CHAPTER 3869. PADRE ISLAND GATEWAY MUNICIPAL MANAGEMENT DISTRICT

State Codes and Statutes

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SPECIAL DISTRICT LOCAL LAWS CODE

TITLE 4. DEVELOPMENT AND IMPROVEMENT

SUBTITLE C. DEVELOPMENT, IMPROVEMENT, AND MANAGEMENT

CHAPTER 3869. PADRE ISLAND GATEWAY MUNICIPAL MANAGEMENT DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 3869.001. DEFINITIONS. In this chapter:

(1) "Board" means the district's board of directors.

(2) "City" means the City of Corpus Christi.

(3) "District" means the Padre Island Gateway Municipal

Management District.

(4) "Improvement project" means any program or project

authorized by Sections 3869.102 and 3869.160 inside or outside

the district.

Added by Acts 2009, 81st Leg., R.S., Ch.

888, Sec. 1, eff. June 19, 2009.

Sec. 3869.002. NATURE OF DISTRICT. The district is a special

district created under Section 59, Article XVI, Texas

Constitution.

Added by Acts 2009, 81st Leg., R.S., Ch.

888, Sec. 1, eff. June 19, 2009.

Sec. 3869.003. 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 the city

and other 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 this 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.

services provided by the city in the district. This chapter and

the creation of the district may not be interpreted to relieve

the city from providing the level of services provided as of the

effective date of the Act creating this chapter to the area in

the district.

Added by Acts 2009, 81st Leg., R.S., Ch.

888, Sec. 1, eff. June 19, 2009.

Sec. 3869.004. 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.

is essential to further the public purposes of:

(1) developing and diversifying the economy of this 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 city.

(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;

(3) promote the health, safety, welfare, and enjoyment of the

public by providing pedestrian ways throughout the district,

including beaches; and

(4) landscape and develop areas in the district that are

necessary for the restoration, preservation, and enhancement of

scenic beauty and enhancing and improving the environment as an

essential natural resource of this state.

(e) Pedestrian ways along or across a street or a beach, 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 a beach and are

considered to be an improvement project that includes a street,

road, or beach 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.

888, Sec. 1, eff. June 19, 2009.

Sec. 3869.005. DISTRICT TERRITORY. (a) The district is

composed of the territory described by Section 2 of the Act

creating this chapter, as that territory may have been modified

under Section 3869.107 or other law.

(b) A mistake in the field notes of the district contained in

Section 2 of the Act creating 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.

888, Sec. 1, eff. June 19, 2009.

Sec. 3869.006. ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES. (a)

All or any part of the area of the district is eligible to be

included in:

(1) a tax increment reinvestment zone created by the city under

Chapter 311, Tax Code;

(2) a tax abatement reinvestment zone created by the city under

Chapter 312, Tax Code; or

(3) an enterprise zone created by the city under Chapter 2303,

Government Code.

(b) If the city creates a tax increment reinvestment zone

described by Subsection (a), the district may accept and use

money deposited in the tax increment fund, in accordance with a

contract between the city and the district, for a purpose Section

380.002(b), Local Government Code, authorizes for a corporation.

The district may pledge the money granted as security for bonds

issued by the district for an improvement project.

Added by Acts 2009, 81st Leg., R.S., Ch.

888, Sec. 1, eff. June 19, 2009.

Sec. 3869.007. CONSTRUCTION OF "AD VALOREM TAX." In this

chapter, a reference in law to an ad valorem tax refers to an ad

valorem tax imposed by the district and not an ad valorem tax

imposed by the city.

Added by Acts 2009, 81st Leg., R.S., Ch.

888, Sec. 1, eff. June 19, 2009.

Sec. 3869.008. LIABILITY RESULTING FROM DISTRICT ACTION. An

action of the district or the board does not create a liability

against the city or any other political subdivision.

Added by Acts 2009, 81st Leg., R.S., Ch.

888, Sec. 1, eff. June 19, 2009.

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 3869.051. GOVERNING BODY; TERMS. The district is governed

by a board of five voting directors appointed under Section

3869.052 and three nonvoting directors serving ex officio as

provided by Section 3869.054. The five voting directors serve

staggered terms of four years.

Added by Acts 2009, 81st Leg., R.S., Ch.

888, Sec. 1, eff. June 19, 2009.

Sec. 3869.052. APPOINTED DIRECTORS. The governing body of the

city shall appoint the voting directors and shall appoint a

director to fill each vacancy that occurs on the board, with the

appointee to serve for the unexpired term of the former director.

Added by Acts 2009, 81st Leg., R.S., Ch.

888, Sec. 1, eff. June 19, 2009.

Sec. 3869.053. ELIGIBILITY OF APPOINTED DIRECTORS. (a) To be

qualified to serve as a voting director appointed under Section

3869.052, a person must be at least 18 years old and:

(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; or

(5) an agent, employee, or tenant of a person described by

Subdivision (2), (3), or (4).

(b) Section 49.052, Water Code, does not apply to the district.

Added by Acts 2009, 81st Leg., R.S., Ch.

888, Sec. 1, eff. June 19, 2009.

Sec. 3869.054. EX OFFICIO DIRECTORS. (a) The following persons

serve ex officio as nonvoting directors:

(1) an assistant city manager of the city appointed by the city

manager of the city;

(2) the chief financial officer of the city; and

(3) the economic development director of the city.

(b) If an office described in Subsection (a) is renamed,

changed, or abolished, the governing body of the city may appoint

another officer or employee of the city who performs duties

comparable to those performed by the officer described by

Subsection (a).

Added by Acts 2009, 81st Leg., R.S., Ch.

888, Sec. 1, eff. June 19, 2009.

Sec. 3869.055. FILING OATH OR AFFIRMATION. An initial and an

appointed 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.

888, Sec. 1, eff. June 19, 2009.

Sec. 3869.056. OFFICERS. The board shall elect from among the

initial and appointed directors a presiding officer, an assistant

presiding officer, and a secretary.

Added by Acts 2009, 81st Leg., R.S., Ch.

888, Sec. 1, eff. June 19, 2009.

Sec. 3869.057. COMPENSATION; EXPENSES; LIABILITY INSURANCE FOR

DIRECTORS. (a) The district may compensate each initial and

each appointed voting director in an amount not to exceed $50 for

each board meeting. The total amount of compensation per

appointed director per year may not exceed $2,000. The district

may not compensate a director serving ex officio.

(b) An initial or appointed voting director is entitled to

reimbursement for necessary and reasonable expenses incurred in

carrying out the duties and responsibilities of a director. A

director serving ex officio is not entitled to reimbursement.

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 its behalf.

Added by Acts 2009, 81st Leg., R.S., Ch.

888, Sec. 1, eff. June 19, 2009.

Sec. 3869.058. CONFLICTS OF INTEREST. (a) An initial or

appointed director may participate in a board discussion or vote

only if the director complies with Subsection (b).

(b) 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.

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.

(d) Section 171.004, Local Government Code, does not apply to

the district.

Added by Acts 2009, 81st Leg., R.S., Ch.

888, Sec. 1, eff. June 19, 2009.

For expiration of this section, see Subsection (d).

Sec. 3869.059. INITIAL DIRECTORS. (a) The initial board

consists of the three ex officio directors described by Section

3869.054 and the following five voting directors:

Place No. Name of Initial Director

Place 1 Stacy Costello

Place 2 Toni Duclottni

Place 3 Mark Patterson

Place 4 Kevin Mutschler

Place 5 Ronald Batts

(b) The terms of the initial directors of Places 1 and 2 expire

on July 1, 2011, and the terms of the initial directors of Places

3, 4, and 5 expire on July 1, 2013.

terms by the governing body of the city under Section 3869.052.

(d) This section expires September 1, 2013.

Added by Acts 2009, 81st Leg., R.S., Ch.

888, Sec. 1, eff. June 19, 2009.

SUBCHAPTER C. POWERS AND DUTIES

Sec. 3869.101. GENERAL POWERS AND DUTIES. The district has the

duties imposed and the powers granted by this chapter and the

powers provided by:

(1) 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) the general laws relating to road districts and road utility

districts created under Section 52, Article III, Texas

Constitution;

(3) Subchapter A, Chapter 372, Local Government Code, to a

municipality or county;

(4) Chapter 375, Local Government Code;

(5) Chapter 505, Local Government Code, to a corporation created

under that chapter; and

(6) Chapter 1371, Government Code, to an issuer, as defined by

that chapter.

Added by Acts 2009, 81st Leg., R.S., Ch.

888, Sec. 1, eff. June 19, 2009.

Sec. 3869.102. IMPROVEMENT PROJECTS. (a) To the extent

authorized by a project development agreement entered into under

Section 3869.160, the district may provide, or 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;

(D) a street or sidewalk;

(E) a hiking and cycling path or trail;

(F) a pedestrian walkway, skywalk, crosswalk, or tunnel;

(G) a beach, 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 an off-street parking facility or

heliport;

(6) the planning, design, construction, improvement,

maintenance, and operation of a water or sewer facility;

(7) 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;

(8) 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;

(D) an exhibit, display, attraction, special event, or seasonal

or cultural celebration or holiday;

(9) the removal, razing, demolition, or clearing of land or

improvements in connection with an improvement project;

(10) the acquisition and improvement of land or other property

for the mitigation of the environmental effects of an improvement

project;

(11) the acquisition of property or an interest in property in

connection with an authorized improvement project, including any

project authorized by Subchapter A, Chapter 372, Local Government

Code;

(12) 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;

(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

(13) any similar public improvement, facility, or service.

(b) The district may not undertake a project under this section

unless:

(1) the board determines the project to be necessary to

accomplish a public purpose of the district; and

(2) the project is authorized by a project development agreement

entered into under Section 3869.160.

and ordinances of the city.

(d) The district may not provide, conduct, or authorize any

improvement project on streets, highways, rights-of-way, or

easements of the city without the consent of the governing body

of the city.

(e) The district shall transfer to the city title to all or any

portion of an improvement project as provided by a project

development agreement entered into under Section 3869.160.

(f) If authorized by the city, the district may own, encumber,

maintain, and operate an improvement project, subject to the

right of the city to order a conveyance of the project to the

city on a date determined by the city.

(g) The district shall immediately comply with an ordinance,

order, or resolution the city adopts to require the district to

transfer title to an improvement project to the city.

(h) For the purposes of this section, planning, design,

construction, improvement, and maintenance of a body of water

includes work done for drainage, reclamation, or recreation.

Added by Acts 2009, 81st Leg., R.S., Ch.

888, Sec. 1, eff. June 19, 2009.

Sec. 3869.103. GENERAL POWERS REGARDING CONTRACTS. (a) The

district may:

(1) contract with any person to accomplish any district purpose

included in a project development agreement entered into under

Section 3869.160, 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 person 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 the city, Nueces County, or any other person.

district to carry out the purposes of this chapter without

further statutory or other authorization.

Added by Acts 2009, 81st Leg., R.S., Ch.

888, Sec. 1, eff. June 19, 2009.

Sec. 3869.104. 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,

including the regulation or prohibition of automobiles and other

motor vehicles from using, entering, or traveling in certain

limited access areas in the district, except for safety and

emergency purposes.

(b) The district may enforce its rules by injunctive relief.

ordinance, or regulation of the city, the rule, order, ordinance,

or regulation controls.

Added by Acts 2009, 81st Leg., R.S., Ch.

888, Sec. 1, eff. June 19, 2009.

Sec. 3869.105. NAME CHANGE. The board by resolution may change

the district's name. The board shall give written notice of the

change to the city.

Added by Acts 2009, 81st Leg., R.S., Ch.

888, Sec. 1, eff. June 19, 2009.

Sec. 3869.106. USE OF ROADWAY, PARK, OR OTHER PUBLIC AREA OF

DISTRICT. (a) The board by rule may regulate the private use of

a public roadway, open space, park, sidewalk, or similar public

area in the district. To the extent the district rules conflict

with a rule, order, ordinance, or regulation of the city, the

rule, order, ordinance, or regulation of the city controls. A

rule may provide for the safe and orderly use of public roadways,

open spaces, parks, sidewalks, and similar public areas or

facilities.

(b) In addition to any permit required by the city, 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, beach, or similar

public area or facility owned by the district. The board may

charge a fee for the permit application or for public safety or

security services for those facilities in an amount the board

considers necessary.

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.

888, Sec. 1, eff. June 19, 2009.

Sec. 3869.107. ADDING OR REMOVING TERRITORY. As provided by

Subchapter J, Chapter 49, Water Code, the board may add territory

to the district, subject to Section 54.016, Water Code, or remove

territory from the district, except that:

(1) the addition or removal of the territory must be:

(A) included in an amended project development agreement entered

into under Section 3869.160;

(B) approved by the governing body of the city; and

removed;

(2) a reference to a tax in Subchapter J, Chapter 49, or Section

54.016, Water Code, means an ad valorem tax; and

(3) 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.

888, Sec. 1, eff. June 19, 2009.

Sec. 3869.108. ECONOMIC DEVELOPMENT. (a) The district may

create an economic development program authorized by Section

52-a, Article III, Texas Constitution, and may impose an ad

valorem tax in support of the program if the tax is approved by

the district's voters.

(b) The district may exercise 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 a municipality.

Added by Acts 2009, 81st Leg., R.S., Ch.

888, Sec. 1, eff. June 19, 2009.

Sec. 3869.109. 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.

888, Sec. 1, eff. June 19, 2009.

Sec. 3869.110. NO EMINENT DOMAIN POWER. The district may not

exercise the power of eminent domain.

Added by Acts 2009, 81st Leg., R.S., Ch.

888, Sec. 1, eff. June 19, 2009.

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 3869.151. GENERAL POWERS REGARDING FINANCIAL MATTERS.

Except as provided by Section 3869.160, and subject to a project

development agreement entered into under Section 3869.160, 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 a type authorized

by Section 52, Article III, or Section 59, Article XVI, Texas

Constitution, or to secure payment of bonds issued to pay for

those projects;

(2) impose an assessment on property in the district to pay 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, other temporary or permanent obligation, reimbursement, or

other contract with any person; or

(4) provide or secure the payment or repayment of 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 authorized by the city, including revenues from a tax

increment reinvestment zone created by the city;

(5) 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;

(6) establish user charges for the use of nonpotable water for

irrigation purposes, subject to the approval of the governing

body of the city;

(7) undertake separately or jointly with other persons,

including the city or Nueces 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

(8) 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.

888, Sec. 1, eff. June 19, 2009.

Sec. 3869.152. BORROWING MONEY. The district may borrow money

for a district purpose included in a project development

agreement entered into under Section 3869.160 by issuing or

executing bonds, notes, credit agreements, or other obligations

of any kind found by the board to be necessary or appropriate for

the 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.

888, Sec. 1, eff. June 19, 2009.

Sec. 3869.153. IMPACT FEES AND ASSESSMENTS; EXEMPTION. (a) The

district may impose an impact fee or assessment included in a

project development agreement entered into under Section 3869.160

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 by Subchapter F,

Chapter 375, Local Government Code, for a municipality, county,

or 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.

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 are:

(1) a first and prior lien against the property assessed; and

(2) 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. That 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 payment under the 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.

888, Sec. 1, eff. June 19, 2009.

Sec. 3869.154. CERTAIN 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.

888, Sec. 1, eff. June 19, 2009.

Sec. 3869.155. MAINTENANCE AND OPERATION TAX; ELECTION. (a) To

the extent authorized by a project development agreement entered

into under Section 3869.160, 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 maintenance and operation 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.

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.

888, Sec. 1, eff. June 19, 2009.

Sec. 3869.156. 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.

888, Sec. 1, eff. June 19, 2009.

Sec. 3869.157. BONDS AND OTHER OBLIGATIONS; MUNICIPAL APPROVAL.

(a) Except as provided by Sections 3869.159 and 3869.160, the

district may issue by competitive bid or negotiated sale bonds,

notes, or other obligations payable wholly or partly from ad

valorem taxes, or by assessments in the manner provided by

Subchapter A, Chapter 372, or by 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.

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, to the extent authorized by a project development

agreement entered into under Section 3869.160.

Added by Acts 2009, 81st Leg., R.S., Ch.

888, Sec. 1, eff. June 19, 2009.

Sec. 3869.158. BOND MATURITY. Bonds may mature not more than 40

years from their date of issue.

Added by Acts 2009, 81st Leg., R.S., Ch.

888, Sec. 1, eff. June 19, 2009.

Sec. 3869.159. 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

(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.

in the manner provided by Chapter 54, Water Code.

Added by Acts 2009, 81st Leg., R.S., Ch.

888, Sec. 1, eff. June 19, 2009.

Sec. 3869.160. PROJECT DEVELOPMENT AGREEMENT REQUIRED TO

UNDERTAKE PROJECTS, IMPOSE TAXES, OR BORROW MONEY, INCLUDING

BONDS. (a) Before the district may undertake projects, issue

bonds, impose taxes, or borrow money, the district and the city

must negotiate and execute a mutually approved and accepted

project development agreement regarding the development plans and

rules for:

(1) the development and operation of the district; and

(2) the financing of improvement projects.

(b) The agreement must:

(1) describe each project the district intends to undertake;

(2) include a financing plan specifying how each project will be

financed; and

(3) provide a procedure and rules for amending the agreement.

Added by Acts 2009, 81st Leg., R.S., Ch.

888, Sec. 1, eff. June 19, 2009.

SUBCHAPTER E. DISSOLUTION

Sec. 3869.201. DISSOLUTION BY ORDINANCE. (a) The city by

ordinance may dissolve the district on its own volition or at the

request of the board.

(b) The city may not dissolve a district until that district's

outstanding indebtedness or contractual obligations that are

payable from ad valorem taxes have been repaid or discharged.

under Section 3869.160 has been executed and the district's

performance under the agreement has been fulfilled, including any

right or obligation the district has to reimburse a developer or

owner for the costs of improvement projects.

Added by Acts 2009, 81st Leg., R.S., Ch.

888, Sec. 1, eff. June 19, 2009.

Sec. 3869.202. COLLECTION OF ASSESSMENTS AND OTHER REVENUE. (a)

If the dissolved district has bonds or other obligations

outstanding secured by and payable from assessments or other

revenue, other than ad valorem taxes, the city shall succeed to

the rights and obligations of the district regarding enforcement

and collection of the assessments or other revenue.

(b) The city has and shall exercise all district powers to

enforce and collect the assessments or other revenue to pay:

(1) the bonds or other obligations when due and payable

according to their terms; or

(2) special revenue or assessment bonds or other obligations

issued by the city to refund the outstanding bonds or

obligations.

Added by Acts 2009, 81st Leg., R.S., Ch.

888, Sec. 1, eff. June 19, 2009.

Sec. 3869.203. ASSUMPTION OF ASSETS AND LIABILITIES. After the

city dissolves the district, the city assumes, subject to the

appropriation and availability of funds, the obligations of the

district, including any bonds or other revenue.

Added by Acts 2009, 81st Leg., R.S., Ch.

888, Sec. 1, eff. June 19, 2009.

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

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