Improvement District Process

THE IMPROVEMENT DISTRICT PROCESS

This is an outline of the procedure involved in gaining improvements through improvement districts. 
Purposes for which Improvement Districts may be used: Arizona Revised State Statutes 48-903.
Petition to establish district; elected board; verification; plat

FORMATION OF A DISTRICT

1. Inform Public Works of your desire to form such an Improvement District by contacting:
   Kelly Stickrath-Improvement District Supervisor
   3715 Sunshine Dr. Kingman, Az 86409
   (928) 757-0914
   Stickk@mohave.gov 
   
   Have the following information needed to start the process:
   
   1. What are the boundaries of the district?  Street name, physical boundaries or parcel list.
   2. Who will be a contact person for the district?
2. County personnel will prepare a petition packet which will contain the following information: A.  Boundary map and legal description.
   1. List of all property owners in the proposed district with addresses.
   2. Petition addressed to the Board of Supervisors in legal format.
3. Packet will be mailed or contact person will be notified when packet is ready for pickup.
4. Contact person will copy and circulate the petition and return them to the above address.  The petition must be signed by all owners of a majority of the real property or a majority of the owners of real property within the proposed boundary. 
5. A Bond will be required when petitions are turned in for Board approval. (48-904. Bond of petitioners; additional bond)  This bond will help defray the expense of obtaining the assessors maps, list of property owners and address labels along with mailing and publishing notices for public hearings that will be held to gather public input for the proposed district.
6. County staff will verify petitions. When a majority is reached a date will be set for the petition to be presented to the Board of Supervisors.  At this meeting the Board will accept or reject the petitions and bond. 
7. If the Board accepts the petitions and the bond, the Board of Supervisors will set a date for the hearing on the petition, this date shall not occur later than 40 days after the presentation of the petition.
8. County personnel will published twice in a newspaper of general circulation in the county within which the proposed district is located, the Notice announcing the hearing and stating the boundaries of the proposed district.  County personnel will mail the Notice of Hearing on the petition at least twenty days before the hearing, to each property owner in the proposed area that appear on the most recent assessment roll for State and Local Taxes.
9. At the hearing, the Board of Supervisors will consider all objections and, if appropriate, establish the boundaries and declare the improvement district organized as a political subdivision of the State of Arizona with specific boundaries for the purposes of carrying out the provisions of the improvement district statutes.

PETITION TO INCUR EXPENSE

Purposes for which Improvement Districts may be used Arizona State Statutes:

48-909. Purposes for which public improvements may be undertaken; powers incidental to public improvements When a specific project is requested, such as paving, a Petition to Incur Expense is assembled stating an estimated cost calculated by a county engineer.

1. This petition is circulated by the property owners until the owners of a majority of the frontage of the property fronting on the proposed improvement have signed their approval committing the district to the expenditure of funds. 48-915. Petition to incur expense; sufficiency
2. If the petition is approved by a majority of the property owners fronting the proposed improvement, a bid for a district engineer will be sought. The engineer will then be directed to prepare final plans and specifications.
3. The plans and specifications will be presented to the Board with actual calculated estimate.  If the Board approves the plans and specifications, a Resolution of Intention will be passed
4. The Resolution of Intention and Notice of Hearing will be mailed to all property owners fronting the proposed improvement.  The property owners will have 20 days to protest.
5. After the Hearing is passed, Notices are advertised for contractors. Bids will be opened and awarded to the contractor with the lowest acceptable bid at a Board of Supervisors meeting. 48922. Bids; bond; award of contract
6. The property owners will then be notified by mail (Cash Demand) the exact cost for their portion of the project.  They will have approximately 30 days to pay all or part of their cost to avoid paying any interest.  What monies are not collected from the property owners during these 30 days will be bonded.  Bonds are awarded to the Bond Company bidding the lowest interest rate. 
7. The property owners that did not pay all of their costs during the Cash Demand period will have their portion included in the bonding process which places a lien on their property equal to taxes and previous special assessments.  The bonds are usually for 10 years and paid semiannually.  Payments do not start until after construction is completed and they are due June 1st for 1/2 of the interest due for the year and December 1st for the other 1/2 of the Interest due plus the Principal for that year.  (In some cases the principal will be included in the June 1st payment instead of December 1st)  NOTE: Once we have entered bond phase, those property owners that are included in the bond assessment will be responsible for the full bond period of Interest even if they are paid off early. 
8. Once we have the cash from the property owners and the bond company, construction will begin.
   
   NOTE:   If only one specific project is needed in a district a Petition to Form & Incur can be circulated as one petition, however, they have to meet the requirements and steps of both the above petitions.  The district then will become an Improvement District for that one specific purpose and no other.