Texas Senate Bill SB2176

Texas 2021 - 87th Regular

Caption

Relating to the powers and duties of the Franklin County Water District; providing authority to issue bonds.

Impact

The impact of SB2176 on state laws is significant, as it seeks to enhance the operational efficacy of the Franklin County Water District in managing water resources. By empowering the district to issue bonds for road projects, the legislation aims to improve local infrastructure, potentially leading to enhanced water distribution systems and flood management. Additionally, the one-fourth limitation on the principal amount of bonds relating to the assessed value of real property serves to ensure fiscal responsibility within the district’s financial practices. This move is seen as a positive step towards modernizing the district's capabilities to meet the growing needs of its constituents.

Summary

SB2176 relates to the powers and duties of the Franklin County Water District and provides it the authority to issue bonds. The bill amends existing legislation regarding the operational mandate of the Water District, empowering it to manage the control, preservation, and distribution of water resources effectively. Notably, the bill ensures that the district has the authority to issue bonds or obligations for specific road projects that may be entirely or partially financed through ad valorem taxes, revenue from contracts, or grants. This means that the district can secure funding essential for improving local infrastructure, thereby facilitating better resource management and service delivery to communities within its jurisdiction.

Contention

While the bill is largely supportive of enhanced infrastructure and effective water management, there may be points of contention regarding fiscal oversight and local governance. Critics may argue that increasing the district's powers to issue bonds could lead to debt accumulation that may not benefit the local community directly. Additionally, the requirement for a two-thirds majority vote for issuing ad valorem tax-backed bonds could spark debate concerning democratic representation and budgeting priorities within the district. These considerations highlight the need for transparency and accountability in the district's financial operations and governance structure.