CHAPTER 6904. AQUILLA WATER SUPPLY DISTRICT
SPECIAL DISTRICT LOCAL LAWS CODE
TITLE 6. WATER AND WASTEWATER
SUBTITLE B. FRESH WATER SUPPLY DISTRICTS
CHAPTER 6904. AQUILLA WATER SUPPLY DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 6904.001. DEFINITIONS. In this chapter:
(1) "Board" means the board of directors of the district.
(2) "Director" means a member of the board.
(3) "District" means the Aquilla Water Supply District.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6904.002. NATURE OF DISTRICT. The district is a
conservation and reclamation district created under Section 59,
Article XVI, Texas Constitution.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6904.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) All
land and taxable property in the city of Hillsboro will benefit
from the works and improvements of the district.
(b) The accomplishment of the purposes stated in this chapter is
for the benefit of the people of this state for the improvement
of their property and industries. The district, in carrying out
the purposes of this chapter, will be performing an essential
public function under the constitution.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
SUBCHAPTER B. DISTRICT TERRITORY AND ANNEXATIONS TO DISTRICT
TERRITORY
Sec. 6904.051. DISTRICT TERRITORY. (a) The boundaries of the
district are coextensive with the boundaries of the city of
Hillsboro as those boundaries existed on January 1, 1977, and as
the district territory may have been modified under:
(1) Sections 6904.052 and 6904.053 or their predecessor statute,
Section 6, Chapter 713, Acts of the 65th Legislature, Regular
Session, 1977;
(2) Subchapter J, Chapter 49, Water Code;
(3) Subchapter O, Chapter 51, Water Code, before September 1,
1995; or
(4) other law.
(b) An invalidity in the fixing of the boundaries of the city of
Hillsboro as they existed on January 1, 1977, does not affect the
boundaries of the district.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6904.052. ANNEXATION OF TERRITORY. (a) Territory may be
annexed to the district as provided by this section or by Section
6904.053.
(b) The board may annex territory or a municipality under this
section only if a petition requesting annexation is signed by 50
voters of the territory or municipality to be annexed, or a
majority of the registered voters of that territory or
municipality, whichever is fewer, and is filed with the board.
The petition must describe the territory to be annexed by metes
and bounds, or otherwise, except that if the territory is the
same as that contained in the boundaries of a municipality, the
petition is sufficient if it states that the territory to be
annexed is the territory contained in the municipal boundaries.
(c) If the board determines that the petition complies with
Subsection (b), that the annexation would be in the best interest
of the territory or municipality and the district, and that the
district will be able to supply water or other services to the
territory or municipality, the board shall:
(1) adopt a resolution stating the conditions, if any, under
which the territory or municipality may be annexed to the
district; and
(2) set a time and place to hold a hearing on the question of
whether the territory or municipality to be annexed will benefit
from:
(A) the improvements, works, or facilities owned or operated or
contemplated to be owned or operated by the district; or
(B) the other functions of the district.
(d) At least 10 days before the date of the hearing, notice of
the adoption of the resolution stating the time and place of the
hearing shall be published one time in a newspaper of general
circulation in the territory or municipality to be annexed. The
notice must describe the territory in the same manner in which
Subsection (b) requires the petition to describe the territory.
(e) Any interested person may appear at the hearing and offer
evidence for or against the annexation.
(f) The hearing may proceed in the order and under the rules
prescribed by the board and may be recessed from time to time.
(g) If, at the conclusion of the hearing, the board finds that
the property in the territory or municipality will benefit from
the present or contemplated improvements, works, or facilities of
the district, the board shall adopt a resolution making a finding
of the benefit and calling an election in the territory or
municipality to be annexed.
(h) In calling an election on the proposition for annexation of
the territory or municipality, the board may include, as part of
the same proposition or as a separate proposition, a proposition
for:
(1) the territory to assume its part of the tax-supported bonds
of the district then outstanding and those bonds previously voted
but not yet sold; and
(2) an ad valorem tax to be imposed on taxable property on the
territory along with the tax in the rest of the district for the
payment of the bonds.
(i) If a majority of the votes cast at the election are in favor
of annexation, the board by resolution shall annex the territory
to the district.
(j) An annexation under this section is incontestable except in
the manner and within the time for contesting elections under the
Election Code.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6904.053. ANNEXATION OF TERRITORY ANNEXED TO MUNICIPALITY
IN DISTRICT. (a) At any time after final passage of an
ordinance or resolution annexing territory to a municipality in
the district, the board may give notice of a hearing on the
question of annexing that territory to the district. The notice
is sufficient if it:
(1) states the date and place of the hearing; and
(2) describes the area proposed to be annexed or refers to the
annexation ordinance or resolution of the municipality.
(b) The notice must be published one time in a newspaper of
general circulation in the municipality not later than the 10th
day before the date set for the hearing.
(c) If, as a result of the hearing, the board finds that the
territory will benefit from the present or contemplated
improvements, works, or facilities of the district, the board
shall adopt a resolution annexing the territory to the district.
(d) After the territory is annexed to the district, the board
may call an election in the entire district to determine whether:
(1) the entire district will assume any tax-supported bonds then
outstanding and those bonds previously voted but not yet sold;
and
(2) an ad valorem tax for the payment of the bonds will be
imposed on all taxable property in the district.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
SUBCHAPTER C. BOARD OF DIRECTORS
Sec. 6904.101. COMPOSITION OF BOARD. (a) The district is
governed by a board of at least five directors. The directors
occupy numbered places on the board.
(b) For each municipality annexed to the district under Section
6904.052, two places are added to the board, except that the
number of directors may not exceed 11.
(c) Not more than five directors may reside in the corporate
limits of the city of Hillsboro.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6904.102. QUALIFICATIONS FOR OFFICE. (a) To be eligible
to serve as a director, a person must be:
(1) a qualified district voter; and
(2) a district resident.
(b) A director is eligible for reelection.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6904.103. DIRECTORS' ELECTION. Directors shall be elected
at an election called for that purpose by the board.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6904.104. REMOVAL FROM OFFICE. After reasonable notice and
a public hearing, the board may remove a director from office for
misfeasance, malfeasance, or wilful neglect of duty. Reasonable
notice and a public hearing are not required if the director to
be removed expressly waives the notice and hearing in writing.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6904.105. BOARD RESOLUTIONS; VOTING REQUIREMENTS. (a) The
district shall act through resolutions adopted by the board.
(b) All directors are entitled to vote.
(c) The affirmative vote of a majority of the quorum present is
necessary to adopt a resolution.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6904.106. OFFICERS AND ASSISTANTS. (a) The board shall
elect a president, vice president, secretary, and treasurer at
the first meeting of the newly constituted board after each
directors' election or at any time necessary to fill a vacancy.
(b) The board shall elect the president and vice president from
among the directors.
(c) The offices of secretary and treasurer:
(1) may be held by one person; and
(2) are not required to be held by a director.
(d) The board may appoint as assistant board secretary one or
more persons who are not directors.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6904.107. OFFICER DUTIES. (a) The board president shall
preside at board meetings and perform other duties prescribed by
the board.
(b) The board secretary is the official custodian of the
minutes, books, records, and seal of the board and shall perform
other duties and functions prescribed by the board. An assistant
board secretary may perform any duty or function of the board
secretary.
(c) The board treasurer shall perform duties and functions
prescribed by the board.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6904.108. MEETINGS. The board shall have regular meetings
at times specified by board resolution and shall have special
meetings when called by the board president or by any two
directors.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6904.109. PERSONAL LIABILITY OF DIRECTORS. A director is
not personally liable for any bond issued or contract executed by
the district.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
SUBCHAPTER D. POWERS AND DUTIES
Sec. 6904.151. DISTRICT POWERS. The district may exercise any
power necessary or appropriate to achieve the purposes of this
chapter, including the power to:
(1) sue and be sued, and plead and be impleaded, in its own
name;
(2) adopt an official seal;
(3) adopt and enforce bylaws and rules for the conduct of its
affairs;
(4) acquire, hold, use, and dispose of its receipts and money
from any source;
(5) acquire, own, rent, lease, accept, hold, or dispose of
property, or an interest in property, including a right or
easement, by purchase, exchange, gift, assignment, condemnation,
sale, lease, or otherwise, in performing district duties or
exercising district powers under this chapter;
(6) hold, manage, operate, or improve property;
(7) lease or rent any land, building, structure, or facility
from or to any person;
(8) sell, assign, lease, encumber, mortgage, or otherwise
dispose of property, or an interest in property, and release or
relinquish a right, title, claim, lien, interest, easement, or
demand, regardless of the manner in which acquired, and conduct a
transaction authorized by this subdivision by public or private
sale, with or without public bidding, notwithstanding any other
law;
(9) issue bonds, provide for and secure the payment of the
bonds, and provide for the rights of the holders of the bonds in
the manner and to the extent authorized by this chapter;
(10) request and accept an appropriation, grant, allocation,
subsidy, guarantee, aid, service, material, or gift from any
source, including the federal government, the state, a public
agency, or a political subdivision;
(11) operate and maintain an office;
(12) appoint and determine the duties, tenure, qualifications,
and compensation of district officers and employees, as well as
any agent, professional advisor, or counselor, including any
financial consultant, accountant, attorney, architect, engineer,
appraiser, or financing expert, considered necessary or advisable
by the board; and
(13) exercise any power granted by Chapter 30, Water Code, to
water districts created under Section 59, Article XVI, Texas
Constitution.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6904.152. PERMITS. (a) The district may obtain through
appropriate proceedings permits from the Texas Commission on
Environmental Quality.
(b) The district may acquire water appropriation permits from
owners of permits by contract or otherwise.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6904.153. GENERAL AUTHORITY OF PUBLIC AGENCIES AND
POLITICAL SUBDIVISIONS TO CONTRACT WITH DISTRICT. A public
agency or political subdivision of this state may enter into a
contract or agreement with the district, on terms agreed to by
the parties, for any purpose relating to the district's powers or
functions. Approval, notice, consent, or an election is not
required in connection with a contract or agreement.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6904.154. CONTRACTS TO SUPPLY WATER. (a) The district may
contract with public agencies, political subdivisions, and others
to supply water. The district may sell water inside and outside
the boundaries of the district.
(b) The district may contract with a public agency or political
subdivision for the rental or leasing of or for the operation of
the water production, water supply, water filtration or
purification, and water supply facilities of the entity on the
consideration agreed to by the district and the entity.
(c) A contract may be on terms and for the time agreed to by the
parties.
(d) A contract may provide that it will continue in effect until
bonds specified in it and refunding bonds issued in lieu of the
bonds are paid.
(e) The district may contract with the City of Hillsboro for the
operation of the district's water facilities by the city. An
election is not required in connection with this contract.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6904.155. SOURCES FOR WATER; ACQUISITION OF LAND; STORAGE
CAPACITY. (a) The district may acquire, construct, or develop
inside or outside the district sources for water, including
reservoirs or wells, and any work, plant, transmission line, or
other facility necessary or useful to develop, divert, impound,
store, drill for, pump, treat, or transport water, including
underground water, to the City of Hillsboro and others for
municipal, domestic, industrial, mining, oil flooding, or any
other useful purpose.
(b) The district may acquire land, or an interest in land,
inside or outside the district for any work, plant, or other
facility necessary or useful to divert, impound, store, drill
for, pump, treat, or transport water for municipal, domestic,
industrial, mining, oil flooding, or any other useful purpose.
(c) The district may lease, purchase, or otherwise acquire
rights in and to storage and storage capacity in any reservoir
constructed or to be constructed by any person or from the United
States.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6904.156. CONSTRUCTION CONTRACTS. (a) The district may
award a construction contract that requires an expenditure of
more than $5,000 only after publication of notice to bidders once
each week for two weeks in a newspaper of general circulation in
the district.
(b) The notice is sufficient if it states:
(1) the time and place for opening the bids;
(2) the general nature of the work to be done;
(3) the material, equipment, or supplies to be purchased; and
(4) where the terms of bidding and copies of the plans and
specifications may be obtained.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6904.157. CONVEYANCE OF LAND TO DISTRICT. A public agency
or political subdivision of this state may lease, sell, or
otherwise convey its land or an interest in its land to the
district for any consideration that the parties agree is
adequate. Approval, notice, consent, or an election is not
required in connection with a conveyance, contract, or agreement.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6904.158. DISPOSAL OF PROPERTY. Subject to the terms of a
resolution or deed of trust authorizing or securing bonds issued
by the district, the district may sell, lease, rent, trade, or
otherwise dispose of property under terms considered by the board
to be consistent with district purposes.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6904.159. EMINENT DOMAIN. (a) To carry out a power
provided by this chapter, the district may exercise the power of
eminent domain to acquire the fee simple title to land, or any
other interest in land, and other property and easements, inside
or outside the district, including land or an interest in land
needed for:
(1) a well; or
(2) a reservoir, dam, or flood easement above the probable
high-water line around a reservoir.
(b) The district must exercise the power of eminent domain in
the manner provided by Chapter 21, Property Code.
(c) The district is a municipal corporation for the purposes of
Chapter 21, Property Code.
(d) The board shall determine the amount and the type of
interest in land, other property, or easements to be acquired
under this section.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6904.160. COST OF RELOCATING OR ALTERING PROPERTY. (a) In
this section, "sole expense" means the actual cost of the
lowering, rerouting, or change in grade or alteration of
construction required under Subsection (b) to provide a
comparable replacement without enhancing the facility, after
deducting the net salvage value derived from the old facility.
(b) If the district's exercise of its eminent domain, police, or
other power requires relocating, raising, lowering, rerouting,
changing the grade of, or altering the construction of any
railroad, electric, transmission, telegraph, or telephone line,
conduit, pole, property, facility, or pipeline, the action shall
be accomplished at the sole expense of the district.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6904.161. RIGHTS-OF-WAY; EASEMENTS. The district has all
necessary or useful rights-of-way and easements along, over,
under, and across all public, state, municipal, and county roads,
highways, and places for any of its purposes. The district shall
restore a facility used to its previous condition as nearly as
possible at the sole expense of the district.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6904.162. ELECTIONS. (a) The board shall call an election
required to be held under this chapter by adopting a resolution
stating:
(1) the date of the election;
(2) each place where the election will be held; and
(3) the proposition or propositions to be voted on.
(b) The board shall give notice of an election by publishing a
substantial copy of the resolution calling the election one time
not less than 10 days before the date set for the election in:
(1) a newspaper of general circulation in the district; and
(2) a newspaper of general circulation in the territory, if the
election is on the question of annexation of territory.
(c) The board shall adopt a resolution declaring the results of
the election.
(d) The board may combine one or more elections required to be
held by this chapter, including a maintenance tax and bond
election.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS
Sec. 6904.201. IMPOSITION OF TAX. (a) The district may impose
a tax, not to exceed 25 cents on each $100 valuation of taxable
property in the district, for:
(1) maintenance purposes, including money for planning,
maintaining, repairing, and operating all necessary plants,
works, facilities, improvements, appliances, and equipment of the
district;
(2) paying costs of proper services, engineering, and legal
fees; and
(3) organization and administrative expenses.
(b) The district may not impose a maintenance tax unless the tax
is approved by a majority of the voters voting at an election
held for that purpose.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6904.202. DEPOSITORY. (a) The board shall designate one
or more banks inside or outside the district to serve as the
depository for the district's money.
(b) District money shall be deposited in the depository
designated by the board, except that:
(1) bond proceeds and money pledged to pay bonds, to the extent
provided in a resolution or trust indenture authorizing or
securing district bonds, may be deposited with another bank or
trustee named in the bond resolution or trust indenture; and
(2) money shall be remitted to each paying agent for the payment
of principal of and interest on the bonds.
(c) To the extent that money in a depository bank or the trustee
bank is not insured by the Federal Deposit Insurance Corporation,
the money must be secured in the manner provided by law for the
security of municipal money.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6904.203. INVESTMENT OF DISTRICT MONEY. The board may
invest district money in obligations and make time deposits of
district money in a manner determined by the board or in the
manner permitted or required in a resolution or trust indenture
authorizing or securing district bonds.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6904.204. DISTRICT FACILITIES EXEMPT FROM TAXATION AND
ASSESSMENT. The district is not required to pay a tax or
assessment on its facilities or any part of its facilities.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
SUBCHAPTER F. BONDS
Sec. 6904.251. AUTHORITY TO ISSUE BONDS. (a) The district may
issue bonds to carry out any power conferred by this chapter.
The bonds must be authorized by a board resolution.
(b) The bonds may be payable from and secured by revenue or ad
valorem taxes, or both revenue and ad valorem taxes, of the
district, in the manner and under the terms of the resolution
authorizing the issuance of the bonds.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6904.252. FORM OF BONDS. District bonds must be:
(1) issued in the district's name;
(2) signed by the president or vice president; and
(3) attested by the secretary.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6904.253. MATURITY. District bonds must mature not later
than 40 years after the date of their issuance.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6904.254. ELECTION FOR BONDS PAYABLE FROM AD VALOREM TAXES.
(a) Bonds, other than refunding bonds, payable wholly or partly
from ad valorem taxes may not be issued unless authorized by a
majority of the district voters voting at an election.
(b) The board may issue bonds not payable wholly or partly from
ad valorem taxes without an election.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6904.255. BONDS SECURED BY REVENUE; ADDITIONAL BONDS. (a)
Bonds issued under this subchapter may be secured by a pledge of
all or part of the district's revenue, or by all or part of the
revenue of one or more contracts or other revenue or income
specified by board resolution or a trust indenture securing the
bonds. The pledge may reserve the right, under conditions
specified by the pledge, to issue additional bonds that will be
on a parity with or subordinate to the bonds then being issued.
(b) The district may issue bonds secured by both taxes and
revenue of the district described by Subsection (a).
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6904.256. BONDS PAYABLE FROM AD VALOREM TAXES. (a) If
bonds are issued payable wholly or partly from ad valorem taxes,
the board shall annually impose a tax on the taxable property in
the district in an amount sufficient to pay the principal of and
interest on the bonds when due.
(b) The district may adopt the rate of a tax imposed under
Subsection (a) after giving consideration to the money received
from the pledged revenue that may be available for payment of
principal and interest, to the extent and in the manner permitted
by the resolution authorizing the issuance of the bonds.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6904.257. ADDITIONAL SECURITY. (a) Bonds, including
refunding bonds, authorized by this subchapter that are not
payable wholly from ad valorem taxes may be additionally secured,
at the discretion of the board, by a deed of trust or mortgage
lien on physical property of the district, franchises, easements,
water rights and appropriation permits, leases, contracts, and
all rights appurtenant to the property, vesting in the trustee
power to:
(1) sell the property for the payment of the debt;
(2) operate the property; and
(3) take other action to further secure the bonds.
(b) A purchaser under a sale under the deed of trust lien, if
one is given:
(1) is the absolute owner of property, facilities, and rights
purchased; and
(2) is entitled to maintain and operate the property,
facilities, and rights.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6904.258. TRUST INDENTURE. (a) A bond issued under this
subchapter, including a refunding bond, that is not payable
wholly from ad valorem taxes may be additionally secured by a
trust indenture. The trustee may be a bank with trust powers
located inside or outside the state.
(b) A trust indenture, regardless of the existence of the deed
of trust or mortgage lien on the property, may:
(1) provide for the security of the bonds and the preservation
of the trust estate in the manner prescribed by the board;
(2) provide for amendment or modification of the trust
indenture;
(3) provide for the issuance of bonds to replace lost or
mutilated bonds;
(4) condition the right to spend district money or sell district
property on the approval of a licensed engineer selected as
provided by the trust indenture; and
(5) provide for the investment of district money.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6904.259. CHARGES FOR DISTRICT SERVICES. (a) If district
bonds payable wholly from revenue are issued, the board shall set
and revise the rates of compensation for water sold and services
provided by the district. The rates must be sufficient to:
(1) pay the expense of operating and maintaining district
facilities;
(2) pay the principal of and interest on the bonds when due; and
(3) maintain the reserve fund and other funds as provided in the
resolution authorizing the bonds.
(b) If bonds payable partly from revenue are issued, the board
shall set the rate of compensation for water sold and any other
services provided by the district. The rate must be sufficient
to ensure compliance with the resolution authorizing the bonds or
the trust indenture securing the bonds.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6904.260. USE OF BOND PROCEEDS. (a) The district may set
aside an amount of proceeds from the sale of bonds issued under
this subchapter for:
(1) the payment of interest expected to accrue during
construction not to exceed three years;
(2) a debt service reserve fund; and
(3) other funds as may be provided in the resolution authorizing
the bonds or in the trust indenture.
(b) The district may use proceeds from the sale of the bonds to
pay any expense necessarily incurred in accomplishing the purpose
of the district, including any expense of issuing and selling the
bonds.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6904.261. APPOINTMENT OF RECEIVER. (a) On default or a
threatened default in the payment of principal of or interest on
bonds issued under this subchapter that are payable wholly or
partly from revenue, a court may, on petition of the holders of
outstanding bonds, appoint a receiver for the district.
(b) The receiver may collect and receive all district income,
except taxes, employ and discharge district agents and employees,
take charge of money on hand, except money received from taxes,
unless commingled, and manage the proprietary affairs of the
district without consent or hindrance by the board.
(c) The receiver may be authorized to sell or contract for the
sale of water or to renew those contracts with the approval of
the court that appointed the receiver.
(d) The court may vest the receiver with any other power or duty
the court finds necessary to protect the bondholders.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6904.262. REFUNDING BONDS. (a) The district may issue
refunding bonds to refund outstanding bonds issued under this
subchapter and interest on those bonds.
(b) Refunding bonds may:
(1) be issued to refund bonds of more than one series;
(2) combine the pledges for the outstanding bonds for the
security of the refunding bonds; or
(3) be secured by a pledge of other or additional revenue or
mortgage liens.
(c) The provisions of this subchapter regarding the issuance of
other bonds, their security, and the remedies of the holders
apply to refunding bonds.
(d) The comptroller shall register the refunding bonds on
surrender and cancellation of the bonds to be refunded.
(e) Instead of issuing bonds to be registered on the surrender
and cancellation of the bonds to be refunded, the district, in
the resolution authorizing the issuance of the refunding bonds,
may provide for the sale of the refunding bonds and the deposit
of the proceeds in a bank at which the bonds to be refunded are
payable. In that case, the refunding bonds may be issued in an
amount sufficient to pay the principal of and interest and any
required redemption premium on the bonds to be refunded to any
redemption date or to their maturity date, and the comptroller
shall register the refunding bonds without the surrender and
cancellation of the bonds to be refunded.
(f) An election is not required for refunding bonds.
(g) The district may also issue refunding bonds under any other
applicable law.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6904.263. LIMITATION ON RIGHTS OF HOLDERS. The resolution
authorizing the bonds or the trust indenture securing the bonds
may limit or qualify the rights of the holders of less than all
of the outstanding bonds payable from the same source to
institute or prosecute litigation affecting the district's
property or income.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6904.264. BONDS EXEMPT FROM TAXATION. A bond issued under
this subchapter, the transfer of the bond, and income from the
bond, including profits made on the sale of the bond, are exempt
from taxation in this state.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6904.265. DETACHMENT OF DISTRICT TERRITORY AFTER ISSUANCE
OF BONDS. Territory may not be detached from the district after
the issuance of bonds payable from revenue or taxes.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.