Relating to the creation of the Honey Creek Improvement District No. 1; providing authority to issue bonds; providing authority to impose assessments and fees.
The establishment of the Honey Creek Improvement District No. 1 will allow for the expansion of urban infrastructure and improvement initiatives without the need for local government funding through ad valorem taxes. Notably, the bill explicitly prohibits the district from imposing an ad valorem tax, which may reduce the financial burden on local property owners. The district will enable financial mechanisms such as issuing bonds secured by revenue other than ad valorem taxes, which is essential for funding public projects and improvements effectively.
House Bill 51 aims to establish the Honey Creek Improvement District No. 1 in McKinney, Texas. This bill provides the district with the authority to impose assessments and fees, as well as the power to issue bonds to finance various improvements and services as needed. The primary goal of the bill is to promote economic development within the district by enhancing infrastructure, which may include water, wastewater, and recreational facilities. By creating this special district, the bill aims to increase the overall economic vitality of the area, benefitting both residents and businesses alike.
Overall, the sentiment around HB 51 appears to be positive among proponents who argue that such districts are vital for stimulating local economies and enhancing public services. However, there may be concerns regarding potential governance issues, such as oversight of the board of directors and the decision-making processes related to development projects. The sentiment also underscores the necessity for careful consideration of how the district interacts with existing municipal services to ensure it supplements rather than supplants local governance.
Debate surrounding the bill might arise from concerns over governance and accountability within the new special district. Opponents may raise issues regarding the lack of checks and balances, given that the district’s board of directors is composed of five elected members who would oversee significant financial decisions without direct oversight from the city. Additionally, while the bill states that the district must not exercise the power of eminent domain, there may still be apprehension about the potential impact on local property rights and the nature of developments that could arise from district strategies.
Local Government Code
Water Code
Tax Code