AZ HB2406

Allows cities, towns, and counties to enter into financial assistance loan repayment agreements with the Water Infrastructure Finance Authority of Arizona for wastewater treatment, drinking water facilities, and nonpoint source projects without voter approval under certain conditions.

Removes voter election requirements for political subdivisions during fiscal years 2022-2027 when agreements are financed with Infrastructure Investment and Jobs Act (federal) funding and are not payable from secondary property tax revenue.

Permits financial assistance agreements to be repaid from utility system revenues or other revenues authorized by law, with secondary property tax levies allowed only if voter-approved.

Establishes that financial assistance loan repayment agreements do not create municipal debt and exempts payments from property tax assessment limitations under section 42-17106.

Allows domestic water improvement districts and domestic wastewater improvement districts to enter into loan repayment agreements without population restrictions, and includes provisions for pledging shared state revenues as additional loan security.