CHAPTER 8183. DELTA COUNTY MUNICIPAL UTILITY DISTRICT - Texas Statutes

SPECIAL DISTRICT LOCAL LAWS CODE

TITLE 6. WATER AND WASTEWATER

SUBTITLE F. MUNICIPAL UTILITY DISTRICTS

CHAPTER 8183. DELTA COUNTY MUNICIPAL UTILITY DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8183.001. DEFINITIONS. In this chapter:

(1) "Board" means the board of directors of the district.

(2) Repealed by Acts 2009, 81st Leg., R.S., Ch. 87, Sec. 21.072,

eff. September 1, 2009.

(3) "Director" means a member of the board.

(4) "District" means the Delta County Municipal Utility

District.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.10, eff. April 1, 2009.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

87, Sec. 21.072, eff. September 1, 2009.

Sec. 8183.002. NATURE OF DISTRICT. The district is a municipal

utility district and a conservation and reclamation district

created under Section 59, Article XVI, Texas Constitution.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.10, eff. April 1, 2009.

Sec. 8183.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) All

territory in the district will benefit from the works and

improvements of the district.

(b) The accomplishment of the purposes stated in this chapter is

for the benefit of the people of this state for the improvement

of their property and industries. In carrying out the purposes

of this chapter, the district will be performing an essential

public function under the constitution.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.10, eff. April 1, 2009.

SUBCHAPTER B. DISTRICT TERRITORY AND ANNEXATIONS

TO DISTRICT TERRITORY

Sec. 8183.051. DISTRICT TERRITORY. The boundaries of the

district are coextensive with the boundaries of Delta County

unless the district territory has been modified under this

subchapter or other law.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.10, eff. April 1, 2009.

Sec. 8183.052. ANNEXATION OF TERRITORY. (a) The board may

annex territory if a petition requesting annexation is signed by

a majority of the registered voters of the territory who own

taxable property in the territory and is filed with the board.

The petition must describe the territory to be annexed by metes

and bounds, or otherwise, except that if the territory is the

same as that contained in the boundaries of a municipality, the

petition is sufficient if it states that the territory to be

annexed is the territory contained in the municipal boundaries.

(b) If the board determines that the petition complies with

Subsection (a), the board shall:

(1) adopt a resolution stating the conditions, if any, under

which the territory may be annexed to the district; and

(2) set a time and place to hold a hearing on the question of

whether the territory to be annexed will benefit from the

improvements, works, or facilities owned or operated or

contemplated to be owned or operated by the district.

(c) At least 10 days before the date of the hearing, notice of

the adoption of the resolution stating the time and place of the

hearing and addressed to the citizens and owners of property in

the territory to be annexed shall be published one time in a

newspaper designated by the board that is of general circulation

in the territory to be annexed. The notice must describe the

territory in the same manner in which Subsection (a) requires the

petition to describe the territory.

(d) Any interested person may appear at the hearing and offer

evidence for or against the annexation.

(e) The hearing may proceed in the order and under the rules

prescribed by the board and may be recessed from time to time.

(f) If, at the conclusion of the hearing, the board finds that

the land in the territory will benefit from the present or

contemplated improvements, works, or facilities of the district,

the board may adopt a resolution annexing the territory to the

district.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.10, eff. April 1, 2009.

Sec. 8183.053. RESTRICTION ON ANNEXATION OF RAILROAD

RIGHT-OF-WAY. (a) A railroad right-of-way may not be annexed to

the district unless the right-of-way is contained in the limits

of a municipality annexed at the same time or previously annexed

to the district.

(b) A railroad right-of-way that is not in the limits of a

municipality will not benefit from improvements, works, and

facilities the district is authorized to construct.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.10, eff. April 1, 2009.

SUBCHAPTER C. BOARD OF DIRECTORS

Sec. 8183.101. QUALIFICATIONS FOR OFFICE. (a) A person may not

be appointed a director unless the person resides in Delta County

or in a county all or a portion of which is contained in the

district.

(b) A person may not be appointed a director unless the person

resides in and owns taxable property in the district.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.10, eff. April 1, 2009.

Sec. 8183.102. APPOINTMENT OF SECRETARY AND TREASURER. The

board shall appoint a secretary and a treasurer, who are not

required to be directors. The board may combine the offices of

secretary and treasurer.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.10, eff. April 1, 2009.

Sec. 8183.103. VOTE BY BOARD PRESIDENT. The president has the

same right to vote as any other director. The vice president may

not exercise the president's right to vote.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.10, eff. April 1, 2009.

Sec. 8183.104. DIRECTOR'S AND TREASURER'S BOND. (a) Each

director shall give bond in the amount of $5,000 conditioned on

the faithful performance of the director's duties.

(b) The treasurer shall give bond in the amount required by the

board. The treasurer's bond shall be conditioned on the

treasurer's faithful accounting for all money that comes into the

treasurer's custody as treasurer of the district.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.10, eff. April 1, 2009.

Sec. 8183.105. COMPENSATION. Unless the board by resolution

increases the fee to an amount authorized by Section 49.060,

Water Code, each director:

(1) shall receive a fee for attending each meeting of the board

not to exceed $20 for a meeting or $40 in one calendar month; and

(2) is entitled to an additional amount not to exceed $20 for

each day that the director devotes to serving the business of the

district if the service is expressly approved by the board.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.10, eff. April 1, 2009.

SUBCHAPTER D. GENERAL POWERS AND DUTIES

Sec. 8183.151. CONTRACTS TO SUPPLY WATER OR SEWAGE SERVICES.

(a) The district may contract with a municipality or other

entity to supply to the entity water or sewage transportation,

treatment, or disposal services.

(b) The district may contract with a municipality for the rental

or leasing of or for the operation of the municipality's water

production, water supply, water filtration or purification, or

water supply facilities or the municipality's sewage collection,

treatment, and disposal system on the consideration agreed to by

the district and the municipality.

(c) The contract may be on terms and for the time agreed to by

the parties.

(d) The contract may provide that it will continue in effect

until bonds specified in it and refunding bonds issued in lieu of

the bonds are paid.

(e) The district may contract with a municipality for the

operation of the district's water and sewer system by the

municipality.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.10, eff. April 1, 2009.

Sec. 8183.152. ACQUISITION OF LAND AND OTHER PROPERTY. The

district may acquire the fee simple title to land and other

property or easements inside or outside the district and may

construct, lease, or otherwise acquire all works, plants, and

other facilities necessary or useful to:

(1) divert, impound, store, or treat water for, or transport

water to, municipalities and others inside or outside the

district for municipal, domestic, industrial, or mining purposes;

or

(2) provide sewage collection, transportation, treatment, or

disposal services to municipalities and others inside or outside

the district.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.10, eff. April 1, 2009.

Sec. 8183.153. CONSTRUCTION CONTRACTS. (a) The district may

award a construction contract that requires an expenditure of

more than $5,000 only after publication of notice to bidders once

each week for two weeks in a newspaper of general circulation in

the district that is designated or approved by the board.

(b) The notice is sufficient if it states:

(1) the time and place for opening the bids;

(2) the general nature of the work to be done or the material,

equipment, or supplies to be purchased; and

(3) the place where and the terms on which copies of the plans

and specifications may be obtained.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.10, eff. April 1, 2009.

Sec. 8183.154. SURPLUS PROPERTY. Subject to the terms of a deed

of trust issued by the district, the district may sell, trade, or

otherwise dispose of property the board considers not needed for

district purposes.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.10, eff. April 1, 2009.

Sec. 8183.155. EMINENT DOMAIN. (a) To carry out a power

provided by this chapter, the district may exercise the power of

eminent domain to acquire the fee simple title to land and other

property and easements, inside or outside the district, including

land needed for a reservoir, dam, or flood easement above the

probable high-water line around a reservoir.

(b) The district must exercise the power of eminent domain in

the manner provided by Chapter 21, Property Code.

(c) The district is a municipal corporation for the purposes of

Chapter 21, Property Code.

(d) The district may not exercise the power of eminent domain to

acquire property owned by any other political subdivision.

(e) In exercising the power of eminent domain against a person

that has the power of eminent domain or a receiver or trustee for

that person, the district may acquire an easement only and not

the fee title.

(f) The board shall determine the amount of and the type of

interest in land, other property, or easements to be acquired

under this section.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.10, eff. April 1, 2009.

Sec. 8183.156. COST OF RELOCATING PROPERTY. If the district's

exercise of any power granted under this chapter makes necessary

relocating, raising, rerouting or changing the grade of, or

altering the construction of any highway, railroad, electric

transmission line, telephone or telegraph property and facility,

or pipeline, the action shall be accomplished at the sole expense

of the district.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.10, eff. April 1, 2009.

SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS

Sec. 8183.201. DEPOSITORY. (a) The board shall designate one

or more banks inside or outside the district to serve as

depository for district money.

(b) All district money shall be deposited in a designated

depository, except that:

(1) bond proceeds and money pledged to pay bonds, to the extent

provided in the indenture, may be deposited with the trustee bank

named in the trust indenture; and

(2) money shall be remitted to the bank of payment for the

payment of principal of and interest on the bonds.

(c) To the extent that money in a depository bank or the trustee

bank is not insured by the Federal Deposit Insurance Corporation,

the money must be secured in the manner provided by law for the

security of county funds.

(d) The board shall prescribe the terms of service for

depositories.

(e) Before designating a depository bank, the board shall:

(1) publish notice one time in a newspaper of general

circulation in the district that is specified by the board; or

(2) mail a copy of the notice to each bank in the district.

(f) The notice must:

(1) state the time and place at which the board will meet to

designate a depository bank or banks; and

(2) invite each bank in the district to submit an application to

be designated as a depository.

(g) At the time stated in the notice, the board shall:

(1) consider the applications and the management and condition

of each bank; and

(2) designate as a depository the bank or banks:

(A) that offer the most favorable terms for the handling of the

money; and

(B) that the board finds have proper management and are in

condition to handle the money.

(h) Membership on the board of an officer or director of a bank

does not disqualify the bank from being designated as a

depository.

(i) If the board does not receive any applications before the

time stated in the notice, the board shall designate one or more

banks inside or outside the district on terms that the board

finds advantageous to the district.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.10, eff. April 1, 2009.

Sec. 8183.202. TAX ASSESSOR AND COLLECTOR. Before the sale and

delivery of district bonds payable wholly or partly from ad

valorem taxes, the board may appoint a tax assessor and

collector.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.10, eff. April 1, 2009.

Sec. 8183.203. PROJECTS EXEMPT FROM ASSESSMENT OR TAXATION. The

district is not required to pay a tax or assessment on a project

or any part of a project.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.10, eff. April 1, 2009.

SUBCHAPTER F. BONDS

Sec. 8183.251. AUTHORITY TO ISSUE BONDS. The district may issue

bonds to carry out any power conferred by this chapter. The

bonds must be authorized by a board resolution.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.10, eff. April 1, 2009.

Sec. 8183.252. FORM OF BONDS. A district bond must be:

(1) issued in the district's name;

(2) signed by the president or vice president; and

(3) attested by the secretary.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.10, eff. April 1, 2009.

Sec. 8183.253. MATURITY. District bonds must mature not later

than 40 years after their date of issuance.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.10, eff. April 1, 2009.

Sec. 8183.254. ELECTION FOR BONDS PAYABLE FROM AD VALOREM TAX.

(a) Bonds, other than refunding bonds, payable wholly or partly

from ad valorem taxes may not be issued unless authorized by a

majority of the district voters voting at an election.

(b) The board may order an election under this section without a

petition. The order must specify:

(1) the time and places at which the election will be held;

(2) the purpose for which the bonds will be issued;

(3) the maximum amount of the bonds;

(4) the maximum maturity of the bonds;

(5) the form of the ballot; and

(6) the presiding judge for each voting place.

(c) Notice of the election must be given by publishing a

substantial copy of the order calling the election in a newspaper

of general circulation in each municipality located in the

district. The notice must be published once a week for two

consecutive weeks. The first publication must be not later than

the 21st day before the date of the election.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.10, eff. April 1, 2009.

Sec. 8183.255. BONDS PAYABLE FROM REVENUE. (a) Bonds issued

under this subchapter may be secured under board resolution by a

pledge of:

(1) all or part of the net revenue of the district;

(2) the net revenue of one or more contracts made before or

after the issuance of the bonds; or

(3) other revenue or income specified by resolution of the board

or in the trust indenture.

(b) The pledge may reserve the right to issue additional bonds

on a parity with, or subordinate to, the bond being issued,

subject to conditions specified in the pledge.

(c) Bonds not payable wholly or partly from ad valorem taxes may

be issued without an election.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.10, eff. April 1, 2009.

Sec. 8183.256. BONDS PAYABLE FROM AD VALOREM TAXES. The

district may issue bonds payable, as pledged by board resolution,

from:

(1) ad valorem taxes imposed on taxable property in the

district; or

(2) ad valorem taxes and revenue of the district.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.10, eff. April 1, 2009.

Sec. 8183.257. TAX AND RATE REQUIREMENTS. (a) If the district

issues bonds payable wholly or partly from ad valorem taxes, the

board shall impose a tax sufficient to pay the bonds and the

interest on the bonds as the bonds and interest become due. The

board may adopt the rate of the tax after considering the money

received from the other pledged revenue available for payment of

principal and interest to the extent and in the manner permitted

by the resolution authorizing the issuance of the bonds.

(b) If the district issues bonds payable wholly or partly from

revenue, the board shall set and revise the rates of compensation

for water sold and services rendered by the district.

(c) For bonds payable wholly from revenue, the rates of

compensation must be sufficient to:

(1) pay the expense of operating and maintaining the facilities

of the district;

(2) pay the bonds as they mature and the interest as it accrues;

and

(3) maintain the reserve and other funds as provided in the

resolution authorizing the issuance of the bonds.

(d) For bonds payable partly from revenue, the rates of

compensation must be sufficient to assure compliance with the

resolution authorizing the issuance of the bonds or the trust

indenture securing the bonds.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.10, eff. April 1, 2009.

Sec. 8183.258. ADDITIONAL SECURITY. (a) Bonds not payable

wholly from ad valorem taxes may be additionally secured, at the

discretion of the board, by a deed of trust or mortgage lien on

physical property of the district, franchises, easements, water

rights and appropriation permits, leases, contracts, and all

rights appurtenant to the property, vesting in the trustee the

power to:

(1) sell the property for the payment of the debt;

(2) operate the property; and

(3) take other action to further secure the bonds.

(b) A purchaser under a sale under the deed of trust lien, if

one is given:

(1) is the absolute owner of property, facilities, and rights

purchased; and

(2) is entitled to maintain and operate the property,

facilities, and rights.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.10, eff. April 1, 2009.

Sec. 8183.259. TRUST INDENTURE. (a) A bond issued under this

subchapter, including a refunding bond, that is not payable

wholly from ad valorem taxes may be additionally secured by a

trust indenture. The trustee may be a bank with trust powers

located inside or outside this state.

(b) A trust indenture, regardless of the existence of the deed

of trust or mortgage lien on the property, may:

(1) provide for the security of the bonds and the preservation

of the trust estate in the manner prescribed by the board;

(2) provide for amendment or modification of the trust

indenture;

(3) provide for the issuance of bonds to replace lost or

mutilated bonds;

(4) condition the right to spend district money or sell district

property on the approval of a licensed engineer selected as

provided by the trust indenture; and

(5) provide for the investment of district money.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.10, eff. April 1, 2009.

Sec. 8183.260. USE OF BOND PROCEEDS. (a) The district may set

aside an amount of proceeds from the sale of bonds issued under

this subchapter for:

(1) payment of interest expected to accrue during construction;

(2) a reserve interest and sinking fund; and

(3) any other fund provided for in the resolution authorizing

the bonds or in the trust indenture.

(b) The district may use proceeds from the sale of the bonds to

pay any expense necessarily incurred in accomplishing the purpose

of the district, including any expense of issuing and selling the

bonds.

(c) The district may temporarily invest proceeds from the sale

of the bonds and other district funds in securities that are

specified in the bond resolution or the trust indenture.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.10, eff. April 1, 2009.

Sec. 8183.261. APPOINTMENT OF RECEIVER. (a) On default or

threatened default in the payment of principal of or interest on

bonds issued under this subchapter that are payable wholly or

partly from revenue, a court may, on petition of the holders of

outstanding bonds, appoint a receiver for the district.

(b) The receiver may collect and receive all district income

except taxes, employ and discharge district agents and employees,

take charge of money on hand except money received from taxes,

unless commingled, and manage the proprietary affairs of the

district without consent or hindrance by the board.

(c) The receiver may be authorized to sell or contract for the

sale of water or to renew those contracts with the approval of

the court that appointed the receiver.

(d) The court may vest the receiver with any other power or duty

the court finds necessary to protect the bondholders.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.10, eff. April 1, 2009.

Sec. 8183.262. REFUNDING BONDS. (a) The district may issue

refunding bonds to refund outstanding bonds issued under this

subchapter and interest on those bonds.

(b) Refunding bonds may:

(1) be issued to refund bonds of more than one series;

(2) combine the pledges for the outstanding bonds for the

security of the refunding bonds; or

(3) be secured by a pledge of other or additional revenue or

mortgage liens.

(c) The provisions of this subchapter regarding the issuance of

other bonds, their security, and the remedies of the holders

apply to refunding bonds.

(d) The comptroller shall register the refunding bonds on

surrender and cancellation of the bonds to be refunded.

(e) Instead of issuing bonds to be registered on the surrender

and cancellation of the bonds to be refunded, the district, in

the resolution authorizing the issuance of the refunding bonds,

may provide for the sale of the refunding bonds and the deposit

of the proceeds in a bank at which the bonds to be refunded are

payable. In that case, the refunding bonds may be issued in an

amount sufficient to pay the principal of and interest on the

bonds to be refunded to their option date or maturity date, and

the comptroller shall register the refunding bonds without the

concurrent surrender and cancellation of the bonds to be

refunded.

(f) An election is not required for refunding bonds.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.10, eff. April 1, 2009.

Sec. 8183.263. LIMITATION ON RIGHTS OF HOLDERS. The resolution

authorizing the bonds or the trust indenture securing the bonds

may limit or qualify the rights of the holders of less than all

of the outstanding bonds payable from the same source to

institute or prosecute litigation affecting the district's

property or income.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.10, eff. April 1, 2009.

Sec. 8183.264. BONDS EXEMPT FROM TAXATION. A bond issued under

this subchapter, the transfer of the bond, and income from the

bond, including profits made on the sale of the bond, are exempt

from taxation in this state.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.10, eff. April 1, 2009.

Sec. 8183.265. DETACHMENT OF TERRITORY AFTER ISSUANCE OF BONDS.

Territory may not be detached from the district after the

issuance of bonds payable from revenue or taxes.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.10, eff. April 1, 2009.