CHAPTER 8239. GUNTER MUNICIPAL UTILITY DISTRICT NO. 2
SPECIAL DISTRICT LOCAL LAWS CODE
TITLE 6. WATER AND WASTEWATER
SUBTITLE F. MUNICIPAL UTILITY DISTRICTS
CHAPTER 8239. GUNTER MUNICIPAL UTILITY DISTRICT NO. 2
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 8239.001. 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 Gunter Municipal Utility District No.
2.
Added by Acts 2007, 80th Leg., R.S., Ch.
1138, Sec. 1, eff. June 15, 2007.
Sec. 8239.002. NATURE OF DISTRICT. The district is a municipal
utility district in Grayson County created under and essential to
accomplish the purposes of Section 59, Article XVI, Texas
Constitution.
Added by Acts 2007, 80th Leg., R.S., Ch.
1138, Sec. 1, eff. June 15, 2007.
Sec. 8239.003. CONFIRMATION ELECTION REQUIRED. The board shall
hold an election to confirm the creation of the district as
provided by Section 49.102, Water Code.
Added by Acts 2007, 80th Leg., R.S., Ch.
1138, Sec. 1, eff. June 15, 2007.
Sec. 8239.004. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) All
land and other property included in the district will benefit
from the improvements and services to be provided by the
district.
(b) The district is created to accomplish:
(1) the purposes of a municipal utility district as provided by
general law; and
(2) to the extent authorized by Section 52, Article III, Texas
Constitution, the construction, acquisition, improvement,
maintenance, or operation of macadamized, graveled, or paved
roads or improvements in aid of those roads.
Added by Acts 2007, 80th Leg., R.S., Ch.
1138, Sec. 1, eff. June 15, 2007.
Sec. 8239.005. INITIAL DISTRICT TERRITORY. (a) The district is
initially composed of the territory described by Section 2 of the
Act creating this chapter.
(b) The boundaries and field notes contained in Section 2 of the
Act creating this chapter form a closure. A mistake made in the
field notes or in copying the field notes in the legislative
process does not affect the district's:
(1) organization, existence, or validity;
(2) right to issue any type of bond for the purposes for which
the district is created or to pay the principal of and interest
on a bond;
(3) right to impose or collect an assessment or tax; or
(4) legality or operation.
Added by Acts 2007, 80th Leg., R.S., Ch.
1138, Sec. 1, eff. June 15, 2007.
Sec. 8239.006. ANNEXATION BY CITY OF GUNTER. Notwithstanding
any other law, if all of the territory of the district is annexed
by the City of Gunter into the corporate limits of that
municipality before the date of the election under Section
8239.003, the district may not be dissolved and shall continue
until the district is dissolved under Section 43.074, Local
Government Code.
Added by Acts 2007, 80th Leg., R.S., Ch.
1138, Sec. 1, eff. June 15, 2007.
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 8239.051. DIRECTORS; TERMS. (a) The district is governed
by a board of five directors.
(b) Except as provided by Section 8239.053, directors serve
staggered four-year terms.
Added by Acts 2007, 80th Leg., R.S., Ch.
1138, Sec. 1, eff. June 15, 2007.
Sec. 8239.052. ELECTION OF DIRECTORS. On the uniform election
date in May of each even-numbered year, the appropriate number of
directors shall be elected.
Added by Acts 2007, 80th Leg., R.S., Ch.
1138, Sec. 1, eff. June 15, 2007.
Sec. 8239.053. INITIAL DIRECTORS. (a) The initial board
consists of:
(1) Jennifer Milstead;
(2) Collette Sallas;
(3) Eddie Collins;
(4) Herschel Pierce; and
(5) Todd Cook.
(b) Unless the initial board otherwise agrees, the initial
directors shall draw lots to determine which two directors shall
serve until the first regularly scheduled election of directors
and which three directors shall serve until the second regularly
scheduled election of directors.
Added by Acts 2007, 80th Leg., R.S., Ch.
1138, Sec. 1, eff. June 15, 2007.
Sec. 8239.054. CONSENT OF MUNICIPALITY REQUIRED. The initial
directors may not hold an election under Section 8239.003 until:
(1) all of the territory of the district is included in the
corporate limits of the City of Gunter; and
(2) the City of Gunter has adopted a resolution consenting to
the creation of the district.
Added by Acts 2007, 80th Leg., R.S., Ch.
1138, Sec. 1, eff. June 15, 2007.
SUBCHAPTER C. POWERS AND DUTIES
Sec. 8239.101. MUNICIPAL UTILITY DISTRICT POWERS AND DUTIES.
(a) The district has the powers and duties provided by the
general law of this state, including Chapters 49 and 54, Water
Code, applicable to municipal utility districts created under
Section 59, Article XVI, Texas Constitution.
(b) The district has the powers and duties necessary to
accomplish the purposes for which the district is created.
(c) Notwithstanding Subsection (a), the district may not act as
a retail provider of water or wastewater service.
(d) The district shall make the district's water and wastewater
facilities available to an entity holding the applicable
certificate of public convenience and necessity.
Added by Acts 2007, 80th Leg., R.S., Ch.
1138, Sec. 1, eff. June 15, 2007.
Sec. 8239.102. ROAD PROJECTS. (a) To the extent authorized by
Section 52, Article III, Texas Constitution, the district may
construct, acquire, improve, maintain, or operate macadamized,
graveled, or paved roads or improvements in aid of those roads.
(b) A road project must meet all applicable construction
standards, regulations, and ordinances of the municipality or
county in whose jurisdiction the district is located.
(c) If a portion of the territory of the district is excluded
from the corporate limits of the City of Gunter, the district
shall:
(1) improve, maintain, repair, and operate the roads located in
that portion of territory in accordance with the ordinances and
rules of the political subdivision possessing jurisdiction over
the roads in that portion of territory; and
(2) pay the entire cost of performing the district's duties
under Subdivision (1).
Added by Acts 2007, 80th Leg., R.S., Ch.
1138, Sec. 1, eff. June 15, 2007.
Sec. 8239.103. COMPLIANCE WITH MUNICIPAL CONSENT ORDINANCES OR
RESOLUTIONS. Subject to the limitations of Section 54.016, Water
Code, the district shall comply with all applicable requirements
of any ordinance or resolution adopted by the governing body of
the municipality that consents to the creation of the district or
to the inclusion of lands within the district.
Added by Acts 2007, 80th Leg., R.S., Ch.
1138, Sec. 1, eff. June 15, 2007.
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
Sec. 8239.151. ELECTIONS REGARDING TAXES OR BONDS. (a) The
district may issue, without an election, bonds and other
obligations secured by revenue or contract payments from any
source other than ad valorem taxation.
(b) The district must hold an election in the manner provided by
Chapters 49 and 54, Water Code, to obtain voter approval before
the district may impose an operation and maintenance tax or issue
bonds payable from ad valorem taxes.
Added by Acts 2007, 80th Leg., R.S., Ch.
1138, Sec. 1, eff. June 15, 2007.
Sec. 8239.152. OPERATION AND MAINTENANCE TAX. (a) If
authorized at an election held under Section 8239.151, the
district may impose an operation and maintenance tax on taxable
property in the district in accordance with Section 49.107, Water
Code.
(b) The board shall determine the tax rate. The rate may not
exceed the rate approved at the election.
Added by Acts 2007, 80th Leg., R.S., Ch.
1138, Sec. 1, eff. June 15, 2007.
SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS
Sec. 8239.201. AUTHORITY TO ISSUE BONDS AND OTHER OBLIGATIONS.
(a) The district may issue bonds or other obligations payable
wholly or partly from ad valorem taxes, impact fees, revenue,
grants, or other district money, or any combination of those
sources, to pay for any authorized district purpose.
(b) The district may not issue bonds to finance projects
authorized by Section 8239.102 unless the issuance is approved by
a vote of a two-thirds majority of the voters of the district
voting at an election called for that purpose.
(c) Bonds or other obligations issued or incurred to finance
projects authorized by Section 8239.102 may not exceed one-fourth
of the assessed value of the real property in the district.
Added by Acts 2007, 80th Leg., R.S., Ch.
1138, Sec. 1, eff. June 15, 2007.
Sec. 8239.202. TAXES FOR BONDS. At the time bonds 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 as the interest becomes due;
(B) create a sinking fund for the payment of the principal of
the bonds when due or the redemption price at any earlier
required redemption date; and
(C) pay the expenses of imposing the taxes.
Added by Acts 2007, 80th Leg., R.S., Ch.
1138, Sec. 1, eff. June 15, 2007.