AZ HB2011

Amends Arizona Revised Statutes section 35-458 to modify how political subdivisions levy taxes for bond payments by requiring the annual levy to be the net amount after deducting cash reserves exceeding 10% of annual principal and interest payments from the previous fiscal year.

Requires the annual tax levy to cover annual interest and principal payments, projected payments on new debt for the ensuing year, a reasonable delinquency factor, and any expenses or fees required for debt authorization under section 35-512.

Establishes that all bond revenues are automatically secured by a lien on tax levy revenues that arises at the time of bond issuance without requiring any action, recordation, or filing by the political subdivision.

Allows political subdivisions with excess cash reserves above 10% in their interest and redemption fund during fiscal year 2017-2018 to reduce those excess reserves equally over fiscal years 2017-2018 and 2018-2019, except cities with populations of 500,000 or more may reduce excess reserves over fiscal years 2017-2018 through 2022-2023.

Became effective April 28, 2017, upon approval by the Governor.