CHAPTER 3874. CYPRESS WATERS MUNICIPAL MANAGEMENT DISTRICT

State Codes and Statutes

Statutes > Texas > Special-district-local-laws-code > Title-4-development-and-improvement > Chapter-3874-cypress-waters-municipal-management-district

SPECIAL DISTRICT LOCAL LAWS CODE

TITLE 4. DEVELOPMENT AND IMPROVEMENT

SUBTITLE C. DEVELOPMENT, IMPROVEMENT, AND MANAGEMENT

CHAPTER 3874. CYPRESS WATERS MUNICIPAL MANAGEMENT DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 3874.001. DEFINITIONS. In this chapter:

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

(2) "City" means the City of Dallas.

(3) "District" means the Cypress Waters Municipal Management

District.

(4) "Improvement project" means a project authorized by Section

3874.102:

(A) inside the boundaries of the district; and

(B) in areas outside but adjacent to the boundaries of the

district if the project is for the purpose of extending public

infrastructure improvements beyond the district's boundaries to a

logical terminus.

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

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

Sec. 3874.002. CREATION AND 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.

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

Sec. 3874.003. 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, encourage, and maintain employment, commerce,

transportation, housing, tourism, recreation, the arts,

entertainment, economic development, safety, and the public

welfare in the district.

city services provided in the district.

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

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

Sec. 3874.004. 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 the state;

(2) eliminating unemployment and underemployment;

(3) developing or expanding transportation and commerce; and

(4) providing quality residential housing.

(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; and

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

public by providing pedestrian ways and by landscaping and

developing certain areas in the district, which are necessary for

the restoration, preservation, and enhancement of scenic beauty.

(e) Pedestrian ways along or across a street, 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 are considered to be an

improvement project that includes a street or road 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.

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

Sec. 3874.005. DISTRICT TERRITORY. (a) The district is

composed of the territory described by Section 2 of the Act

enacting this chapter, as that territory may have been modified

under:

(1) Section 3874.106; or

(2) other law.

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

Section 2 of the Act enacting 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.

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

Sec. 3874.006. 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 city and the board of directors

of the zone, by contract with the district, may grant money

deposited in the tax increment fund to the district to be used by

the district for the purposes permitted for money granted to a

corporation under Section 380.002(b), Local Government Code,

including the right to pledge the money as security for any bonds

issued by the district for an improvement project. A project may

not receive public funds under Section 380.002(b), Local

Government Code, unless the project has been approved by the

governing body of the city by the adoption of a resolution.

district is not subject to the limitations provided by Section

311.006(b), Tax Code.

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

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

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 3874.051. GOVERNING BODY; TERMS. (a) The district is

governed by a board of nine directors composed of:

(1) six directors appointed by the governing body of the city;

(2) one assistant city manager of the city, appointed by the

city manager;

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

(4) the economic director of the city.

(b) Directors serve staggered terms of four years, with four or

five directors' terms expiring July 1 of each odd-numbered year.

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

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

Sec. 3874.052. APPOINTMENT OF DIRECTORS: BOARD MEETINGS. (a)

Directors appointed by the governing body of the city must meet

at least one of the qualifications prescribed by Section

3874.053.

(b) A person may not be appointed to the board by the governing

body of the city if the appointment of that person would result

in fewer than three of the directors being residents of the city

and meeting the qualifications prescribed by Section

3874.053(a)(2), (3), (4), (5), or (6).

board with or without cause at any time by a majority vote.

(d) The board shall hold meetings at a place accessible to the

public. The board shall file a copy of the notice of a meeting

with the city's secretary. The city's secretary shall post the

notice at Dallas City Hall.

(e) The board may not create an executive committee to exercise

the powers of the board.

(f) If an office described in Section 3874.051(a) is renamed,

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

another city officer or employee who performs duties comparable

to those performed by the officer described by that subsection.

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

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

Sec. 3874.053. QUALIFICATIONS OF DIRECTORS APPOINTED BY CITY.

(a) To be qualified to serve as a director appointed by the

governing body of the city, a person must be at least 18 years

old and must be:

(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 or a partnership or membership interest,

whether beneficial or otherwise, of a corporate partnership,

limited liability company, or other entity owner of a direct or

indirect interest in property in the district;

(4) an owner of a beneficial interest in a trust, or a trustee

in a trust, that directly or indirectly owns property in the

district;

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

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

(6) an initial director.

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

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

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

Sec. 3874.054. VACANCY. The governing body of the city shall

fill a vacancy on the board by appointing a person who meets the

qualifications prescribed by Section 3874.051(a) or 3874.053 to

serve for the remainder of the unexpired term.

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

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

Sec. 3874.055. DIRECTOR'S OATH OR AFFIRMATION. A 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. A copy of each director's oath or affirmation

of office shall be filed with the city's secretary.

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

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

Sec. 3874.056. OFFICERS. The board shall elect from among the

directors a chair, a vice chair, and a secretary. The offices of

chair and secretary may not be held by the same person

concurrently.

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

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

Sec. 3874.057. COMPENSATION; EXPENSES; LIABILITY INSURANCE FOR

DIRECTORS. (a) The district may compensate each director in an

amount not to exceed $50 for each board meeting. The total

amount of compensation for each director in one year may not

exceed $2,000.

(b) Directors are entitled to reimbursement for necessary and

reasonable expenses incurred in carrying out the duties and

responsibilities of the board.

liability insurance coverage from a commercial insurance company

or other source that protects and insures a director against

personal liability and from any and all claims relating to:

(1) actions taken by the director in the director's capacity as

a member of the board;

(2) actions and activities taken by the district; or

(3) the actions of others acting on behalf of the district.

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

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

Sec. 3874.058. CONFLICTS OF INTEREST. (a) A director,

including a director who qualifies under Section 3874.053(a)(2),

(3), (4), or (5), may participate in all board votes and

decisions if the director complies with the requirements of

Subsection (b).

(b) A director shall comply with Section 171.004, Local

Government Code, including the disclosure and abstention

requirements of that section. A director must file a copy of the

director's disclosure affidavit required by Section 171.004,

Local Government Code, with the city's secretary before

participating in a board discussion or vote.

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

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

SUBCHAPTER C. POWERS AND DUTIES

Sec. 3874.101. GENERAL POWERS AND DUTIES. The district has the

powers and duties provided by this chapter and 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, except

that the district's bonds and other securities are not subject to

the jurisdiction or supervision of the Texas Commission on

Environmental Quality under Chapter 49, Water Code, or other law;

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

districts created under Section 52(b), Article III, Texas

Constitution, including Chapter 441, Transportation Code, except

that the district may exercise any power granted by this chapter

without regard to any provision or requirement of or procedure

prescribed by Chapter 441, Transportation Code;

(3) Subchapter A, Chapter 372, Local Government Code, in the

same manner as a municipality or a county;

(4) Chapter 1371, Government Code;

(5) Chapter 375, Local Government Code; and

(6) Chapter 311, Tax Code.

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

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

Sec. 3874.102. IMPROVEMENT PROJECTS. (a) The district may

provide, or it may enter into contracts with a governmental or

private entity to provide, the following types of improvement

projects located in the district 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, street, or turnpike,

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 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:

(A) a water or sewer facility; or

(B) an off-street parking facility or heliport;

(6) 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;

(7) 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;

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

improvements in connection with improvement projects;

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

for the mitigation of the environmental effects of an improvement

project if those costs are incurred in accordance with a

development agreement and reimbursement of those costs is

conditioned on the completion of substantial vertical

development, or the costs are related to a transit or mobility

project;

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

connection with one or more authorized improvement projects,

including a project authorized by Subchapter A, Chapter 372,

Local Government Code;

(11) 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 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) elimination of traffic congestion, including by use of rail

services; and

(J) recreational, educational, or cultural improvements,

enhancements, and services; or

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

(b) The district may not undertake an improvement project under

this section unless the board determines the project to be

necessary to accomplish a public purpose of the district and has

received the approval of the city under Section 3874.160.

and ordinances of the city.

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

improvement project on the city streets, highways, rights-of-way,

or easements without the consent of the governing body of the

city.

(e) Subject to an agreement between the district and the city,

the city may:

(1) by ordinance, order, or resolution require that title to all

or any portion of an improvement project vest in the city; or

(2) unless prohibited by Subsection (h), by ordinance, order,

resolution, or other directive, authorize the district to own,

encumber, maintain, and operate an improvement project, subject

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

project to the city on a date determined by the city.

(f) The district shall immediately comply with any city

ordinance, order, or resolution adopted under Subsection (e).

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

construction, improvement, and maintenance of a lake includes

work done for drainage, reclamation, or recreation.

(h) Waterworks and sanitary sewer improvements may be undertaken

by the district inside or outside the boundaries of the district,

subject to the following conditions:

(1) the city shall request that waterworks or sanitary sewer

improvements be funded by the district;

(2) the city shall construct, own, operate, and maintain the

improvements; and

(3) the district shall comply with Sections 3874.152, 3874.157,

and 3874.160 as a condition for the district to fund the

improvements.

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

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

Sec. 3874.103. GENERAL POWERS REGARDING CONTRACTS. (a) The

district may:

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

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 any 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, Dallas County, or any other person.

purposes of this chapter without further statutory or other

authorization.

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

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

Sec. 3874.104. 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.

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

order, or regulation, the city rule, order, or regulation

controls.

(d) The district shall provide the city with written notice not

later than the 30th day before the date of a meeting at which the

board will adopt rules. The district may not adopt a rule

affecting the use of a municipally owned asset, such as a public

park, street, sidewalk, transit facility, or public right-of-way,

unless the governing body of the city has approved the rule by

ordinance, order, or resolution.

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

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

Sec. 3874.105. 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.

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

Sec. 3874.106. ADDING OR REMOVING TERRITORY. The board may add

or remove territory under Subchapter J, Chapter 49, Water Code,

and Section 54.016, Water Code, except that:

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

by:

(A) the governing body of the city by ordinance, order, or

resolution; and

(B) the owners of the territory being added or removed;

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

Code, 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.

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

Sec. 3874.107. ECONOMIC DEVELOPMENT. (a) The district may

create economic development and other programs under Section

52-a, Article III, Texas Constitution, and may impose and collect

ad valorem taxes for those purposes. The district has the

economic development powers that Chapter 380, Local Government

Code, provides to a municipality with a population of more than

100,000. Each economic development program and each project that

will receive public funds under an economic development program

must be approved by the governing body of the city by ordinance,

order, or resolution.

(b) The district shall provide the city written notice not later

than the 30th day before the date of a meeting at which the board

will adopt terms of an economic development program. The

district may not adopt an economic development program or

improvement project to be funded under an economic development

program unless the governing body of the city has approved the

program or improvement project by ordinance, order, or

resolution.

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

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

Sec. 3874.108. NO EMINENT DOMAIN POWER. The district may not

exercise the power of eminent domain.

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

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

Sec. 3874.109. 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. An employee may not

receive annual compensation of more than $150,000 from public

funds of the district.

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

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

Sec. 3874.110. NOTICE TO PROPERTY OWNERS. (a) The board shall

annually provide owners of real property in the district written

notice that specifies the tax of the district for the district's

next fiscal year in sufficient clarity to describe the tax rate

for the operation and maintenance of the district and the tax

rate for the payment of debt service of obligations issued or

incurred by the district. The written notice must be sent by

first class United States mail, postage prepaid, to the current

address of the property owner as reflected on the tax rolls of

the appraisal district.

(b) The notice must clearly state that the tax rates on real

property imposed in the district are in addition to the ad

valorem taxes imposed by other taxing units that tax real

property in the boundaries of the district.

provide notification to a prospective purchaser of property in

the district of the rates of tax and assessments that have been

approved and are imposed by the district.

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

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

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 3874.151. GENERAL POWERS REGARDING FINANCIAL MATTERS. (a)

Except as provided by Section 3874.160, the district may:

(1) impose an ad valorem tax on all taxable property in the

district to pay for any improvement projects of the types

authorized by Section 52(b), Article III, and Section 59, Article

XVI, Texas Constitution, and to secure the payment of bonds

issued for those purposes;

(2) impose an assessment on property in the district to pay the

cost of any authorized improvement project and the cost of the

maintenance of the project 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, or other temporary or permanent obligation or reimbursement

or other contract with any person, 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, assessment, user fee,

concession fee, or rental charge; and

(B) any other revenue or resources of the district, or other

revenue authorized by the city, including revenue from a tax

increment reinvestment zone created by the city under applicable

law;

(4) 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;

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

irrigation purposes, subject to the approval of the governing

body of the city;

(6) undertake separately or jointly with other persons,

including the city or Dallas County, all or part of the cost of

any 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

(7) enter into a tax abatement agreement in accordance with the

general laws of this state authorizing and applicable to tax

abatement agreements by municipalities.

(b) The district may not impose an ad valorem tax to pay for an

improvement project under this chapter unless the imposition is

approved by the voters of the district voting at an election held

for that purpose. The board may call an election to approve the

imposition of an ad valorem tax to pay for an improvement project

under this chapter only if the board receives a petition

requesting the election signed by:

(A) more than 65 percent of the record owners of real property

in the district subject to taxation; or

(B) owners representing more than 65 percent of the appraised

value of real property in the district subject to taxation, as

determined by the tax rolls of the appraisal district.

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

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

Sec. 3874.152. BORROWING MONEY. (a) The district may borrow

money for a district purpose by issuing or executing bonds,

notes, credit agreements, or other obligations of any kind found

by the board to be necessary or appropriate for any district

purpose. The bond, note, credit agreement, or other obligation

may be secured by and payable from ad valorem taxes, assessments,

a combination of ad valorem taxes and assessments, or other

district revenue. The governing body of the city must approve

the issuance of bonds, notes, credit agreements, or other

obligations of the district, in general terms before the

preparation of preliminary official statements or loan closing

documents, as provided by the development and operating agreement

approved by the city in accordance with Section 3874.160, or by

separate action.

(b) The governing body of the city must approve the final terms

of the bond issuance, note, or credit facility, including the

principal amount, note amount, interest rate or rates, redemption

provisions, and other terms and conditions relating to the

issuance.

with the city's secretary.

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

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

Sec. 3874.153. ASSESSMENTS; EXEMPTION. (a) The district may

impose an assessment on property in the district, including an

assessment on residential or commercial property, only in the

manner provided by Subchapter A, Chapter 372, Local Government

Code, or Subchapter F, Chapter 375, Local Government Code, for a

municipality, county, or public improvement district, according

to the benefit received by the property.

(b) An assessment on property must be for the limited purpose of

providing capital funding for:

(1) public water and wastewater facilities;

(2) drainage and storm-water facilities;

(3) streets and alleys; and

(4) any authorized project under Chapter 372, Local Government

Code.

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:

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

and

(2) are superior to any other lien or claim other than a lien or

claim for county, school district, or municipal ad valorem taxes.

(d) A lien of an assessment against property under this chapter

runs with the land, and the portion of an assessment payment

obligation that has not yet come due is not eliminated by the

foreclosure of an ad valorem tax lien. 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

applicable 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 shall file notice of any tax or assessment

imposed by the district with the county clerk of Dallas County

and post the notice on the district's Internet website.

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

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

Sec. 3874.154. RESIDENTIAL PROPERTY EXEMPT. Section 375.161,

Local Government Code, does not apply to the district.

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

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

Sec. 3874.155. MAINTENANCE AND OPERATION TAX; ELECTION. (a)

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, including expenses of

the city payable under the terms of the project development

agreement described by Section 3874.160.

(b) The district may not impose a maintenance and operation tax

for improvement projects under this chapter unless the imposition

of the tax is approved by the voters of the district voting at an

election held for that purpose. An election may be called only

on receipt of a petition as provided by Section 3874.151(b).

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.

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

Sec. 3874.156. 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.

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

Sec. 3874.157. BONDS AND OTHER OBLIGATIONS. (a) Subject to the

requirements of Sections 3874.159 and 3874.160, the district may

issue by public or private 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,

Local Government Code, or 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, Local Government Code, 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 project

revenue or from any other source.

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

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

Sec. 3874.158. BOND MATURITY. Bonds may mature not more than 40

years from their date of issue.

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

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

Sec. 3874.159. TAXES FOR BONDS AND OTHER OBLIGATIONS. 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 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; and

(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.

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

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

Sec. 3874.160. DEVELOPMENT AND OPERATING AGREEMENT REQUIRED.

(a) After the district's board is organized, but before the

district may undertake any improvement project, issue bonds,

impose taxes, levy assessments or fees, or borrow money, the

district and the city must negotiate and execute a mutually

approved and accepted development and operating agreement,

including any limitations imposed by the city, regarding the

plans and rules for:

(1) the exercise of the powers granted to the district under

this chapter, including the organization, development, and

operation of the district;

(2) the selection and description of improvement projects that

may be undertaken and financed by the district and the ownership,

operation, and maintenance of those projects;

(3) the terms, conditions, methods, means, and amounts of

financing authorized by this chapter that the district may use in

providing improvement projects; and

(4) the amounts, methods, and times of reimbursement to the city

for costs and expenses, if any, incurred by the city with respect

to the development and operation of the district and the

financing of improvement projects by the district.

(b) An agreement authorized by this section is not effective

until its terms and execution are approved by the board and the

governing body of the city by resolution.

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

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

SUBCHAPTER E. DISSOLUTION

Sec. 3874.251. DISSOLUTION BY CITY ORDINANCE. (a) The city by

ordinance may dissolve the district.

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

outstanding indebtedness or contractual obligations that are

payable from ad valorem taxes have been repaid or discharged, or

the city has affirmatively assumed the obligation to pay the

outstanding indebtedness from the city's lawfully available

revenue.

under Section 3874.160 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.

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

Sec. 3874.252. 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 shall have and 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.

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

Sec. 3874.253. CONCURRENCE ON ADDITIONAL POWERS. If the

legislature grants the district a power that is in addition to

the powers approved by the initial resolution of the governing

body of the city consenting to the creation of the district, the

district may not exercise that power unless the governing body of

the city consents to that change by resolution.

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

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

Sec. 3874.254. ASSUMPTION OF ASSETS AND LIABILITIES. (a) 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 indebtedness payable from

assessments or other district revenue.

(b) If the city dissolves the district, the board shall transfer

ownership of all district property to the city.

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

586, 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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