AZ SB1171

Allows cities and towns to acquire sewage systems or portions thereof owned or operated by counties, subject to voter approval for wastewater utility operation.

Requires transfer of sewer collection infrastructure within city limits at city request, sewage treatment facilities if 75% or more of treated sewage originates from the city, and treatment capacity committed to the city's sewage.

City acquiring transferred infrastructure must pay or assume all outstanding indebtedness attributable to the infrastructure as of transfer date; county may not incur new debt after transfer notice.

Establishes cost allocation framework: cities pay counties' actual operation and maintenance costs for sewage conveyed through county infrastructure; counties pay cities' costs for sewage treated at city facilities or conveyed through city infrastructure.

Authorizes auditor general to perform independent audits of financial records to resolve disputes over actual costs, with findings binding as final arbitration; allows cities to seek mandamus against counties failing to make requested transfers and recover attorney fees if successful.