CHAPTER 8238. GUNTER MUNICIPAL UTILITY DISTRICT NO. 1 - Texas Statutes

SPECIAL DISTRICT LOCAL LAWS CODE

TITLE 6. WATER AND WASTEWATER

SUBTITLE F. MUNICIPAL UTILITY DISTRICTS

CHAPTER 8238. GUNTER MUNICIPAL UTILITY DISTRICT NO. 1

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8238.001. DEFINITIONS. In this chapter:

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

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

(3) "District" means the Gunter Municipal Utility District No.

1.

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

966, Sec. 1, eff. June 15, 2007.

Sec. 8238.002. NATURE OF DISTRICT. The district is a municipal

utility district in Grayson County created under and essential to

accomplish the purposes of Section 59, Article XVI, Texas

Constitution.

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

966, Sec. 1, eff. June 15, 2007.

Sec. 8238.003. CONFIRMATION ELECTION REQUIRED. The board shall

hold an election to confirm the creation of the district as

provided by Section 49.102, Water Code.

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

966, Sec. 1, eff. June 15, 2007.

Sec. 8238.004. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) All

land and other property included in the district will benefit

from the improvements and services to be provided by the

district.

(b) The district is created to accomplish:

(1) the purposes of a municipal utility district as provided by

general law; and

(2) to the extent authorized by Section 52, Article III, Texas

Constitution, the construction, acquisition, improvement,

maintenance, or operation of macadamized, graveled, or paved

roads or improvements in aid of those roads.

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

966, Sec. 1, eff. June 15, 2007.

Sec. 8238.005. INITIAL DISTRICT TERRITORY. (a) The district is

initially composed of the territory described by Section 2 of the

Act creating this chapter.

(b) The boundaries and field notes contained in Section 2 of the

Act creating this chapter form a closure. A mistake made in the

field notes or in copying the field notes in the legislative

process does not affect the district's:

(1) organization, existence, or validity;

(2) right to issue any type of bond for the purposes for which

the district is created or to pay the principal of and interest

on a bond;

(3) right to impose or collect an assessment or tax; or

(4) legality or operation.

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

966, Sec. 1, eff. June 15, 2007.

Sec. 8238.006. ANNEXATION BY CITY OF GUNTER. Notwithstanding

any other law, if all of the territory of the district is annexed

by the City of Gunter into the corporate limits of that

municipality before the date of the election under Section

8238.003, the district may not be dissolved and shall continue

until the district is dissolved under Section 43.074, Local

Government Code.

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

966, Sec. 1, eff. June 15, 2007.

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8238.051. DIRECTORS; TERMS. (a) The district is governed

by a board of five directors.

(b) Except as provided by Section 8238.053, directors serve

staggered four-year terms.

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

966, Sec. 1, eff. June 15, 2007.

Sec. 8238.052. ELECTION OF DIRECTORS. On the uniform election

date in May of each even-numbered year, the appropriate number of

directors shall be elected.

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

966, Sec. 1, eff. June 15, 2007.

Sec. 8238.053. INITIAL DIRECTORS. (a) The initial board

consists of:

(1) Erik Nelson;

(2) David Kelly;

(3) Jeff Sallas;

(4) Howell Kemp; and

(5) Jill Tate.

(b) Unless the initial board otherwise agrees, the initial

directors shall draw lots to determine which two directors shall

serve until the first regularly scheduled election of directors

and which three directors shall serve until the second regularly

scheduled election of directors.

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

966, Sec. 1, eff. June 15, 2007.

Sec. 8238.054. CONSENT OF MUNICIPALITY REQUIRED. The initial

directors may not hold an election under Section 8238.003 until:

(1) all of the territory of the district is included in the

corporate limits of the City of Gunter; and

(2) the City of Gunter has adopted a resolution consenting to

the creation of the district.

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

966, Sec. 1, eff. June 15, 2007.

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8238.101. MUNICIPAL UTILITY DISTRICT POWERS AND DUTIES.

(a) The district has the powers and duties provided by the

general law of this state, including Chapters 49 and 54, Water

Code, applicable to municipal utility districts created under

Section 59, Article XVI, Texas Constitution.

(b) The district has the powers and duties necessary to

accomplish the purposes for which the district is created.

(c) Notwithstanding Subsection (a), the district may not act as

a retail provider of water or wastewater service.

(d) The district shall make the district's water and wastewater

facilities available to an entity holding the applicable

certificate of public convenience and necessity.

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

966, Sec. 1, eff. June 15, 2007.

Sec. 8238.102. ROAD PROJECTS. (a) To the extent authorized by

Section 52, Article III, Texas Constitution, the district may

construct, acquire, improve, maintain, or operate macadamized,

graveled, or paved roads or improvements in aid of those roads.

(b) A road project must meet all applicable standards,

regulations, and ordinances of the municipality or county in

whose jurisdiction the district is located.

(c) If a portion of the territory of the district is excluded

from the corporate limits of the City of Gunter, the district

shall:

(1) improve, maintain, repair, and operate the roads located in

that portion of territory in accordance with the ordinances and

rules of the political subdivision possessing jurisdiction over

the roads in that portion of territory; and

(2) pay the entire cost of performing the district's duties

under Subdivision (1).

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

966, Sec. 1, eff. June 15, 2007.

Sec. 8238.103. COMPLIANCE WITH MUNICIPAL CONSENT ORDINANCES OR

RESOLUTIONS. Subject to the limitations of Section 54.016, Water

Code, the district shall comply with all applicable requirements

of any ordinance or resolution adopted by the governing body of

the municipality that consents to the creation of the district or

to the inclusion of lands within the district.

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

966, Sec. 1, eff. June 15, 2007.

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 8238.151. ELECTIONS REGARDING TAXES OR BONDS. (a) The

district may issue, without an election, bonds and other

obligations secured by revenue or contract payments from any

source other than ad valorem taxation.

(b) The district must hold an election in the manner provided by

Chapters 49 and 54, Water Code, to obtain voter approval before

the district may impose an operation and maintenance tax or issue

bonds payable from ad valorem taxes.

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

966, Sec. 1, eff. June 15, 2007.

Sec. 8238.152. OPERATION AND MAINTENANCE TAX. (a) If

authorized at an election held under Section 8238.151, the

district may impose an operation and maintenance tax on taxable

property in the district in accordance with Section 49.107, Water

Code.

(b) The board shall determine the tax rate. The rate may not

exceed the rate approved at the election.

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

966, Sec. 1, eff. June 15, 2007.

SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS

Sec. 8238.201. AUTHORITY TO ISSUE BONDS AND OTHER OBLIGATIONS.

(a) The district may issue bonds or other obligations payable

wholly or partly from ad valorem taxes, impact fees, revenue,

grants, or other district money, or any combination of those

sources, to pay for any authorized district purpose.

(b) The district may not issue bonds to finance projects

authorized by Section 8238.102 unless the issuance is approved by

a vote of a two-thirds majority of the voters of the district

voting at an election called for that purpose.

(c) Bonds or other obligations issued or incurred to finance

projects authorized by Section 8238.102 may not exceed one-fourth

of the assessed value of the real property in the district.

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

966, Sec. 1, eff. June 15, 2007.

Sec. 8238.202. TAXES FOR BONDS. At the time bonds 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 as the interest becomes due;

(B) create a sinking fund for the payment of the principal of

the bonds when due or the redemption price at any earlier

required redemption date; and

(C) pay the expenses of imposing the taxes.

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

966, Sec. 1, eff. June 15, 2007.