42-17108 - Arizona Statutes

42-17108. Encumbering municipal monies to pay obligations after close of fiscal year A. A city or town may encumber monies at the end of a fiscal year for any liabilities incurred during that fiscal year and still outstanding at the end of the fiscal year. B. Payments may be made from encumbered monies for a period of sixty days immediately after the end of the fiscal year. After the expiration of the sixty day period: 1. Any remaining encumbered balance lapses. 2. No further payments may be made from the budget of the preceding fiscal year.