municipal improvement districts; enhanced services

HB 2597 creates a new type of municipal improvement district in Arizona that allows cities or towns to form special areas providing enhanced public services - such as higher-level public safety, fire protection, waste collection, or street cleaning - beyond what’s offered in the broader community. To form such a district, property owners must sign a petition representing more than half the taxable property value in the proposed area, excluding exempt properties like government buildings. The district’s costs are assessed annually based on property benefits, with residential properties (four units or less per building) presumed not to receive specific benefits and thus exempt from assessment. The bill also prohibits these districts from issuing bonds or expanding services beyond the specified enhanced offerings.