By: Rosson S.B. No. 1663
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the creation, administration, powers, duties,
1-2 functions, operation, and financing of the Paseo del Este Municipal
1-3 Utility District; providing for the authorization of bonds and the
1-4 levy of taxes; providing civil penalties.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 ARTICLE 1. GENERAL PROVISIONS
1-7 SECTION 1.01. CREATION. (a) By virtue of Section 59,
1-8 Article XVI, Texas Constitution, a conservation and reclamation
1-9 district is hereby created to be known as Paseo del Este Municipal
1-10 Utility District (hereinafter the "district"), which shall be a
1-11 governmental agency and a body politic and corporate.
1-12 (b) The district is created under and is essential to
1-13 accomplish the purposes of Section 59, Article XVI, Texas
1-14 Constitution. The district shall have all of the powers of
1-15 municipal utility districts established under Chapter 54, Water
1-16 Code, and the district shall conduct its affairs subject to
1-17 Chapters 50 and 54, Water Code, unless otherwise provided in this
1-18 Act.
1-19 SECTION 1.02. TERRITORY. (a) The district shall comprise
1-20 all of the following territory: Section 315 1/2, C. D. Stewart
1-21 Survey, El Paso County, Texas; Section 318, C. D. Stewart Survey,
1-22 El Paso County, Texas; Section 319, C. D. Stewart Survey, El Paso
1-23 County, Texas; all of the south one-half of Section 18, Texas and
1-24 Pacific Railroad Company Survey, Block 79, Township 3, El Paso
2-1 County, Texas; all of the northeast one-fourth of Section 18, Texas
2-2 and Pacific Railroad Company Survey, Block 79, Township 3, El Paso
2-3 County, Texas, SAVE AND EXCEPT the south 655 feet of said northeast
2-4 one-fourth; all of Section 22, Texas and Pacific Railroad Company
2-5 Survey, Block 79, Township 3, El Paso County, Texas, SAVE AND
2-6 EXCEPT: (1) 7.889 acres, being the remainder of a 38.18 acre
2-7 tract, as described in deed from Texas Pacific Land Trust to
2-8 Socorro Independent School District, recorded in Volume 1302, Page
2-9 769, Real Property Records of El Paso County, Texas, (2) Tracts 2
2-10 and 3, as described in deed from the State of Texas to 375/10 Texas
2-11 Land L.P., recorded in Volume 2595, Page 1504, Real Property
2-12 Records of El Paso County, Texas, (3) Tracts 2 and 3, as described
2-13 in deed from the State of Texas to MBJR Trust and Barry Lang,
2-14 recorded in Volume 2595, Page 1517, Real Property Records of El
2-15 Paso County, Texas, (4) the northwest one-fourth of said Section
2-16 22; (5) Parcel I, as described in deed from Surety Savings
2-17 Association to the State of Texas, recorded in Volume 2043, Page
2-18 1726, Real Property Records of El Paso County, Texas; (6) 17.875
2-19 acres out of the 40.794 acre Tract I described in deed from Socorro
2-20 Independent School District to the State of Texas, recorded in
2-21 Volume 2361, Page 831, Real Property Records of El Paso County,
2-22 Texas; and (7) the southwest 1/4, Section 20, Block 79, Township 3,
2-23 Texas and Pacific Railroad Company Survey, El Paso County, Texas.
2-24 (b) A mistake in the patents or field notes, or in copying
2-25 the patents or field notes in the legislative process, does not
2-26 affect the organization, existence, or validity of the district,
2-27 the rights of the district to issue bonds or refunding bonds, or to
3-1 pay the principal of or interest on the bonds, the right of the
3-2 district to levy and collect taxes, or the legality or operation of
3-3 the district or its board.
3-4 (c) Land included within the boundaries of a special utility
3-5 district created under Section 59, Article XVI, Texas Constitution,
3-6 which is subject to a district's outstanding indebtedness secured
3-7 by taxes or net revenues on the effective date of this Act shall
3-8 not be included within the district. If the property described in
3-9 Subsection (a) of this section includes any land subject to a tax
3-10 or net revenue pledged by a district, it shall be excluded, and the
3-11 remainder of this Act shall not be affected thereby.
3-12 ARTICLE 2. ADMINISTRATIVE PROVISIONS
3-13 SECTION 2.01. BOARD. The district shall be governed by and
3-14 all powers of the district shall be exercised by a board of five
3-15 directors.
3-16 SECTION 2.02. DIRECTOR ELIGIBILITY. Other than initial
3-17 directors, to be eligible for appointment as a director, a person
3-18 must meet the requirements of Section 54.102, Water Code. To be
3-19 eligible for appointment as an initial director, a person must be a
3-20 member of the School Land Board or a resident of El Paso County or
3-21 Travis County. Employment with a state agency shall not disqualify
3-22 a person for appointment to the board under Section 50.026, Water
3-23 Code.
3-24 SECTION 2.03. TERMS OF DIRECTORS AND APPOINTMENT PROCEDURES.
3-25 (a) Other than initial directors, directors serve staggered terms
3-26 of four years, with terms expiring September 1 of each odd-numbered
3-27 year.
4-1 (b) Appointment of initial directors shall be made promptly
4-2 by the School Land Board after this Act takes effect. The School
4-3 Land Board shall appoint two initial directors to serve terms
4-4 expiring September 1, 1997, and three initial directors to serve
4-5 terms expiring September 1, 1999. If an initial director dies,
4-6 resigns, or is otherwise removed, the School Land Board shall
4-7 appoint a successor to serve the unexpired term. When a director's
4-8 term expires, his successor shall be elected as provided in Section
4-9 2.04 of this Act.
4-10 SECTION 2.04. ELECTION OF PERMANENT DIRECTORS. (a) Each
4-11 director shall serve his term of office as herein provided, and
4-12 thereafter until his successor shall be appointed or elected and
4-13 qualified. Elections for the appropriate number of permanent
4-14 directors are to be held on the first Saturday in May of each
4-15 odd-numbered year. The directors serve until September 1 of the
4-16 second odd-numbered year after the date of the election.
4-17 (b) Notice of elections shall be given by the board of
4-18 directors by publishing a copy thereof once a week for two
4-19 consecutive weeks in a newspaper of general circulation in the
4-20 district, the first publication being at least 14 days prior to the
4-21 election.
4-22 (c) Owners of land within the district shall be the only
4-23 qualified voters in the confirmation election to be held under
4-24 Section 54.026, Water Code. Each qualified voter in such election
4-25 shall have one vote per 500 acres of land owned within the
4-26 district. This subsection applies in the event of division of the
4-27 district under Article 8 of this Act.
5-1 SECTION 2.05. QUALIFIED VOTERS. If any owner of over 500
5-2 acres of land within the district is a constitutional fund of the
5-3 state, the members of the state board responsible for administering
5-4 the land holdings of such fund shall each be qualified voters
5-5 within the district.
5-6 SECTION 2.06. QUALIFICATION OF DIRECTOR. Except for initial
5-7 directors, no person shall be qualified to serve as a director
5-8 unless he resides in and owns taxable property in the district.
5-9 Initial directors shall be over 18 years of age and residents of
5-10 either El Paso County or Travis County. No employee of the
5-11 district shall serve as director. Directors shall subscribe the
5-12 constitutional oath of office. Except for the initial directors,
5-13 each director shall give bond for the faithful performance of his
5-14 duties as is required by Section 54.116, Water Code, the cost of
5-15 which shall be paid by the district.
5-16 SECTION 2.07. MEETINGS AND ACTIONS OF BOARD. (a) The board
5-17 may establish regular meetings to conduct district business and may
5-18 hold special meetings at other times as the business of the
5-19 district requires. The board shall hold its meetings within the
5-20 district unless the board, by a majority vote at a public meeting,
5-21 votes to hold a meeting or meetings outside the district.
5-22 (b) A majority of the directors shall constitute a quorum of
5-23 the board. A vote of a majority of the quorum present shall be
5-24 necessary to pass on any question before the board. The board may
5-25 adopt bylaws to govern its affairs. The board may adopt a seal for
5-26 the district. The board may provide in the bylaws that, except for
5-27 the initial directors, each director shall receive a fee of $20 for
6-1 attending each meeting of the board, provided that not more than
6-2 $40 shall be paid to any director for meetings held in any one
6-3 calendar month.
6-4 SECTION 2.08. ORGANIZATION OF BOARD. The board of directors
6-5 shall elect from its members a president and a vice president of
6-6 the district and such other officers as in the judgment of the
6-7 board are necessary. The president shall be the chief executive
6-8 officer of the district and the presiding officer of the board and
6-9 shall have the same right to vote as any other director. The vice
6-10 president shall perform all duties and exercise all powers
6-11 conferred by this Act on the president when the president is absent
6-12 or fails or declines to act. The board shall also appoint a
6-13 secretary and a treasurer who may or may not be members of the
6-14 board, and it may combine such offices. The treasurer shall give
6-15 bond in the amount required by the board of directors, but in no
6-16 event less than $100,000. The condition of the bond shall be that
6-17 the treasurer will faithfully account for all money which comes
6-18 into the treasurer's custody. Until the district authorizes the
6-19 issuance of bonds, the amount of the official bond of the treasurer
6-20 may be fixed by the board of directors in an amount not less than
6-21 $5,000.
6-22 SECTION 2.09. INTEREST IN CONTRACT. A director who is
6-23 financially interested in a contract proposed to be executed by the
6-24 district for the purchase of property or services or for the
6-25 construction of facilities shall disclose the interest to the board
6-26 and may not vote on the acceptance of the contract.
6-27 SECTION 2.10. DISTRICT EMPLOYEES. The board shall have
7-1 authority to employ a general manager and all consulting engineers,
7-2 financial consultants, attorneys, and auditors. The general
7-3 manager shall be responsible for:
7-4 (1) administering the board's directives;
7-5 (2) keeping the district's records, including minutes
7-6 of board meetings;
7-7 (3) coordinating with federal, state, and local
7-8 agencies;
7-9 (4) developing plans and programs for the board's
7-10 approval;
7-11 (5) hiring, supervising, training, and discharging the
7-12 district's employees;
7-13 (6) obtaining technical, scientific, legal, fiscal,
7-14 and other professional services; and
7-15 (7) performing any other duties the board assigns.
7-16 SECTION 2.11. EMPLOYEE BONDS. (a) The general manager and
7-17 each employee of the district who is charged with the collection,
7-18 custody, or payment of any money of the district shall execute a
7-19 fidelity bond in an amount determined by the board and in a form
7-20 and with a surety approved by the board.
7-21 (b) The district shall pay the premium on each employee bond
7-22 under this section.
7-23 SECTION 2.12. PRINCIPAL OFFICE. Until such time as it
7-24 issues bonds, the district may maintain its principal office in
7-25 either El Paso County or Travis County, provided that, if the
7-26 district maintains its principal office in Travis County, it shall
7-27 maintain duplicate records in El Paso County, and the duplicate
8-1 records shall be available for inspection during regular business
8-2 hours. After it issues bonds, the district shall maintain its
8-3 office in El Paso County.
8-4 SECTION 2.13. RECORDS. (a) The district shall keep at its
8-5 principal office:
8-6 (1) complete and accurate accounts of its business
8-7 transactions in accordance with generally accepted methods of
8-8 accounting;
8-9 (2) complete and accurate minutes of its meetings; and
8-10 (3) its contracts, documents, and other records.
8-11 (b) The district shall permit reasonable public inspection
8-12 of its records during regular business hours.
8-13 SECTION 2.14. SUIT. The district may sue and be sued in its
8-14 corporate name.
8-15 ARTICLE 3. POWERS AND DUTIES
8-16 SECTION 3.01. POWERS AND DUTIES. (a) The district shall:
8-17 (1) administer and enforce the terms of this Act;
8-18 (2) use its facilities and powers to accomplish the
8-19 purposes of this Act;
8-20 (3) coordinate the provision of water, wastewater, and
8-21 drainage services; and
8-22 (4) control and abate water pollution within the
8-23 district.
8-24 (b) In designing utility infrastructure and related systems,
8-25 the district shall submit for review to any municipal corporation
8-26 with a population in excess of 300,000 according to the most recent
8-27 federal census, provided the corporate boundary of such municipal
9-1 corporation is contiguous to the district, its design plans and
9-2 specifications for the utility infrastructure and related systems.
9-3 In connection with the submission, the district shall pay to the
9-4 municipal corporation the fee for review, if any, which has been
9-5 established by municipal ordinance and has general application for
9-6 reviews of this type, and the municipal corporation shall complete
9-7 its review of the design plans and specifications within 60 days
9-8 after their delivery. In connection with the construction of its
9-9 utility infrastructure, the district shall meet or exceed the
9-10 construction standards with regard to materials and installation
9-11 specifications of any municipal corporation with a population in
9-12 excess of 300,000 according to the most recent federal census,
9-13 provided the corporate boundary of such municipal corporation is
9-14 contiguous to the district.
9-15 (c) Subject only to the authority of the Texas Natural
9-16 Resource Conservation Commission, the district has the authority to
9-17 control and abate water pollution within the district. Such
9-18 authority of the district will neither reduce nor eliminate the
9-19 authority of a municipal corporation to control and abate water
9-20 pollution within the district under applicable state or federal
9-21 law.
9-22 (d) Except as expressly limited by this Act, the district
9-23 shall have all of the powers, rights, and privileges necessary and
9-24 convenient for accomplishing the purposes of this Act conferred by
9-25 general law on any municipal utility district or water control and
9-26 improvement district created under Section 59, Article XVI, Texas
9-27 Constitution.
10-1 (e) The powers granted to the district in this Act are
10-2 cumulative of all powers granted by other law.
10-3 SECTION 3.02. DISTRICT RULES. (a) The district may adopt
10-4 and enforce rules reasonably required to implement this Act,
10-5 including rules governing procedure and practice before the board.
10-6 (b) The district shall print its rules and furnish copies of
10-7 the rules to any person on written request.
10-8 SECTION 3.03. INSPECTIONS AND INVESTIGATIONS. In addition
10-9 to the powers conferred on it under Section 54.216, Water Code, the
10-10 district may enter public or private property in the district for
10-11 the purpose of inspecting and investigating conditions relating to
10-12 its authorized purposes under the same provisions and restrictions
10-13 applicable to the Texas Natural Resource Conservation Commission.
10-14 SECTION 3.04. HEARINGS AND ORDERS. (a) The board may:
10-15 (1) hold hearings, receive evidence from any party in
10-16 interest who appears before the board, compel the attendance of
10-17 witnesses, and make findings of fact and determinations with
10-18 respect to administering this Act or any order or rule of the
10-19 district; and
10-20 (2) delegate to one or more of its members or
10-21 employees the authority to take testimony and administer oaths in
10-22 any hearing held or authorized to be held by the district.
10-23 (b) An order of the board must be:
10-24 (1) in the district's name; and
10-25 (2) attested by proper members of the board under the
10-26 district's rules.
10-27 SECTION 3.05. CIVIL PENALTY; INJUNCTION. (a) A person who
11-1 violates a rule, permit, or order of the district is subject to a
11-2 civil penalty of not less than $50 and not more than $1,000 for
11-3 each violation or each day of a continuing violation.
11-4 (b) The district may sue to enjoin a threatened or present
11-5 activity or to recover the penalty in a district court in the
11-6 county where the violation occurred. The penalty shall be paid to
11-7 the district.
11-8 SECTION 3.06. PERMITS; CONTRACTS; COOPERATIVE AGREEMENTS.
11-9 (a) The district is authorized to acquire water appropriation
11-10 permits, construction permits, and other water and wastewater
11-11 discharge permits directly from the Texas Natural Resource
11-12 Conservation Commission or from owners of permits. The district is
11-13 also authorized to acquire water or a water supply from any person,
11-14 firm, corporation, municipal corporation, public agency, the State
11-15 of Texas, or the United States government or any of its agencies.
11-16 The district may, within the discretion of its board, contract with
11-17 one or more substantial users of water to acquire such water supply
11-18 under an agreed allocation of storage space between the district
11-19 and the user or may contract independently for the district's water
11-20 supply. The district is authorized to collect, transport, process,
11-21 dispose of, and control all domestic, industrial, or communal
11-22 wastes, whether in fluid, solid, or composite state. The district
11-23 is authorized to contract with any person, firm, corporation,
11-24 municipal corporation, public agency, the State of Texas, or the
11-25 United States government or any of its agencies for the collection,
11-26 transportation, processing, disposition, and control of all
11-27 domestic, industrial, or communal wastes. Such contracting
12-1 authority includes the authority to enter into coordinated
12-2 infrastructure plans or regional utility plans.
12-3 (b) The district is authorized to enter into contracts with
12-4 the State of Texas, cities and districts organized pursuant to
12-5 Section 59, Article XVI, Texas Constitution, and others for
12-6 supplying water or providing services pertaining to domestic,
12-7 industrial, or commercial wastes. The district is also authorized
12-8 to contract with any city, district, or other person for the rental
12-9 or leasing of or for the operation of the water production, water
12-10 supply, water filtration or purification, and water supply
12-11 facilities and facilities for providing services pertaining to the
12-12 wastes of the city, the district, or other person for such
12-13 consideration as the district and the city, the district, or other
12-14 person may agree on. Any such contract may be on such terms and
12-15 for such time as the parties may agree, and it may provide that it
12-16 shall continue in effect until bonds or notes specified therein and
12-17 refunding bonds issued in lieu of such bonds or notes are paid.
12-18 All such cities and districts are authorized to enter into such
12-19 contracts with the district to fix, charge, and collect fees,
12-20 rates, charges, rentals, and other amounts for any service or
12-21 facilities provided pursuant to or in connection with any contract
12-22 with this district and to pledge such amounts sufficient to make
12-23 all payments required under the contract.
12-24 (c) With regard to land use planning, the district shall
12-25 encourage owners and developers of land within the district to use
12-26 and develop their land and buildings in a manner consistent with
12-27 building codes, housing codes, fire codes, subdivision regulations,
13-1 zoning regulations, thoroughfare plans, water conservation plans,
13-2 land use plans, and other land development and safety regulations
13-3 of each adjacent municipal corporation with a population in excess
13-4 of 300,000 according to the most recent federal census.
13-5 SECTION 3.07. FACILITIES. In addition to authority
13-6 conferred on it under Sections 54.201 and 54.211, Water Code, the
13-7 district is authorized to purchase, construct, acquire, own, lease,
13-8 operate, maintain, repair, improve, and extend, at any location
13-9 inside or outside its boundaries, in the sole discretion of the
13-10 district, land and any interest in land, any and all works,
13-11 improvements, facilities, plants, equipment, and appliances
13-12 incident, helpful, or necessary to provide for: (1) the control,
13-13 storage, preservation, transmission, treatment, and distribution
13-14 and use of storm water and floodwater, the water of rivers and
13-15 streams, and underground water, for municipal, domestic,
13-16 industrial, and other beneficial uses; and (2) the collection,
13-17 transportation, processing, disposition, and control of domestic,
13-18 industrial, or commercial wastes. The district shall have the
13-19 authority to enter into any contract with any person, firm,
13-20 corporation, city, district, municipal corporation, public agency,
13-21 or other political subdivision and to perform any other act
13-22 consistent with the powers herein granted to carry out any such
13-23 power.
13-24 SECTION 3.08. ACQUISITION AND DISPOSITION OF PROPERTY. The
13-25 district is authorized to use any public roadway, street, alley, or
13-26 easement in El Paso County to accomplish its purposes, without the
13-27 necessity of securing a franchise or other governmental agreement,
14-1 provided that, with regard to the use of public roadways, streets,
14-2 alleys, or easements which belong to an adjacent municipal
14-3 corporation with a population in excess of 300,000 according to the
14-4 most recent federal census, the district shall obtain the written
14-5 consent of the municipal corporation prior to use thereof, and,
14-6 with regard to the use of any roadway, street, alley, or easement
14-7 to which such a municipal corporation has exclusive rights,
14-8 district use shall be subject to payment of a fee equal to the
14-9 lesser of the district's pro rata share, based on actual area
14-10 encumbered, of the fair market value of or the initial purchase
14-11 price for such roadway, street, alley, or easement.
14-12 SECTION 3.09. RELOCATION OF FACILITIES. In the event that
14-13 the district in the exercise of its powers makes necessary the
14-14 relocation, raising, rerouting, or changing the grade of or
14-15 altering the construction of any highway, railroad, electric
14-16 transmission line, pipeline, canal, or drainage ditch, all such
14-17 necessary relocation, raising, rerouting, changing of grade, or
14-18 alteration of construction shall be accomplished at the sole
14-19 expense of the district unless otherwise agreed on in writing by
14-20 interested parties; however, in the case of replacement, the cost
14-21 of such action shall be limited to the comparable replacement of
14-22 any replaced facility, less the replaced facility's net salvage
14-23 value.
14-24 ARTICLE 4. GENERAL FISCAL PROVISIONS
14-25 SECTION 4.01. DISBURSEMENT OF MONEY. The district may
14-26 disburse money only by check, draft, order, or other instrument
14-27 signed by the person or persons authorized in the board's bylaws or
15-1 by board resolution.
15-2 SECTION 4.02. FEES AND CHARGES. The district may establish
15-3 fees and charges not to exceed the amounts necessary to enable the
15-4 district to fulfill the obligations imposed on it by this Act.
15-5 SECTION 4.03. LOANS AND GRANTS. The district may apply for
15-6 and receive loans and grants from the federal or the state
15-7 government or any agencies thereof, or from a private source, for
15-8 the purpose of carrying out one or more of its powers. The
15-9 district may enter into any agreement in connection with a loan or
15-10 grant that does not conflict with federal or state law.
15-11 SECTION 4.04. FISCAL YEAR. The board shall establish the
15-12 district's fiscal year.
15-13 SECTION 4.05. DEPOSITORY BANKS. (a) The board shall
15-14 designate one or more banks to serve as depository or depositories
15-15 for the funds of the district. Subject to Section 54.307, Water
15-16 Code, all funds of the district shall be deposited in the
15-17 depository bank or banks.
15-18 (b) Before designating a depository bank, the board shall
15-19 publish notice at least once in a newspaper of general circulation
15-20 in the district requesting applications from banks interested in
15-21 serving as a depository. The notice shall include the time and
15-22 location of the board meeting at which the board proposes to
15-23 designate a depository bank. The board shall prescribe the term of
15-24 service of a depository bank.
15-25 (c) At the time stated in the notice required by Subsection
15-26 (b) of this section, the board shall consider the applications
15-27 received and the management and condition of each bank that files
16-1 an application. The board may designate as a depository the bank
16-2 or banks that offer the most favorable terms and conditions for the
16-3 handling of the district's money and that have proper management
16-4 and the ability to handle the district's money properly.
16-5 Membership of an officer or director of a bank on the board of the
16-6 district does not disqualify the bank from being designated as a
16-7 depository. Service as an officer or director of a bank does not
16-8 disqualify the officer or director of the bank from membership on
16-9 the board of the district.
16-10 (d) If no application is received by the time stated in the
16-11 notice, the board may designate a bank or banks on such terms and
16-12 conditions as the board considers prudent.
16-13 ARTICLE 5. BOND AND TAX PROVISIONS
16-14 SECTION 5.01. TAX; REVENUE BONDS. (a) For the purpose of
16-15 carrying out any power or authority conferred by this Act, the
16-16 district may issue its bonds or other obligations in three general
16-17 classes:
16-18 (1) secured by ad valorem taxes;
16-19 (2) secured by a pledge of all or part of the revenues
16-20 accruing to the district, including without limitation those
16-21 received from sale of water or other products, rendition of
16-22 service, tolls, charges, and all other sources other than ad
16-23 valorem taxes; and
16-24 (3) secured by a combination pledge of all or part of
16-25 the revenues described in Subdivision (2) of this subsection and
16-26 taxes.
16-27 (b) The obligations shall be authorized by resolution of the
17-1 board and shall be issued in the name of the district, shall be
17-2 signed by the president or any vice president, shall be attested to
17-3 by the secretary, and shall bear the seal of the district. If
17-4 authorized by the board, the signatures of the president or any
17-5 vice president and of the secretary, or of both, may be printed or
17-6 lithographed on the obligations, and the seal of the district may
17-7 be impressed on the obligations or may be printed or lithographed
17-8 on the obligations. The obligations shall be in the form
17-9 prescribed by the board, shall be in any denomination or
17-10 denominations, shall mature serially or otherwise in not to exceed
17-11 50 years from their date, shall bear any interest, may be sold at a
17-12 price and under terms determined by the board to be the most
17-13 advantageous reasonably obtainable, may be made callable prior to
17-14 maturity, at the discretion of the board, at the times and prices
17-15 prescribed in the obligations, and may be made registrable as to
17-16 principal or as to both principal and interest. The obligations
17-17 may be further secured by an indenture of trust with a corporate
17-18 trustee.
17-19 (c) Obligations may be issued in more than one series and
17-20 from time to time, as required for carrying out the purposes of
17-21 this Act. Any pledge of revenue may reserve the right, under
17-22 conditions therein specified, to issue additional obligations which
17-23 will be on a parity with or subordinate to the obligations then
17-24 being issued.
17-25 (d) The district is an "issuer" for the purpose of
17-26 definitions in Chapter 656, Acts of the 68th Legislature, Regular
17-27 Session, 1983 (Article 717q, Vernon's Texas Civil Statutes).
18-1 (e) The resolution authorizing the obligations or the trust
18-2 indenture further securing the obligations may specify additional
18-3 provisions which shall constitute a contract between the district
18-4 and the owners of the obligations. The board shall have full
18-5 discretion in providing for the additional provisions, including
18-6 the authority to provide for a corporate trustee or receiver to
18-7 take possession of facilities of the district in the event of
18-8 default on the part of the district in fulfilling the covenants
18-9 therein made.
18-10 (f) The district shall not issue bonds secured by or
18-11 otherwise encumber permanent school fund land contained within the
18-12 boundaries of the district.
18-13 SECTION 5.02. BOND ANTICIPATION NOTES. The district may
18-14 issue bond anticipation notes from time to time for the purpose of
18-15 carrying out any one or more of its powers. Such bond anticipation
18-16 notes may or may not be secured by a pledge of all or part of the
18-17 revenues of the district. The district may from time to time
18-18 authorize the issuance of bonds for the purpose of providing
18-19 proceeds to pay the principal of and interest on bond anticipation
18-20 notes. Such bonds shall be secured by a pledge of all or part of
18-21 the revenues of the district and may be issued on a parity with or
18-22 subordinate to outstanding bonds of the issuer. If the resolution
18-23 or trust agreement authorizing the issuance of bond anticipation
18-24 notes contains a covenant to the effect that such notes shall be
18-25 payable from the proceeds of the subsequently issued bonds, it
18-26 shall not be necessary to demonstrate for the purposes of receiving
18-27 the approval of the attorney general or registration by the
19-1 comptroller that the revenues that may be pledged to such notes
19-2 will be sufficient to pay the principal of and interest on the
19-3 notes.
19-4 SECTION 5.03. REFUNDING BONDS. (a) The district may issue
19-5 refunding bonds to refund outstanding bonds and interest authorized
19-6 by this Act.
19-7 (b) Refunding bonds may:
19-8 (1) be issued to refund one or more series of
19-9 outstanding bonds;
19-10 (2) combine the pledges for the outstanding bonds for
19-11 the security of the refunding bonds; or
19-12 (3) be secured by other or additional revenues.
19-13 (c) The refunding bonds may be issued without having been
19-14 authorized at an election. The provisions of this Act applicable
19-15 to the district's issuance of other bonds, their security, their
19-16 approval by the attorney general, and the remedies of the holders
19-17 are applicable to refunding bonds.
19-18 (d) Refunding bonds shall be registered by the comptroller
19-19 on surrender and cancellation of the bonds to be refunded.
19-20 Alternatively, the resolution authorizing the issuance of refunding
19-21 bonds may provide that the bonds shall be sold and the resulting
19-22 proceeds deposited in the bank where the bonds to be refunded are
19-23 payable, in which case the refunding bonds may be issued in an
19-24 amount sufficient to pay the principal and interest of the bonds to
19-25 be refunded to their option or maturity date. The comptroller
19-26 shall register the refunding bonds without concurrent surrender and
19-27 cancellation of the bonds to be refunded.
20-1 SECTION 5.04. APPROVAL AND REGISTRATION OF BONDS. District
20-2 bond review and approval shall be governed by the provisions of
20-3 Subchapter F, Chapter 54, Water Code.
20-4 SECTION 5.05. TAXATION. (a) Except for land owned by the
20-5 permanent school fund, the board may levy and collect ad valorem
20-6 taxes for the maintenance of the district and its improvements or
20-7 for administrative expenses of the district, or for both purposes,
20-8 in such amounts as are voted in accordance with this Act.
20-9 (b) The maintenance tax and administration tax shall not
20-10 exceed the maximum rate voted, and the authorized rate shall remain
20-11 in effect unless changed by subsequent vote.
20-12 SECTION 5.06. BONDS ARE AUTHORIZED INVESTMENTS. All bonds
20-13 and notes of the district shall be and are hereby declared to be
20-14 legal and authorized investments for banks, savings banks, trust
20-15 companies, savings and loan associations, insurance companies,
20-16 fiduciaries, trustees, and guardians and for the sinking funds of
20-17 cities, towns, villages, counties, school districts, or other
20-18 political corporations or subdivisions of the State of Texas. Such
20-19 bonds and notes shall be eligible to secure the deposit of any and
20-20 all public funds of the State of Texas and any and all public funds
20-21 of cities, towns, villages, counties, school districts, or other
20-22 political corporations or subdivisions of the State of Texas; and
20-23 such bonds shall be lawful and sufficient security for the deposits
20-24 to the extent of their value.
20-25 SECTION 5.07. PROPERTY: RENDITION; VALUATION; LEVY.
20-26 (a) The rendition and assessment of property for taxation, the
20-27 equalization of values, and the collection of taxes for the benefit
21-1 of the district shall be in accordance with the law applicable to
21-2 counties, insofar as such law can be made applicable, and except as
21-3 hereinafter specifically provided.
21-4 (b) The tax assessor-collector of each county shall act as
21-5 the tax assessor-collector for the district for property in the
21-6 district located in such county. It shall be the duty of the tax
21-7 assessor-collector in each county to cause to be placed on the
21-8 county tax rolls the additional column or columns needed to show
21-9 the taxes levied by the district and the amount thereof, based on
21-10 the value of the property as approved and equalized. The fee of
21-11 each county tax assessor-collector for assessing and collecting
21-12 taxes shall be one percent of the taxes collected, to be paid over
21-13 and disbursed in each county as are other fees of office.
21-14 (c) All the legal means available for the enforcement of
21-15 state and county taxes shall be available to the district. The
21-16 district shall have the right to cause the officers of each county
21-17 to enforce and collect the taxes due to the district in that county
21-18 as provided in the law for the enforcement of state and county
21-19 taxes.
21-20 (d) Taxes assessed and levied for the benefit of the
21-21 district shall be payable and shall become delinquent at the same
21-22 time, in the same manner, and subject to the same discount for
21-23 advance payment as taxes levied by and for the benefit of the
21-24 county in which the property is taxable. The fee for collecting
21-25 delinquent taxes through prosecution of suit shall be 15 percent of
21-26 the taxes collected by the suit, to be paid over and disbursed in
21-27 each county as are other fees of office.
22-1 (e) Concurrently with the levy of county taxes by the
22-2 commissioners courts, the board shall levy the tax on all taxable
22-3 property in the district which is subject to such taxation and
22-4 shall immediately certify the tax rate to the tax
22-5 assessor-collector of each county which lies inside the district.
22-6 ARTICLE 6. ADDITION OF LAND TO DISTRICT
22-7 SECTION 6.01. ANNEXATION. Notwithstanding any other
22-8 provision of law, other territory may be included in the district
22-9 as provided in Sections 6.02, 6.03, and 6.04 of this Act.
22-10 SECTION 6.02. PETITION. (a) The owner or owners of land
22-11 contiguous to the district or otherwise may file with the board a
22-12 petition requesting that there be included in the district the land
22-13 described in the petition by metes and bounds or by lot and block
22-14 number if there is a recorded plat of the area to be included in
22-15 the district.
22-16 (b) The petition of the landowner or landowners to add land
22-17 to the district shall be signed and executed in the manner provided
22-18 by law for the conveyance of real estate.
22-19 (c) The board shall hear and consider the petition and may
22-20 add to the district the land described in the petition if it is
22-21 considered to be to the advantage of the district and if the water
22-22 system and other improvements of the district are sufficient or
22-23 will be sufficient to supply the added land without injuring land
22-24 already in the district.
22-25 SECTION 6.03. NOTICE AND HEARING. (a) A petition
22-26 requesting the annexation of a defined area shall be filed with the
22-27 secretary of the board and shall be signed by a majority in value
23-1 of the owners of land in the defined area, as shown by the tax
23-2 rolls of the county or counties in which such area is located, or
23-3 signed by 50 landowners, if the number of landowners in the defined
23-4 area is more than 50.
23-5 (b) It shall be the duty of the board to pass an order
23-6 fixing a time and place at which the petition for annexation shall
23-7 be heard, which shall not be less than 15 days from the day of the
23-8 order calling the hearing.
23-9 (c) The secretary shall issue a notice setting forth the
23-10 time and place of the hearing and describing the area proposed to
23-11 be annexed. Notice of the hearing shall be given by posting copies
23-12 of the notice in three public places in the district and in one
23-13 public place in the area proposed to be annexed for at least seven
23-14 days before the day of the hearing and by publishing a copy of the
23-15 notice in a newspaper of general circulation in the county or
23-16 counties in which the area proposed to be annexed is located one
23-17 time at least seven days before the day of the hearing.
23-18 (d) If on the hearing of the petition it is found by the
23-19 board that the proposed annexation of the area to the district is
23-20 feasible and practicable and would be of benefit both to the area
23-21 and to the district, the board, by order entered in its minutes
23-22 describing the area to be annexed, may receive the proposed area as
23-23 an addition to and part of the district. The order adding the
23-24 proposed territory to the district need not include all of the land
23-25 described in the petition, if on the hearing a modification or
23-26 change is found necessary or desirable by the board.
23-27 SECTION 6.04. ANNEXATION ORDER. (a) A copy of the order
24-1 adding or annexing land to the district, signed by a majority of
24-2 the members of the board and attested to by the secretary of the
24-3 board, shall be filed and recorded in the deed records of the
24-4 county or counties in which the district is located if the land is
24-5 finally annexed to the district.
24-6 (b) After the order is recorded, the area shall be a part of
24-7 the district.
24-8 ARTICLE 7. EXCLUSION OF LAND FROM DISTRICT
24-9 SECTION 7.01. PETITION. (a) Notwithstanding any other
24-10 provision of law, the board, provided there is no outstanding board
24-11 order regarding an election for the authorization of bonds payable
24-12 in whole or in part from taxes and/or provided the district does
24-13 not have any outstanding indebtedness secured by taxes or net
24-14 revenues of the district, may call a hearing on exclusion of land
24-15 from the district by petition of a landowner or on motion of the
24-16 board of directors.
24-17 (b) A petition for exclusion of land must accurately
24-18 describe the land to be excluded by metes and bounds or by
24-19 reference to a plat recorded in the plat records of the county or
24-20 counties in which the land is located. The petition must be signed
24-21 by the owner or owners of the land to be excluded, by at least 10
24-22 percent of the owners of land to be excluded, or by five or more of
24-23 the owners of land to be excluded if the number of owners is more
24-24 than 50, must be filed with the district at least 7 days before the
24-25 hearing on the petition for exclusion, and shall clearly state the
24-26 particular grounds on which exclusion is sought. Only the ground
24-27 stated in the petition shall be considered.
25-1 SECTION 7.02. NOTICE AND HEARING. (a) A hearing shall be
25-2 held on any petition for exclusion, but shall not be required for
25-3 exclusion by motion of the board.
25-4 (b) Notice of hearing shall be published by the board once a
25-5 week for two consecutive weeks in one or more newspapers of general
25-6 circulation in the district. The first publication shall appear at
25-7 least 14 days and not more than 40 days before the date of the
25-8 hearing.
25-9 (c) Before determining to exclude any land, the board shall
25-10 find that the district has no obligations that will be impaired by
25-11 the exclusion of the land, that the district will incur no
25-12 obligations because of the exclusion, and that the exclusion is in
25-13 the best interests of the district.
25-14 (d) After considering all engineering data and other
25-15 evidence presented to it, if the board makes the findings set forth
25-16 in Subsection (c) of this section, the board shall enter an order
25-17 excluding all land meeting the conditions and shall redefine the
25-18 boundaries of the district in order to embrace all land not
25-19 excluded. If the land to be excluded contains water or wastewater
25-20 customers of the district, such customers shall remain customers of
25-21 the district, and owners of lots to which water and wastewater
25-22 facilities have already been extended shall also be allowed to
25-23 connect to the district's system and shall be customers of the
25-24 district.
25-25 SECTION 7.03. EFFECTIVE DATE OF ORDER EXCLUDING LAND.
25-26 (a) Except as provided by Subsection (c) of this section, an order
25-27 excluding land pursuant to a petition signed by the owner or owners
26-1 of the land to be excluded takes effect on the date the board
26-2 enters the order.
26-3 (b) Except as provided by Subsection (c) of this section, an
26-4 order excluding land pursuant to a petition signed by less than all
26-5 of the owners to be excluded takes effect:
26-6 (1) on the day following the deadline for submission
26-7 of a petition if the district does not receive a timely petition
26-8 under Subsection (b) of Section 7.04 of this Act; or
26-9 (2) on the day following the day the election returns
26-10 are canvassed if the district receives a timely petition under
26-11 Subsection (b) of Section 7.04 of this Act and the exclusion is
26-12 ratified at an election held for that purpose.
26-13 (c) Before an order excluding land under this section
26-14 becomes effective, all taxes levied and assessed by the district on
26-15 the land to be excluded shall be fully paid.
26-16 SECTION 7.04. PETITION FOR RATIFICATION ELECTION. (a) If
26-17 the board issues an order excluding land pursuant to a petition
26-18 signed by less than all of the owners of the land to be excluded,
26-19 the board shall publish notice describing the excluded land and
26-20 stating that the exclusion becomes final if the district does not
26-21 receive, within 25 days after the date of the board's order, a
26-22 petition requesting a ratification election that is signed by at
26-23 least 10 percent of the qualified voters that reside in the area to
26-24 be excluded.
26-25 (b) If the district receives, within 25 days after the date
26-26 of the board's order, a petition requesting a ratification election
26-27 that is signed by at least 10 percent of the qualified voters that
27-1 reside in the land area to be excluded, the order does not take
27-2 effect unless approved by a majority vote of the residents of the
27-3 district at a ratification election held for that purpose.
27-4 (c) The notice of the election, the manner and time of
27-5 giving the notice, the manner of holding the election, and
27-6 qualifications of the voters shall be governed by Subchapter E,
27-7 Chapter 51, Water Code.
27-8 ARTICLE 8. DIVISION OF DISTRICT
27-9 SECTION 8.01. CONDITIONS OF DIVISION. (a) The district may
27-10 from time to time, provided it does not have any outstanding
27-11 indebtedness secured by taxes or net revenues, divide into two or
27-12 more districts; however, no division shall occur that would result
27-13 in the creation of a district of less than 100 acres in size. On
27-14 petition of any landowner or on the board's own motion, the board
27-15 of directors may consider a proposal to divide the original
27-16 district or any district subsequently created by division.
27-17 (b) With regard to the foregoing authority to divide the
27-18 district into one or more districts, it is not the intent of this
27-19 Act to encourage or promote the proliferation of numerous utility
27-20 providers within the subject territory. Rather, this Act is
27-21 intended to encourage and promote orderly development within the
27-22 subject territory and to facilitate the provision of dependable,
27-23 efficient utility services at affordable rates to customers of the
27-24 district.
27-25 SECTION 8.02. ELECTION; AUTHORITY OF NEW DISTRICTS.
27-26 (a) After the board of the original district has agreed on the
27-27 terms and conditions of division, which shall include a plan for
28-1 the payment of any outstanding current obligations and performance
28-2 of any outstanding obligations of the original district, and has
28-3 prepared a metes and bounds description of the proposed districts,
28-4 it shall order an election to be held in the district to determine
28-5 whether the original district should be divided as proposed.
28-6 (b) The board of the original district shall be divided if a
28-7 majority of the qualified voters in the original district vote in
28-8 favor of the division. The resulting districts shall be designated
28-9 by consecutive letters following the number of the original
28-10 district. For example, Paseo del Este No. 1, if divided into two
28-11 districts, shall become Paseo del Este No. 1A and Paseo del Este
28-12 No. 1B. Each resulting district, in order to issue bonds payable
28-13 wholly or partially from ad valorem taxes, shall be required to
28-14 obtain authorization for the issuance of the bonds by a majority
28-15 vote of the qualified voters of the district voting in an election
28-16 called and held for that purpose. Notice of the election shall be
28-17 given as generally set forth for bond elections in Chapter 54,
28-18 Water Code. Each resulting district desiring to levy a maintenance
28-19 tax shall be required to obtain authorization for the tax by a
28-20 majority vote of the qualified voters of the district voting in an
28-21 election called and held for that purpose. Notice of the election
28-22 shall be given as generally set forth for such elections in Chapter
28-23 54, Water Code.
28-24 SECTION 8.03. APPOINTMENT AND ELECTION OF DIRECTORS.
28-25 (a) After the district is divided into two or more districts, the
28-26 resulting districts shall be separate districts and shall be
28-27 governed as separate districts, provided that, during a period of
29-1 90 days after the date of the election to approve division, the
29-2 board of the original district shall continue to act on behalf of
29-3 the original district to wind up its affairs. The board of the
29-4 original district shall appoint two initial directors to each
29-5 resulting district to serve terms expiring September 1 of the
29-6 second year after the creation of each resulting district, and the
29-7 board of the original district shall appoint three initial
29-8 directors to each resulting district to serve terms expiring
29-9 September 1 of the fourth year after creation of each resulting
29-10 district. A board member of the original district may be appointed
29-11 as a director of one of the resulting districts. In any election
29-12 held to confirm the creation of the district and appointment of
29-13 initial directors, Section 2.04 of this Act applies.
29-14 (b) If an initial director dies, resigns, or is otherwise
29-15 removed, the board of the new district shall appoint a successor to
29-16 serve the unexpired term. When a director's term expires, his
29-17 successor shall be elected as provided in Section 2.04 of this Act.
29-18 SECTION 8.04. PAYMENT OF DISTRICT DEBTS. After the division
29-19 of the original district into two or more districts, the current
29-20 obligations and any bond authorizations of the original district
29-21 are protected and are not impaired. The debts may be paid by
29-22 taxes, revenues, or assessments levied on the land in the original
29-23 district as if it had not divided or with contributions from each
29-24 of the resulting districts on terms stated in the division proposed
29-25 by the board and approved by the election under Section 8.02 of
29-26 this Act.
29-27 SECTION 8.05. AUTHORITY OF RESULTING DISTRICTS. After
30-1 division, each of the resulting districts shall have the power to
30-2 incur and pay debts created by each district and shall in every
30-3 respect have the full power and authority of a district created and
30-4 governed by the provisions of this Act. Each of the resulting
30-5 districts shall have the authority to contract with one another for
30-6 the provision of water and wastewater services and for such other
30-7 matters as the board of directors of each of the districts deems
30-8 appropriate.
30-9 SECTION 8.06. ASSUMPTION OF OBLIGATIONS. After division,
30-10 each of the resulting districts shall assume the obligations of the
30-11 original district under any agreements or resolutions consenting to
30-12 the creation of the original district to the extent that such
30-13 agreements and resolutions do not impose obligations that limit the
30-14 district's powers and authority to issue bonds for any purpose
30-15 authorized by this Act. Any other obligations of the original
30-16 district shall be divided pro rata among the resulting districts
30-17 either on an acreage basis or on such other terms as are
30-18 satisfactory to the resulting districts.
30-19 SECTION 8.07. NOTICE TO TEXAS NATURAL RESOURCE CONSERVATION
30-20 COMMISSION. Within 30 days after a division election, the original
30-21 district that confirms a plan for division shall provide written
30-22 notice of such plan to the Texas Natural Resource Conservation
30-23 Commission.
30-24 ARTICLE 9. ANNEXATION AND DISSOLUTION OF DISTRICT
30-25 SECTION 9.01. ANNEXATION. (a) Notwithstanding any other
30-26 provision of law, on the annexation of the district or districts,
30-27 in the event of division under Article 8 of this Act, the annexing
31-1 municipality shall:
31-2 (1) assume all of the outstanding indebtedness of the
31-3 district;
31-4 (2) dissolve the district within six months of
31-5 annexation and become the owner of all district assets, including,
31-6 without limitation, all accounts receivable and the right to
31-7 collect all outstanding taxes, delinquent taxes, and other
31-8 indebtedness;
31-9 (3) refrain from imposing city taxes on property
31-10 located within the district at any time prior to dissolution of the
31-11 district;
31-12 (4) provide all city utility, emergency medical, fire,
31-13 police, garbage collection, and other standard municipal services
31-14 to residents of the district at the same rate as such services are
31-15 provided to in-city residents of similar developments; and
31-16 (5) with regard to zoning and other land use
31-17 regulation, honor regional land use planning within the district.
31-18 (b) Notwithstanding Subsection (a)(4) of this section, the
31-19 annexing municipality may, following annexation and dissolution of
31-20 the district, impose water supply fees, impact fees, and other
31-21 assessments allowed by state law on property previously located
31-22 within the district, provided that the annexing municipality shall
31-23 not impose any such fee or assessment on property which had
31-24 received a utility service allocation by the district or property
31-25 for which site development has been authorized or on which site
31-26 development has commenced.
31-27 (c) Immediately on annexation of the district, the district
32-1 shall transfer all district assets to the annexing municipal
32-2 corporation in accordance with the instruments approved by the
32-3 annexing municipal corporation and the district.
32-4 ARTICLE 10. AFFORDABLE HOUSING
32-5 SECTION 10.01. A minimum of five percent of the residential
32-6 housing units within the district shall be utilized for the
32-7 construction of affordable housing, such affordable housing to be
32-8 distributed among different residential areas within the district.
32-9 In this section, "affordable housing" means housing available to
32-10 those with low or very low income levels, as those levels are
32-11 determined periodically by the United States Department of Housing
32-12 and Urban Development based on the El Paso Standard Metropolitan
32-13 Statistical Area.
32-14 ARTICLE 11. MISCELLANEOUS PROVISIONS
32-15 SECTION 11.01. NO TAXATION. The accomplishment of the
32-16 purposes stated in this Act being for the benefit of the people of
32-17 this state and for the improvement of their properties and
32-18 industries, the district in carrying out the purposes of this Act
32-19 will be performing an essential public function under the
32-20 constitution and shall not be required to pay any tax or assessment
32-21 on the project or any part thereof, and the bonds or notes issued
32-22 under this Act and their transfer and the income therefrom,
32-23 including the profits made on the sale thereof, shall at all times
32-24 be free from taxation within this state.
32-25 SECTION 11.02. FINDINGS RELATING TO PROCEDURAL REQUIREMENTS.
32-26 The proper and legal notice of the intention to introduce this Act,
32-27 setting forth the general substance of this Act, has been published
33-1 as provided by law, and the notice and a copy of this Act have been
33-2 furnished to all persons, agencies, officials, or entities to which
33-3 they are required to be furnished by the constitution and other
33-4 laws of this state, including the governor. All requirements of
33-5 the constitution and laws of this state and the rules and
33-6 procedures of the legislature with respect to the notice,
33-7 introduction, and passage of this Act are fulfilled and
33-8 accomplished.
33-9 SECTION 11.03. SEVERABILITY. If any word, phrase, clause,
33-10 sentence, paragraph, section, or other part of this Act or the
33-11 application thereof to any person or circumstance shall ever be
33-12 held to be invalid or unconstitutional by a court of competent
33-13 jurisdiction in this state, the remainder of the Act and the
33-14 application of such word, phrase, clause, sentence, paragraph,
33-15 section, or other part of this Act to other persons or
33-16 circumstances shall not be affected thereby. To the extent of a
33-17 conflict between a provision of this Act and any other law or
33-18 statute, this Act shall control.
33-19 SECTION 11.04. EMERGENCY. The importance of this
33-20 legislation and the crowded condition of the calendars in both
33-21 houses create an emergency and an imperative public necessity that
33-22 the constitutional rule requiring bills to be read on three several
33-23 days in each house be suspended, and this rule is hereby suspended,
33-24 and that this Act take effect and be in force from and after its
33-25 passage, and it is so enacted.
33-26 COMMITTEE AMENDMENT NO. 1
33-27 Amend S.B. 1663 as follows:
34-1 1. On page 7, line 10, add the following after "of the
34-2 contract.":
34-3 "In connection with contracts entered into by the district, state
34-4 officers and employees, and/or officers and employees of political
34-5 subdivisions of the state, shall be considered employees of the
34-6 district and shall be subject to the provisions of Section 572.054,
34-7 Government Code, that apply to employees of the state.
34-8 2. On page 13, line 20, insert the following before "(c)"
34-9 and renumber the subsequent subsection:
34-10 "(c) With regard to the financing of infrastructure prior to
34-11 the issuance of bonds, the district shall require each developer of
34-12 land within the district to provide a bond or other surety to
34-13 assure payment for such infrastructure. The bond or other surety
34-14 shall be payable to the district in the event of default in the
34-15 payment of infrastructure indebtedness or developer bankruptcy,
34-16 receivership, or liquidation. Upon receipt, the district shall
34-17 apply all proceeds of such bond or surety to payment of such
34-18 infrastructure indebtedness."
34-19 Yost