By: Phillips H.B. No. 4737
A BILL TO BE ENTITLED
AN ACT
relating to the creation of the Lake Texoma Municipal Utility
District No. 1; providing authority to impose a tax and issue bonds;
incorporating by reference the limited power of eminent domain
granted by general law.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle F, Title 6, Special District Local Laws
Code, is amended by adding Chapter 8.____ to read as follows:
CHAPTER 8___ LAKE TEXOMA MUNICIPAL UTILITY DISTRICT NO. 1
SUBCHAPTER A. GENERAL PROVISIONS
Section 8___.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.
Section 8___.002. NATURE OF DISTRICT. The district is a
municipal utility district created under Section 59, Article XVI,
Texas Constitution.
Section 8___.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 8 _____.107 may not hold an election under Subsection
(a) until either the land in the new district has been annexed into
the City of Denison or the City of Denison does not annex the land in
the new district within 180 days after receipt of a written petition
by the landowner requesting annexation. The petition must (1)
request annexation of land that is contiguous and adjacent to the
corporate limits of the City of Denison, (2)include all the land in
the new district, and (3) include land covered by the development
agreement executed under Section 8___.004, including the consent of
the landowner to abide by the comprehensive land use plan and
development regulations as defined in the development agreement.
(c) If at the time a new district is created under Section
8_____.107, the development agreement for the land included in the
new district has expired, the petition must include the consent of
the landowner to reinstate the comprehensive land use plan and
development regulations as defined in the expired development
agreement.
Section 8___.004 DEVELOPMENT AGREEMENT REQUIRED. The
temporary directors may not hold an election under Section 8___.003
until a development agreement pursuant to Section 212.171 et. seq.,
Local Government Code, covering all the land in the district, or a
lesser amount of such land only if approved by the City of Denison,
is executed by the owners of the land covered by the development
agreement and by the City of Denison.
Section 8___.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 Sections 52, Article III,
and Section 59, Article XVI, Texas Constitution, and other powers
granted under this chapter.
(c) The district is created to accomplish the purposes of:
(1) a municipal utility district as provided by
general law and Section 59, Article XVI, Texas Constitution; and
(2) Section 52, Article III, Texas Constitution, that
relate to the construction, acquisition, improvement, maintenance,
or operation of macadamized, graveled, or paved roads, or
improvements, including storm drainage, in aid of those roads.
Section 8___.006. INITIAL DISTRICT TERRITORY. (a) The
district is initially composed of the territory described by
Section 2 of this Act.
(b) The boundaries and field notes contained in Section 2 of
this Act 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.
Section 8___.007. ELIGIBILITY FOR INCLUSION IN SPECIAL
ZONE. (a) All or any part of the area of the district is eligible
to be included in a tax increment reinvestment zone created by the
city under Chapter 311, Tax Code.
(b) If the City of Denison creates a tax increment
reinvestment zone described by Subsection (a), the City of Denison
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.
[Sections 8___.008 - 8___.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
Section 8___.051. GOVERNING BODY; TERMS. (a) The district
is governed by a board of five elected directors.
(b) Except as provided by Section 8___.052, directors serve
staggered four-year terms.
Section 8___.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 8___.003; or
(2) September 1, 2013.
(c) If permanent directors have not been elected under
Section 8___.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 8___.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 Texas Commission on Environmental
Quality appoint as successor temporary directors the five persons
named in the petition. The Texas Commission on Environmental
Quality shall appoint as successor temporary directors the five
persons named in the petition.
[Sections 8___.053 - 8___.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
Section 8___.101. GENERAL POWERS AND DUTIES. The district
has the powers and duties necessary to accomplish the purposes for
which the district is created.
Section 8___.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.
Section 8___.103. AUTHORITY FOR ROAD PROJECTS. Under
Section 52, Article III, Texas Constitution, the district may
construct, acquire, improve, maintain, or operate macadamized,
graveled, or paved roads, or improvements, including storm
drainage, in aid of those roads.
Section 8___.104. ROAD STANDARDS AND REQUIREMENTS. (a) A
road project must meet all applicable construction standards,
zoning and subdivision requirements, and regulations of each
municipality in whose corporate limits or extraterritorial
jurisdiction the road project is located.
(b) If a road project is not located in the corporate limits
or extraterritorial jurisdiction of a municipality, the road
project must meet all applicable construction standards,
subdivision requirements, and regulations of each county in which
the road project is located.
(c) If the state will maintain and operate the road, the
Texas Transportation Commission must approve the plans and
specifications of the road project.
Section 8___.105. COMPLIANCE WITH MUNICIPAL CONSENT
ORDINANCE OR RESOLUTION. (a) The district shall comply with any
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 consent of the City of Denison to the district
created by this Act may limit the amount of the district's bonds and
tax rate.
(b) The consent of the City of Denison to the inclusion of
additional land in the district created by this Act may be
conditioned upon such additional land being covered by the
development agreement executed under Section 8 .004.
(c) to The City of Denison may not include any restrictions
or conditions on any new district created under Section 8______.107
or to the inclusion of land in any such new district other than
those expressly provided in Section 54.016(e), Water Code. The
restrictions or conditions on the creation of any new district
under Section 8______.107 or to the inclusion of land in any such
new district shall not (1) limit the amount of the new district's
bonds or tax rate or (2) restrict the purposes authorized by this
Act for which the new district may issue bonds.
(d) The district may annex into the boundaries of the
district prior to an election under Section 8___.003 and without
the consent of the City of Denison any land previously owned by the
United States Army Corps of Engineers. The district may also annex
land into the boundaries of the district prior to an election under
Section 8___.003 and in accordance with Section 54.016, Water Code,
if such land is located within the extraterritorial jurisdiction or
corporate limits of the City of Denison and if the City of Denison
has consented by ordinance or resolution to the annexation of such
land. The district may not annex land located outside the corporate
limits and extraterritorial jurisdiction of the City of Denison.
Section 8___.106. 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 pursuant to
the terms of the development agreement executed under Section 8
.004 between the City of Denison and the owners of the land within
the district and covered by the development agreement. If no
development agreement is executed under Section 8______.004 or the
terms of such development agreement have expired, nothing in this
Act shall limit 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, the district shall not be
dissolved, the ability of the district to issue bonds shall not be
impaired or precluded, and, unless otherwise approved by the board
and the governing body of the City of Denison, the City of Denison
shall not take over the property or other assets of the district,
shall not assume any debts, liabilities, or other obligations of
the district, shall not be obligated to perform any functions of the
district, and shall not be obligated to 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.
(c) Notwithstanding Section 54.016(f)(2), Water Code, a
contract ("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 within 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
within the district may exceed an amount greater than the city's ad
valorem tax upon such property.
Section 8___.107 DIVISION OF DISTRICT. (a) The district may
be divided into two or more new districts only if the district:
(1) has no outstanding bonded debt; and
(2) is not imposing ad valorem taxes.
(b) This chapter applies to any new district created by the
division of the district, and a new district has all the powers and
duties of the district.
(c) Any new district created by the division of the district
may, at the time the new district is created, contain any land
within the area described by Section 2 of this Act, any land
previously owned by the United States Army Corps of Engineers, and
any land adjacent to the area described in Section 2 of this Act if
such adjacent land is within the extraterritorial jurisdiction of
the City of Denison and if such adjacent land has been approved by
the City of Denison under Section 8___.005.
(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 8___.003 to
confirm the district's creation.
(f) An order dividing the district shall:
(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 8___.003.
(i) No municipal consent of the City of Denison shall be
required to the creation of any new district created under this
Section 8____.107.
(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.
Section 8___.108. DISSOLUTION OF THE DISTRICT. The
district may be dissolved by ordinance or resolution of the
governing body of the City of Denison when at least 95% of the
infrastructure authorized by this Act and the Texas Water Code to
serve full development within the district has been completed.
Upon such dissolution, the City of Denison shall take over the
property and other assets of the district, shall assume all debts,
liabilities, or other obligations of the district, shall be
obligated to perform the functions of the district, and shall be
obligated to 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.
Section 8___.109. 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 8.___.104; or
(2) a recreational facility as defined by Section
49.462, Water Code.
[Sections 8___.110 - 8.___.150 reserved for expansion]
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
Section 8___.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 8___.153.
(b) The district must hold an election in the manner
provided by Chapters 49 and 54, Water Code, to obtain voter approval
before the district may impose an ad valorem tax or issue bonds
payable from ad valorem taxes.
(c) The district may not issue bonds payable from ad valorem
taxes to finance a road project unless the issuance is approved by a
vote of a two-thirds majority of the district voters voting at an
election held for that purpose.
Section 8___.152. OPERATION AND MAINTENANCE TAX. (a) If
authorized at an election held under Section 8___.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.
Section 8___.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.
[Sections 8___.154 - 8___.200 reserved for expansion]
SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS
Section 8___.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, other district money, revenue
from a tax increment reinvestment zone created under Chapter 311,
Tax Code, revenue from economic development agreements under
Section 380, Local Government Code, or any combination of those
sources, to pay for any authorized district purpose.
Section 8___.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.
Section 8___.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.
SECTION 2. The Lake Texoma Municipal Utility District No. 1
initially includes all the territory contained in the following
area:
Situated in the County of Grayson, State of Texas, being a
part of the Stephen Cox Survey, Abstract No. 299, the H. K. Needham
Survey, Abstract No. 1520, the Sarah Hall Survey, Abstract No.
1485, the Levi T. Loveall Survey, Abstract No. 746, the Bledsoe
Holder Survey, Abstract No. 614, the William J. Reeves Survey,
Abstract No. 1018, the Thomas M. Reeves Survey, Abstract No. 1017,
the William Bean Survey, Abstract No. 84, the Greenberry Gates
Survey, Abstract No. 443, the Jacob Wilcox Survey, Abstract No.
1358, the Polly Stamps Survey, Abstract No. 1098, the Joshua West
Survey, Abstract No. 1316, and being all of the J. C. Jamison
Survey, Abstract No. 665, the T. E. Jones Survey, Abstract No. 55,
the R. J. Lefever Survey, Abstract No. 753, the Mary E. Bowe Survey,
Abstract No. 181, the Charles F. Daugherty Survey, Abstract No.
1566, the H. B. Thomas Survey, Abstract No. 1572, and the Juan
Armendaris Survey, Abstract No. 40, and being various tracts of
land conveyed in various interests to Preston Harbour, L.P., Jack
Schuler, Farmington Estates, Ltd., Forest Grove Land Company,
L.L.C., and Preston Harbour Homeplace by descriptions in deed
recorded in Volume 3449, Page 257, Volume 3599, Page 455, Volume
4323, Page 875, Volume 4323, Page 881, Volume 3295, Page 526, Volume
3276, Page 526, Volume 3944, Pages 609 and 615, Volume 3276, Page
398, Volume 4323, Page 888, Volume 3718, Page 878, Volume 4323, Page
895, and Volume 3941, Page 871, all of the Official Public Records,
Grayson County, Texas, and being described as follows:
Beginning at a point for the most Southerly Southeast corner
of the herein described tract the intersection of the East line of
the said Cox Survey with the North right-of-way line of F.M. Highway
No. 406;
Thence Westerly with said North right-of-way line as follows:
North 4400'30" West, a distance of 76.92 feet;
Northwesterly with a curve to the left having a radius
of 1,517.39 feet (chord bears North 5712'58" West, 449.54 feet) an
arc distance of 451.20 feet;
North 0157'58" East, a distance of 20.01 feet;
North 8710'26" West, a distance of 53.63 feet;
Westerly with a non-tangent curve to the left having a
radius of 1,517.39 feet (chord bears North 7732'28" West, 507.89
feet) an arc distance of 510.29 feet;
North 8734'14" West, a distance of 724.69 feet;
North 8742'32" West, a distance of 215.02 feet;
North 8814'34" West, a distance of 199.86 feet;
North 7533'45" West, a distance of 205.00 feet;
North 8814'34" West, a distance of 200.00 feet;
South 8437'56" West, a distance of 201.56 feet;
North 8814'34" West, a distance of 338.31 feet;
North 8702'49" West, a distance of 314.69 feet;
North 7752'42" West, a distance of 41.24 feet to the
intersection of said North right-of-way line with the East line of
the USA property embracing City of Denison;
Thence with the USA boundary as follows:
North 0004'03" East, a distance of 1,381.78 feet;
North 8953'11" West, a distance of 650.19 feet;
North 0007'13" East, a distance of 1,949.53 feet;
South 8951'06" East, a distance of 840.00 feet;
North 0003'31" East, a distance of 850.00 feet;
North 8957'20" West, a distance of 500.00 feet;
North 0000'29" East, a distance of 1,057.78 feet;
North 0000'44" West, a distance of 1,530.00 feet;
North 8959'16" East, a distance of 800.00 feet;
North 0000'44" West, a distance of 1,099.40 feet;
South 8726'08" East, a distance of 4,441.44 feet;
North 0125'48" East, a distance of 1,465.32 feet;
North 8708'00" West, a distance of 2,370.30 feet;
North 1019'33" East, a distance of 1,184.67 feet;
North 8606'49" West, a distance of 1,106.58 feet;
North 0202'54" East, a distance of 969.85 feet;
North 8615'15" West, a distance of 425.41 feet;
North 0332'53" East, a distance of 1,251.67 feet;
North 8827'30" East, a distance of 2,465.83 feet
North 0145'27" East, a distance of 1,293.09 feet;
South 8721'00" East, a distance of 125.56 feet;
North 0000'56" East, a distance of 788.69 feet;
North 8958'45" West, a distance of 1,280.23 feet;
North 0001'20" East, a distance of 1,029.44 feet;
South 8956'44" West, a distance of 537.47 feet;
North 0713'40" East, a distance of 355.69 feet;
North 8952'44" West, a distance of 463.09 feet;
North 0007'06" East, a distance of 850.09 feet;
South 8954'25" East, a distance of 821.95 feet;
North 0003'52" West, a distance of 872.97 feet;
North 8959'31" East, a distance of 750.35 feet;
South 0014'40" East, a distance of 1,000.21 feet;
North 8955'46" East, a distance of 980.28 feet;
North 0012'25" West, a distance of 1,450.28 feet;
South 8950'21" East, a distance of 515.07 feet;
North 0004'55" East, a distance of 449.79 feet;
North 8956'16" East, a distance of 694.55 feet;
South 0306'32" West, a distance of 3,023.73 feet;
South 8737'57" East, a distance of 1,030.28 feet;
South 0304'54" West, a distance of 920.08 feet;
South 8738'30" East, a distance of 86.17 feet;
South 0259'45" West, a distance of 411.56 feet;
Thence South 8701'15" East, passing a USA property corner,
departing said USA boundary and continuing for a total distance of
512.48 feet;
Thence South 0134'09" West, a distance of 49.43 feet;
Thence South 1045'31" East, a distance of 64.75 feet;
Thence North 4617'19" East, a distance of 86.01 feet;
Thence North 4342'41" West, a distance of 23.21 feet;
Thence North 0131'40" East, a distance of 33.82 feet;
Thence South 8701'15" East, a distance of 939.51 feet to a
corner in the West right-of-way line of State Highway No. 84;
Thence in Southerly direction with said West right-of-way
line and a non-tangent curve to the right having a radius of
5,679.58 feet (chord bears South 0150'38" East, 179.72 feet) an arc
distance of 179.73 feet;
Thence South 0056'14" East, a distance of 2,744.58 feet to
the intersection of said West right-of-way line with the North line
of a 30 foot wide strip of land;
Thence with the boundary of said strip of land as follows:
South 7843'18" West, a distance of 476.49 feet;
North 0855'55" West, a distance of 184.27 feet;
North 8759'26" West, a distance of 768.80 feet;
South 0252'06" West, a distance of 30.00 feet;
South 8759'26" East, a distance of 744.49 feet;
South 0855'55" East, a distance of 190.77 feet;
North 7843'18" East, a distance of 502.27 feet to the
intersection of the South line of said strip of land with the said
West right-of-way line of Highway No. 84;
Thence continuing with said West right-of-way line as
follows:
South 0056'14" East, a distance of 429.67 feet;
Southerly with a curve to the left having a radius of
2,914.79 feet (chord bears South 0827'14" East, 762.59 feet), an
arc distance of 764.79 feet;
South 1558'14" East, a distance of 3,853.45 feet;
Thence departing said West right-of-way line and continuing
as follows:
South 0112'38" West, a distance of 499.66 feet;
North 8744'23" West, a distance of 2,445.14 feet;
South 0158'12" West, a distance of 1,215.19 feet;
South 0135'30" West, a distance of 1,643.46 feet;
South 0146'06" West, a distance of 2,228.41 feet;
North 8802'55" West, a distance of 3,103.33 feet;
South 0142'59" West, a distance of 1,738.89 feet to the
Point of Beginning and containing approximately 2,272.6 acres of
land.
SECTION 3. (a) The legal notice of the intention to
introduce this Act, setting forth the general substance of this
Act, has been published as provided by law, and the notice and a
copy of this Act have been furnished to all persons, agencies,
officials, or entities to which they are required to be furnished
under Section 59, Article XVI, Texas Constitution, and Chapter 313,
Government Code.
(b) The governor, one of the required recipients, has
submitted the notice and Act to the Texas Commission on
Environmental Quality.
(c) The Texas Commission on Environmental Quality has filed
its recommendations relating to this Act with the governor, the
lieutenant governor, and the speaker of the house of
representatives within the required time.
(d) All requirements of the constitution and laws of this
state and the rules and procedures of the legislature with respect
to the notice, introduction, and passage of this Act are fulfilled
and accomplished.