S.B. No. 1184
AN ACT
relating to the creation of the Timber Springs Municipal Management
District; providing authority to impose a tax, levy an assessment,
and issue bonds.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle C, Title 4, Special District Local Laws
Code, is amended by adding Chapter 3897 to read as follows:
CHAPTER 3897. TIMBER SPRINGS MUNICIPAL MANAGEMENT DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 3897.001. DEFINITIONS. In this chapter:
(1) "Board" means the district's board of directors.
(2) "Director" means a board member.
(3) "District" means the Timber Springs Municipal
Management District.
(4) "Improvement project" means a project authorized
by Subchapter C-1.
Sec. 3897.002. CREATION AND NATURE OF DISTRICT. The
district is a special district created under Section 59, Article
XVI, Texas Constitution.
Sec. 3897.003. 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 a
municipality in which the district is located 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.
(c) This chapter and the creation of the district may not be
interpreted to relieve a municipality or county in which the
district is located from providing the level of services provided
as of the effective date of the Act enacting this chapter to the
area in the district. The district is created to supplement and not
to supplant municipal and county services provided in the district.
Sec. 3897.004. 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.
(c) The creation of the district is in the public interest
and is essential to further the public purposes of:
(1) developing and diversifying the economy of the
state;
(2) eliminating unemployment and underemployment;
(3) providing quality residential housing; and
(4) developing or expanding transportation and
commerce.
(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.
Sec. 3897.005. 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
Section 3897.115 or 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.
Sec. 3897.006. 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 a
municipality in which the district is located under Chapter 311,
Tax Code;
(2) a tax abatement reinvestment zone created by a
municipality in which the district is located under Chapter 312,
Tax Code;
(3) an enterprise zone created by a municipality in
which the district is located under Chapter 2303, Government Code;
or
(4) an industrial zone created by a municipality in
which the district is located under Chapter 42, Local Government
Code.
(b) If a municipality in which the district is located
creates a tax increment reinvestment zone described by Subsection
(a), the municipality 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.
[Sections 3897.007-3897.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 3897.051. GOVERNING BODY; TERMS. The district is
governed by a board of five directors who serve staggered terms of
four years, with two or three directors' terms expiring May 31 of
each even-numbered year.
Sec. 3897.052. ELECTION DATE. The board shall hold an
election for directors on the uniform election date in May in
even-numbered years.
Sec. 3897.053. ELIGIBILITY. (a) To be qualified to serve
as a director, a person must be:
(1) an owner of real property in the district; or
(2) an employee of a person described by Subdivision
(1).
(b) Section 49.052, Water Code, does not apply to the
district.
Sec. 3897.054. VACANCY. (a) The remaining directors shall
fill a vacancy on the board by appointing a person who meets the
qualifications prescribed by Section 3897.053.
(b) If there are fewer than three directors, the governing
body of the largest municipality in which the district is located
shall appoint the necessary number of directors to fill all board
vacancies.
Sec. 3897.055. DIRECTOR'S OATH OR AFFIRMATION. A director
shall file the director's oath or affirmation of office with the
district, and the district shall retain the oath or affirmation in
the district records.
Sec. 3897.056. OFFICERS. The board shall elect from among
the directors a chair, a vice chair, and a secretary.
Sec. 3897.057. COMPENSATION OF DIRECTORS; REIMBURSEMENT OF
EXPENSES. (a) The district may compensate each director in an
amount not to exceed $50 for each board meeting. The total amount
of compensation a director may receive each year may not exceed
$2,000.
(b) A director is entitled to reimbursement for necessary
and reasonable expenses incurred in carrying out the duties and
responsibilities of a director.
Sec. 3897.058. INITIAL DIRECTORS. (a) The initial board
consists of the following directors:
Pos. No. Name of Director Pos. No. Name of Director
Pos. No. Name of Director
1 Charles F. Jordan 1 Charles F. Jordan
1 Charles F. Jordan
2 Darren Woody 2 Darren Woody
2 Darren Woody
3 Rob Hutchison 3 Rob Hutchison
3 Rob Hutchison
4 Joe Geer 4 Joe Geer
4 Joe Geer
5 Nick Craig 5 Nick Craig
5 Nick Craig
(b) Of the initial directors, the terms of directors
appointed for positions 1 and 2 expire May 31, 2012, and the terms
of directors appointed for positions 3 through 5 expire May 31,
2014.
(c) This section expires September 1, 2014.
[Sections 3897.059-3897.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
Sec. 3897.101. GENERAL POWERS AND DUTIES. The district has
the powers and duties necessary to accomplish the purposes for
which the district is created.
Sec. 3897.102. IMPROVEMENT PROJECTS AND SERVICES. The
district may provide, design, construct, acquire, improve,
relocate, operate, maintain, or finance an improvement project or
service using money available to the district, or contract with a
governmental or private entity to provide, design, construct,
acquire, improve, relocate, operate, maintain, or finance an
improvement project or service authorized under this chapter,
including a project described by Subchapter C-1, or under Chapter
375, Local Government Code.
Sec. 3897.103. DEVELOPMENT CORPORATION POWERS. The
district, using money available to the district, may exercise the
powers given to a development corporation under Chapter 505, Local
Government Code, including the power to own, operate, acquire,
construct, lease, improve, or maintain a project under that
chapter.
Sec. 3897.104. NONPROFIT CORPORATION. (a) The board by
resolution may authorize the creation of a nonprofit corporation to
assist and act for the district in implementing a project or
providing a service authorized by this chapter.
(b) The nonprofit corporation:
(1) has each power of and is considered to be a local
government corporation created under Subchapter D, Chapter 431,
Transportation Code; and
(2) may implement any project and provide any service
authorized by this chapter.
(c) The board shall appoint the board of directors of the
nonprofit corporation. The board of directors of the nonprofit
corporation shall serve in the same manner as the board of directors
of a local government corporation created under Subchapter D,
Chapter 431, Transportation Code, except that a board member is not
required to reside in the district.
Sec. 3897.105. AGREEMENTS; GRANTS. (a) As provided by
Chapter 375, Local Government Code, the district may make an
agreement with or accept a gift, grant, or loan from any person.
(b) The implementation of a project is a governmental
function or service for the purposes of Chapter 791, Government
Code.
Sec. 3897.106. LAW ENFORCEMENT SERVICES. To protect the
public interest, the district may contract with a qualified party,
including a county or a city, to provide law enforcement services in
the district for a fee.
Sec. 3897.107. MEMBERSHIP IN CHARITABLE ORGANIZATIONS. The
district may join and pay dues to a charitable or nonprofit
organization that performs a service or provides an activity
consistent with the furtherance of a district purpose.
Sec. 3897.108. ECONOMIC DEVELOPMENT. (a) The district may
engage in activities that accomplish the economic development
purposes of the district.
(b) The district may establish and provide for the
administration of one or more programs to promote state or local
economic development and to stimulate business and commercial
activity in the district, including programs to:
(1) make loans and grants of public money; and
(2) provide district personnel and services.
(c) The district may create economic development programs
and exercise the economic development powers that:
(1) Chapter 380, Local Government Code, provides to a
municipality; and
(2) Subchapter A, Chapter 1509, Government Code,
provides to a municipality.
Sec. 3897.109. WATER DISTRICT POWERS. The district has the
powers provided by the general laws relating to conservation and
reclamation districts created under Section 59, Article XVI, Texas
Constitution, including Chapters 49 and 54, Water Code.
Sec. 3897.110. ROAD DISTRICT POWERS; EXCEPTION.
(a) Except as provided by Subsection (b) and Section 3897.117, the
district has the powers provided by 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.
(b) The district may exercise any power granted by this
chapter and by Chapter 441, Transportation Code, without regard to
any provision or requirement of, or procedure or maintenance tax
rate limitation prescribed by, Chapter 441, Transportation Code.
Sec. 3897.111. CONFLICT WITH MUNICIPAL RULE, ORDER, OR
ORDINANCE. To the extent a district rule conflicts with a rule,
order, or ordinance of a municipality in which the district is
located, the municipal rule, order, or ordinance controls.
Sec. 3897.112. NAME CHANGE. The board by resolution may
change the district's name. The board shall give written notice of
the change to each municipality in which the district is located.
Sec. 3897.113. 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.
Sec. 3897.114. USE OF ROADWAY, PARK, OR OTHER PUBLIC AREA OR
FACILITY OF DISTRICT. (a) The board by rule may regulate the
private use of a public roadway, open space, park, sidewalk, or
similar public area or facility in the district. A rule may provide
for the safe and orderly use of public roadways, open spaces, parks,
sidewalks, and similar public areas or facilities.
(b) The board may require a permit for a parade,
demonstration, celebration, entertainment event, or similar
nongovernmental activity in or on a public roadway, open space,
park, sidewalk, or similar public area or facility owned by the
district. The board may charge a fee for the permit application or
for public safety or security services for those facilities in an
amount the board considers necessary.
(c) The board may require a permit or franchise agreement
with a vendor, concessionaire, exhibitor, or similar private or
commercial person or organization for the limited use of the area or
facility owned by the district on terms and on payment of a permit
or franchise fee the board may impose.
Sec. 3897.115. ADDING OR REMOVING TERRITORY. As provided
by Subchapter J, Chapter 49, Water Code, the board may add territory
to the district, subject to Section 54.016, Water Code, or remove
territory from the district, except that:
(1) the addition or removal of the territory must be
approved by:
(A) the governing body of the municipality in
which the territory is located, as applicable; and
(B) the owners of the territory being added or
removed;
(2) a reference to a tax in Subchapter J, Chapter 49,
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.
Sec. 3897.116. NO EMINENT DOMAIN POWER. The district may
not exercise the power of eminent domain.
Sec. 3897.117. NO TOLL ROADS. The district may not
construct, acquire, maintain, or operate a toll road.
[Sections 3897.118-3897.150 reserved for expansion]
SUBCHAPTER C-1. IMPROVEMENT PROJECTS
Sec. 3897.151. MUNICIPAL REQUIREMENTS. (a) An
improvement project in a municipality must comply with any
applicable municipal requirements, including codes and ordinances.
(b) The district may not provide, conduct, or authorize any
improvement project on the municipality's streets, highways,
rights-of-way, or easements without the consent of the governing
body of that municipality.
Sec. 3897.152. BOARD DETERMINATION REQUIRED. The district
may not undertake an improvement project unless the board
determines the project to be necessary to accomplish a public
purpose of the district.
Sec. 3897.153. LOCATION OF IMPROVEMENT PROJECT. An
improvement project may be inside or outside the district.
Sec. 3897.154. LAKE. For the purposes of this subchapter,
planning, design, construction, improvement, or maintenance of a
lake includes work done for drainage, reclamation, or recreation.
Sec. 3897.155. WATER. (a) An improvement project may
include 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.
(b) The district may plan, design, construct, improve,
maintain, or operate a water or sewer facility under this section.
Sec. 3897.156. ROADS. An improvement project may include a
paved, macadamized, or graveled road or street inside and outside
the district, to the full extent authorized by Section 52, Article
III, Texas Constitution.
Sec. 3897.157. STORM WATER. An improvement project may
include protection and improvement of the quality of storm water
that flows through the district.
Sec. 3897.158. PARKING OR HELIPORT. An improvement project
may include the planning, design, construction, improvement,
maintenance, and operation of an off-street parking facility or
heliport.
Sec. 3897.159. EDUCATION AND CULTURE. An improvement
project may include the planning and acquisition of:
(1) public art and sculpture and related exhibits and
facilities; or
(2) an educational facility and a cultural exhibit or
facility.
Sec. 3897.160. CONVENTION CENTER. An improvement project
may include the planning, design, construction, acquisition,
lease, rental, improvement, maintenance, installation, and
management of and provision of furnishings for a facility for:
(1) a conference, convention, or exhibition;
(2) a manufacturer, consumer, or trade show;
(3) a civic, community, or institutional event; or
(4) an exhibit, display, attraction, special event, or
seasonal or cultural celebration or holiday.
Sec. 3897.161. DEMOLITION. An improvement project may
include the removal, razing, demolition, or clearing of land or
improvements in connection with an improvement project.
Sec. 3897.162. MITIGATION OF ENVIRONMENTAL EFFECTS. An
improvement project may include the acquisition and improvement of
land or other property for the mitigation of the environmental
effects of an improvement project.
Sec. 3897.163. ACQUISITION OF PROPERTY. If the governing
body of the municipality where the improvement project is located
consents, an improvement project may include the acquisition of
property or an interest in property in connection with an
improvement project, including a project authorized by Subchapter
A, Chapter 372, Local Government Code.
Sec. 3897.164. SPECIAL OR SUPPLEMENTAL SERVICES. An
improvement project may include 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:
(1) advertising;
(2) promotion;
(3) tourism;
(4) health and sanitation;
(5) public safety;
(6) security;
(7) fire protection or emergency medical services;
(8) business recruitment;
(9) development;
(10) the elimination of traffic congestion; and
(11) recreational, educational, or cultural
improvements, enhancements, and services.
Sec. 3897.165. MISCELLANEOUS DESIGN, CONSTRUCTION, AND
MAINTENANCE. An improvement project may include the planning,
design, construction, improvement, and maintenance of:
(1) landscaping;
(2) highway right-of-way or transit corridor
beautification and improvement;
(3) lighting, banners, and signs;
(4) a street or sidewalk;
(5) a hiking and cycling path or trail;
(6) a pedestrian walkway, skywalk, crosswalk, or
tunnel;
(7) a park, lake, garden, recreational facility,
community activities center, dock, wharf, sports facility, open
space, scenic area, or related exhibit or preserve;
(8) a fountain, plaza, or pedestrian mall; or
(9) a drainage or storm water detention improvement.
Sec. 3897.166. SIMILAR IMPROVEMENT PROJECTS. An
improvement project may include a public improvement, facility, or
service similar to a project described by this subchapter.
[Sections 3897.167-3897.200 reserved for expansion]
SUBCHAPTER C-2. CONTRACTS
Sec. 3897.201. GENERAL CONTRACT POWERS. The district may
contract with any person, including a municipality or county in
which the district is located, to accomplish any district purpose.
Sec. 3897.202. CONTRACT TERMS. (a) In this section,
"note" includes a bond anticipation note.
(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 an obligation to issue a negotiable or
nonnegotiable note or warrant payable to a municipality, a county,
or any other person for the payment or reimbursement of any district
costs.
Sec. 3897.203. REIMBURSEMENT OF COSTS. The district may
contract with any person for the payment, repayment, or
reimbursement of costs incurred by that person on behalf of the
district, including all or part of the costs of an improvement
project and interest on the reimbursed cost.
Sec. 3897.204. CONTRACT FOR IMPROVEMENT PROJECT. (a) The
district may contract with any person for the use, occupancy,
lease, rental, operation, maintenance, or management of all or part
of a proposed or existing improvement project.
(b) The district may 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.
[Sections 3897.205-3897.250 reserved for expansion]
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
Sec. 3897.251. PROJECT DEVELOPMENT AGREEMENT REQUIRED TO
IMPOSE TAXES OR BORROW MONEY, INCLUDING BONDS. Before the district
may issue bonds, impose taxes, or borrow money, the district and
each municipality in which the district is located must negotiate
and execute a project development agreement regarding the
development plans and rules for:
(1) the development and operation of the district; and
(2) the financing of improvement projects.
Sec. 3897.252. ELECTIONS REGARDING TAXES AND BONDS.
(a) The district may issue, without an election, bonds, notes, and
other obligations secured by revenue other than ad valorem taxes.
(b) The district must hold an election in the manner
provided by Subchapter L, Chapter 375, Local Government Code, to
obtain voter approval before the district may impose an ad valorem
tax or issue bonds payable from ad valorem taxes.
(c) Section 375.243, Local Government Code, does not apply
to the district.
(d) All or any part of any facilities or improvements that
may be acquired by a district by the issuance of its bonds may be
submitted as a single proposition or as several propositions to be
voted on at the election.
Sec. 3897.253. AUTHORITY TO BORROW MONEY AND TO ISSUE
BONDS. (a) The district may borrow money on terms determined by
the board. Section 375.205, Local Government Code, does not apply
to a loan, line of credit, or other borrowing from a bank or
financial institution secured by revenue other than ad valorem
taxes.
(b) The district may issue bonds, notes, or other
obligations payable wholly or partly from ad valorem taxes,
assessments, impact fees, revenue, contract payments, grants, or
other district money, or any combination of those sources of money,
to pay for any authorized district purpose.
Sec. 3897.254. ASSESSMENTS. (a) The district may impose
an assessment on property in the district to pay the cost or the
cost of maintenance of any authorized district improvement in the
manner provided for:
(1) a district under Subchapters A, E, and F, Chapter
375, Local Government Code; or
(2) a municipality or county under Subchapter A,
Chapter 372, Local Government Code.
(b) An assessment, a reassessment, or an assessment
resulting 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.
(c) The lien of an assessment against property runs with the
land. 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, and 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 the lien's payment under the applicable assessment
ordinance or order.
(d) 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.
Sec. 3897.255. PETITION REQUIRED FOR FINANCING SERVICES AND
IMPROVEMENTS WITH ASSESSMENTS. (a) The board may not finance a
service or improvement project with assessments under this chapter
unless a written petition requesting that service or improvement
has been filed with the board.
(b) A petition filed under Subsection (a) must be signed by
the owners of a majority of the assessed value of real property in
the district subject to assessment according to the most recent
certified tax appraisal roll for the county.
Sec. 3897.256. IMPACT FEES; EXEMPTION. (a) The district
may impose an impact fee on property in the district, including an
impact fee on residential or commercial property, only in the
manner provided by Subchapter A, Chapter 372, or Subchapter F,
Chapter 375, Local Government Code, for a municipality or county.
(b) An impact fee for residential property must be for the
limited purpose of providing capital funding for:
(1) public water and wastewater facilities;
(2) drainage and storm water facilities; and
(3) streets and alleys.
(c) The district may not impose an impact fee on the
property, including equipment and facilities, of a public utility
provider in the district.
Sec. 3897.257. STORM WATER USER CHARGES. The district may
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.
Sec. 3897.258. NONPOTABLE WATER USER CHARGES. The district
may establish user charges for the use of nonpotable water for
irrigation purposes, subject to approval of the governing body of
the municipality in which the user is located.
Sec. 3897.259. COSTS FOR IMPROVEMENT PROJECTS. The
district may undertake separately or jointly with other persons,
including a municipality or county in which the district is
located, all or part of the cost of an improvement project,
including an improvement project:
(1) 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
(2) that confers a general benefit on the entire
district or a special benefit on a definable part of the district.
Sec. 3897.260. RESIDENTIAL PROPERTY NOT EXEMPT. Section
375.161, Local Government Code, does not apply to the district.
[Sections 3897.261-3897.300 reserved for expansion]
SUBCHAPTER E. TAXES AND BONDS
Sec. 3897.301. PROPERTY TAX AUTHORIZED. The district may
impose an ad valorem tax on all taxable property in the district,
including industrial, commercial, and residential property, to:
(1) pay for an improvement project of the types
authorized by Section 52, Article III, and Section 59, Article XVI,
Texas Constitution; or
(2) secure the payment of bonds issued for a purpose
described by Subdivision (1).
Sec. 3897.302. TAXES FOR BONDS AND OTHER OBLIGATIONS;
ELECTION. (a) If the district issues bond anticipation notes
payable from future bond proceeds that are payable wholly or partly
from an ad valorem tax, the bonds must have been previously approved
at an election and meet the requirements of this section.
(b) 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, without limit as to rate or amount, 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;
(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; and
(C) pay the expenses of imposing the taxes.
(c) Bonds or other obligations that are secured by and
payable from ad valorem taxes may not be issued unless the bonds and
the imposition of the taxes are approved by a majority of the
district voters voting at an election held for that purpose.
(d) The district shall hold an election required by this
section in the manner provided by Chapter 54, Water Code, and the
Election Code.
Sec. 3897.303. 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.
(b) The district may not impose a maintenance and operation
tax unless the tax is approved by a majority of the district voters
voting at an election held for that purpose. The proposition in a
maintenance and operation tax election may be for a specific
maximum rate or for an unlimited rate. If a maximum tax rate is
approved, the board may impose the tax at any rate that does not
exceed the approved rate.
(c) A maintenance and operation 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.
Sec. 3897.304. USE OF SURPLUS MAINTENANCE AND OPERATION
MONEY. If the district has 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.
Sec. 3897.305. TAX ABATEMENT. The district may enter into a
tax abatement agreement in accordance with the general laws of this
state authorizing and applicable to a tax abatement agreement by a
municipality.
Sec. 3897.306. BONDS AND OTHER OBLIGATIONS; MUNICIPAL
APPROVAL. (a) The district by competitive bid or negotiated sale
may issue bonds, notes, or other obligations payable wholly or
partly from ad valorem taxes, future bond proceeds, or assessments
in the manner provided by Subchapter A, Chapter 372, 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, including a bond anticipation 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.
(c) In addition to the sources of money described by
Subchapter A, Chapter 372, 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 revenue or from any other
source, including future bond proceeds.
Sec. 3897.307. BOND MATURITY. Bonds may mature not more
than 40 years from their date of issue.
[Sections 3897.308-3897.350 reserved for expansion]
SUBCHAPTER F. DISSOLUTION
Sec. 3897.351. DISSOLUTION BY MUNICIPAL ORDINANCE. The
largest municipality in which the district is located may dissolve
the district by ordinance.
Sec. 3897.352. LIMITATION ON DISSOLUTION. The municipality
may not dissolve the district until:
(1) the district's outstanding bonds have been repaid
or defeased;
(2) the district's outstanding debt or contractual
obligations that are payable from ad valorem taxes have been repaid
or discharged; and
(3) each agreement under Section 3897.251 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.
Sec. 3897.353. COLLECTION OF ASSESSMENTS AND OTHER REVENUE.
(a) If the dissolved district has obligations, other than bonds,
outstanding secured by and payable from assessments or other
revenue, other than ad valorem taxes, the municipality in which the
project that generated the revenue is located shall succeed to the
rights and obligations of the district regarding enforcement and
collection of the assessments or other revenue.
(b) The municipality shall have and exercise all district
powers to enforce and collect the assessments or other revenue to
pay:
(1) the obligations when due and payable according to
their terms; or
(2) special revenue or assessment bonds or other
obligations issued by the municipality to refund the outstanding
obligations.
Sec. 3897.354. ASSUMPTION OF ASSETS AND LIABILITIES.
(a) After the municipality dissolves the district, the
municipality assumes the obligations of the district, including any
debt payable from assessments or other district revenue.
(b) If the municipality dissolves the district, the board
shall transfer ownership of all district property to the
municipality in which the property is located, or if the property is
not located in a municipality, to the county in which the property
is located.
SECTION 2. The district shall include the following land,
described by metes and bounds as follows:
All that certain tract or parcel of land lying and being
situate in the City of Nacogdoches, Nacogdoches County, Texas on
the SAMUEL MARSHALL SURVEY, A-365, being part of a 98.4 acre tract
described as 1st Tract of Second Tract, part of a 34.1 acre tract
described as Third Tract, part of a 7.111 acre tract described as
Fifth Tract, and part of a 13.592 acre tract described as Seventh
Tract in a deed from C.S. Jones, et ux, to Lone Star Breeder Farm,
Inc., dated January 24, 1958, recorded in Volume 272, Page 359 of
the DRNCT, and part of a 240.7 acre tract described as First Tract
in a deed from Christian Medical Foundation, Inc., to Lone Star
Breeder Farm, Inc., recorded in Volume 334, Page 122 of the DRNCT,
and more particularly described as follows:
BEGINNING at a 1-1/2" iron pipe found at the base of a fence
corner post for the SWC of the Kenbrook North Addition, recorded in
Volume 3, Page 5-7 of the Plat Records of Nacogdoches County, Texas
(PRNCT), the NWC of the 13.592 acre tract, and in the EBL of the 98.4
acre tract;
THENCE N 86°12'34" E (called N 86°45' E in 272/359 and N
89°36'53" E in 3/5-7 PRNCT) with the NBL of the 13.592 acre tract and
the SBL of Kenbrook North Addition, at 286.9 feet pass a point 1.7
feet south of a 3/4" iron rod found, at 406.6 feet pass a point 0.3
feet north of a 1/2" iron rod found, at 525.6 feet pass a point 1.4
feet south of a 3/4" iron rod found, at 766.6 feet pass a point 1.0
feet south of a 3/4" iron pipe found, at 886.6 feet pass a point 0.5
feet south of a 5/8" iron rod found, and in all 992.29 feet (called
1119.4' in 272/359 and 994.65' in 3/5-7 PRNCT) to a 2" iron pipe
found for angle corner in the SBL of Kenbrook North Addition, the
occupied NEC of the 13.592 acre tract, the NWC of a 11.3 acre tract
described as Tract Two in a deed from Texas Service Life Insurance
Company to Lyle Thorstenson, et ux, dated November 4, 1992,
recorded in Volume 828, Page 30 of the DRNCT;
THENCE S 06°42'53" W (called S 10° W in 272/359 and S 11° W in
828/30) with the occupied EBL of the 13.592 acre tract and the WBL
of the 11.3 acre tract, at 362.61 feet pass a 3/8" iron rod found for
the SWC of the 11.3 acre tract and the NWC of a 10.39 acre tract
described in a deed from Tom Jones to Charles Logan, et ux, dated
July 22, 1966, recorded in Volume 337, Page 372 of the DRNCT, and in
all 382.11 feet to a point for corner in the centerline of a branch
and the WBL of the 10.39 acre tract;
THENCE with the meanders of the centerline of said branch as
follows:
1. S 82°09'36" W, 50.72 feet; 2. S 48°54'39" W, 35.18 feet;
3. S 34°22'24" W, 29.53 feet; 4. S 74°58'24" W, 18.52 feet;
5. S 49°38'26" W, 43.35 feet; 6. S 00°39'30" W, 39.58 feet;
7. S 55°24'09" W, 48.03 feet; 8. S 04°28'22" W, 45.81 feet;
9. S 56°30'54" W, 15.88 feet; 10. N 69°22'31" W, 46.25 feet;
11. S 55°31'51" W, 61.21 feet; 12. S 70°31'12" W, 100.13 feet;
13. S 85°50'02" W, 34.33 feet; 14. N 58°03'58" W, 51.81 feet;
15. S 79°38'09" W, 59.16 feet; 16. N 79°34'50" W, 57.07 feet;
17. N 62°50'24" W, 44.62 feet; 18. N 70°59'09" W, 29.20 feet;
19. N 46°17'24" W, 22.76 feet; 20. S 46°05'11" W, 106.77 feet;
21. N 52°48'49" W, 76.41 feet; 22. N 24°49'49" W, 32.59 feet;
23. N 68°46'25" W, 89.22 feet; 24. N 55°51'25" W, 44.31 feet;
25. N 60°43'07" W, 63.64 feet; 26. N 83°43'02" W, 76.64 feet;
27. N 39°08'20" W, 45.76 feet; 28. S 64°00'08" W, 55.43 feet;
29. S 78°15'18" W, 51.35 feet; 30. N 65°17'01" W, 40.20 feet;
31. N 51°25'37" W, 34.71 feet; 32. S 53°55'17" W, 95.66 feet;
33. S 64°46'48" W, 56.59 feet; 34. S 78°49'38" W, 60.02 feet;
35. N 84°08'55" W, 71.77 feet; 36. N 40°23'53" W, 27.74 feet;
37. N 60°00'50" W, 58.49 feet; 38. S 89°23'46" W, 38.39 feet;
39. S 51°47'35" W, 33.00 feet; 40. S 83°31'21" W, 29.43 feet;
41. S 41°10'09" W, 14.48 feet; 42. S 83°39'36" W, 22.67 feet;
43. N 20°02'08" W, 16.80 feet; 44. N 08°24'01" W, 14.46 feet;
45. N 65°25'57" W, 53.59 feet; 46. N 38°34'52" W, 33.98 feet;
47. N 76°14'16" W, 54.42 feet; 48. N 81°16'42" W, 44.12 feet;
49. N 60°00'12" W, 99.63 feet; 50. N 72°59'23" W, 68.62 feet;
51. N 68°45'56" W, 80.15 feet; 52. N 43°13'00" E, 40.35 feet;
53. N 78°25'21" W, 49.93 feet; 54. N 59°59'25" W, 60.28 feet;
55. N 49°49'20" W, 69.27 feet; 56. N 69°07'16" W, 53.13 feet
to a point for corner in the EBL of Lot 2, University Park
Subdivision, recorded in Volume 5, Page 33 of the PRNCT, from which
a 1/2" iron rod found for witness bears N 01°12'28" E, 30.00 feet;
THENCE N 01°12'28" E, 140.44 feet (called N 04°39'37" E in 5/33
PRNCT) with the EBL of Lot 2 to a 1" iron pipe found for corner, from
which a Tallow snag bears S 54~ W, 2.0 feet;
THENCE N 88°44'28" W (called N 85°23'52" W in 5/33 PRNCT),
75.00 feet with the NBL of Lot 2 to a 1/2" iron rod found for corner;
THENCE N 01°10'22" E, 345.85 feet to a 1/2" iron rod set for
corner in the SBL of a 4.145 acre tract described in a deed from Lone
Star Breeder Farm, Inc., to the City of Nacogdoches, dated July 16,
2007, recorded in Volume 2693, Page 177 of the DRNCT, said 4.145
acre tract being the right-of-way for Maroney Drive;
THENCE with the SBL of the 4.145 acre tract as follows:
1. S 88°49'38" E, 189.84 feet to a 1/2" iron rod set for
corner;
2. Northeasterly, 399.38 feet with a tangent curve to the
left having a radius of 527.35 feet, a central angle of 43°23'31",
and a chord of N 69°28'36" E, 389.90 feet to a 1/2" iron rod set for
corner;
3. N 86°47'25" E, 25.99 feet to a 1/2" iron rod set for
corner;
4. N 41°47'25" E, 73.31 feet to a 1/2" iron rod set for
corner;
5. N 03°12'35" W, 21.92 feet to a 1/2" iron rod set for
corner;
6. N 41°47'25" E, 151.81 feet to a 1/2" iron rod found for
corner;
7. Northeasterly, 388.82 feet with a tangent curve to the
right, having a radius of 472.65 feet, a central angle of 47°08'02",
and a chord of N 65°21'26" E, 377.95 feet to a 1/2" iron rod found
for corner;
8. N 88°55'28" E, 37.19 feet to a 1/2" iron rod set for
corner;
9. S 46°04'33" E, 21.92 feet to a 1/2" iron rod set for
corner;
10. N 88°55'28" E, 73.31 feet to a 1/2" iron rod set for
corner;
11. N 43°55'27" E, 21.92 feet to a 1/2" iron rod set for
corner;
12. N 88°55'28" E, at 296.5 feet pass a wire fence, and in all
304.32 feet to an "X" found chiseled in a concrete drive at the most
easterly SEC of the 4.145 acre tract, in the WBL of Kenbrook North
Addition and the EBL of the 240.7 acre tract;
THENCE S 07°05'37" W (called S 10° W), at 141.3 feet pass a
point 1.1 feet east of a 3/8" iron rod, at 240.2 feet pass a point
0.6 feet east of a 1/2" iron rod, at 360.2 feet pass a point 0.7 feet
east of a 1/2" pipe, and in all 876.83 feet to the place of BEGINNING
containing within these calls 44.34 acres.
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2011.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 1184 passed the Senate on
May 4, 2011, by the following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 1184 passed the House on
May 19, 2011, by the following vote: Yeas 148, Nays 0, one
present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor
Pos. No. Name of Director
1 Charles F. Jordan
2 Darren Woody
3 Rob Hutchison
4 Joe Geer
5 Nick Craig