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ARIZONA STATE SENATE
Fifty-Seventh Legislature, Second Regular Session
street lighting improvement districts; consolidation
Purpose
Allows, from January 1, 2027, through January 1, 2030, a political subdivision with more than one municipal improvement district formed for the purpose of providing lighting for public streets or parks, to consolidate existing lighting districts into a single municipal improvement district by resolution. Requires a political subdivision to notify affected property owners and to provide for public comment.
Background
Statute allows the governing body of a municipality to establish improvement districts for the sole purpose of purchasing and not generating energy to light public streets and parks of the district, commonly referred to as a SLID. The governing body must produce an annual estimate of the SLID expenses that will be provided for by the levy and collection of taxes on the assessed value of the real and personal property in the SLID or by an equal apportionment of taxes based on the number and classification of properties within the SLID.
A municipality may, by ordinance or resolution, consolidate existing SLIDs. Property owners within the SLID proposed to be consolidated must submit a petition to the municipality. The governing body of the municipality must publish a hearing notice in a newspaper of general circulation in the municipality in which the affected SLIDs are located and the municipality must follow outlined requirements at the public hearing at which interested persons can appear and give comment (A.R.S. § 48-616).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
2. Requires a political subdivision to provide a 60-day notice to all real property owners in the SLIDs that are proposed for consolidation and to provide for receiving public comments.
3. Requires the 60-day notice to include:
a) the geographic areas of the SLIDs proposed for consolidation;
b) the date that the proposed consolidation would take effect if the resolution to consolidate is adopted;
c) a notice that the SLID tax rate may increase or decrease depending on the outcome of the consolidation;
d) the new estimated tax rate for the consolidated SLID; and
e) the time and location for public comment on the proposed consolidation.
4. Requires, on approval of the resolution to consolidate the SLIDs, the governing body of the political subdivision to submit a copy of its resolution to the county recorder for recording.
5. Specifies that any SLID established beginning January 1, 2027, through January 1, 2030, is eligible for the modified consolidation process.
6. Becomes effective on the general effective date.
Prepared by Senate Research
February 5, 2026
MG/SJ/hk