalities and other political subdivisions of this state. (b) Insurance companies, associations and other persons carrying on an insurance business. (c) Financial institutions, investment companies and other persons carrying on a banking business. (d) Fiduciaries. (e) All other persons who are authorized to invest in government obligations. 6. Are securities that may be deposited with public officers or bodies of this state and counties, municipalities and other political subdivisions of this state for purposes that require the deposit of government bonds or obligations. 11-681.11. Effect of changing circumstances on bonds; agre