Tex. Spec. Dist. Local Laws Code Section 3976.0705
Requirements for Bond Issue


The district may not issue bonds until:

(1)

the district submits to the commission:

(A)

an engineer’s report describing the project for which the bonds will provide funding, including data, profiles, maps, plans, and specifications related to the project; and

(B)

a cash flow analysis to determine the projected rate of assessment, which includes the following assumptions:
(i)
each ending balance for debt service in the analysis is not less than 25 percent of the following year’s debt service requirement;
(ii)
interest income is only shown on the ending balance for debt service for the first two years; and
(iii)
the projected rate of assessment is level or decreasing for the life of the bonds issued by the district;

(2)

the completion of at least 75 percent of the projected value of the improvements, including houses and other buildings, that are liable for district assessments and necessary to support the district bonds; and

(3)

the district has obtained an independent market study from a firm recognized in the area of real estate market analysis supporting the development projects for the real property that is liable for district assessments and necessary to support the district bonds.
Added by Acts 2019, 86th Leg., R.S., Ch. 1253 (H.B. 4637), Sec. 1, eff. September 1, 2019.

Source: Section 3976.0705 — Requirements for Bond Issue, https://statutes.­capitol.­texas.­gov/Docs/SD/htm/SD.­3976.­htm#3976.­0705 (accessed Mar. 23, 2024).

3976.0101
Definitions
3976.0102
Creation and Nature of District
3976.0103
Purpose
3976.0104
Findings of Benefit and Public Purpose
3976.0105
District Territory
3976.0106
Applicability of Municipal Management Districts Law
3976.0107
Construction of Chapter
3976.0108
Conflicts of Law
3976.0109
Consent of Municipality Required
3976.0201
Governing Body
3976.0202
Appointment and Removal of Director Appointed by City
3976.0203
Appointment by Commission
3976.0204
Vacancy
3976.0207
Compensation
3976.0208
Initial Directors
3976.0301
General Powers and Duties
3976.0302
Improvement Projects and Services
3976.0303
Location of Improvement Project
3976.0306
Adding or Removing Territory
3976.0307
No Eminent Domain Power
3976.0401
Disbursements and Transfers of Money
3976.0402
Money Used for Improvements or Services
3976.0403
Method of Notice for Hearing
3976.0404
Assessments
3976.0405
Notice of Assessments
3976.0503
Tax Election Required
3976.0504
Operation and Maintenance Tax
3976.0505
Authority to Borrow Money and to Issue Bonds and Other Obligations
3976.0506
Bonds Secured by Revenue or Contract Payments
3976.0507
Bonds Secured by Ad Valorem Taxes
3976.0601
Dissolution by City Ordinance
3976.0602
Collection of Assessments and Other Revenue
3976.0603
Assumption of Assets and Liabilities
3976.0701
Applicability
3976.0702
Conflict of Laws
3976.0703
Written Agreement Regarding Special Appraisals
3976.0704
Requirements for Advertising Bond Issue
3976.0705
Requirements for Bond Issue
3976.0706
Requirements for Collection of Revenue to Pay Bonds

Accessed:
Mar. 23, 2024

§ 3976.0705’s source at texas​.gov