PHOENIX (AP) - The Latest on a bill that would give developers more power to issue municipal bonds and levy taxes to pay for public infrastructure in communities they are building (all times local):
6:40 p.m.
A bill that would give developers more power to issue municipal bonds and levy taxes to pay for public infrastructure in communities they are building has passed in the Arizona Senate.
The proposal would allow developers and land owners to automatically set up what’s known as a special taxing district. The units are run by boards with authority similar to governments, including the use of eminent domain.
The bill by House Speaker David Gowan would also change the makeup of the governing board behind these districts to include two members chosen by the landowners, two members selected by the closest municipality and one member chosen by the municipality from a short list provided by landowners.
The Senate passed House bill 2568 on a 21-8 vote Monday where it received bi-partisan support. It now heads back to the House for a final vote.
Some of the state’s largest developers are backing the bill to help ensure they are at least partially reimbursed for money they spend on things like public roads and water and sewer systems, despite critics who say it turns over public financing privileges to boards that could be stacked by the developers.
3:04 p.m.
A bill that would give developers more control over a special taxing district used to help finance public infrastructure in master planned communities has advanced in the Senate.
The proposal by House Speaker David Gowan of Sierra Vista would allow developers to have more influence over the board that governs community facilities districts.
That would give developers more authority to levy taxes on homeowners and issue municipal bonds to pay for such public infrastructure as roads, water and sewer systems.
Developers say the bill would provide more certainty that they could recover investments on public infrastructure.
Opponents say it would give an unelected body financing privileges ordinarily reserved for public officials.
House Bill 2568 received initial approval in the Senate on Monday. It now awaits a formal vote.
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