CHAPTER 8183. DELTA COUNTY MUNICIPAL UTILITY DISTRICT
SPECIAL DISTRICT LOCAL LAWS CODE
TITLE 6. WATER AND WASTEWATER
SUBTITLE F. MUNICIPAL UTILITY DISTRICTS
CHAPTER 8183. DELTA COUNTY MUNICIPAL UTILITY DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 8183.001. DEFINITIONS. In this chapter:
(1) "Board" means the board of directors of the district.
(2) Repealed by Acts 2009, 81st Leg., R.S., Ch. 87, Sec. 21.072,
eff. September 1, 2009.
(3) "Director" means a member of the board.
(4) "District" means the Delta County Municipal Utility
District.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.10, eff. April 1, 2009.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
87, Sec. 21.072, eff. September 1, 2009.
Sec. 8183.002. NATURE OF DISTRICT. The district is a municipal
utility district and a conservation and reclamation district
created under Section 59, Article XVI, Texas Constitution.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.10, eff. April 1, 2009.
Sec. 8183.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) All
territory in the district 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. In carrying out the purposes
of this chapter, the district will be performing an essential
public function under the constitution.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.10, eff. April 1, 2009.
SUBCHAPTER B. DISTRICT TERRITORY AND ANNEXATIONS
TO DISTRICT TERRITORY
Sec. 8183.051. DISTRICT TERRITORY. The boundaries of the
district are coextensive with the boundaries of Delta County
unless the district territory has been modified under this
subchapter or other law.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.10, eff. April 1, 2009.
Sec. 8183.052. ANNEXATION OF TERRITORY. (a) The board may
annex territory if a petition requesting annexation is signed by
a majority of the registered voters of the territory who own
taxable property in the territory 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.
(b) If the board determines that the petition complies with
Subsection (a), the board shall:
(1) adopt a resolution stating the conditions, if any, under
which the territory may be annexed to the district; and
(2) set a time and place to hold a hearing on the question of
whether the territory to be annexed will benefit from the
improvements, works, or facilities owned or operated or
contemplated to be owned or operated by the district.
(c) 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 and addressed to the citizens and owners of property in
the territory to be annexed shall be published one time in a
newspaper designated by the board that is of general circulation
in the territory to be annexed. The notice must describe the
territory in the same manner in which Subsection (a) requires the
petition to describe the territory.
(d) Any interested person may appear at the hearing and offer
evidence for or against the annexation.
(e) The hearing may proceed in the order and under the rules
prescribed by the board and may be recessed from time to time.
(f) If, at the conclusion of the hearing, the board finds that
the land in the territory will benefit from the present or
contemplated improvements, works, or facilities of the district,
the board may adopt a resolution annexing the territory to the
district.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.10, eff. April 1, 2009.
Sec. 8183.053. RESTRICTION ON ANNEXATION OF RAILROAD
RIGHT-OF-WAY. (a) A railroad right-of-way may not be annexed to
the district unless the right-of-way is contained in the limits
of a municipality annexed at the same time or previously annexed
to the district.
(b) A railroad right-of-way that is not in the limits of a
municipality will not benefit from improvements, works, and
facilities the district is authorized to construct.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.10, eff. April 1, 2009.
SUBCHAPTER C. BOARD OF DIRECTORS
Sec. 8183.101. QUALIFICATIONS FOR OFFICE. (a) A person may not
be appointed a director unless the person resides in Delta County
or in a county all or a portion of which is contained in the
district.
(b) A person may not be appointed a director unless the person
resides in and owns taxable property in the district.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.10, eff. April 1, 2009.
Sec. 8183.102. APPOINTMENT OF SECRETARY AND TREASURER. The
board shall appoint a secretary and a treasurer, who are not
required to be directors. The board may combine the offices of
secretary and treasurer.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.10, eff. April 1, 2009.
Sec. 8183.103. VOTE BY BOARD PRESIDENT. The president has the
same right to vote as any other director. The vice president may
not exercise the president's right to vote.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.10, eff. April 1, 2009.
Sec. 8183.104. DIRECTOR'S AND TREASURER'S BOND. (a) Each
director shall give bond in the amount of $5,000 conditioned on
the faithful performance of the director's duties.
(b) The treasurer shall give bond in the amount required by the
board. The treasurer's bond shall be conditioned on the
treasurer's faithful accounting for all money that comes into the
treasurer's custody as treasurer of the district.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.10, eff. April 1, 2009.
Sec. 8183.105. COMPENSATION. Unless the board by resolution
increases the fee to an amount authorized by Section 49.060,
Water Code, each director:
(1) shall receive a fee for attending each meeting of the board
not to exceed $20 for a meeting or $40 in one calendar month; and
(2) is entitled to an additional amount not to exceed $20 for
each day that the director devotes to serving the business of the
district if the service is expressly approved by the board.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.10, eff. April 1, 2009.
SUBCHAPTER D. GENERAL POWERS AND DUTIES
Sec. 8183.151. CONTRACTS TO SUPPLY WATER OR SEWAGE SERVICES.
(a) The district may contract with a municipality or other
entity to supply to the entity water or sewage transportation,
treatment, or disposal services.
(b) The district may contract with a municipality for the rental
or leasing of or for the operation of the municipality's water
production, water supply, water filtration or purification, or
water supply facilities or the municipality's sewage collection,
treatment, and disposal system on the consideration agreed to by
the district and the municipality.
(c) The contract may be on terms and for the time agreed to by
the parties.
(d) The 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 a municipality for the
operation of the district's water and sewer system by the
municipality.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.10, eff. April 1, 2009.
Sec. 8183.152. ACQUISITION OF LAND AND OTHER PROPERTY. The
district may acquire the fee simple title to land and other
property or easements inside or outside the district and may
construct, lease, or otherwise acquire all works, plants, and
other facilities necessary or useful to:
(1) divert, impound, store, or treat water for, or transport
water to, municipalities and others inside or outside the
district for municipal, domestic, industrial, or mining purposes;
or
(2) provide sewage collection, transportation, treatment, or
disposal services to municipalities and others inside or outside
the district.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.10, eff. April 1, 2009.
Sec. 8183.153. 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 that is designated or approved by the board.
(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 or the material,
equipment, or supplies to be purchased; and
(3) the place where and the terms on which copies of the plans
and specifications may be obtained.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.10, eff. April 1, 2009.
Sec. 8183.154. SURPLUS PROPERTY. Subject to the terms of a deed
of trust issued by the district, the district may sell, trade, or
otherwise dispose of property the board considers not needed for
district purposes.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.10, eff. April 1, 2009.
Sec. 8183.155. 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 and other
property and easements, inside or outside the district, including
land needed for 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 district may not exercise the power of eminent domain to
acquire property owned by any other political subdivision.
(e) In exercising the power of eminent domain against a person
that has the power of eminent domain or a receiver or trustee for
that person, the district may acquire an easement only and not
the fee title.
(f) The board shall determine the amount of 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. 1.10, eff. April 1, 2009.
Sec. 8183.156. COST OF RELOCATING PROPERTY. If the district's
exercise of any power granted under this chapter makes necessary
relocating, raising, rerouting or changing the grade of, or
altering the construction of any highway, railroad, electric
transmission line, telephone or telegraph property and 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. 1.10, eff. April 1, 2009.
SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS
Sec. 8183.201. DEPOSITORY. (a) The board shall designate one
or more banks inside or outside the district to serve as
depository for district money.
(b) All district money shall be deposited in a designated
depository, except that:
(1) bond proceeds and money pledged to pay bonds, to the extent
provided in the indenture, may be deposited with the trustee bank
named in the trust indenture; and
(2) money shall be remitted to the bank of payment 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 county funds.
(d) The board shall prescribe the terms of service for
depositories.
(e) Before designating a depository bank, the board shall:
(1) publish notice one time in a newspaper of general
circulation in the district that is specified by the board; or
(2) mail a copy of the notice to each bank in the district.
(f) The notice must:
(1) state the time and place at which the board will meet to
designate a depository bank or banks; and
(2) invite each bank in the district to submit an application to
be designated as a depository.
(g) At the time stated in the notice, the board shall:
(1) consider the applications and the management and condition
of each bank; and
(2) designate as a depository the bank or banks:
(A) that offer the most favorable terms for the handling of the
money; and
(B) that the board finds have proper management and are in
condition to handle the money.
(h) Membership on the board of an officer or director of a bank
does not disqualify the bank from being designated as a
depository.
(i) If the board does not receive any applications before the
time stated in the notice, the board shall designate one or more
banks inside or outside the district on terms that the board
finds advantageous to the district.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.10, eff. April 1, 2009.
Sec. 8183.202. TAX ASSESSOR AND COLLECTOR. Before the sale and
delivery of district bonds payable wholly or partly from ad
valorem taxes, the board may appoint a tax assessor and
collector.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.10, eff. April 1, 2009.
Sec. 8183.203. PROJECTS EXEMPT FROM ASSESSMENT OR TAXATION. The
district is not required to pay a tax or assessment on a project
or any part of a project.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.10, eff. April 1, 2009.
SUBCHAPTER F. BONDS
Sec. 8183.251. AUTHORITY TO ISSUE BONDS. The district may issue
bonds to carry out any power conferred by this chapter. The
bonds must be authorized by a board resolution.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.10, eff. April 1, 2009.
Sec. 8183.252. FORM OF BONDS. A district bond 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. 1.10, eff. April 1, 2009.
Sec. 8183.253. MATURITY. District bonds must mature not later
than 40 years after their date of issuance.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.10, eff. April 1, 2009.
Sec. 8183.254. ELECTION FOR BONDS PAYABLE FROM AD VALOREM TAX.
(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 order an election under this section without a
petition. The order must specify:
(1) the time and places at which the election will be held;
(2) the purpose for which the bonds will be issued;
(3) the maximum amount of the bonds;
(4) the maximum maturity of the bonds;
(5) the form of the ballot; and
(6) the presiding judge for each voting place.
(c) Notice of the election must be given by publishing a
substantial copy of the order calling the election in a newspaper
of general circulation in each municipality located in the
district. The notice must be published once a week for two
consecutive weeks. The first publication must be not later than
the 21st day before the date of the election.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.10, eff. April 1, 2009.
Sec. 8183.255. BONDS PAYABLE FROM REVENUE. (a) Bonds issued
under this subchapter may be secured under board resolution by a
pledge of:
(1) all or part of the net revenue of the district;
(2) the net revenue of one or more contracts made before or
after the issuance of the bonds; or
(3) other revenue or income specified by resolution of the board
or in the trust indenture.
(b) The pledge may reserve the right to issue additional bonds
on a parity with, or subordinate to, the bond being issued,
subject to conditions specified in the pledge.
(c) Bonds not payable wholly or partly from ad valorem taxes may
be issued without an election.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.10, eff. April 1, 2009.
Sec. 8183.256. BONDS PAYABLE FROM AD VALOREM TAXES. The
district may issue bonds payable, as pledged by board resolution,
from:
(1) ad valorem taxes imposed on taxable property in the
district; or
(2) ad valorem taxes and revenue of the district.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.10, eff. April 1, 2009.
Sec. 8183.257. TAX AND RATE REQUIREMENTS. (a) If the district
issues bonds payable wholly or partly from ad valorem taxes, the
board shall impose a tax sufficient to pay the bonds and the
interest on the bonds as the bonds and interest become due. The
board may adopt the rate of the tax after considering the money
received from the other pledged revenue available for payment of
principal and interest to the extent and in the manner permitted
by the resolution authorizing the issuance of the bonds.
(b) If the district issues bonds payable wholly or partly from
revenue, the board shall set and revise the rates of compensation
for water sold and services rendered by the district.
(c) For bonds payable wholly from revenue, the rates of
compensation must be sufficient to:
(1) pay the expense of operating and maintaining the facilities
of the district;
(2) pay the bonds as they mature and the interest as it accrues;
and
(3) maintain the reserve and other funds as provided in the
resolution authorizing the issuance of the bonds.
(d) For bonds payable partly from revenue, the rates of
compensation must be sufficient to assure compliance with the
resolution authorizing the issuance of the bonds or the trust
indenture securing the bonds.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.10, eff. April 1, 2009.
Sec. 8183.258. ADDITIONAL SECURITY. (a) Bonds 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 the
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. 1.10, eff. April 1, 2009.
Sec. 8183.259. 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 this 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. 1.10, eff. April 1, 2009.
Sec. 8183.260. 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) payment of interest expected to accrue during construction;
(2) a reserve interest and sinking fund; and
(3) any other fund provided for 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.
(c) The district may temporarily invest proceeds from the sale
of the bonds and other district funds in securities that are
specified in the bond resolution or the trust indenture.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.10, eff. April 1, 2009.
Sec. 8183.261. APPOINTMENT OF RECEIVER. (a) On default or
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. 1.10, eff. April 1, 2009.
Sec. 8183.262. 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 on the
bonds to be refunded to their option date or maturity date, and
the comptroller shall register the refunding bonds without the
concurrent surrender and cancellation of the bonds to be
refunded.
(f) An election is not required for refunding bonds.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.10, eff. April 1, 2009.
Sec. 8183.263. 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. 1.10, eff. April 1, 2009.
Sec. 8183.264. 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. 1.10, eff. April 1, 2009.
Sec. 8183.265. DETACHMENT OF 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. 1.10, eff. April 1, 2009.