Section R12-15-107. Municipality Fee

A.      Each municipality in this state shall pay a fee to the Depart- ment each fiscal year in the amount calculated by the Director pursuant to subsection (B). The fee shall be paid by the dates specified in subsection (E).

B.       The Director shall calculate a municipality’s fee for a fiscal year as follows:

1.        Determine the total amount of fees the Director  will assess and collect from all municipalities during the fiscal year as follows:

a.         Determine the maximum total amount of fees the Director may assess and collect from all municipali- ties during the fiscal year pursuant to A.R.S. § 45- 118 consistent with legislative intent. Unless the leg- islature expresses its intent otherwise in statute or session law, this amount shall be $7,000,000.

b.        Reduce the amount determined in subsection (B)(1)(a) by the amount of unobligated monies in the water resources fund at the beginning of the fis- cal year, except that:

i.         If the Director determines that such a reduction likely would prevent the Department from using all the monies appropriated to it from the water resources fund for the fiscal year, the Director may decrease the amount of the reduc- tion or make no reduction, as appropriate, to allow the Department to use all  the monies appropriated to it from the fund.

ii.        If the Director determines such a reduction likely would result in an excessive accumula- tion of unobligated monies in the water resources fund at the end of the fiscal year, the Director may increase the amount of the reduc- tion.

2.        Determine the ratio, expressed as a percentage, that the municipality’s population bears to the total population of all municipalities in the state by dividing the municipal- ity’s population by the total population of all municipali- ties in the state.

3.        Multiply the amount from subsection (B)(1) by the per- centage calculated in subsection (B)(2). The result is the municipality’s fee for the fiscal year.

C.      By July 15 of each fiscal year, the Director shall mail to each municipality a notice of the municipality’s fee for that fiscal year as calculated pursuant to subsection (B), including the manner in which the fee was calculated. The notice shall be mailed to the municipality’s city or town manager or city or town attorney.

D.      A municipality may seek review of the calculation of its fee by filing a written request for review with the Director within 15 calendar days after receipt of the initial notice of the fee given by the Director under subsection (C). Review shall be limited to whether the Director’s calculation of the fee contains a mathematical, clerical or typographical error. The Director shall make a final decision on a request for review and mail a final written decision to the municipality requesting the review within 10 calendar days after the date the Director receives the written request. The Director’s final written decision shall state the municipality’s fee following review.

E.       A municipality shall pay at least one-half of its fee for a fiscal year by August 15 of that fiscal year and any remaining por- tion of the fee by January 15 of the fiscal year. If the due date for a payment falls on a weekend, the payment is due on the next business day.

Historical Note

New Section made by exempt rulemaking at 16 A.A.R. 1205, effective June 15, 2010 (Supp. 10-2). Amended by exempt rulemaking at 16 A.A.R. 1950, effective Septem- ber 10, 2010 (Supp. 10-3). Amended by exempt rulemak-

ing at 17 A.A.R. 776, effective April 15, 2011 with an

automatic repeal date effective June 4, 2011 (Supp. 11-2). New Section made by exempt rulemaking at 17 A.A.R. 1769, effective August 10, 2011 with an automatic repeal

date effective July 1, 2012 (Supp. 11-3). New Section made by final rulemaking at 18 A.A.R. 203, effective

July 1, 2012 (Supp. 12-1).