CHAPTER 8359. LAKE TEXOMA MUNICIPAL UTILITY DISTRICT NO. 1
SPECIAL DISTRICT LOCAL LAWS CODE
TITLE 6. WATER AND WASTEWATER
SUBTITLE F. MUNICIPAL UTILITY DISTRICTS
CHAPTER 8359. LAKE TEXOMA MUNICIPAL UTILITY DISTRICT NO. 1
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 8359.001. DEFINITIONS. In this chapter:
(1) "Board" means the district's board of directors.
(2) "Director" means a board member.
(3) "District" means the Lake Texoma Municipal Utility District
No. 1.
Added by Acts 2009, 81st Leg., R.S., Ch.
1071, Sec. 1, eff. September 1, 2009.
Sec. 8359.002. NATURE OF DISTRICT. The district is a municipal
utility district created under Section 59, Article XVI, Texas
Constitution.
Added by Acts 2009, 81st Leg., R.S., Ch.
1071, Sec. 1, eff. September 1, 2009.
Sec. 8359.003. CONFIRMATION AND DIRECTORS' ELECTION REQUIRED.
(a) The temporary directors shall hold an election to confirm
the creation of the district and to elect five permanent
directors as provided by Section 49.102, Water Code.
(b) The temporary directors of any new district created under
Section 8359.108 may not hold an election under Subsection (a)
until the earlier of:
(1) the date the land in the new district has been annexed by
the City of Denison; or
(2) not later than the 180th day after the date the City of
Denison receives a written petition from a landowner requesting
annexation that the city does not grant.
(c) The petition described by Subsection (b) must:
(1) request annexation of land that is contiguous with a
boundary of the City of Denison;
(2) include all the land in the new district;
(3) include land covered by the development agreement executed
under Section 8359.004;
(4) include the landowner's consent to abide by the
comprehensive land use plan and development regulations as
defined in the development agreement; and
(5) if the development agreement for the land included in the
new district expires before a new district is created under
Section 8359.108, include the landowner's consent to reinstate
the comprehensive land use plan and development regulations
defined in the expired development agreement.
Added by Acts 2009, 81st Leg., R.S., Ch.
1071, Sec. 1, eff. September 1, 2009.
Sec. 8359.004. DEVELOPMENT AGREEMENT REQUIRED. The temporary
directors may not hold an election under Section 8359.003 until
the City of Denison and the owners of the land to be covered by a
development agreement that covers all or part of the land in the
district enter into the development agreement under Chapter 212,
Local Government Code.
Added by Acts 2009, 81st Leg., R.S., Ch.
1071, Sec. 1, eff. September 1, 2009.
Sec. 8359.005. FINDINGS OF PUBLIC PURPOSE AND BENEFIT. (a) The
district is created to serve a public purpose 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 Section 52, Article III, and
Section 59, Article XVI, Texas Constitution, and under this
chapter.
(c) The district is created to accomplish the purposes of:
(1) a municipal utility district as provided by general law and
Section 59, Article XVI, Texas Constitution; and
(2) Section 52, Article III, Texas Constitution, that relate to
the construction, acquisition, improvement, operation, or
maintenance of macadamized, graveled, or paved roads, or
improvements, including storm drainage, in aid of those roads.
Added by Acts 2009, 81st Leg., R.S., Ch.
1071, Sec. 1, eff. September 1, 2009.
Sec. 8359.006. 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 a tax or assessment; or
(4) legality or operation.
Added by Acts 2009, 81st Leg., R.S., Ch.
1071, Sec. 1, eff. September 1, 2009.
Sec. 8359.007. ELIGIBILITY FOR INCLUSION IN TAX INCREMENT
REINVESTMENT ZONE. (a) All or any part of the district is
eligible to be included in a tax increment reinvestment zone
created under Chapter 311, Tax Code.
(b) If the City of Denison creates a tax increment reinvestment
zone described by Subsection (a) that includes all or part of the
territory of the district, the City of Denison and the board of
directors of the zone, by contract with the district, may grant
money to the district to be used for a permissible purpose of a
corporation under Section 380.002(b), Local Government Code,
including the right to pledge the money as security for a bond
issued by the district.
Added by Acts 2009, 81st Leg., R.S., Ch.
1071, Sec. 1, eff. September 1, 2009.
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 8359.051. GOVERNING BODY; TERMS. (a) The district is
governed by a board of five elected directors.
(b) Except as provided by Section 8359.052, directors serve
staggered four-year terms.
Added by Acts 2009, 81st Leg., R.S., Ch.
1071, Sec. 1, eff. September 1, 2009.
Sec. 8359.052. TEMPORARY DIRECTORS. (a) The temporary board
consists of:
(1) Ben Munson;
(2) Gifford Jackson;
(3) Robert Vaughn;
(4) Denice Lucas; and
(5) Patrick O'Toole.
(b) Temporary directors serve until the earlier of:
(1) the date permanent directors are elected under Section
8359.003; or
(2) September 1, 2013.
(c) If permanent directors have not been elected under Section
8359.003 and the terms of the temporary directors have expired,
successor temporary directors shall be appointed or reappointed
as provided by Subsection (d) to serve terms that expire on the
earlier of:
(1) the date permanent directors are elected under Section
8359.003; or
(2) the fourth anniversary of the date of the appointment or
reappointment.
(d) If Subsection (c) applies, the owner or owners of a majority
of the assessed value of the real property in the district may
submit a petition to the Texas Commission on Environmental
Quality requesting that the commission appoint as successor
temporary directors the five persons named in the petition. The
commission shall appoint as successor temporary directors the
five persons named in the petition.
Added by Acts 2009, 81st Leg., R.S., Ch.
1071, Sec. 1, eff. September 1, 2009.
SUBCHAPTER C. POWERS AND DUTIES
Sec. 8359.101. GENERAL POWERS AND DUTIES. The district has the
powers and duties necessary to accomplish the purposes for which
the district is created.
Added by Acts 2009, 81st Leg., R.S., Ch.
1071, Sec. 1, eff. September 1, 2009.
Sec. 8359.102. MUNICIPAL UTILITY DISTRICT POWERS AND DUTIES.
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.
Added by Acts 2009, 81st Leg., R.S., Ch.
1071, Sec. 1, eff. September 1, 2009.
Sec. 8359.103. AUTHORITY FOR ROAD PROJECTS. Under Section 52,
Article III, Texas Constitution, the district may design,
acquire, construct, finance, issue bonds for, improve, operate,
maintain, and convey to this state, a county, or a municipality
for operation and maintenance macadamized, graveled, or paved
roads, or improvements, including storm drainage, in aid of those
roads.
Added by Acts 2009, 81st Leg., R.S., Ch.
1071, Sec. 1, eff. September 1, 2009.
Sec. 8359.104. ROAD STANDARDS AND REQUIREMENTS. (a) A road
project must meet all applicable construction standards, zoning
and subdivision requirements, and regulations of each
municipality in whose corporate limits or extraterritorial
jurisdiction the road project is located.
(b) If a road project is not located in the corporate limits or
extraterritorial jurisdiction of a municipality, the road project
must meet all applicable construction standards, subdivision
requirements, and regulations of each county in which the road
project is located.
(c) If the state will maintain and operate the road, the Texas
Transportation Commission must approve the plans and
specifications of the road project.
Added by Acts 2009, 81st Leg., R.S., Ch.
1071, Sec. 1, eff. September 1, 2009.
Sec. 8359.105. COMPLIANCE WITH MUNICIPAL CONSENT ORDINANCE OR
RESOLUTION. (a) The district shall comply with all applicable
requirements of an ordinance or resolution adopted by the City of
Denison in accordance with Section 54.016 or 54.0165, Water Code,
that consents to the creation of the district or to the inclusion
of land in the district. The ordinance or resolution of the City
of Denison consenting to the creation of the district may limit
the amount of the district's bonds and tax rate.
(b) The ordinance or resolution of the City of Denison
consenting to the inclusion of additional land in the district
may be conditioned on the additional land being covered by the
development agreement executed under Section 8359.004.
(c) The consent ordinance or resolution of the City of Denison
may not impose a restriction or condition not expressly provided
under Section 54.016(f), Water Code, on a new district created
under Section 8359.108 or on the inclusion of land in the new
district. A restriction or condition on the creation of a new
district under Section 8359.108 or the inclusion of land in a new
district may not:
(1) limit the amount of the new district's bonds or tax rate; or
(2) restrict the purposes authorized by this chapter for which
the new district may issue bonds.
Added by Acts 2009, 81st Leg., R.S., Ch.
1071, Sec. 1, eff. September 1, 2009.
Sec. 8359.106. ANNEXATION. (a) Before the district holds an
election under Section 8359.003, the district may annex:
(1) without the consent of the City of Denison, land previously
owned by the United States Army Corps of Engineers; or
(2) in accordance with Section 54.016, Water Code, land located
in the extraterritorial jurisdiction or corporate limits of the
City of Denison if the City of Denison has consented by ordinance
or resolution to the annexation.
(b) The district may not annex land located outside the
corporate limits and extraterritorial jurisdiction of the City of
Denison.
Added by Acts 2009, 81st Leg., R.S., Ch.
1071, Sec. 1, eff. September 1, 2009.
Sec. 8359.107. EFFECT OF ANNEXATION BY CITY OF DENISON. (a) The
City of Denison may annex part of the district into its corporate
limits without annexing the entire district under the terms of a
development agreement executed under Section 8359.004 between the
City of Denison and the owners of the land in the district that
is covered by the development agreement. If a development
agreement is not executed under Section 8359.004 or the agreement
has expired, nothing in this chapter limits the right of the City
of Denison to annex the district.
(b) If the City of Denison annexes all or part of the district
into its corporate limits:
(1) the district is not dissolved;
(2) the ability of the district to issue bonds is not impaired
or precluded; and
(3) unless otherwise approved by the board and the governing
body of the City of Denison, the city:
(A) may not take over the property or other assets of the
district;
(B) may not assume any debts, liabilities, or other obligations
of the district;
(C) is not obligated to perform any functions of the district;
and
(D) is not obligated to pay a landowner or developer for
expenses incurred by the landowner or developer in connection
with the district that would otherwise be eligible for
reimbursement from the proceeds of bonds issued by the district.
(c) Notwithstanding Section 54.016(f)(2), Water Code, an
allocation agreement between the City of Denison and the district
that provides for the allocation of the taxes or revenues of the
district and the city following the date of inclusion of all the
district's territory in the corporate limits of the city may
provide that the total annual ad valorem taxes collected by the
city and the district from taxable property in the district may
exceed the city's ad valorem tax on that property.
Added by Acts 2009, 81st Leg., R.S., Ch.
1071, Sec. 1, eff. September 1, 2009.
Sec. 8359.108. DIVISION OF DISTRICT. (a) The district may be
divided into two or more new districts only if the district:
(1) has no outstanding bonded debt; and
(2) is not imposing ad valorem taxes.
(b) This chapter applies to any new district created by the
division of the district, and a new district has all the powers
and duties of the district.
(c) Any new district created by the division of the district
may, at the time the new district is created, contain only:
(1) land within the area described by Section 2 of the Act
creating this chapter;
(2) any land previously owned by the United States Army Corps of
Engineers; and
(3) any land adjacent to the area described by Section 2 of the
Act creating this chapter if that adjacent land is within the
extraterritorial jurisdiction of the City of Denison and if that
adjacent land has been approved for inclusion in the district
under the consent ordinance or resolution adopted by the City of
Denison under Section 8359.105.
(d) The board, on its own motion or on receipt of a petition
signed by the owner or owners of a majority of the assessed value
of the real property in the district, may adopt an order dividing
the district.
(e) The board may adopt an order dividing the district only
after the date the board holds an election under Section 8359.003
to confirm the district's creation.
(f) An order dividing the district must:
(1) name each new district;
(2) include the metes and bounds description of the territory of
each new district;
(3) appoint temporary directors for each new district; and
(4) provide for the division of assets and liabilities between
or among the new districts.
(g) On or before the 30th day after the date of adoption of an
order dividing the district, the district shall file the order
with the Texas Commission on Environmental Quality and record the
order in the real property records of each county in which the
district is located.
(h) Any new district created by the division of the district
shall hold a confirmation and directors' election as required by
Section 8359.003.
(i) Municipal consent by the City of Denison is not required for
the creation of any new district created under this section.
(j) Any new district created by the division of the district
must hold an election as required by this chapter to obtain voter
approval before the district may impose a maintenance tax or
issue bonds payable wholly or partly from ad valorem taxes.
(k) If the voters of a new district do not confirm the creation
of the new district, the assets, obligations, territory, and
governance of the new district revert to that of the original
district.
Added by Acts 2009, 81st Leg., R.S., Ch.
1071, Sec. 1, eff. September 1, 2009.
Sec. 8359.109. DISSOLUTION OF DISTRICT. The district may be
dissolved by ordinance or resolution of the governing body of the
City of Denison after the date on which at least 95 percent of
the infrastructure authorized by this chapter and the Water Code
to serve full development in the district has been completed. On
dissolution, the City of Denison shall:
(1) take over the property and other assets of the district;
(2) assume all debts, liabilities, or other obligations of the
district;
(3) perform the functions of the district; and
(4) pay any landowner or developer for costs and expenses
incurred by the landowner or developer in connection with the
district that would otherwise be eligible for reimbursement from
the proceeds of bonds issued by the district.
Added by Acts 2009, 81st Leg., R.S., Ch.
1071, Sec. 1, eff. September 1, 2009.
Sec. 8359.110. LIMITATION ON USE OF EMINENT DOMAIN. The
district may not exercise the power of eminent domain outside the
district to acquire a site or easement for:
(1) a road project authorized by Section 8359.103; or
(2) a recreational facility as defined by Section 49.462, Water
Code.
Added by Acts 2009, 81st Leg., R.S., Ch.
1071, Sec. 1, eff. September 1, 2009.
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
Sec. 8359.151. ELECTIONS REGARDING TAXES OR BONDS. (a) The
district may issue, without an election, bonds and other
obligations secured by:
(1) revenue other than ad valorem taxes; or
(2) contract payments described by Section 8359.153.
(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 ad valorem tax or issue bonds payable
from ad valorem taxes.
(c) The district may not issue bonds payable from ad valorem
taxes to finance a road project unless the issuance is approved
by a vote of a two-thirds majority of the district voters voting
at an election held for that purpose.
Added by Acts 2009, 81st Leg., R.S., Ch.
1071, Sec. 1, eff. September 1, 2009.
Sec. 8359.152. OPERATION AND MAINTENANCE TAX. (a) If
authorized at an election held under Section 8359.151, 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 2009, 81st Leg., R.S., Ch.
1071, Sec. 1, eff. September 1, 2009.
Sec. 8359.153. CONTRACT TAXES. (a) In accordance with Section
49.108, Water Code, the district may impose a tax other than an
operation and maintenance tax and use the revenue derived from
the tax to make payments under a contract after the provisions of
the contract have been approved by a majority of the district
voters voting at an election held for that purpose.
(b) A contract approved by the district voters may contain a
provision stating that the contract may be modified or amended by
the board without further voter approval.
Added by Acts 2009, 81st Leg., R.S., Ch.
1071, Sec. 1, eff. September 1, 2009.
SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS
Sec. 8359.201. AUTHORITY TO ISSUE BONDS AND OTHER OBLIGATIONS.
The district may issue bonds or other obligations payable wholly
or partly from ad valorem taxes, impact fees, revenue, contract
payments, grants, or other district money, revenue from a tax
increment reinvestment zone created under Chapter 311, Tax Code,
revenue from economic development agreements under Chapter 380,
Local Government Code, or any combination of those sources, to
pay for any authorized district purpose.
Added by Acts 2009, 81st Leg., R.S., Ch.
1071, Sec. 1, eff. September 1, 2009.
Sec. 8359.202. TAXES FOR BONDS. At the time the district issues
bonds payable wholly or partly from ad valorem taxes, the board
shall provide for the annual imposition of a continuing direct ad
valorem tax, without limit as to rate or amount, while all or
part of the bonds are outstanding as required and in the manner
provided by Sections 54.601 and 54.602, Water Code.
Added by Acts 2009, 81st Leg., R.S., Ch.
1071, Sec. 1, eff. September 1, 2009.
Sec. 8359.203. BONDS FOR ROAD PROJECTS. At the time of
issuance, the total principal amount of bonds or other
obligations issued or incurred to finance road projects and
payable from ad valorem taxes may not exceed one-fourth of the
assessed value of the real property in the district.
Added by Acts 2009, 81st Leg., R.S., Ch.
1071, Sec. 1, eff. September 1, 2009.