CHAPTER 3871. TRINITY RIVER WEST MUNICIPAL MANAGEMENT DISTRICT
SPECIAL DISTRICT LOCAL LAWS CODE
TITLE 4. DEVELOPMENT AND IMPROVEMENT
SUBTITLE C. DEVELOPMENT, IMPROVEMENT, AND MANAGEMENT
CHAPTER 3871. TRINITY RIVER WEST MUNICIPAL MANAGEMENT DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 3871.001. DEFINITIONS. In this chapter:
(1) "Board" means the district's board of directors.
(2) "City" means the City of Dallas.
(3) "District" means the Trinity River West Municipal Management
District.
(4) "Improvement project" means a project authorized by Section
3871.102:
(A) inside the boundaries of the district; and
(B) in areas outside but adjacent to the boundaries of the
district if the project is for the purpose of extending public
infrastructure improvements beyond the district's boundaries to a
logical terminus.
Added by Acts 2009, 81st Leg., R.S., Ch.
1067, Sec. 1, eff. June 19, 2009.
Sec. 3871.002. CREATION AND NATURE OF DISTRICT. The district is
a special district created under Section 59, Article XVI, Texas
Constitution.
Added by Acts 2009, 81st Leg., R.S., Ch.
1067, Sec. 1, eff. June 19, 2009.
Sec. 3871.003. 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, the public welfare
in the district, and educational scholarships for college-bound
students residing in or out of the district.
(c) The district is created to supplement and not to supplant
city services provided in the district.
Added by Acts 2009, 81st Leg., R.S., Ch.
1067, Sec. 1, eff. June 19, 2009.
Sec. 3871.004. 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) developing or expanding transportation and commerce; and
(4) providing quality residential housing.
(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;
(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;
and
(4) provide educational scholarships for college-bound students
residing in or out of the district.
(e) Pedestrian ways along or across a street, whether at grade
or above or below the surface, and street lighting, street
landscaping, vehicle 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 2009, 81st Leg., R.S., Ch.
1067, Sec. 1, eff. June 19, 2009.
Sec. 3871.005. DISTRICT TERRITORY. (a) The district is
composed of the territory described by Section 2 of the Act
creating this chapter, as that territory may have been modified
under Section 3871.106.
(b) A mistake in the field notes of the district contained in
Section 2 of the Act creating 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 2009, 81st Leg., R.S., Ch.
1067, Sec. 1, eff. June 19, 2009.
Sec. 3871.006. 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. A project may
not receive public funds under Section 380.002(b), Local
Government Code, unless the project has been approved by the
governing body of the city by the adoption of a resolution.
(c) A tax increment reinvestment zone created by the city in the
district is not subject to the limitations provided by Section
311.006(b), Tax Code.
Added by Acts 2009, 81st Leg., R.S., Ch.
1067, Sec. 1, eff. June 19, 2009.
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 3871.051. GOVERNING BODY; TERMS. (a) The district is
governed by a board of nine directors composed of:
(1) six directors appointed by the governing body of the city;
and
(2) three city employees appointed by the governing body of the
city.
(b) Directors serve staggered terms of four years, with four or
five directors' terms expiring July 1 of each odd-numbered year.
Added by Acts 2009, 81st Leg., R.S., Ch.
1067, Sec. 1, eff. June 19, 2009.
Sec. 3871.052. APPOINTMENT OF DIRECTORS: BOARD MEETINGS. (a)
Directors appointed under Section 3871.051(a)(1) must meet at
least one of the qualifications prescribed by Section 3871.053.
(b) A person may not be appointed to the board if the
appointment of that person would result in fewer than:
(1) four of the directors being residents of the city and
meeting the qualifications prescribed by Section 3871.053(a)(2),
(3), (4), or (5); and
(2) two of the directors meeting the qualifications prescribed
by Section 3871.053(a)(1).
(c) The governing body of the city may remove a member of the
board with or without cause at any time by a majority vote.
(d) The board shall hold meetings at a place accessible to the
public. The board shall file a copy of the notice of a meeting
with the city's secretary. The city's secretary shall post the
notice at Dallas City Hall.
(e) The board may not create an executive committee to exercise
the powers of the board.
Added by Acts 2009, 81st Leg., R.S., Ch.
1067, Sec. 1, eff. June 19, 2009.
Sec. 3871.053. QUALIFICATIONS OF DIRECTORS. (a) To be
qualified to serve as a director appointed under Section
3871.051(a)(1), a person must be at least 18 years old and must
be:
(1) a resident of the district who is also a registered voter of
the district or a registered voter who lives within a two-mile
radius of the district;
(2) an owner of property in the district;
(3) an owner of stock, whether beneficial or otherwise, of a
corporate owner of property in the district;
(4) an owner of a beneficial interest in a trust that owns
property in the district; or
(5) an agent, employee, or tenant of a person covered by
Subdivision (2), (3), or (4).
(b) Section 49.052, Water Code, does not apply to the district.
Added by Acts 2009, 81st Leg., R.S., Ch.
1067, Sec. 1, eff. June 19, 2009.
Sec. 3871.054. VACANCY. The governing body of the city shall
fill a vacancy on the board by appointing a person who meets the
qualifications prescribed by Section 3871.051(a) or 3871.053 to
serve for the remainder of the unexpired term.
Added by Acts 2009, 81st Leg., R.S., Ch.
1067, Sec. 1, eff. June 19, 2009.
Sec. 3871.055. 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. A copy of each director's oath or affirmation
of office shall be filed with the city's secretary.
Added by Acts 2009, 81st Leg., R.S., Ch.
1067, Sec. 1, eff. June 19, 2009.
Sec. 3871.056. OFFICERS. The board shall elect from among the
directors a chair, a vice chair, and a secretary. The offices of
chair and secretary may not be held by the same person
concurrently.
Added by Acts 2009, 81st Leg., R.S., Ch.
1067, Sec. 1, eff. June 19, 2009.
Sec. 3871.057. COMPENSATION; EXPENSES; LIABILITY INSURANCE FOR
DIRECTORS. (a) The district may compensate each director in an
amount not to exceed $50 for each board meeting. The total
amount of compensation for each director in one year may not
exceed $2,000.
(b) Directors are entitled to reimbursement for necessary and
reasonable expenses incurred in carrying out the duties and
responsibilities of the board.
(c) The district may obtain and pay for comprehensive general
liability insurance coverage from a commercial insurance company
or other source that protects and insures a director against
personal liability and from any and all claims relating to:
(1) actions taken by the director in the director's capacity as
a member of the board;
(2) actions and activities taken by the district; or
(3) the actions of others acting on behalf of the district.
Added by Acts 2009, 81st Leg., R.S., Ch.
1067, Sec. 1, eff. June 19, 2009.
Sec. 3871.058. CONFLICTS OF INTEREST. (a) A director,
including a director who qualifies under Section 3871.053(a)(2),
(3), (4), or (5), may participate in all board votes and
decisions if the director complies with the requirements of
Subsection (b).
(b) A director shall comply with Section 171.004, Local
Government Code, including the disclosure and abstention
requirements of that section. A director must file a copy of the
director's disclosure affidavit required by Section 171.004,
Local Government Code, with the city's secretary before
participating in a board discussion or vote.
Added by Acts 2009, 81st Leg., R.S., Ch.
1067, Sec. 1, eff. June 19, 2009.
For expiration of this section, see Subsection (e).
Sec. 3871.059. INITIAL DIRECTORS. (a) The initial board
consists of the following directors:
(1) Place 1: a director who qualifies under Section
3871.053(a)(2), (3), (4), or (5);
(2) Place 2: a director who qualifies under Section
3871.053(a)(2), (3), (4), or (5);
(3) Place 3: a director who qualifies under Section
3871.053(a)(2), (3), (4), or (5);
(4) Place 4: a director who qualifies under Section
3871.053(a)(1);
(5) Place 5: a director who qualifies under Section
3871.053(a)(1);
(6) Place 6: a director who qualifies under Section
3871.053(a)(2), (3), (4), or (5);
(7) Place 7: a city employee;
(8) Place 8: a city employee; and
(9) Place 9: a city employee.
(b) Not later than September 1, 2009, the owner or owners of a
majority of the appraised value of the real property in the
district, or the majority of the record owners of real property
in the district subject to taxation, may submit a petition to the
governing body of the city requesting that the governing body
appoint as initial directors the persons named in the petition to
serve in Places 1-6. If the persons named in the petition meet
the qualifications prescribed by Sections 3871.052 and 3871.053,
the governing body may appoint those persons as initial directors
under Subsection (a) to serve in Places 1-6.
(c) If a petition is not submitted under Subsection (b), the
governing body of the city shall appoint as initial directors six
persons who meet the qualifications prescribed by Sections
3871.052 and 3871.053 to serve in Places 1-6.
(d) Of the initial directors, the terms of directors appointed
for Places 1, 2, 3, and 4 expire July 1, 2011, and the terms of
directors appointed for Places 5, 6, 7, 8, and 9 expire July 1,
2013.
(e) This section expires September 1, 2013.
Added by Acts 2009, 81st Leg., R.S., Ch.
1067, Sec. 1, eff. June 19, 2009.
SUBCHAPTER C. POWERS AND DUTIES
Sec. 3871.101. GENERAL POWERS AND DUTIES. The district has the
powers and duties provided by this chapter and 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;
(2) Chapter 441, Transportation Code, except that:
(A) the district may exercise any power granted by this chapter
without regard to any provision or requirement of or procedure
prescribed by Chapter 441, Transportation Code; and
(B) the district may not build or operate a toll road;
(3) Subchapter A, Chapter 372, Local Government Code, in the
same manner as a municipality or a county;
(4) Chapter 1371, Government Code;
(5) Chapter 375, Local Government Code; and
(6) Chapter 311, Tax Code.
Added by Acts 2009, 81st Leg., R.S., Ch.
1067, Sec. 1, eff. June 19, 2009.
Sec. 3871.102. 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 located in the district or activities in support of or
incidental to those projects:
(1) a supply and distribution facility or system to provide
potable and nonpotable water to the residents and businesses of
the district, including a wastewater collection facility;
(2) a paved, macadamized, or graveled road or street, inside and
outside the district, to the full 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, community
activities center, dock, wharf, 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 facility, and a 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 improvement projects;
(9) the acquisition and improvement of land or other property
for the mitigation of the environmental effects of an improvement
project if those costs are incurred in accordance with a
development agreement and reimbursement of those costs is
conditioned on the completion of substantial vertical
development, or the costs are related to a transit or mobility
project;
(10) the acquisition of property or an interest in property in
connection with one or more authorized improvement projects,
including a project authorized by Subchapter A, Chapter 372,
Local Government Code;
(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) elimination of traffic congestion, including by use of rail
services;
(J) recreational, educational, or cultural improvements,
enhancements, and services; and
(K) creation and financing of a higher education scholarship
fund for students attending Mountain View College or the
University of North Texas (Dallas Campus); or
(12) any similar public improvement, facility, or service.
(b) The district may not undertake an improvement project under
this section unless the board determines the project to be
necessary to accomplish a public purpose of the district and has
received the approval of the city under Section 3871.160.
(c) An improvement project must comply with any applicable codes
and ordinances of the city.
(d) The district may not provide, conduct, or authorize an
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 an 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) unless prohibited by Subsection (h), by ordinance, order,
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 improvement
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.
(h) Waterworks and sanitary sewer improvements may be undertaken
by the district inside or outside the boundaries of the district,
subject to the following conditions:
(1) the city shall request that waterworks or sanitary sewer
improvements be funded by the district;
(2) the city shall construct, own, operate, and maintain the
improvements; and
(3) the district shall comply with Sections 3871.152, 3871.157,
and 3871.160 as a condition for the district to fund the
improvements.
Added by Acts 2009, 81st Leg., R.S., Ch.
1067, Sec. 1, eff. June 19, 2009.
Sec. 3871.103. 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 any 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, Dallas County, or 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) The district must follow Resolution 08-2826, adopted by the
city on October 22, 2008, for construction, procurement, and
professional services contracts related to the use of
historically underutilized businesses and minority contracting in
the implementation of its district plan.
Added by Acts 2009, 81st Leg., R.S., Ch.
1067, Sec. 1, eff. June 19, 2009.
Sec. 3871.104. 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.
(d) The district shall provide the city with written notice not
later than the 30th day before the date of a meeting at which the
board will adopt rules. The district may not adopt a rule
affecting the use of a municipally owned asset, such as a public
park, street, sidewalk, transit facility, or public right-of-way,
unless the governing body of the city has approved the rule by
ordinance, order, or resolution.
Added by Acts 2009, 81st Leg., R.S., Ch.
1067, Sec. 1, eff. June 19, 2009.
Sec. 3871.105. 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 2009, 81st Leg., R.S., Ch.
1067, Sec. 1, eff. June 19, 2009.
Sec. 3871.106. ADDING OR REMOVING TERRITORY. The board may add
or remove territory under Subchapter J, Chapter 49, Water Code,
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 by ordinance, order, or
resolution; and
(B) the owners of the territory being added or removed;
(2) a reference to a tax in Subchapter J, Chapter 49, Water
Code, 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 or assessments levied or assessed on the
territory are outstanding.
Added by Acts 2009, 81st Leg., R.S., Ch.
1067, Sec. 1, eff. June 19, 2009.
Sec. 3871.107. ECONOMIC DEVELOPMENT. (a) The district may
create economic development and other programs under Section
52-a, Article III, Texas Constitution, and may impose and collect
ad valorem taxes for those purposes. The district has the
economic development powers that Chapter 380, Local Government
Code, provides to a municipality with a population of more than
100,000. Each economic development program and each project that
will receive public funds under an economic development program
must be approved by the governing body of the city by ordinance,
order, or resolution.
(b) The district shall provide the city written notice not later
than the 30th day before the date of a meeting at which the board
will adopt terms of an economic development program. The
district may not adopt an economic development program or
improvement project to be funded under an economic development
program unless the governing body of the city has approved the
program or improvement project by ordinance, order, or
resolution.
Added by Acts 2009, 81st Leg., R.S., Ch.
1067, Sec. 1, eff. June 19, 2009.
Sec. 3871.108. NO EMINENT DOMAIN POWER. The district may not
exercise the power of eminent domain.
Added by Acts 2009, 81st Leg., R.S., Ch.
1067, Sec. 1, eff. June 19, 2009.
Sec. 3871.109. 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. An employee may not
receive annual compensation of more than $150,000 from public
funds of the district.
Added by Acts 2009, 81st Leg., R.S., Ch.
1067, Sec. 1, eff. June 19, 2009.
Sec. 3871.110. NOTICE TO PROPERTY OWNERS. (a) The board shall
annually provide owners of real property in the district written
notice that specifies the tax of the district for the district's
next fiscal year in sufficient clarity to describe the tax rate
for the operation and maintenance of the district and the tax
rate for the payment of debt service of obligations issued or
incurred by the district. The written notice must be sent by
first class United States mail, postage prepaid, to the current
address of the property owner as reflected on the tax rolls of
the appraisal district.
(b) The notice must clearly state that the tax rates on real
property imposed in the district are in addition to the ad
valorem taxes imposed by other taxing units that tax real
property in the boundaries of the district.
(c) The district shall generate and implement a program to
provide notification to a prospective purchaser of property in
the district of the rates of tax and assessments that have been
approved and are imposed by the district.
Added by Acts 2009, 81st Leg., R.S., Ch.
1067, Sec. 1, eff. June 19, 2009.
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
Sec. 3871.151. GENERAL POWERS REGARDING FINANCIAL MATTERS. (a)
Except as provided by Section 3871.160, the district may:
(1) impose an ad valorem tax on all taxable industrial and
commercial property in the district to pay for any improvement
projects of the types authorized by Section 52(b), Article III,
and Section 59, Article XVI, Texas Constitution, and to secure
the payment of bonds issued for those purposes;
(2) impose an assessment on property in the district to pay the
cost of any authorized improvement project and the cost of the
maintenance of the project 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 any bond,
note, or other temporary or permanent obligation or reimbursement
or other contract with any person, 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) the imposition of an ad valorem tax, assessment, user fee,
concession fee, or rental charge; and
(B) any other revenue or resources of the district, or other
revenue authorized by the city, including revenue from a tax
increment reinvestment zone created by the city under applicable
law;
(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 Dallas County, all or part of the cost of
any 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.
(b) The district may not impose an ad valorem tax to pay for an
improvement project under this chapter unless the imposition is
approved by the voters of the district voting at an election held
for that purpose. The board may call an election to approve the
imposition of an ad valorem tax to pay for an improvement project
under this chapter only if the board receives a petition
requesting the election signed by:
(1) more than 65 percent of the record owners of real property
in the district subject to taxation; or
(2) owners representing more than 65 percent of the appraised
value of real property in the district subject to taxation, as
determined by the tax rolls of the appraisal district.
Added by Acts 2009, 81st Leg., R.S., Ch.
1067, Sec. 1, eff. June 19, 2009.
Sec. 3871.152. BORROWING MONEY. (a) 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 any district
purpose. The bond, note, credit agreement, or other obligation
may be secured by and payable from ad valorem taxes, assessments,
a combination of ad valorem taxes and assessments, or other
district revenue. The governing body of the city must approve
the issuance of bonds, notes, credit agreements, or other
obligations of the district, in general terms before the
preparation of preliminary official statements or loan closing
documents, as provided by the development and operating agreement
approved by the city in accordance with Section 3871.160, or by
separate action.
(b) The governing body of the city must approve the final terms
of the bond issuance, note, or credit facility, including the
principal amount, note amount, interest rate or rates, redemption
provisions, and other terms and conditions relating to the
issuance.
(c) The district shall file annual audited financial statements
with the city's secretary.
Added by Acts 2009, 81st Leg., R.S., Ch.
1067, Sec. 1, eff. June 19, 2009.
Sec. 3871.153. ASSESSMENTS; EXEMPTION. (a) The district may
impose an assessment on property in the district, including an
assessment on commercial, industrial, or office property, only
in the manner provided by Subchapter A, Chapter 372, Local
Government Code, 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 assessment on property must be for the limited purpose of
providing capital funding for:
(1) public water and wastewater facilities;
(2) drainage and storm-water facilities;
(3) streets and alleys; and
(4) any authorized purpose under Chapter 372, Local Government
Code.
(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) A lien of an assessment against property under this chapter
runs with the land, and the portion of an assessment payment
obligation that has not yet come due is not eliminated by the
foreclosure of an ad valorem tax lien. Any purchaser of property
in a foreclosure of an ad valorem tax lien takes the property
subject to the assessment payment obligations that have not yet
come due and to the lien and terms of payment under the
applicable assessment ordinance or order.
(e) 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.
(f) The district shall file notice of any tax or assessment
imposed by the district with the county clerk of Dallas County
and post the notice on the district's Internet website.
Added by Acts 2009, 81st Leg., R.S., Ch.
1067, Sec. 1, eff. June 19, 2009.
Sec. 3871.154. RESIDENTIAL PROPERTY EXEMPT. The district may
not impose taxes, assessments, fees, or any other requirement for
payment, construction, alteration, or dedication on single-family
detached residential property, residential condominiums,
duplexes, triplexes, and quadruplexes.
Added by Acts 2009, 81st Leg., R.S., Ch.
1067, Sec. 1, eff. June 19, 2009.
Sec. 3871.155. MAINTENANCE AND OPERATION TAX; ELECTION. (a)
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, including expenses of
the city payable under the terms of the project development
agreement described by Section 3871.160.
(b) The district may not impose a maintenance and operation tax
for improvement projects under this chapter unless the imposition
of the tax is approved by the voters of the district voting at an
election held for that purpose. An election may be called only on
receipt of a petition as provided by Section 3871.151(b).
(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.
Added by Acts 2009, 81st Leg., R.S., Ch.
1067, Sec. 1, eff. June 19, 2009.
Sec. 3871.156. 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 2009, 81st Leg., R.S., Ch.
1067, Sec. 1, eff. June 19, 2009.
Sec. 3871.157. BONDS AND OTHER OBLIGATIONS. (a) Subject to the
requirements of Sections 3871.159 and 3871.160, the district may
issue by public or private sale bonds, notes, or other
obligations payable wholly or partly from ad valorem taxes, or by
assessments in the manner provided by Subchapter A, Chapter 372,
Local Government Code, 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
any other type of obligation.
(c) In addition to the sources of money described by Subchapter
A, Chapter 372, Local Government Code, 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
money the district receives from system or improvement project
revenue or from any other source.
Added by Acts 2009, 81st Leg., R.S., Ch.
1067, Sec. 1, eff. June 19, 2009.
Sec. 3871.158. BOND MATURITY. Bonds may mature not more than 40
years from their date of issue.
Added by Acts 2009, 81st Leg., R.S., Ch.
1067, Sec. 1, eff. June 19, 2009.
Sec. 3871.159. TAXES FOR BONDS AND OTHER OBLIGATIONS. 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 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; and
(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.
Added by Acts 2009, 81st Leg., R.S., Ch.
1067, Sec. 1, eff. June 19, 2009.
Sec. 3871.160. DEVELOPMENT AND OPERATING AGREEMENT REQUIRED.
(a) After the district's board is organized, but before the
district may undertake any improvement project, issue bonds,
impose taxes, levy assessments or fees, or borrow money, the
district and the city must negotiate and execute a mutually
approved and accepted development and operating agreement,
including any limitations imposed by the city, regarding the
plans and rules for:
(1) the exercise of the powers granted to the district under
this chapter, including the organization, development, and
operation of the district;
(2) the selection and description of improvement projects that
may be undertaken and financed by the district and the ownership,
operation, and maintenance of those projects;
(3) the terms, conditions, methods, means, and amounts of
financing authorized by this chapter that the district may use in
providing improvement projects; and
(4) the amounts, methods, and times of reimbursement to the city
for costs and expenses, if any, incurred by the city with respect
to the development and operation of the district and the
financing of improvement projects by the district.
(b) An agreement authorized by this section is not effective
until its terms and execution are approved by the board and the
governing body of the city by resolution.
Added by Acts 2009, 81st Leg., R.S., Ch.
1067, Sec. 1, eff. June 19, 2009.
SUBCHAPTER E. DISSOLUTION
Sec. 3871.251. DISSOLUTION BY CITY ORDINANCE. (a) The city by
ordinance may dissolve the district.
(b) The city may not dissolve the district until the district's
outstanding indebtedness or contractual obligations that are
payable from ad valorem taxes have been repaid or discharged, or
the city has affirmatively assumed the obligation to pay the
outstanding indebtedness from the city's lawfully available
revenue.
(c) The city may not dissolve the district until the agreement
under Section 3871.160 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 2009, 81st Leg., R.S., Ch.
1067, Sec. 1, eff. June 19, 2009.
Sec. 3871.252. 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 2009, 81st Leg., R.S., Ch.
1067, Sec. 1, eff. June 19, 2009.
Sec. 3871.253. CONCURRENCE ON ADDITIONAL POWERS. If the
legislature grants the district a power that is in addition to
the powers approved by the initial resolution of the governing
body of the city consenting to the creation of the district, the
district may not exercise that power unless the governing body of
the city consents to that change by resolution.
Added by Acts 2009, 81st Leg., R.S., Ch.
1067, Sec. 1, eff. June 19, 2009.
Sec. 3871.254. ASSUMPTION OF ASSETS AND LIABILITIES. (a) After
the city dissolves the district, the city assumes, subject to the
appropriation and availability of funds, 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 2009, 81st Leg., R.S., Ch.
1067, Sec. 1, eff. June 19, 2009.