CHAPTER 3887. GUADALUPE COUNTY DEVELOPMENT AND MANAGEMENT DISTRICT
SPECIAL DISTRICT LOCAL LAWS CODE
TITLE 4. DEVELOPMENT AND IMPROVEMENT
SUBTITLE C. DEVELOPMENT, IMPROVEMENT, AND MANAGEMENT
CHAPTER 3887. GUADALUPE COUNTY DEVELOPMENT AND MANAGEMENT
DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 3887.001. DEFINITIONS. In this chapter:
(1) "Board" means the board of directors of the district.
(2) "County" means Guadalupe County.
(3) "District" means the Guadalupe County Development and
Management District.
(4) "Improvement project" means a program or project authorized
by Section 3887.102, inside or outside the boundaries of the
district.
Added by Acts 2009, 81st Leg., R.S., Ch.
1078, Sec. 1, eff. June 19, 2009.
Sec. 3887.002. CREATION AND NATURE OF DISTRICT. (a) The
district is a special district created under Section 59, Article
XVI, Texas Constitution, with all of the powers granted by this
chapter.
(b) The district is a governmental unit for the purposes of
Chapter 101, Civil Practice and Remedies Code, and operations of
the district are considered to be essential governmental
functions and not proprietary functions for all purposes,
including the application of that chapter.
Added by Acts 2009, 81st Leg., R.S., Ch.
1078, Sec. 1, eff. June 19, 2009.
Sec. 3887.003. 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 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, and protect the environment and the other natural
resources of the state, and to 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 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 county services
provided in the district.
Added by Acts 2009, 81st Leg., R.S., Ch.
1078, Sec. 1, eff. June 19, 2009.
Sec. 3887.004. 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;
(4) developing or expanding transportation and commerce; and
(5) improving and enhancing the environment in and around the
district and in the county.
(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
and enhancing and improving the environment as an essential
natural resource of the state.
(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.
1078, Sec. 1, eff. June 19, 2009.
Sec. 3887.005. 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 Section 3887.107 or 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 2009, 81st Leg., R.S., Ch.
1078, Sec. 1, eff. June 19, 2009.
Sec. 3887.006. ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES. (a)
If all or any part of the district is annexed into a
municipality, any part of the area of the district is eligible to
be included in:
(1) a tax increment reinvestment zone created by the
municipality under Chapter 311, Tax Code;
(2) a tax abatement reinvestment zone created by the
municipality under Chapter 312, Tax Code; or
(3) an enterprise zone created by the municipality under Chapter
2303, Government Code.
(b) If a municipality creates a tax increment reinvestment zone
described by Subsection (a), the municipality, 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 2009, 81st Leg., R.S., Ch.
1078, Sec. 1, eff. June 19, 2009.
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 3887.051. 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 July 1 of each
odd-numbered year.
Added by Acts 2009, 81st Leg., R.S., Ch.
1078, Sec. 1, eff. June 19, 2009.
Sec. 3887.052. ELECTION DATE. The board shall hold elections
for directors on the uniform election date in May of odd-numbered
years.
Added by Acts 2009, 81st Leg., R.S., Ch.
1078, Sec. 1, eff. June 19, 2009.
Sec. 3887.053. VACANCY. The board of directors shall appoint a
director to fill a vacancy on the board for the remainder of the
unexpired term.
Added by Acts 2009, 81st Leg., R.S., Ch.
1078, Sec. 1, eff. June 19, 2009.
Sec. 3887.054. ELIGIBILITY. (a) To serve as a director, a
person must be at least 18 years old and be:
(1) a resident of the district who is also a registered voter 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;
(5) an agent, employee, or tenant of a person covered by
Subdivision (2), (3), or (4); or
(6) an initial director.
(b) Section 49.052, Water Code, does not apply to the district.
Added by Acts 2009, 81st Leg., R.S., Ch.
1078, Sec. 1, eff. June 19, 2009.
Sec. 3887.055. 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 2009, 81st Leg., R.S., Ch.
1078, Sec. 1, eff. June 19, 2009.
Sec. 3887.056. OFFICERS. The board shall elect from among the
directors a presiding officer, an assistant presiding officer,
and a secretary.
Added by Acts 2009, 81st Leg., R.S., Ch.
1078, Sec. 1, eff. June 19, 2009.
Sec. 3887.057. COMPENSATION, EXPENSES, AND 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 one director may not exceed $2,000
annually.
(b) The district shall reimburse directors for necessary and
reasonable expenses incurred in carrying out the duties and
responsibilities of a director.
(c) The district may obtain and pay for comprehensive general
liability insurance coverage from commercial insurance companies
or other sources that protect and insure the directors against
personal liability and from any and all claims for actions taken
as directors or actions and activities taken by the district or
by others acting on the district's behalf.
Added by Acts 2009, 81st Leg., R.S., Ch.
1078, Sec. 1, eff. June 19, 2009.
Sec. 3887.058. CONFLICTS OF INTEREST. (a) A director may
participate in all board votes and decisions, subject to the
requirements of this section.
(b) Section 171.004, Local Government Code, does not apply to
the district.
(c) A director who has a substantial interest in a business or
charitable entity that will receive a pecuniary benefit from a
board action shall file an affidavit with the board secretary
declaring the interest. Another affidavit is not required if the
director's interest changes.
(d) After the affidavit is filed, the director may participate
in a discussion or vote if:
(1) a majority of the appointed directors have a similar
interest in the same entity;
(2) all other similar businesses or charitable entities in the
district will receive a similar pecuniary benefit; or
(3) the appointed director is a property owner in the district.
Added by Acts 2009, 81st Leg., R.S., Ch.
1078, Sec. 1, eff. June 19, 2009.
For expiration of this section, see Subsection (d).
Sec. 3887.059. INITIAL DIRECTORS. (a) The initial board
consists of the following directors:
Place No. Name of Initial Director
Place 1 G. Steven White
Place 2 Christopher Turner
Place 3 Holly White Turner
Place 4 Bradley White
Place 5 Jacob White
(b) Of the initial directors, the terms of directors appointed
for places 1 and 2 expire on July 1, 2011, and the terms of the
initial directors appointed for places 3, 4, and 5 expire on July
1, 2013.
(c) Section 49.052, Water Code, does not apply to initial
directors.
(d) This section expires September 1, 2014.
Added by Acts 2009, 81st Leg., R.S., Ch.
1078, Sec. 1, eff. June 19, 2009.
SUBCHAPTER C. POWERS AND DUTIES
Sec. 3887.101. GENERAL POWERS AND DUTIES.The district has the
duties imposed by this chapter and the powers:
(1) provided by 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) provided by the general laws relating to road districts and
road utility districts created under Section 52, Article III,
Texas Constitution, including Chapter 441, Transportation Code,
except that the district may exercise any power granted by this
chapter without regard to any provision or requirement of or
procedure prescribed in Chapter 441, Transportation Code;
(3) that Subchapter A, Chapter 372, Local Government Code,
provides a municipality or a county;
(4) provided by Chapter 375, Local Government Code;
(5) that Chapter 505, Local Government Code, provides a
corporation created under that chapter; and
(6) that Chapter 1371, Government Code, provides an issuer.
Added by Acts 2009, 81st Leg., R.S., Ch.
1078, Sec. 1, eff. June 19, 2009.
Sec. 3887.102. 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 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 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, including any
project or projects that are authorized by Subchapter A, Chapter
372, or Chapter 375, 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 or the environment
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) the reduction of automobile traffic volume and congestion,
including the provision, construction, and operation of light
rail or streetcar systems and services; 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) The district may not provide, conduct, or authorize any
improvement project on municipal or county streets, highways,
rights-of-way, roads, or easements without the consent of the
governing body of the municipality or county, as applicable.
(d) 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 2009, 81st Leg., R.S., Ch.
1078, Sec. 1, eff. June 19, 2009.
Sec. 3887.103. GENERAL POWERS REGARDING CONTRACTS. (a) The
district may:
(1) contract with any public or private person, body, or entity
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 public or private person,
body, or entity 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 any other person.
(c) Any person, including but not limited to the county, may
contract with the district to carry out the purposes of this
chapter without further statutory or other authorization.
Added by Acts 2009, 81st Leg., R.S., Ch.
1078, Sec. 1, eff. June 19, 2009.
Sec. 3887.104. 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 county rule,
order, or regulation, the county rule, order, or regulation
controls.
Added by Acts 2009, 81st Leg., R.S., Ch.
1078, Sec. 1, eff. June 19, 2009.
Sec. 3887.105. NAME CHANGE. The board by resolution may change
the district's name. The board shall give written notice of the
change to the county and any municipality in which the district
is wholly or partly located.
Added by Acts 2009, 81st Leg., R.S., Ch.
1078, Sec. 1, eff. June 19, 2009.
Sec. 3887.106. USE OF ROADWAY, PARK, OR OTHER PUBLIC AREA OR
FACILITY OF DISTRICT. (a) The board by rule may regulate the
private use of a public roadway, open space, park, sidewalk, or
similar public area or facility in the district. To the extent
the district rules conflict with a rule, order, or regulation of
the county or of a municipality in which the district is wholly
or partly located, the rule, order, or regulation of the county
or municipality controls. A rule may provide for the safe and
orderly use of public roadways, open spaces, parks, sidewalks,
and similar public areas or facilities in the district.
(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 that is owned by the district.
The board may charge a fee for the permit application or for
public safety or security services for such facilities 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 owned by the district on terms and on payment of a
permit or franchise fee the board may impose.
Added by Acts 2009, 81st Leg., R.S., Ch.
1078, Sec. 1, eff. June 19, 2009.
Sec. 3887.107. ADDING OR REMOVING TERRITORY. (a) The board may
add or remove territory under Subchapter J, Chapter 49, and
Section 54.016, Water Code, except that the addition or removal
of the territory must be approved by the owners of the territory
being added or removed.
(b) A reference to a tax in Subchapter J, Chapter 49, or Section
54.016, Water Code, means an ad valorem tax.
(c) 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.
1078, Sec. 1, eff. June 19, 2009.
Sec. 3887.108. ECONOMIC DEVELOPMENT. The district may create
economic development and other programs pursuant to Section 52-a,
Article III, Texas Constitution, including the imposition and
collection of ad valorem taxes for such purposes if approved by
the voters of the district at an election, including 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 2009, 81st Leg., R.S., Ch.
1078, Sec. 1, eff. June 19, 2009.
Sec. 3887.109. 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 2009, 81st Leg., R.S., Ch.
1078, Sec. 1, eff. June 19, 2009.
Sec. 3887.110. NO EMINENT DOMAIN POWER. The district may not
exercise the power of eminent domain.
Added by Acts 2009, 81st Leg., R.S., Ch.
1078, Sec. 1, eff. June 19, 2009.
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
Sec. 3887.151. GENERAL POWERS REGARDING FINANCIAL MATTERS.
Except as provided in an agreement executed pursuant to Section
3887.160, 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 of the types
authorized by Section 52, Article III, and Section 59, Article
XVI, Texas Constitution, and to secure the payment of bonds
issued for such purposes;
(2) impose an assessment on property in the district to pay the
cost or the cost of maintenance of any authorized district
improvement 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, and 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 or an assessment, user
fee, concession fee, or rental charge; or
(B) any other revenue or resources of the district, or other
revenues, including revenues from a tax increment reinvestment
zone created by a municipality in which all or a portion of the
territory of the district has been annexed;
(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 potable and nonpotable
water of the district;
(6) undertake separately or jointly with other persons,
including a municipality or the 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 2009, 81st Leg., R.S., Ch.
1078, Sec. 1, eff. June 19, 2009.
Sec. 3887.152. 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 a district purpose. The
bond, note, credit agreement, or other obligation must be secured
by and payable from ad valorem taxes, assessments, or any
combination thereof or from other district revenue.
Added by Acts 2009, 81st Leg., R.S., Ch.
1078, Sec. 1, eff. June 19, 2009.
Sec. 3887.153. 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 lien of an assessment against property runs with the
land. 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, and 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 the lien's 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 may not impose an impact fee on the property,
including equipment and facilities, of a public utility provider
in the district.
Added by Acts 2009, 81st Leg., R.S., Ch.
1078, Sec. 1, eff. June 19, 2009.
Sec. 3887.154. RESIDENTIAL PROPERTY NOT EXEMPT. Section
375.161, Local Government Code, does not apply to the district.
Added by Acts 2009, 81st Leg., R.S., Ch.
1078, Sec. 1, eff. June 19, 2009.
Sec. 3887.155. 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.
(b) The district may not impose a maintenance and operation tax
unless the tax is approved by a majority of the district voters
voting at an election held for that purpose. The proposition in
a maintenance and operation tax election may be for a specific
maximum rate or for an unlimited rate. If a 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.
Added by Acts 2009, 81st Leg., R.S., Ch.
1078, Sec. 1, eff. June 19, 2009.
Sec. 3887.156. 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.
1078, Sec. 1, eff. June 19, 2009.
Sec. 3887.157. BONDS AND OTHER OBLIGATIONS; MUNICIPAL APPROVAL.
(a) Subject to the requirements of Sections 3887.159 and
3887.160, the district by competitive bid or negotiated sale may
issue bonds, notes, or other obligations payable wholly or partly
from ad valorem taxes or from 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
any 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 money the district
receives from system or improvement revenues or from any other
source.
Added by Acts 2009, 81st Leg., R.S., Ch.
1078, Sec. 1, eff. June 19, 2009.
Sec. 3887.158. BOND MATURITY. Bonds may mature not more than 40
years from their date of issue.
Added by Acts 2009, 81st Leg., R.S., Ch.
1078, Sec. 1, eff. June 19, 2009.
Sec. 3887.159. 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 a majority of the
district voters voting at an election held for that purpose.
(c) The district shall hold an election required by this section
in the manner provided by Chapter 54, Water Code, and the
Election Code.
Added by Acts 2009, 81st Leg., R.S., Ch.
1078, Sec. 1, eff. June 19, 2009.
Sec. 3887.160. DEVELOPMENT AND OPERATING AGREEMENT REQUIRED TO
UNDERTAKE IMPROVEMENT PROJECTS, IMPOSE TAXES OR ASSESSMENTS, AND
BORROW MONEY, INCLUDING BONDS. (a) After the district's board
of directors is organized, but before the district may undertake
any improvement project, issue bonds, impose taxes, impose
assessments or fees, or borrow money, the district must negotiate
and execute with the county a mutually approved and accepted
development and operating agreement, including any pre-annexation
agreements, and any limitations 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 the improvement projects;
(3) the terms, conditions, methods, means, and amounts of
financing authorized by this chapter that the district may
undertake in providing improvement projects; and
(4) the amounts, methods, and times of reimbursement to the
county for costs and expenses, if any, incurred by the county
with respect to the development and operation of the district and
the financing of improvement projects by the district.
(b) An agreement required by this section may not be effective
until its terms and execution are approved by the board by order
or resolution.
Added by Acts 2009, 81st Leg., R.S., Ch.
1078, Sec. 1, eff. June 19, 2009.
SUBCHAPTER E. DISSOLUTION
Sec. 3887.201. DISSOLUTION BY BOARD ORDER. (a) The board, with
the approval of the county, by order may dissolve the district.
(b) The board may not dissolve a district until:
(1) the district's outstanding indebtedness and all contractual
obligations that are payable from ad valorem taxes or assessments
have been paid, satisfied, or discharged; and
(2) if, at the time of dissolution, the district is not situated
wholly or partly within a municipality, the county agrees to
accept title to all district property and to provide the level of
services provided by the district as of the date of dissolution.
(c) If the district is located wholly or partly within a
municipality, the municipality may dissolve the district by
ordinance at any time after all outstanding debt and contractual
obligations of the district that are payable from ad valorem
taxes have been paid, satisfied, and discharged. If the district
has outstanding debt that is payable from assessments or other
district revenue, other than ad valorem taxes, and the
municipality dissolves the district, the municipality assumes,
subject to the appropriation and availability of funds, the
obligations of the district, including any bonds or other
indebtedness payable from assessments or district revenue other
than ad valorem taxes.
(d) If a municipality dissolves the district, the board shall
transfer ownership of all district property to the municipality.
Added by Acts 2009, 81st Leg., R.S., Ch.
1078, Sec. 1, eff. June 19, 2009.