The municipal development district (hereinafter the “district”)
be and is hereby created. The boundaries of the district shall be
and are hereby the full territorial limits of the town and the entirety
of its extraterritorial jurisdiction; and the boundaries of the district
shall conform automatically to any changes in the boundaries of the
town or the town’s extraterritorial jurisdiction. As authorized
by a majority of the qualified voters at the election held in the
town on May 11, 2013, an additional sales and use tax at the rate
of one-fourth of one percent (1/4%) be and is hereby imposed for the
purpose of financing development projects beneficial to the district.
(Ordinance 2013-0916-03 adopted 9/16/13)
The district may recommend to the town council to accept grants;
acquire, buy, sell, convey, lease and otherwise dispose of property;
employ necessary personnel; enter into contracts with public and private
parties; adopt rules and bylaws to govern its operation; and perform
any act necessary to the full exercise of the district’s power.
The duration of the district shall be perpetual and shall continue
in existence until dissolved by a majority vote of the qualified voters
of the town at an election held for the purpose of repealing the additional
sales and use tax imposed herein; provided, however, that the district
shall not be dissolved and the additional sales and use tax shall
not be repealed if the district has outstanding and unpaid bonds or
financial obligations. The additional tax shall be collected by the
district until all such bonds and obligations have been paid or otherwise
satisfied.
(Ordinance 2013-0916-03 adopted 9/16/13)
The district shall be governed by a board of directors that
consists of five (5) members. Directors shall receive no compensation
for serving as a director other than to receive reimbursement for
actual and necessary expenses. Each director shall be a resident of
the town or must reside in the town’s extraterritorial jurisdiction,
and must be a qualified voter of Denton County, Texas. Each director
shall be appointed by the town council. No directors may have ownership
of financial interest of any property designated by the town’s
comprehensive plan as being in a commercial district. An employee,
officer, or member of the town council may serve as a director, but
may not have a personal interest in a contract executed by the district
other than as an employee, officer, or member of the town council;
provided, however, that separation from employment or termination
of membership on the town council shall automatically result in termination
of that person’s position as a director of the district without
further action by the town council. The foregoing automatic termination
does not disqualify that person from future service as director, upon
appointment by the council. Any director may be removed at any time
without cause upon majority vote of the town council. Meetings of
the board shall be held within the town’s limits and shall be
open and subject to the provisions of the Texas Open Meetings Act
(chapter 551, Texas Government Code).
(Ordinance 2013-0916-03 adopted 9/16/13)
(a)
Directors
shall serve staggered terms of two-years. Three directors shall serve
terms that expire on September 30 in even-numbered years and two directors
shall serve terms that expire on September 30 in odd-numbered years.
Vacancies in the board shall be filled by the town council for the
remainder of the unexpired term of office.
(b)
Of
the initial directors, the initial terms of office for directors appointed
for positions 1, 3 and 5 shall expire on September 30, 2014, and the
terms of office for directors appointed for positions 2 and 4 shall
expire on September 30, 2015. At the board’s organizational
meeting, the board shall designate from its members a presiding officer,
a secretary and such other officers that the board deems necessary
and appropriate. The board shall further consider the bylaws adopted
herein and may amend said bylaws as the board deems necessary and
appropriate. The initial bylaws governing the operations and conduct
of the district are attached to Ordinance 2013-0916-03 as exhibit
“A” and, by this reference, are incorporated herein. The
board may adopt, reject or amend the bylaws as it deems necessary
and appropriate.
(Ordinance 2013-0916-03 adopted 9/16/13)
The district shall establish by resolution a fund known as the
development project fund. The district may establish separate accounts
within the fund. The district shall deposit into the development project
fund: (1) the proceeds from the additional sales and use tax imposed
by the district; (2) all revenue from the sale of bonds or other obligations
by the district; and (3) any other money required by law to be deposited
in the fund. The district may use money in the development project
fund only to: (1) pay the costs of planning, acquiring, establishing,
developing, constructing, or renovating one or more development projects
in the district; (2) pay the principal of, interest on, and other
costs relating to bonds or other obligations issued by the district
or to refund bonds or other obligations; or (3) pay the costs of operating
or maintaining one or more development projects during the planning,
acquisition, establishment, development, construction, or renovation
or while bonds or other obligations for the planning, acquisition,
establishment, development, construction, or renovation are outstanding.
The foregoing shall not prevent the district from paying costs of
the district’s operations.
(Ordinance 2013-0916-03 adopted 9/16/13)
