CHAPTER 8359. LAKE TEXOMA MUNICIPAL UTILITY DISTRICT NO. 1

State Codes and Statutes

Statutes > Texas > Special-district-local-laws-code > Title-6-water-and-wastewater > Chapter-8359-lake-texoma-municipal-utility-district-no-1

SPECIAL DISTRICT LOCAL LAWS CODE

TITLE 6. WATER AND WASTEWATER

SUBTITLE F. MUNICIPAL UTILITY DISTRICTS

CHAPTER 8359. LAKE TEXOMA MUNICIPAL UTILITY DISTRICT NO. 1

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8359.001. DEFINITIONS. In this chapter:

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

(2) "Director" means a board member.

(3) "District" means the Lake Texoma Municipal Utility District

No. 1.

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

1071, Sec. 1, eff. September 1, 2009.

Sec. 8359.002. NATURE OF DISTRICT. The district is a municipal

utility district created under Section 59, Article XVI, Texas

Constitution.

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

1071, Sec. 1, eff. September 1, 2009.

Sec. 8359.003. CONFIRMATION AND DIRECTORS' ELECTION REQUIRED.

(a) The temporary directors shall hold an election to confirm

the creation of the district and to elect five permanent

directors as provided by Section 49.102, Water Code.

(b) The temporary directors of any new district created under

Section 8359.108 may not hold an election under Subsection (a)

until the earlier of:

(1) the date the land in the new district has been annexed by

the City of Denison; or

(2) not later than the 180th day after the date the City of

Denison receives a written petition from a landowner requesting

annexation that the city does not grant.

(1) request annexation of land that is contiguous with a

boundary of the City of Denison;

(2) include all the land in the new district;

(3) include land covered by the development agreement executed

under Section 8359.004;

(4) include the landowner's consent to abide by the

comprehensive land use plan and development regulations as

defined in the development agreement; and

(5) if the development agreement for the land included in the

new district expires before a new district is created under

Section 8359.108, include the landowner's consent to reinstate

the comprehensive land use plan and development regulations

defined in the expired development agreement.

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

1071, Sec. 1, eff. September 1, 2009.

Sec. 8359.004. DEVELOPMENT AGREEMENT REQUIRED. The temporary

directors may not hold an election under Section 8359.003 until

the City of Denison and the owners of the land to be covered by a

development agreement that covers all or part of the land in the

district enter into the development agreement under Chapter 212,

Local Government Code.

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

1071, Sec. 1, eff. September 1, 2009.

Sec. 8359.005. FINDINGS OF PUBLIC PURPOSE AND BENEFIT. (a) The

district is created to serve a public purpose and benefit.

(b) All land and other property included in the district will

benefit from the improvements and services to be provided by the

district under powers conferred by Section 52, Article III, and

Section 59, Article XVI, Texas Constitution, and under this

chapter.

(1) a municipal utility district as provided by general law and

Section 59, Article XVI, Texas Constitution; and

(2) Section 52, Article III, Texas Constitution, that relate to

the construction, acquisition, improvement, operation, or

maintenance of macadamized, graveled, or paved roads, or

improvements, including storm drainage, in aid of those roads.

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

1071, Sec. 1, eff. September 1, 2009.

Sec. 8359.006. INITIAL DISTRICT TERRITORY. (a) The district is

initially composed of the territory described by Section 2 of the

Act creating this chapter.

(b) The boundaries and field notes contained in Section 2 of the

Act creating this chapter form a closure. A mistake made in the

field notes or in copying the field notes in the legislative

process does not affect the district's:

(1) organization, existence, or validity;

(2) right to issue any type of bond for the purposes for which

the district is created or to pay the principal of and interest

on a bond;

(3) right to impose a tax or assessment; or

(4) legality or operation.

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

1071, Sec. 1, eff. September 1, 2009.

Sec. 8359.007. ELIGIBILITY FOR INCLUSION IN TAX INCREMENT

REINVESTMENT ZONE. (a) All or any part of the district is

eligible to be included in a tax increment reinvestment zone

created under Chapter 311, Tax Code.

(b) If the City of Denison creates a tax increment reinvestment

zone described by Subsection (a) that includes all or part of the

territory of the district, the City of Denison and the board of

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

money to the district to be used for a permissible purpose of a

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

including the right to pledge the money as security for a bond

issued by the district.

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

1071, Sec. 1, eff. September 1, 2009.

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8359.051. GOVERNING BODY; TERMS. (a) The district is

governed by a board of five elected directors.

(b) Except as provided by Section 8359.052, directors serve

staggered four-year terms.

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

1071, Sec. 1, eff. September 1, 2009.

Sec. 8359.052. TEMPORARY DIRECTORS. (a) The temporary board

consists of:

(1) Ben Munson;

(2) Gifford Jackson;

(3) Robert Vaughn;

(4) Denice Lucas; and

(5) Patrick O'Toole.

(b) Temporary directors serve until the earlier of:

(1) the date permanent directors are elected under Section

8359.003; or

(2) September 1, 2013.

8359.003 and the terms of the temporary directors have expired,

successor temporary directors shall be appointed or reappointed

as provided by Subsection (d) to serve terms that expire on the

earlier of:

(1) the date permanent directors are elected under Section

8359.003; or

(2) the fourth anniversary of the date of the appointment or

reappointment.

(d) If Subsection (c) applies, the owner or owners of a majority

of the assessed value of the real property in the district may

submit a petition to the Texas Commission on Environmental

Quality requesting that the commission appoint as successor

temporary directors the five persons named in the petition. The

commission shall appoint as successor temporary directors the

five persons named in the petition.

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

1071, Sec. 1, eff. September 1, 2009.

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8359.101. GENERAL POWERS AND DUTIES. The district has the

powers and duties necessary to accomplish the purposes for which

the district is created.

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

1071, Sec. 1, eff. September 1, 2009.

Sec. 8359.102. MUNICIPAL UTILITY DISTRICT POWERS AND DUTIES.

The district has the powers and duties provided by the general

law of this state, including Chapters 49 and 54, Water Code,

applicable to municipal utility districts created under Section

59, Article XVI, Texas Constitution.

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

1071, Sec. 1, eff. September 1, 2009.

Sec. 8359.103. AUTHORITY FOR ROAD PROJECTS. Under Section 52,

Article III, Texas Constitution, the district may design,

acquire, construct, finance, issue bonds for, improve, operate,

maintain, and convey to this state, a county, or a municipality

for operation and maintenance macadamized, graveled, or paved

roads, or improvements, including storm drainage, in aid of those

roads.

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

1071, Sec. 1, eff. September 1, 2009.

Sec. 8359.104. ROAD STANDARDS AND REQUIREMENTS. (a) A road

project must meet all applicable construction standards, zoning

and subdivision requirements, and regulations of each

municipality in whose corporate limits or extraterritorial

jurisdiction the road project is located.

(b) If a road project is not located in the corporate limits or

extraterritorial jurisdiction of a municipality, the road project

must meet all applicable construction standards, subdivision

requirements, and regulations of each county in which the road

project is located.

Transportation Commission must approve the plans and

specifications of the road project.

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

1071, Sec. 1, eff. September 1, 2009.

Sec. 8359.105. COMPLIANCE WITH MUNICIPAL CONSENT ORDINANCE OR

RESOLUTION. (a) The district shall comply with all applicable

requirements of an ordinance or resolution adopted by the City of

Denison in accordance with Section 54.016 or 54.0165, Water Code,

that consents to the creation of the district or to the inclusion

of land in the district. The ordinance or resolution of the City

of Denison consenting to the creation of the district may limit

the amount of the district's bonds and tax rate.

(b) The ordinance or resolution of the City of Denison

consenting to the inclusion of additional land in the district

may be conditioned on the additional land being covered by the

development agreement executed under Section 8359.004.

may not impose a restriction or condition not expressly provided

under Section 54.016(f), Water Code, on a new district created

under Section 8359.108 or on the inclusion of land in the new

district. A restriction or condition on the creation of a new

district under Section 8359.108 or the inclusion of land in a new

district may not:

(1) limit the amount of the new district's bonds or tax rate; or

(2) restrict the purposes authorized by this chapter for which

the new district may issue bonds.

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

1071, Sec. 1, eff. September 1, 2009.

Sec. 8359.106. ANNEXATION. (a) Before the district holds an

election under Section 8359.003, the district may annex:

(1) without the consent of the City of Denison, land previously

owned by the United States Army Corps of Engineers; or

(2) in accordance with Section 54.016, Water Code, land located

in the extraterritorial jurisdiction or corporate limits of the

City of Denison if the City of Denison has consented by ordinance

or resolution to the annexation.

(b) The district may not annex land located outside the

corporate limits and extraterritorial jurisdiction of the City of

Denison.

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

1071, Sec. 1, eff. September 1, 2009.

Sec. 8359.107. EFFECT OF ANNEXATION BY CITY OF DENISON. (a) The

City of Denison may annex part of the district into its corporate

limits without annexing the entire district under the terms of a

development agreement executed under Section 8359.004 between the

City of Denison and the owners of the land in the district that

is covered by the development agreement. If a development

agreement is not executed under Section 8359.004 or the agreement

has expired, nothing in this chapter limits the right of the City

of Denison to annex the district.

(b) If the City of Denison annexes all or part of the district

into its corporate limits:

(1) the district is not dissolved;

(2) the ability of the district to issue bonds is not impaired

or precluded; and

(3) unless otherwise approved by the board and the governing

body of the City of Denison, the city:

(A) may not take over the property or other assets of the

district;

(B) may not assume any debts, liabilities, or other obligations

of the district;

and

(D) is not obligated to pay a landowner or developer for

expenses incurred by the landowner or developer in connection

with the district that would otherwise be eligible for

reimbursement from the proceeds of bonds issued by the district.

allocation agreement between the City of Denison and the district

that provides for the allocation of the taxes or revenues of the

district and the city following the date of inclusion of all the

district's territory in the corporate limits of the city may

provide that the total annual ad valorem taxes collected by the

city and the district from taxable property in the district may

exceed the city's ad valorem tax on that property.

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

1071, Sec. 1, eff. September 1, 2009.

Sec. 8359.108. DIVISION OF DISTRICT. (a) The district may be

divided into two or more new districts only if the district:

(1) has no outstanding bonded debt; and

(2) is not imposing ad valorem taxes.

(b) This chapter applies to any new district created by the

division of the district, and a new district has all the powers

and duties of the district.

may, at the time the new district is created, contain only:

(1) land within the area described by Section 2 of the Act

creating this chapter;

(2) any land previously owned by the United States Army Corps of

Engineers; and

(3) any land adjacent to the area described by Section 2 of the

Act creating this chapter if that adjacent land is within the

extraterritorial jurisdiction of the City of Denison and if that

adjacent land has been approved for inclusion in the district

under the consent ordinance or resolution adopted by the City of

Denison under Section 8359.105.

(d) The board, on its own motion or on receipt of a petition

signed by the owner or owners of a majority of the assessed value

of the real property in the district, may adopt an order dividing

the district.

(e) The board may adopt an order dividing the district only

after the date the board holds an election under Section 8359.003

to confirm the district's creation.

(f) An order dividing the district must:

(1) name each new district;

(2) include the metes and bounds description of the territory of

each new district;

(3) appoint temporary directors for each new district; and

(4) provide for the division of assets and liabilities between

or among the new districts.

(g) On or before the 30th day after the date of adoption of an

order dividing the district, the district shall file the order

with the Texas Commission on Environmental Quality and record the

order in the real property records of each county in which the

district is located.

(h) Any new district created by the division of the district

shall hold a confirmation and directors' election as required by

Section 8359.003.

(i) Municipal consent by the City of Denison is not required for

the creation of any new district created under this section.

(j) Any new district created by the division of the district

must hold an election as required by this chapter to obtain voter

approval before the district may impose a maintenance tax or

issue bonds payable wholly or partly from ad valorem taxes.

(k) If the voters of a new district do not confirm the creation

of the new district, the assets, obligations, territory, and

governance of the new district revert to that of the original

district.

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

1071, Sec. 1, eff. September 1, 2009.

Sec. 8359.109. DISSOLUTION OF DISTRICT. The district may be

dissolved by ordinance or resolution of the governing body of the

City of Denison after the date on which at least 95 percent of

the infrastructure authorized by this chapter and the Water Code

to serve full development in the district has been completed. On

dissolution, the City of Denison shall:

(1) take over the property and other assets of the district;

(2) assume all debts, liabilities, or other obligations of the

district;

(3) perform the functions of the district; and

(4) pay any landowner or developer for costs and expenses

incurred by the landowner or developer in connection with the

district that would otherwise be eligible for reimbursement from

the proceeds of bonds issued by the district.

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

1071, Sec. 1, eff. September 1, 2009.

Sec. 8359.110. LIMITATION ON USE OF EMINENT DOMAIN. The

district may not exercise the power of eminent domain outside the

district to acquire a site or easement for:

(1) a road project authorized by Section 8359.103; or

(2) a recreational facility as defined by Section 49.462, Water

Code.

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

1071, Sec. 1, eff. September 1, 2009.

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 8359.151. ELECTIONS REGARDING TAXES OR BONDS. (a) The

district may issue, without an election, bonds and other

obligations secured by:

(1) revenue other than ad valorem taxes; or

(2) contract payments described by Section 8359.153.

(b) The district must hold an election in the manner provided by

Chapters 49 and 54, Water Code, to obtain voter approval before

the district may impose an ad valorem tax or issue bonds payable

from ad valorem taxes.

taxes to finance a road project unless the issuance is approved

by a vote of a two-thirds majority of the district voters voting

at an election held for that purpose.

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

1071, Sec. 1, eff. September 1, 2009.

Sec. 8359.152. OPERATION AND MAINTENANCE TAX. (a) If

authorized at an election held under Section 8359.151, the

district may impose an operation and maintenance tax on taxable

property in the district in accordance with Section 49.107, Water

Code.

(b) The board shall determine the tax rate. The rate may not

exceed the rate approved at the election.

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

1071, Sec. 1, eff. September 1, 2009.

Sec. 8359.153. CONTRACT TAXES. (a) In accordance with Section

49.108, Water Code, the district may impose a tax other than an

operation and maintenance tax and use the revenue derived from

the tax to make payments under a contract after the provisions of

the contract have been approved by a majority of the district

voters voting at an election held for that purpose.

(b) A contract approved by the district voters may contain a

provision stating that the contract may be modified or amended by

the board without further voter approval.

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

1071, Sec. 1, eff. September 1, 2009.

SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS

Sec. 8359.201. AUTHORITY TO ISSUE BONDS AND OTHER OBLIGATIONS.

The district may issue bonds or other obligations payable wholly

or partly from ad valorem taxes, impact fees, revenue, contract

payments, grants, or other district money, revenue from a tax

increment reinvestment zone created under Chapter 311, Tax Code,

revenue from economic development agreements under Chapter 380,

Local Government Code, or any combination of those sources, to

pay for any authorized district purpose.

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

1071, Sec. 1, eff. September 1, 2009.

Sec. 8359.202. TAXES FOR BONDS. At the time the district issues

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

shall provide for the annual imposition of a continuing direct ad

valorem tax, without limit as to rate or amount, while all or

part of the bonds are outstanding as required and in the manner

provided by Sections 54.601 and 54.602, Water Code.

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

1071, Sec. 1, eff. September 1, 2009.

Sec. 8359.203. BONDS FOR ROAD PROJECTS. At the time of

issuance, the total principal amount of bonds or other

obligations issued or incurred to finance road projects and

payable from ad valorem taxes may not exceed one-fourth of the

assessed value of the real property in the district.

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

1071, Sec. 1, eff. September 1, 2009.

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