CHAPTER 3861. VIRIDIAN MUNICIPAL MANAGEMENT DISTRICT
SPECIAL DISTRICT LOCAL LAWS CODE
TITLE 4. DEVELOPMENT AND IMPROVEMENT
SUBTITLE C. DEVELOPMENT, IMPROVEMENT, AND MANAGEMENT
CHAPTER 3861. VIRIDIAN MUNICIPAL MANAGEMENT DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 3861.001. DEFINITIONS. In this chapter:
(1) "Board" means the district's board of directors.
(2) "City" means the City of Arlington.
(3) "District" means the Viridian Municipal Management District.
(4) "Improvement project" means any program or project
authorized by Section 3861.102, inside or outside the district.
Added by Acts 2007, 80th Leg., R.S., Ch.
531, Sec. 1, eff. June 16, 2007.
Sec. 3861.002. CREATION AND NATURE OF DISTRICT. The district is
a special district created under Section 59, Article XVI, Texas
Constitution.
Added by Acts 2007, 80th Leg., R.S., Ch.
531, Sec. 1, eff. June 16, 2007.
Sec. 3861.003. PURPOSE; LEGISLATIVE FINDINGS. (a) The creation
of the district is essential to accomplish the purposes of
Sections 52 and 52-a, Article III, and Section 59, Article XVI,
Texas Constitution, and other public purposes stated in this
chapter. By creating the district and in authorizing the city
and other political subdivisions to contract with the district,
the legislature has established a program to accomplish the
public purposes set out in Section 52-a, Article III, Texas
Constitution.
(b) The creation of the district is necessary to promote,
develop, encourage, and maintain employment, commerce,
transportation, housing, tourism, recreation, the arts,
entertainment, economic development, safety, and the public
welfare in the district.
(c) This chapter and the creation of the district may not be
interpreted to relieve the city or Tarrant County from providing
the level of services provided as of the effective date of the
Act enacting this chapter to the area in the district. The
district is created to supplement and not to supplant the city
and county services provided in the district.
Added by Acts 2007, 80th Leg., R.S., Ch.
531, Sec. 1, eff. June 16, 2007.
Sec. 3861.004. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) The
district is created to serve a public use and benefit.
(b) All land and other property included in the district will
benefit from the improvements and services to be provided by the
district under powers conferred by Sections 52 and 52-a, Article
III, and Section 59, Article XVI, Texas Constitution, and other
powers granted under this chapter.
(c) The creation of the district is in the public interest and
is essential to further the public purposes of:
(1) developing and diversifying the economy of the state;
(2) eliminating unemployment and underemployment;
(3) providing quality residential housing; and
(4) developing or expanding transportation and commerce.
(d) The district will:
(1) promote the health, safety, and general welfare of
residents, employers, potential employees, employees, visitors,
and consumers in the district, and of the public;
(2) provide needed funding for the district to preserve,
maintain, and enhance the economic health and vitality of the
district territory as a residential community and business
center; and
(3) promote the health, safety, welfare, and enjoyment of the
public by providing pedestrian ways and by landscaping and
developing certain areas in the district, which are necessary for
the restoration, preservation, and enhancement of scenic beauty.
(e) Pedestrian ways along or across a street, whether at grade
or above or below the surface, and street lighting, street
landscaping, parking, and street art objects are parts of and
necessary components of a street and are considered to be an
improvement project that includes a street or road improvement.
(f) The district will not act as the agent or instrumentality of
any private interest even though the district will benefit many
private interests as well as the public.
Added by Acts 2007, 80th Leg., R.S., Ch.
531, Sec. 1, eff. June 16, 2007.
Sec. 3861.005. DISTRICT TERRITORY. (a) The district is
composed of the territory described by Section 2 of the Act
enacting this chapter, as that territory may have been modified
under:
(1) Section 3861.107; or
(2) other law.
(b) A mistake in the field notes of the district contained in
Section 2 of the Act enacting this chapter or in copying the
field notes in the legislative process does not in any way
affect:
(1) the district's organization, existence, or validity;
(2) the district's right to contract, including the right to
issue any type of bond or other obligation for a purpose for
which the district is created;
(3) the district's right to impose or collect an assessment,
tax, or any other revenue; or
(4) the legality or operation of the board.
Added by Acts 2007, 80th Leg., R.S., Ch.
531, Sec. 1, eff. June 16, 2007.
Sec. 3861.006. ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES. (a)
All or any part of the area of the district is eligible to be
included in:
(1) a tax increment reinvestment zone created by the city under
Chapter 311, Tax Code;
(2) a tax abatement reinvestment zone created by the city under
Chapter 312, Tax Code; or
(3) an enterprise zone created by the city under Chapter 2303,
Government Code.
(b) If the city creates a tax increment reinvestment zone
described by Subsection (a), the city and the board of directors
of the zone, by contract with the district, may grant money
deposited in the tax increment fund to the district to be used by
the district for the purposes permitted for money granted to a
corporation under Section 380.002(b), Local Government Code,
including the right to pledge the money as security for any bonds
issued by the district for an improvement project.
Added by Acts 2007, 80th Leg., R.S., Ch.
531, Sec. 1, eff. June 16, 2007.
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 3861.051. GOVERNING BODY; TERMS. The district is governed
by a board of five directors who serve staggered terms of four
years, with two or three directors' terms expiring May 31 of each
even-numbered year.
Added by Acts 2007, 80th Leg., R.S., Ch.
531, Sec. 1, eff. June 16, 2007.
Sec. 3861.052. ELECTION DATE. The board shall hold elections
for directors on the uniform election date in May in
even-numbered years.
Added by Acts 2007, 80th Leg., R.S., Ch.
531, Sec. 1, eff. June 16, 2007.
Sec. 3861.053. ELIGIBILITY. (a) To be qualified to serve as a
director, a person must own land in the district.
(b) Section 49.052, Water Code, does not apply to the district.
Added by Acts 2007, 80th Leg., R.S., Ch.
531, Sec. 1, eff. June 16, 2007.
Sec. 3861.054. VACANCY. (a) The remaining directors shall fill
a vacancy on the board by appointing a person who meets the
qualifications prescribed by Section 3861.053.
(b) If there are fewer than three directors, the governing body
of the city shall appoint the necessary number of directors to
fill all board vacancies.
Added by Acts 2007, 80th Leg., R.S., Ch.
531, Sec. 1, eff. June 16, 2007.
Sec. 3861.055. DIRECTOR'S OATH OR AFFIRMATION. A director's
oath or affirmation of office shall be filed with the district
and the district shall retain the oath or affirmation in the
district records.
Added by Acts 2007, 80th Leg., R.S., Ch.
531, Sec. 1, eff. June 16, 2007.
Sec. 3861.056. OFFICERS. The board shall elect from among the
directors a chair, a vice chair, and a secretary.
Added by Acts 2007, 80th Leg., R.S., Ch.
531, Sec. 1, eff. June 16, 2007.
Sec. 3861.057. COMPENSATION; EXPENSES. (a) The district may
compensate each director in an amount not to exceed $50 for each
board meeting. The total amount of compensation per director per
year may not exceed $2,000.
(b) A director is entitled to reimbursement for necessary and
reasonable expenses incurred in carrying out the duties and
responsibilities of a director.
Added by Acts 2007, 80th Leg., R.S., Ch.
531, Sec. 1, eff. June 16, 2007.
For expiration of this section, see Subsection (c).
Sec. 3861.058. INITIAL DIRECTORS. (a) The initial board
consists of the following directors:
Pos. No.
Name of Director
1
Donald Huffines
2
Phillip Huffines
3
Sue Blankenship
4
Robert Kembel
5
Elvio Bruni
(b) Of the initial directors, the terms of directors appointed
for positions 1 and 2 expire May 31, 2008, and the terms of
directors appointed for positions 3 through 5 expire May 31,
2010.
(c) This section expires September 1, 2011.
Added by Acts 2007, 80th Leg., R.S., Ch.
531, Sec. 1, eff. June 16, 2007.
SUBCHAPTER C. POWERS AND DUTIES
Sec. 3861.101. GENERAL POWERS AND DUTIES. The district has the
powers and duties provided by:
(1) the general laws relating to conservation and reclamation
districts created under Section 59, Article XVI, Texas
Constitution, including Chapters 49 and 54, Water Code, except
that the district's bonds and other securities are not subject to
the jurisdiction or supervision of the Texas Commission on
Environmental Quality under Chapter 49, Water Code, or other law;
(2) the general laws relating to road districts and road utility
districts created under Section 52(b), Article III, Texas
Constitution, including Chapter 441, Transportation Code;
(3) Subchapter A, Chapter 372, Local Government Code, in the
same manner as a municipality or a county; and
(4) Chapters 375 and 505, Local Government Code.
Added by Acts 2007, 80th Leg., R.S., Ch.
531, Sec. 1, eff. June 16, 2007.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
87, Sec. 21.048, eff. September 1, 2009.
Sec. 3861.102. IMPROVEMENT PROJECTS. (a) The district may
provide, or it may enter into contracts with a governmental or
private entity to provide, the following types of improvement
projects or activities in support of or incidental to those
projects:
(1) a supply and distribution facility or system to provide
potable and city-approved nonpotable water to the residents and
businesses of the district, including a wastewater collection
facility;
(2) a paved road or street, or turnpike, inside and outside the
district to the extent authorized by Section 52, Article III,
Texas Constitution;
(3) the planning, design, construction, improvement, and
maintenance of:
(A) landscaping;
(B) highway right-of-way or transit corridor beautification and
improvement;
(C) lighting, banners, and signs;
(D) a street or sidewalk;
(E) a hiking and cycling path or trail;
(F) a pedestrian walkway, skywalk, crosswalk, or tunnel;
(G) a park, lake, garden, recreational facility, sports
facility, open space, scenic area, or related exhibit or
preserve;
(H) a fountain, plaza, or pedestrian mall; or
(I) a drainage or storm-water detention improvement;
(4) protection and improvement of the quality of storm water
that flows through the district;
(5) the planning, design, construction, improvement,
maintenance, and operation of:
(A) a water or sewer facility; or
(B) an off-street parking facility or heliport;
(6) the planning and acquisition of:
(A) public art and sculpture and related exhibits and
facilities; or
(B) an educational and cultural exhibit or facility;
(7) the planning, design, construction, acquisition, lease,
rental, improvement, maintenance, installation, and management of
and provision of furnishings for a facility for:
(A) a conference, convention, or exhibition;
(B) a manufacturer, consumer, or trade show;
(C) a civic, community, or institutional event; or
(D) an exhibit, display, attraction, special event, or seasonal
or cultural celebration or holiday;
(8) the removal, razing, demolition, or clearing of land or
improvements in connection with an improvement project;
(9) the acquisition and improvement of land or other property
for the mitigation of the environmental effects of an improvement
project;
(10) the acquisition of property or an interest in property in
connection with an authorized improvement project;
(11) a special or supplemental service for the improvement and
promotion of the district or an area adjacent to the district or
for the protection of public health and safety in or adjacent to
the district, including:
(A) advertising;
(B) promotion;
(C) tourism;
(D) health and sanitation;
(E) public safety;
(F) security;
(G) fire protection or emergency medical services;
(H) business recruitment;
(I) development;
(J) elimination of traffic congestion; and
(K) recreational, educational, or cultural improvements,
enhancements, and services; or
(12) any similar public improvement, facility, or service.
(b) The district may not undertake a project under this section
unless the board determines the project to be necessary to
accomplish a public purpose of the district.
(c) An improvement project must comply with any applicable city
requirements, including codes and ordinances.
(d) The district may not provide, conduct, or authorize any
improvement project on the city streets, highways, rights-of-way,
or easements without the consent of the governing body of the
city.
(e) Subject to any agreement between the district and the city,
the city may:
(1) by ordinance, order, or resolution require that title to all
or any portion of an improvement project vest in the city; or
(2) by ordinance, order, or resolution or other directive
authorize the district to own, encumber, maintain, and operate an
improvement project, subject to the right of the city to order a
conveyance of the project to the city on a date determined by the
city.
(f) The district shall immediately comply with any city
ordinance, order, or resolution adopted under Subsection (e).
(g) For the purposes of this section, planning, design,
construction, improvement, and maintenance of a lake includes
work done for drainage, reclamation, or recreation.
Added by Acts 2007, 80th Leg., R.S., Ch.
531, Sec. 1, eff. June 16, 2007.
Sec. 3861.103. GENERAL POWERS REGARDING CONTRACTS. (a) The
district may:
(1) contract with any person to accomplish any district purpose,
including a contract for:
(A) the payment, repayment, or reimbursement of costs incurred
by that person on behalf of the district, including all or part
of the costs of an improvement project and interest on the
reimbursed cost; or
(B) the use, occupancy, lease, rental, operation, maintenance,
or management of all or part of a proposed or existing
improvement project; and
(2) apply for and contract with any person to receive,
administer, and perform a duty or obligation of the district
under a federal, state, local, or private gift, grant, loan,
conveyance, transfer, bequest, or other financial assistance
arrangement relating to the investigation, planning, analysis,
study, design, acquisition, construction, improvement,
completion, implementation, or operation by the district or
others of a proposed or existing improvement project.
(b) A contract the district enters into to carry out a purpose
of this chapter may be on any terms and for any period the board
determines, including a negotiable or nonnegotiable note or
warrant payable to the city, Tarrant County, and any other
person.
(c) Any person may contract with the district to carry out the
purposes of this chapter without further statutory or other
authorization.
(d) A contract payable from ad valorem taxes for a period longer
than one year must be approved by the governing body of the city.
Added by Acts 2007, 80th Leg., R.S., Ch.
531, Sec. 1, eff. June 16, 2007.
Sec. 3861.104. RULES; ENFORCEMENT. (a) The district may adopt
rules:
(1) to administer or operate the district;
(2) for the use, enjoyment, availability, protection, security,
and maintenance of the district's property and facilities; or
(3) to provide for public safety and security in the district.
(b) The district may enforce its rules by injunctive relief.
(c) To the extent a district rule conflicts with a city rule,
order, or regulation, the city rule, order, or regulation
controls.
Added by Acts 2007, 80th Leg., R.S., Ch.
531, Sec. 1, eff. June 16, 2007.
Sec. 3861.105. NAME CHANGE. The board by resolution may change
the district's name. The board shall give written notice of the
change to the city.
Added by Acts 2007, 80th Leg., R.S., Ch.
531, Sec. 1, eff. June 16, 2007.
Sec. 3861.106. USE OF ROADWAY, PARK, OR OTHER PUBLIC AREA OF THE
DISTRICT. (a) The board by rule may regulate the private use of
a public roadway, open space, park, sidewalk, or similar public
area in the district. To the extent the district rules conflict
with a rule, order, or regulation of the city, the rule, order,
or regulation of the city controls. A rule may provide for the
safe and orderly use of public roadways, open spaces, parks,
sidewalks, and similar public areas or facilities.
(b) The board may require a permit for a parade, demonstration,
celebration, entertainment event, or similar nongovernmental
activity in or on a public roadway, open space, park, sidewalk,
or similar public area or facility. The board may charge a fee
for the permit application or for public safety or security
services in an amount the board considers necessary.
(c) The board may require a permit or franchise agreement with a
vendor, concessionaire, exhibitor, or similar private or
commercial person or organization for the limited use of the area
or facility on terms and on payment of a permit or franchise fee
the board may impose.
Added by Acts 2007, 80th Leg., R.S., Ch.
531, Sec. 1, eff. June 16, 2007.
Sec. 3861.107. ADDING OR REMOVING TERRITORY. The board may add
or remove territory under Subchapter J, Chapter 49, and Section
54.016, Water Code, except that:
(1) the addition or removal of the territory must be approved
by:
(A) the governing body of the city; and
(B) the owners of the territory being added or removed;
(2) a reference to a tax in Subchapter J, Chapter 49, or Section
54.016, Water Code, means an ad valorem tax; and
(3) territory may not be removed from the district if bonds or
other obligations of the district payable, wholly or partly, from
ad valorem taxes on the territory are outstanding.
Added by Acts 2007, 80th Leg., R.S., Ch.
531, Sec. 1, eff. June 16, 2007.
Sec. 3861.108. ECONOMIC DEVELOPMENT. The district may create
economic development programs and exercise the economic
development powers that:
(1) Chapter 380, Local Government Code, provides to a
municipality with a population of more than 100,000; and
(2) Chapter 1509, Government Code, provides to any municipality.
Added by Acts 2007, 80th Leg., R.S., Ch.
531, Sec. 1, eff. June 16, 2007.
Sec. 3861.109. TERMS OF EMPLOYMENT; COMPENSATION. The board may
employ and establish the terms of employment and compensation of
an executive director or general manager and any other district
employees the board considers necessary.
Added by Acts 2007, 80th Leg., R.S., Ch.
531, Sec. 1, eff. June 16, 2007.
Sec. 3861.110. NO EMINENT DOMAIN POWER. The district may not
exercise the power of eminent domain.
Added by Acts 2007, 80th Leg., R.S., Ch.
531, Sec. 1, eff. June 16, 2007.
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
Sec. 3861.151. GENERAL POWERS REGARDING FINANCIAL MATTERS.
Except as provided by Section 3861.161, the district may:
(1) impose an ad valorem tax on all taxable property in the
district, including industrial, commercial, and residential
property, to pay for an improvement project;
(2) impose an assessment on property in the district in the
manner provided for:
(A) a district under Subchapters A, E, and F, Chapter 375, Local
Government Code; or
(B) a municipality or county under Subchapter A, Chapter 372,
Local Government Code;
(3) provide or secure the payment or repayment of the costs and
expenses of the establishment, administration, and operation of
the district and the district's costs or share of the costs or
revenue of an improvement project or district contractual
obligation or indebtedness by or through:
(A) a lease, installment purchase contract, or other agreement
with any person;
(B) the imposition of a tax, assessment, user fee, concession
fee, or rental charge; or
(C) any other revenue or resources of the district;
(4) establish user charges related to the operation of
storm-water facilities, including the regulation of storm water
for the protection of water quality in the district;
(5) establish user charges for the use of nonpotable water for
irrigation purposes, subject to the approval of the governing
body of the city;
(6) undertake separately or jointly with other persons,
including the city or Tarrant County, all or part of the cost of
an improvement project, including an improvement project:
(A) for improving, enhancing, and supporting public safety and
security, fire protection and emergency medical services, and law
enforcement in and adjacent to the district; or
(B) that confers a general benefit on the entire district or a
special benefit on a definable part of the district; and
(7) enter into a tax abatement agreement in accordance with the
general laws of this state authorizing and applicable to tax
abatement agreements by municipalities.
Added by Acts 2007, 80th Leg., R.S., Ch.
531, Sec. 1, eff. June 16, 2007.
Sec. 3861.152. BORROWING MONEY. The district may borrow money
for a district purpose by issuing or executing bonds, notes,
credit agreements, or other obligations of any kind found by the
board to be necessary or appropriate for the district purpose.
The bond, note, credit agreement, or other obligation must be
secured by and payable from ad valorem taxes, assessments, or any
other district revenue.
Added by Acts 2007, 80th Leg., R.S., Ch.
531, Sec. 1, eff. June 16, 2007.
Sec. 3861.153. IMPACT FEES AND ASSESSMENTS; EXEMPTION. (a) The
district may impose an impact fee or assessment on property in
the district, including an impact fee or assessment on
residential or commercial property, only in the manner provided
by Subchapter A, Chapter 372 or Subchapter F, Chapter 375, Local
Government Code, for a municipality, county, or public
improvement district, according to the benefit received by the
property.
(b) An impact fee for residential property must be for the
limited purpose of providing capital funding for:
(1) public water and wastewater facilities;
(2) drainage and storm-water facilities; and
(3) streets and alleys.
(c) An assessment, a reassessment, or an assessment resulting
from an addition to or correction of the assessment roll by the
district, penalties and interest on an assessment or
reassessment, an expense of collection, and reasonable attorney's
fees incurred by the district:
(1) are a first and prior lien against the property assessed;
and
(2) are superior to any other lien or claim other than a lien or
claim for county, school district, or municipal ad valorem taxes.
(d) The board may make a correction to or deletion from the
assessment roll that does not increase the amount of assessment
of any parcel of land without providing notice and holding a
hearing in the manner required for additional assessments.
(e) The district may not impose an impact fee on the property,
including equipment and facilities, of a public utility provider
in the district.
Added by Acts 2007, 80th Leg., R.S., Ch.
531, Sec. 1, eff. June 16, 2007.
Sec. 3861.154. CERTAIN RESIDENTIAL PROPERTY NOT EXEMPT. Section
375.161, Local Government Code, does not apply to the district.
Added by Acts 2007, 80th Leg., R.S., Ch.
531, Sec. 1, eff. June 16, 2007.
Sec. 3861.155. MAINTENANCE AND OPERATION TAX; ELECTION. (a)
Except as provided by Section 3861.161, the district may impose a
tax for maintenance and operation purposes, including for:
(1) planning, constructing, acquiring, maintaining, repairing,
and operating all improvement projects, including land, plants,
works, facilities, improvements, appliances, and equipment of the
district; and
(2) paying costs of services, engineering and legal fees, and
organization and administrative expenses.
(b) The district may not impose a maintenance and operation tax
unless the maximum tax rate is approved by the governing body of
the city and a majority of the district voters voting at an
election held for that purpose. If the maximum tax rate is
approved, the board may impose the tax at any rate that does not
exceed the approved rate.
(c) A maintenance and operation tax election may be held at the
same time and in conjunction with any other district election.
The election may be called by a separate election order or as
part of any other election order.
(d) The proposition in a maintenance and operation tax election
may be for a specific maximum rate or for an unlimited rate.
Added by Acts 2007, 80th Leg., R.S., Ch.
531, Sec. 1, eff. June 16, 2007.
Sec. 3861.156. USE OF SURPLUS MAINTENANCE AND OPERATION MONEY.
If the district has surplus maintenance and operation tax money
that is not needed for the purposes for which it was collected,
the money may be used for any authorized purpose.
Added by Acts 2007, 80th Leg., R.S., Ch.
531, Sec. 1, eff. June 16, 2007.
Sec. 3861.157. BOND ISSUANCE PLAN REQUIRED BEFORE ISSUING BONDS.
The district may not issue bonds until the governing body of the
city approves a bond issuance plan authorizing and setting forth
the limitations on the issuance of the bonds.
Added by Acts 2007, 80th Leg., R.S., Ch.
531, Sec. 1, eff. June 16, 2007.
Sec. 3861.158. BONDS AND OTHER OBLIGATIONS; MUNICIPAL APPROVAL.
(a) Except as provided by Sections 3861.157 and 3861.161, the
district may issue by competitive bid or negotiated sale bonds,
notes, or other obligations payable wholly or partly from ad
valorem taxes or assessments in the manner provided by Subchapter
A, Chapter 372 or Subchapter J, Chapter 375, Local Government
Code.
(b) In exercising the district's borrowing power, the district
may issue a bond or other obligation in the form of a bond, note,
certificate of participation or other instrument evidencing a
proportionate interest in payments to be made by the district, or
other type of obligation.
(c) In addition to the sources of money described by Subchapter
A, Chapter 372, and Subchapter J, Chapter 375, Local Government
Code, district bonds may be secured and made payable, wholly or
partly, by a pledge of any part of the net proceeds the district
receives from any other district revenue.
Added by Acts 2007, 80th Leg., R.S., Ch.
531, Sec. 1, eff. June 16, 2007.
Sec. 3861.159. BOND MATURITY. Bonds may mature not more than 40
years from their date of issue.
Added by Acts 2007, 80th Leg., R.S., Ch.
531, Sec. 1, eff. June 16, 2007.
Sec. 3861.160. TAXES FOR BONDS AND OTHER OBLIGATIONS. (a) At
the time bonds or other obligations payable wholly or partly from
ad valorem taxes are issued:
(1) the board shall impose a continuing direct annual ad valorem
tax, without limit as to rate or amount, for each year that all
or part of the bonds are outstanding; and
(2) the district annually shall impose an ad valorem tax on all
taxable property in the district in an amount sufficient to:
(A) pay the interest on the bonds or other obligations as the
interest becomes due;
(B) create a sinking fund for the payment of the principal of
the bonds or other obligations when due or the redemption price
at any earlier required redemption date; and
(C) pay the expenses of imposing the taxes.
(b) Bonds or other obligations that are secured by and payable
from ad valorem taxes may not be issued unless the bonds and the
imposition of the taxes are approved by:
(1) a majority of the district voters voting at an election held
for that purpose; and
(2) the governing body of the city.
(c) The district shall hold an election required by this section
in the manner provided by Chapter 54, Water Code.
Added by Acts 2007, 80th Leg., R.S., Ch.
531, Sec. 1, eff. June 16, 2007.
Sec. 3861.161. PROJECT DEVELOPMENT AGREEMENT REQUIRED TO IMPOSE
TAXES OR BORROW MONEY, INCLUDING BONDS. Before the district may
issue bonds, impose taxes, or borrow money, the district and the
city must negotiate and execute a mutually approved and accepted
interlocal project development agreement regarding the
development plans and rules for:
(1) the development and operation of the district; and
(2) the financing of improvement projects.
Added by Acts 2007, 80th Leg., R.S., Ch.
531, Sec. 1, eff. June 16, 2007.
SUBCHAPTER E. DIVISION OF DISTRICT INTO MULTIPLE DISTRICTS
Sec. 3861.201. DIVISION OF DISTRICT; REQUIREMENTS. (a) At any
time before the district issues indebtedness secured by ad
valorem taxes, the district may be divided into two or more new
districts.
(b) A new district created by division of the district must be
at least 100 acres.
(c) Any new district created by the division of the district may
not, at the time the new district is created, contain any land
outside the area described by Section 2 of the Act creating this
chapter.
(d) The board may consider a proposal to divide the district on:
(1) a petition of a landowner in the district; or
(2) a motion by the board.
(e) The board may not divide the district unless the division is
approved by the governing body of the city by resolution. The
resolution may set terms for the division under Subsection (f).
(f) If the board decides to divide the district, the board
shall, subject to the city's resolution:
(1) set the terms of the division, including names for the new
districts and a plan for the payment or performance of any
outstanding district obligations; and
(2) prepare a metes and bounds description for each proposed
district.
Added by Acts 2007, 80th Leg., R.S., Ch.
531, Sec. 1, eff. June 16, 2007.
Sec. 3861.202. ELECTION FOR DIVISION OF DISTRICT. (a) After
the board has complied with Section 3861.201, the board shall
hold an election in the district to determine whether the
district should be divided as proposed.
(b) The board shall give notice of the election not later than
the 35th day before the date of the election. The notice must
state:
(1) the date and location of the election; and
(2) the proposition to be voted on.
(c) If a majority of the votes cast are in favor of the
division:
(1) the district is divided; and
(2) not later than the 30th day after the date of the election,
the district shall provide written notice of the division to:
(A) the Texas Commission on Environmental Quality; and
(B) the city.
(d) If a majority of the votes cast are not in favor of the
division, the district is not divided.
Added by Acts 2007, 80th Leg., R.S., Ch.
531, Sec. 1, eff. June 16, 2007.
Sec. 3861.203. ELECTION OF DIRECTORS OF NEW DISTRICTS. (a) Not
later than the 90th day after the date of an election in favor of
the division of the district, the board shall:
(1) appoint itself as the board of one of the new districts; and
(2) appoint five directors for each of the other new districts.
(b) Directors appointed under Subsection (a)(1) serve the
staggered terms to which they were elected in the original
district. Directors appointed under Subsection (a)(2) serve
until the election for directors under Subsection (c).
(c) On the uniform election date in May of the first
even-numbered year after the year in which the directors are
appointed, the appointed board shall hold an election to elect
five directors in each district for which directors were
appointed under Subsection (a)(2). The directors shall draw lots
to determine which two shall serve until the next regularly
scheduled election of directors and which three shall serve until
the second regularly scheduled election of directors.
Added by Acts 2007, 80th Leg., R.S., Ch.
531, Sec. 1, eff. June 16, 2007.
Sec. 3861.204. CONTINUING POWERS AND OBLIGATIONS OF NEW
DISTRICTS. (a) Each new district may incur and pay debts and
has all powers of the original district created by this chapter.
(b) Each new district has the same limitations or other
provisions concerning the city that apply to the original
district.
(c) If the district is divided as provided by this subchapter,
the current obligations and any bond authorizations of the
district are not impaired. Debts shall be paid by revenue or by
taxes or assessments imposed on real property in the district as
if the district had not been divided or by contributions from
each new district as stated in the terms set by the board under
Section 3861.201(f).
(d) Any other district obligation is divided pro rata among the
new districts on an acreage basis or on other terms that are
satisfactory to the new districts.
Added by Acts 2007, 80th Leg., R.S., Ch.
531, Sec. 1, eff. June 16, 2007.
Sec. 3861.205. CONTRACT AUTHORITY OF NEW DISTRICTS. (a) Except
as provided by Subsection (b), the new districts may contract
with each other for any matter the boards of the new districts
consider appropriate.
(b) The new districts may not contract with each other for water
and wastewater services.
Added by Acts 2007, 80th Leg., R.S., Ch.
531, Sec. 1, eff. June 16, 2007.
SUBCHAPTER F. DISSOLUTION
Sec. 3861.251. DISSOLUTION BY CITY ORDINANCE. (a) The city by
ordinance may dissolve the district and any additional districts
created under Subchapter E.
(b) The city may not dissolve a district until the district's
outstanding indebtedness or contractual obligations payable from
ad valorem taxes have been repaid or discharged.
(c) The city may not dissolve a district until the agreement
under Section 3861.161 has been executed and the district's
performance under the agreement has been fulfilled, including any
right or obligation the district has to reimburse a developer or
owner for the costs of improvement projects.
Added by Acts 2007, 80th Leg., R.S., Ch.
531, Sec. 1, eff. June 16, 2007.
Sec. 3861.252. COLLECTION OF ASSESSMENTS AND OTHER REVENUE. (a)
If the dissolved district has bonds or other obligations
outstanding secured by and payable from assessments or other
revenue, other than ad valorem taxes, the city shall succeed to
the rights and obligations of the district regarding enforcement
and collection of the assessments or other revenue.
(b) The city shall have and exercise all district powers to
enforce and collect the assessments or other revenue to pay:
(1) the bonds or other obligations when due and payable
according to their terms; or
(2) special revenue or assessment bonds or other obligations
issued by the city to refund the outstanding bonds or
obligations.
Added by Acts 2007, 80th Leg., R.S., Ch.
531, Sec. 1, eff. June 16, 2007.
Sec. 3861.253. ASSUMPTION OF ASSETS AND LIABILITIES. (a) After
the city dissolves the district, the city assumes the obligations
of the district, including any bonds or other indebtedness
payable from assessments or other district revenue.
(b) If the city dissolves the district, the board shall transfer
ownership of all district property to the city.
Added by Acts 2007, 80th Leg., R.S., Ch.
531, Sec. 1, eff. June 16, 2007.