CHAPTER 3886. PROSPER MANAGEMENT DISTRICT NO. 1

State Codes and Statutes

Statutes > Texas > Special-district-local-laws-code > Title-4-development-and-improvement > Chapter-3886-prosper-management-district-no-1

SPECIAL DISTRICT LOCAL LAWS CODE

TITLE 4. DEVELOPMENT AND IMPROVEMENT

SUBTITLE C. DEVELOPMENT, IMPROVEMENT, AND MANAGEMENT

CHAPTER 3886. PROSPER MANAGEMENT DISTRICT NO. 1

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 3886.001. DEFINITIONS. In this chapter:

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

(2) "Director" means a board member.

(3) "District" means the Prosper Management District No. 1.

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

authorized by Section 3886.103, inside or outside the district.

(5) "Town" means the Town of Prosper, Texas.

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

1077, Sec. 1, eff. September 1, 2009.

Sec. 3886.002. NATURE OF DISTRICT. The district is a special

district created under Sections 52 and 52-a, Article III, and

Section 59, Article XVI, Texas Constitution.

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

1077, Sec. 1, eff. September 1, 2009.

Sec. 3886.003. 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 Sections 52 and 52-a, Article

III, and Section 59, Article XVI, Texas Constitution, and other

powers granted under this chapter.

municipal management district as provided by general law and

Sections 52 and 52-a, Article III, and Section 59, Article XVI,

Texas Constitution.

(d) The creation of the district is in the public interest and

is essential to:

(1) further the public purposes of developing and diversifying

the economy of the state;

(2) eliminate unemployment and underemployment; and

(3) develop or expand transportation and commerce.

(e) The district will:

(1) promote the health, safety, and general welfare of

residents, employers, employees, potential 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 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.

(f) Pedestrian ways along or across a street, whether at grade

or above or below the surface, and street lighting, street

landscaping, parking, and street art objects are parts of and

necessary components of a street and are considered to be a

street or road improvement.

(g) 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.

(h) This chapter and the creation of the district may not be

interpreted to relieve the town, Collin County, or Denton County

from providing the level of services provided as of the effective

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

district. The district is created to supplement and not to

supplant the town and county services provided in the district.

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

1077, Sec. 1, eff. September 1, 2009.

Sec. 3886.004. 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

(4) legality or operation.

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

1077, Sec. 1, eff. September 1, 2009.

Sec. 3886.005. 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 town under

Chapter 311, Tax Code;

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

Chapter 312, Tax Code; or

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

Government Code.

(b) If the town creates a tax increment reinvestment zone, tax

abatement reinvestment zone, or enterprise zone under Subsection

(a), the town 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

described by Section 380.002(b), Local Government Code, for money

granted to a corporation under that section, including the right

to pledge the money as security for any bonds issued by the

district for an improvement project.

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

1077, Sec. 1, eff. September 1, 2009.

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 3886.051. GOVERNING BODY; TERMS. (a) The district is

governed by a board of five directors.

(b) Directors serve staggered four-year terms, with the terms of

two or three directors expiring on June 1 of each odd-numbered

year.

appoint one member of the board.

(d) The board shall recommend to the governing body of the town

persons to serve in the other four positions. The board shall

recommend to the governing body of the town the appropriate

number of successor directors before the terms of directors

appointed under this subsection expire. After reviewing the

recommendations, the governing body shall approve or disapprove

the directors recommended by the board. If the governing body is

not satisfied with the recommendations submitted by the board,

the board, on the request of the governing body, shall submit

additional recommendations.

(e) Board members may serve successive terms.

(f) If any provision of Subsection (c), (d), or (e) is found to

be invalid, the Texas Commission on Environmental Quality shall

appoint the board from recommendations submitted by the preceding

board.

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

1077, Sec. 1, eff. September 1, 2009.

Sec. 3886.052. ELIGIBILITY. Except for a director appointed as

provided by Section 3886.051(c) or 3886.056(a), to be eligible to

serve as a director a person must own land in the district.

Section 49.052, Water Code, applies to the district.

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

1077, Sec. 1, eff. September 1, 2009.

Sec. 3886.053. VACANCY. (a) The remaining directors shall fill

a vacancy on the board by appointing a person who is eligible

under Section 3886.052.

(b) If there are fewer than three directors, the governing body

of the town shall appoint the necessary number of directors to

fill all board vacancies.

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

1077, Sec. 1, eff. September 1, 2009.

Sec. 3886.054. DIRECTOR'S OATH AND AFFIRMATION. A director's

oath and affirmation of office shall be filed with the district,

and the district shall retain the oath and affirmation in the

district records.

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

1077, Sec. 1, eff. September 1, 2009.

Sec. 3886.055. OFFICERS. The board shall elect from among the

directors a chair, a vice chair, and a secretary.

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

1077, Sec. 1, eff. September 1, 2009.

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

Sec. 3886.056. INITIAL DIRECTORS. (a) The governing body of

the town shall appoint one initial director not later than the

90th day after the effective date of the Act creating the

district.

(b) On or after the effective date of the Act creating the

district, the owner or owners of a majority of the assessed value

of the real property in the district may submit a petition to the

governing body of the town requesting that the governing body

appoint as additional initial directors the four persons named in

the petition.

to the governing body of the town not later than the 30th day

after the effective date of the Act creating the district, the

governing body shall appoint as initial directors four additional

persons eligible under Section 3886.052.

(d) The four initial directors named in the petition described

by Subsection (b) or appointed under Subsection (c) shall draw

lots to determine which two directors shall serve two-year terms

and which two directors shall serve four-year terms. The

director appointed by the town under Subsection (a) shall serve a

four-year term.

(e) This section expires September 1, 2013.

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

1077, Sec. 1, eff. September 1, 2009.

SUBCHAPTER C. POWERS AND DUTIES

Sec. 3886.101. 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.

1077, Sec. 1, eff. September 1, 2009.

Sec. 3886.102. MUNICIPAL MANAGEMENT DISTRICT POWERS AND DUTIES.

(a) The district has the powers and duties provided by the

general laws of this state, including Chapter 375, Local

Government Code, as applicable to municipal management districts

created under Sections 52 and 52-a, Article III, and Section 59,

Article XVI, Texas Constitution.

(b) The district shall make available a district water or

wastewater facility to each person who holds a certificate of

convenience and necessity under Chapter 13, Water Code, for land

in the district.

services.

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

1077, Sec. 1, eff. September 1, 2009.

Sec. 3886.103. IMPROVEMENT PROJECTS. (a) Subject to Sections

3886.102(b) and (c), 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 town-approved nonpotable water to the residents and

businesses of the district, including a wastewater collection

facility;

(2) a paved road, street, or turnpike, inside and outside the

district, to the 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, 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 and 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;

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

connection with an authorized improvement project;

(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) development;

(J) elimination of traffic congestion; and

(K) recreational, educational, or cultural improvements,

enhancements, and services; or

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

(b) Subject to Section 3886.104, 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.

requirements, including codes and ordinances and any planned

development ordinance applicable to land in the district.

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

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

or easements without the consent of the governing body of the

town.

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

the town may:

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

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

(2) 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 town to order a

conveyance of the improvement project to the town on a date

determined by the town, provided, however, that if an improvement

project is conveyed to the town, the improvement project will

continue to be used to serve land in the district.

(f) The district shall immediately comply with any town

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.

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

1077, Sec. 1, eff. September 1, 2009.

Sec. 3886.104. PROJECT DEVELOPMENT AGREEMENT REQUIRED. Before

the district may issue bonds, impose taxes, or borrow money, the

district and the town must negotiate and execute a mutually

approved and accepted interlocal project development agreement

regarding the district's development plans and rules for:

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

(2) the financing of improvement projects.

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

1077, Sec. 1, eff. September 1, 2009.

Sec. 3886.105. 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 town, Collin County, Denton County, or any

other person.

purposes of this chapter without further statutory or other

authorization.

(d) The governing body of the town must approve a contract

payable from ad valorem taxes for a period longer than one year.

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

1077, Sec. 1, eff. September 1, 2009.

Sec. 3886.106. 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 town rule, order, or regulation

controls.

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

1077, Sec. 1, eff. September 1, 2009.

Sec. 3886.107. NAME CHANGE. The board by resolution may change

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

change to the town.

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

1077, Sec. 1, eff. September 1, 2009.

Sec. 3886.108. 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 town; 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 on the territory are outstanding.

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

1077, Sec. 1, eff. September 1, 2009.

Sec. 3886.109. ECONOMIC DEVELOPMENT. The district may create

economic development programs and exercise the economic

development powers that Chapter 1509, Government Code, provides

for a municipality.

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

1077, Sec. 1, eff. September 1, 2009.

Sec. 3886.110. NO EMINENT DOMAIN POWER. The district may not

exercise the power of eminent domain.

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

1077, Sec. 1, eff. September 1, 2009.

Sec. 3886.111. 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.

1077, Sec. 1, eff. September 1, 2009.

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 3886.151. ELECTIONS REGARDING TAXES OR BONDS. (a) The

district may issue, without an election, bonds and other

obligations secured by revenue or contract payments from any

source other than ad valorem taxes.

(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.

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.

1077, Sec. 1, eff. September 1, 2009.

Sec. 3886.152. BORROWING MONEY. 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 a district purpose. A

note, bond, credit agreement, or other obligation must be secured

by and payable from ad valorem taxes, assessments, or any other

district revenue.

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

1077, Sec. 1, eff. September 1, 2009.

Sec. 3886.153. OPERATION AND MAINTENANCE TAX. (a) If

authorized at an election held under Section 3886.151, the

district may impose an operation and maintenance tax on taxable

property in the district in accordance with Section 49.107, Water

Code.

(b) Except as provided by Subsection (c), the district may

impose the tax for operation and maintenance 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.

unless the maximum rate of the tax is approved by the governing

body of the town and a majority of the voters of the district

voting at an election held for that purpose. If the maximum tax

rate is approved, the board may impose the tax at any rate that

does not exceed the approved rate.

(d) An operation and maintenance tax election may be held at the

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.

1077, Sec. 1, eff. September 1, 2009.

Sec. 3886.154. CONTRACT TAXES. (a) In accordance with Section

49.108, Water Code, the district may make payments under a

contract from taxes other than operation and maintenance taxes

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.

1077, Sec. 1, eff. September 1, 2009.

SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS

Sec. 3886.201. 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, sales and use taxes, revenue from a zone

created under Chapter 311 or 312, Tax Code, or Chapter 2303,

Government Code, other district money, or any combination of

those sources, to pay for any authorized district purpose.

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

1077, Sec. 1, eff. September 1, 2009.

Sec. 3886.202. TAXES FOR BONDS. (a) At the time the district

issues bonds payable wholly or partly from ad valorem taxes, the

board shall provide for the annual imposition of an ad valorem

tax, without limit as to rate or amount, as required by Section

54.601, Water Code.

(b) The board shall annually impose the tax while all or part of

the bonds are outstanding. Sections 54.601 and 54.602, Water

Code, govern the amount and rate of the tax.

property in the district in an amount sufficient to:

(1) pay the interest on the bonds or other obligations as the

interest becomes due;

(2) 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

(3) pay the expenses of imposing the tax.

(d) The district may not issue bonds or other obligations that

are secured by and payable from ad valorem taxes unless the bonds

and the imposition of taxes are approved by:

(1) a majority of the district voters voting at an election for

that purpose; and

(2) the governing body of the town.

(e) The district shall hold an election required by this section

in the manner provided by Chapter 54, Water Code.

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

1077, Sec. 1, eff. September 1, 2009.

Sec. 3886.203. BOND ISSUANCE PLAN REQUIRED BEFORE ISSUING BONDS.

The district may not issue bonds until the governing body of the

town approves a bond issuance plan authorizing and prescribing

the limitations on the issuance of the bonds.

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

1077, Sec. 1, eff. September 1, 2009.

Sec. 3886.204. BOND MATURITY. Bonds must mature not more than

40 years from their date of issuance.

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

1077, Sec. 1, eff. September 1, 2009.

Sec. 3886.205. 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 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.

1077, Sec. 1, eff. September 1, 2009.

SUBCHAPTER F. DISSOLUTION

Sec. 3886.251. DISSOLUTION BY TOWN ORDINANCE. (a) The town by

ordinance may dissolve the district.

(b) The town 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.

under Section 3886.104 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.

(d) The town may not dissolve the district before December 31,

2016.

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

1077, Sec. 1, eff. September 1, 2009.

Sec. 3886.252. 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 town shall succeed to

the rights and obligations of the district regarding enforcement

and collection of the assessments or other revenue.

(b) The town 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 town to refund the outstanding bonds or

obligations.

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

1077, Sec. 1, eff. September 1, 2009.

Sec. 3886.253. ASSUMPTION OF ASSETS AND LIABILITIES. (a) After

the town dissolves the district, the town assumes the obligations

of the district, including any bonds or other indebtedness

payable from assessments or other district revenue.

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

ownership of all district property to the town.

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

1077, Sec. 1, eff. September 1, 2009.

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

Loading..

Loading, Please Wait!