SB2488 establishes the Lake Weatherford Municipal Utility Districts Nos. 1 and 2, which are designed to serve various municipal purposes, particularly in the construction, improvement, and maintenance of roads and drainage systems within their territory. The bill provides the districts with the authority to impose taxes, issue bonds for financing projects, and grant a limited power of eminent domain for road-related works. This legislation aims to facilitate the development of essential infrastructure in the designated areas, enhancing local governance's capability to manage public utilities efficiently.
The districts are structured to require municipal consent for their creation and the inclusion of land, ensuring that local authorities have a say in the process. Additionally, the districts will have a board of five elected directors who will oversee operations and make key decisions. The board will serve staggered four-year terms, promoting continuity and allowing residents to elect representatives aligned with their interests in local governance.
One significant aspect of the bill is its provision for the issuance of bonds, which can be funded through ad valorem taxes, thereby allowing the districts to finance substantial road and utility projects. The maximum amount of bonds issued for road projects is restricted to one-fourth of the assessed value of real property in the district, preventing over-leveraging of public finances, which is an essential aspect to maintain fiscal responsibility.
There are limitations placed on the use of eminent domain, allowing the districts to only exercise this power under specific conditions, primarily related to road projects and recreational facilities as defined by state law. Furthermore, if the districts do not fulfill their obligations, there are provisions for the City of Weatherford to dissolve the districts under certain circumstances, which adds a level of accountability and ensures that the districts serve a genuine public purpose.