Tex. Local Gov't Code Section 43.075
Abolition Of, or Division of Functions Of, Water-related Special District that Becomes Part of Not More than One Municipality


(a)

This section applies to:

(1)

a municipality that annexes all or part of the area in a water control and improvement district, fresh water supply district, or municipal utility district organized for the primary purpose of providing municipal functions such as the supplying of fresh water for domestic or commercial uses or the furnishing of sanitary sewer service or drainage service; or

(2)

a municipality:

(A)

that, by incorporation of the municipality, includes in the municipality all or part of the area in a district described by Subdivision (1); and

(B)

the governing body of which adopts, by a vote of at least two-thirds of its entire membership, an ordinance making this section applicable to the municipality.

(b)

This section does not apply if the district includes area located in more than one municipality.

(c)

The municipality succeeds to the powers, duties, assets, and obligations of the district as provided by this section. This section does not prohibit the municipality from continuing to operate utility facilities in the district that are owned and operated by the municipality on the date the area becomes a part of the municipality.

(d)

If all the area in the district becomes a part of the municipality, the municipality:

(1)

shall take over all the property and other assets of the district;

(2)

assumes all the debts, liabilities, and obligations of the district; and

(3)

shall perform all the functions of the district, including the provision of services.

(e)

The governing body of the municipality by ordinance shall designate the date on which the duties and the assumption under Subsection (d) take effect. The date must be set for a day within 90 days after the date the area becomes a part of the municipality. If the governing body fails to adopt the ordinance, the duties and the assumption automatically take effect on the 91st day after the date the area becomes a part of the municipality. The district is abolished on the date the duties and assumption take effect.

(f)

If only part of the area in the district becomes a part of the municipality, the governing bodies of the municipality and the district may make contracts relating to the division and allocation between themselves of their duplicate and overlapping powers, duties, and other functions and relating to the use, management, control, purchase, conveyance, assumption, and disposition of the property and other assets, debts, liabilities, and obligations of the district.

(g)

If only part of the area in the district becomes a part of the municipality, the district may contract with the municipality for the municipal operation of the district’s utility systems and other property and for the transfer, conveyance, or sale of those systems and that property, regardless of kind or location inside or outside municipal boundaries, to the municipality on terms to which the governing bodies of the district and municipality agree. That operating contract may extend for a period, not to exceed 30 years, stipulated in the contract and is subject to amendment, renewal, or termination by the mutual consent of the governing bodies. The contract may not impair the obligation of another contract of the municipality or district. In the absence of such a contract, the district may continue to exercise the powers and other functions that it was authorized to exercise before the area became a part of the municipality, and the municipality may not, without the district’s consent, duplicate the services rendered by the district in the district. However, the municipality may perform in the district all other municipal functions in which the district is not engaged.

(h)

If a district bond, warrant, or other obligation payable in whole or in part from property taxes is assumed under this section by the municipality, the governing body shall levy and collect taxes on all taxable property in the municipality in an amount sufficient to pay the principal of and interest on the bond, warrant, or other obligation as it becomes due and payable. The municipality may issue refunding bonds or warrants to refund bonds, warrants, or other obligations, including unpaid earned interest on them, that is assumed by the municipality. The refunding bonds or warrants must be issued in the manner provided by Chapter 1207 (Refunding Bonds), Government Code. A refunding bond must bear interest at the same rate or at a lower rate than that borne by the refunded obligation unless it is shown mathematically that a different rate results in a savings in the total amount of interest to be paid.

(i)

If all the area in the district becomes a part of the municipality and if the district has outstanding bonds, warrants, or other obligations payable solely from the net revenues from the operation of any utility system or property, the municipality shall take over and operate the system or property and shall apply the net revenues from the operation to the payment of the outstanding revenue bonds, warrants, or other obligations as if the district had not been abolished. The municipality may combine the district system or property with the municipality’s similar system or property if:

(1)

the municipality has no outstanding revenue bonds, warrants, or other obligations payable from and secured by a pledge of the net revenue of its own utility system or property; or

(2)

the municipality:

(A)

has outstanding obligations payable from and secured by a pledge of net revenues sufficient to meet the outstanding obligations; and

(B)

those revenues have produced, during the five-year period before May 30, 1959, an annual surplus in an amount sufficient to meet the annual obligations for which the district revenues are pledged.

(j)

If the municipality combines the systems or property as provided by Subsection (i), it shall levy on all property subject to taxation by the municipality an annual property tax at a rate that, when combined with other available municipal funds and revenues, is sufficient to pay the principal of and interest on the outstanding obligations.

(k)

If all the area in the district becomes a part of the municipality, the municipality, unless the refunding authorized by Subsection (l) has been accomplished, shall separately operate the district and municipal systems and property and may not commingle revenue if the municipality has outstanding bonds, warrants, or other bonded obligations payable from and secured by a pledge of the net revenue of its own utility system or property and does not have an amount annually accruing to its surplus revenue fund that exceeds the amount of the fund pledged to the payment of outstanding municipal obligations and that is sufficient to meet the annual obligations for which the district revenues are pledged. The municipality shall perform the duties and other functions imposed by law or contract on the governing body of the district relating to the district’s outstanding bonds, warrants, or other obligations and shall separately perform the duties and other functions relating to the bonds, warrants, and other obligations of the municipal system. The municipality may allocate overhead expenses between any two or more systems in direct proportion to the gross income of each system.

(l)

The municipality may issue revenue refunding bonds in its own name for the purpose of refunding outstanding district revenue bonds, warrants, or other obligations, including unpaid accrued interest on them, that are assumed by the municipality under this section. The municipality may combine different issues of district and municipal revenue bonds, warrants, or other obligations into one series of revenue refunding bonds and may pledge the net revenues of the utility systems or property to the payment of the refunding bonds as the governing body considers proper. Except as otherwise provided by this section, Chapter 1502 (Public Securities for Municipal Utilities, Parks, or Pools), Government Code, applies to the revenue refunding bonds, but an election for the issuance of the bonds is not required. Refunding bonds must bear interest at the same rate or at a lower rate than that borne by the refunded obligations unless it is shown mathematically that a different rate results in a savings in the total amount of interest to be paid.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987. Amended by Acts 1999, 76th Leg., ch. 1064, Sec. 36, eff. Sept. 1, 1999; Acts 2001, 77th Leg., ch. 1420, Sec. 8.285, eff. Sept. 1, 2001.

Source: Section 43.075 — Abolition Of, or Division of Functions Of, Water-related Special District that Becomes Part of Not More than One Municipality, https://statutes.­capitol.­texas.­gov/Docs/LG/htm/LG.­43.­htm#43.­075 (accessed Mar. 23, 2024).

43.001
Definitions
43.002
Continuation of Land Use
43.003
Authority of Home-rule Municipality to Annex Area and Take Other Actions Regarding Boundaries
43.004
Annexation by Defunding Municipality Prohibited
43.005
Required Disclosure Before Annexation Agreement
43.012
Authority of Type a General-law Municipality to Annex Area It Owns
43.013
Authority of Municipality to Annex Navigable Stream
43.014
Authority to Annex Limited to Extraterritorial Jurisdiction
43.015
Authority of Adjacent Municipalities to Change Boundaries by Agreement
43.016
Authority of Municipality to Annex Area Qualified for Agricultural or Wildlife Management Use or as Timber Land
43.017
Prohibition Against Annexation to Surround Municipality in Certain Counties
43.052
Municipal Annexation Plan Required
43.054
Width Requirements
43.055
Maximum Amount of Annexation Each Year
43.056
Provision of Services to Annexed Area
43.057
Annexation that Surrounds Area: Findings Required
43.061
Applicability
43.062
Procedures Applicable
43.063
Annexation Hearing Requirements
43.064
Period for Completion of Annexation
43.065
Provision of Services to Annexed Area
43.071
Authority to Annex Water or Sewer District
43.072
Authority to Annex Municipal Utility District by Home-rule Municipality
43.074
Abolition of Water-related Special District Created Wholly in Municipality
43.075
Abolition Of, or Division of Functions Of, Water-related Special District that Becomes Part of Not More than One Municipality
43.076
Abolition of Water-related Special District that Becomes Part of More than One Municipality
43.079
Consent Requirement for Annexation of Area in Certain Conservation and Reclamation Districts
43.080
Municipal Bonds Used to Carry out Purposes of Abolished Conservation and Reclamation District
43.081
Continuation of Certain Municipal Water Boards on Annexation of Water Control and Improvement District
43.082
Annexation by Certain Municipalities of Land Owned by Navigation District
43.083
Annexation by Certain Municipalities that Operate Municipally Owned Water Utility
43.101
Annexation of Municipally Owned Reservoir
43.102
Annexation of Municipally Owned Airport
43.106
Annexation of County Roads Required in Certain Circumstances
43.0115
Authority of Certain Municipalities to Annex Enclaves
43.0116
Authority of Municipality to Annex Industrial Districts
43.0117
Authority of Municipality to Annex Area near Military Base
43.121
Authority of Populous Home-rule Municipalities to Annex for Limited Purposes
43.122
Certain Strip Annexations Prohibited
43.123
Report Regarding Planning Study and Regulatory Plan
43.124
Public Hearings
43.125
Adoption of Regulatory Plan
43.126
Period for Completion of Annexation
43.127
Annexation for Full Purposes
43.128
Judicial Remedies: Forced Annexation or Disannexation
43.129
Consensual Annexation
43.130
Effect of Annexation on Voting Rights, Eligibility for Office, and Taxing Authority
43.131
Effect of Annexation on Extraterritorial Jurisdiction
43.132
Municipal Incorporation in Annexed Area
43.136
Authority of Special-law Municipality to Annex for Limited Purposes Along Navigable Stream
43.141
Disannexation for Failure to Provide Services
43.142
Disannexation According to Municipal Charter in Home-rule Municipality
43.143
Disannexation by Petition and Election in General-law Municipality
43.144
Disannexation of Sparsely Populated Area in General-law Municipality
43.145
Disannexation of Unimproved Area or Nontaxable Area in Certain Municipalities
43.146
Disannexation of Land in a Municipal Utility District
43.147
Width Requirement for Disannexation
43.148
Refund of Taxes and Fees
43.201
Definitions
43.202
Applicability
43.203
Alteration of Annexation Status
43.0505
Applicability
43.0545
Annexation of Certain Adjacent Areas
43.0561
Annexation Hearing Requirements
43.0565
Access to Services by Certain Municipalities in Annexed Area
43.0635
Map Requirement for Proposed Annexation
43.0661
Provision of Certain Services to Annexed Area
43.0663
Effect on Other Law
43.0671
Authority to Annex Area on Request of Owners
43.0672
Written Agreement Regarding Services
43.0673
Public Hearing
43.0681
Authority to Annex
43.0682
Resolution
43.0683
Notice of Proposed Annexation
43.0684
Public Hearing
43.0685
Petition
43.0686
Results of Petition
43.0687
Voter Approval by Municipal Residents on Petition
43.0688
Retaliation for Annexation Disapproval Prohibited
43.0691
Authority to Annex
43.0692
Resolution
43.0693
Notice of Proposed Annexation
43.0694
Public Hearings
43.0695
Property Owner Consent Required for Certain Areas
43.0696
Election
43.0697
Results of Election and Petition
43.0698
Voter Approval by Municipal Residents on Petition
43.0699
Retaliation for Annexation Disapproval Prohibited
43.0712
Invalidation of Annexation of Special District
43.0715
Annexation of Water-related Special District: Reimbursement of Landowner or Developer
43.0751
Strategic Partnerships for Continuation of Certain Districts
43.0753
Regional Development Agreements
43.0754
Regional Participation Agreements
43.0755
Procedures for Incorporation or Establishment of Another Form of Local Government for Certain Areas Subject to Regional Participation Agreement
43.0761
Provision of Water and Sanitary Sewer Utility Service
43.901
Circumstances in Which Consent to Boundaries or Annexation Is Presumed
43.902
Annexation, Extraterritorial Jurisdiction, and Eminent Domain on Inaccessible Gulf Island
43.903
Effect of Annexation on Railroad Switching Limits or Rates
43.905
Effect of Annexation on Operation of School District
43.907
Effect of Annexation on Colonias
43.908
Enforcement of Chapter
43.1025
Annexation of Noncontiguous Municipally Owned Airport by Certain Municipalities
43.1055
Annexation of Road Rights-of-way on Request or Without Objection of Owner or Maintaining Political Subdivision
43.1056
Annexation of Contiguous or Connecting Rights-of-way
43.1211
Use of Consent Procedures to Annex for Limited Purposes
43.1463
Disannexation of Areas Annexed During Transition from Nonconsent to Consent Annexation Model
43.1465
Disannexation from Defunding Municipality
43.07515
Regulation of Fireworks Under Strategic Partnership Agreement Law
43.9051
Effect of Annexation on Public Entities or Political Subdivisions

Accessed:
Mar. 23, 2024

§ 43.075’s source at texas​.gov