(a)
The city shall not consent to the creation of any special taxing or public financing district within the city’s corporate limits or the city’s extraterritorial jurisdiction unless the City Council finds:
(1)
That there are significant special circumstances or conditions affecting the property proposed to be included in the district that justify an exception to the city’s general development policy;
(2)
That there are special development considerations affecting the proposed development that shall result in increased development costs over the usual and customary development costs within the city and its extraterritorial jurisdiction; and
(3)
That the creation of the special taxing or public financing district shall result in higher quality public infrastructure, shall further a public purpose, and shall provide a public benefit.
(b)
The city shall not consent to the creation of any special taxing or public financing district within the city’s corporate limits unless, in addition to the findings set forth in subsection (a) above, the City Council finds:
(1)
That the land within the district shall be developed to a higher development standard than that required under the city’s applicable development ordinances;
(2)
That the quality of the development over time shall be assured through restrictive covenants applicable to all of the property within the district that are:
(3)
That the roads, parks, and utility infrastructure within the district shall generally be of higher quality than that required under applicable city development ordinances and regulations, so as to reduce operation and maintenance costs to the city over time;
(4)
That the creation of the district shall contribute to the economic development of the city and improve the quality of life for residents of the city; and
(5)
That any loss of ad valorem property taxes incurred by the city as a result of the creation of a district shall be made up through the collection of other taxes generated within such district, particularly sales and use taxes.
(c)
The developer of any land included in a district shall provide a larger quantity and higher quality of park and recreational amenities than otherwise required by city ordinances. All recreational and park amenities located in a district shall be open to all residents of the city.
(d)
No gated or limited access residential communities shall be permitted in a district.
(e)
The developer of any land included in a district shall demonstrate its financial ability to complete the proposed development in a manner acceptable to the city, including fiscal posting if required.
(f)
No district may construct or bond any water or wastewater treatment facilities. No on-site sewage treatment facilities shall be permitted in any district. Any district approved by the city shall be a “city-service district” and all water and wastewater services shall be provided by the city on a retail basis.
(g)
Any district created shall contract and agree with the city that it shall become the alter ego of the city for the purpose of constructing and financing any water, wastewater, and drainage infrastructure within its boundaries. Upon completion of each portion of the water, wastewater, and drainage facilities, those facilities shall be conveyed by the developer and/or the district to the city for ownership, operation, and maintenance, subject to the right of the developer to be reimbursed by the district for its funds advanced for the purpose of constructing such facilities, to the extent permitted by law and further subject to the provisions of this article, the terms of any consent agreement approved by the city, and the administrative rules of any applicable state commission.
(h)
The developer of any land included within a district shall dedicate any easements or rights-of-way required for district purposes or required by the city for streets or utility facilities within the proposed development at no cost to the district or the city.
(i)
Upon approval of the creation of any municipal utility district, the developer and its successors shall strictly comply with sections 50.301–50.303 of the Texas Water Code [sic], which require certain information to be provided to all purchasers of property within the district, including specific notice that the utility infrastructure within the district shall be financed through the issuance of bonds. In addition, the developer and its successors shall provide a supplemental notice advising the purchasers of the overlapping tax rates of the city and the district. Additionally, the district shall submit to the city a complete copy of each application to the Texas Natural Resource Conservation Commission (the “commission”) for the approval of a project or bonds at the same time that application is submitted to the commission.
(j)
The maximum amount of district bonds, the purposes for which bonds may be issued, and any fees to be paid by the district associated with those bonds shall be specified in the city ordinance granting consent to the creation of the district. The terms, provisions, and issuance of, all bonds shall be subject to the review and approval by the city. No bonds shall be issued by any district at any time that the developer or the district is in default in the performance of its obligations under this article or any consent agreement approved by the city. No bond anticipation notes shall be issued by a district unless issuance thereof is approved by the city.
(k)
The developer shall submit a copy of any proposition proposed to be placed on any district ballot for the approval of bonds to the city for review and approval at least ninety (90) days before the election is called.
(l)
A district created hereunder shall file a copy of each proposed district budget or budget amendment with the city within fifteen (15) days after approval or adoption. A district created hereunder shall file a copy of its annual audit with the city within 120 days after the end of its fiscal year.
(m)
Unless and until the city dissolves a district, the district’s bonds, as to both principal and interest, shall be and remain obligations solely of that district and shall never be construed to be obligations or indebtedness of the city.
(n)
The developer of any land included within a district shall pay the city’s usual and customary fees and charges for all city reviews, permits, approvals or inspections required under applicable city ordinances, or required to establish compliance with the terms of any consent agreement approved by the city. No city fees shall be financed through the issuance of bonds, and no reimbursement of any city fees shall be paid from the proceeds of bonds issued by a district.
(o)
An applicant who desires that the City Council consider the creation of a district shall submit to the city an application fee in the amount of $15,000.00 before commencing discussions or negotiations with the city over the possible creation of a district. The City Attorney shall promulgate an application form to be approved by the City Council. An applicant shall also pay all costs and expenses, including, but not limited to, legal fees and expenses, incurred by the city in connection with the review, evaluation, approval, rejection, and/or creation of any proposed district. Additionally, the applicant shall pay all costs and expenses, including, but not limited to legal fees and expenses, incurred by the city in connection with the negotiation of any consent agreement concerning the district and the review and approval of all district bonds. The city shall submit periodic statements to the applicant for payment of fees and expenses incurred hereunder, which statements shall be due and payable as directed by city within thirty (30) days after issuance thereof. The city shall apply the application fee as a credit to the final statement submitted to the applicant after creation of a district. Failure to timely pay any billing statement submitted by the city to an applicant shall terminate all negotiations concerning the creation of a district and consideration thereof by the City Council.
(p)
The city shall have the authority to assess and collect ad valorem taxes against the land within any district and any improvements at the city’s full ad valorem tax rate.
(q)
No variance to city ordinances shall be permitted in any district created hereunder. However, the city may adopt a master regulating plan or code for the development of land included within a district, and such master regulating plan or code may establish alternative standards for the development of land included within a district.
(r)
All public facilities and infrastructure improvements within a district shall be designed in accordance with all ordinances and regulations adopted by the City Council from time to time, as well as any other governmental authority with jurisdiction.
(s)
Development of all land located within a district shall occur in accordance with all ordinances and regulations adopted by the City Council from time to time.
(t)
All facilities shall be constructed, all construction contracts awarded, and payment and performance bonds obtained in accordance with the general law applicable to utility districts. Each construction contract for district facilities shall require:
(1)
A one-year contractor’s warranty;
(2)
At a minimum, the insurance coverage required by the city for public works contracts of a similar nature, and that the city be named as an additional insured; and
(3)
That the contractor provide statutory worker’s compensation insurance.
The city public works director shall be notified of and invited to attend all pre-construction conferences and bid openings for all district facilities. |
(u)
Upon completion of any district facilities, the district engineer shall certify that the facilities in question have been completed in accordance with plans and specifications approved by the city and shall certify that all bills have been paid. Upon completion of any district facilities, the district shall provide the city with as-built construction drawings of the facilities, in the format and quantity required by the city, and all manuals and other documents or materials in the possession of the developer or the district that are related or beneficial to the operation of the facilities.
(Ordinance O2000-42 adopted 12/14/00)