Invisible Government: Special Purpose Districts in Texas - Senate

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SPOTLIGHT
state or any defined district, providing the land contained
therein is agricultural in character. The areas composing
a district do not have to be contiguous. However, each
segregated area, before it may be included in the district,
must cast a majority vote in favor of the creation of the
district. No district may include territory located in more
than one county except by a majority vote of the electors
in each county sought to be included in the district.
A petition requesting creation of a district must be signed
by a majority of the persons who hold title to land in
the proposed district which represents a total value of
more than 50 percent of the value of all the land in the
proposed district. If there are more than 50 persons
holding title to land, the petition is sufficient if signed
by 50 of them.
If the land to be included in the district is within one
county, the creation of the district is considered and
ordered by the commissioners court, but if the land
is located in two or more counties, the creation of
the district is considered and ordered by TCEQ. If
the petition for creation of a single-county district is
granted, the commissioners court or TCEQ appoints five
temporary directors until their successors are elected or
appointed.
No city, town, or municipal corporation may be
included in a district unless approved by a majority
of the votes cast by electors. No district, the major
portion of which is located in one county, may be
organized to include land in another county unless
the voters in the other county confirm and ratify the
creation of the district.
Chapter 58 provides for the conversion into an irrigation
district of any water improvement district or water
control and improvement district which furnishes water
for irrigation and does not furnish treated water or sewer
services.
Five directors serve on an irrigation district’s board.
Districts are granted powers that permit them to
accomplish the purposes for which they were created,
including the construction of necessary works and
improvements, including bridges and culverts; the
purchase of machinery and supplies; rulemaking
authority; and the power to contract. The electors of the
district must vote to approve every contract involving
Special Purpose Districts
the payment of construction charges to the federal
government.
Chapter 58 includes provisions for the transfer of water
rights by an irrigation district, the sale of waterpower
privileges and surplus water, and the pumping of water
to other districts. The board of directors is granted
rulemaking authority over issues related to water
service, assessments, and payment for service. The
statute also includes provisions for the establishment
of a construction fund, a maintenance fund, an
amortization and emergency fund, and an interest and
sinking fund.
Chapter 58 authorizes the board of directors to borrow
funds to meet the obligations of the district if such
funds are not available. The statute grants authority
to issue bonds to districts operating under Section 52,
Article III, Texas Constitution, upon approval of twothirds
of voters in the district. However, such districts
may not issue bonds or lend credit in an amount
greater than one-fourth of the assessed valuation of
the real property in the district. Districts operating
under Section 59, Article XVI, Texas Constitution,
may issue bonds to provide improvements and
maintenance of improvements to achieve the purposes
for which the district was created. Bonds may be
issued or indebtedness created only upon approval
of a majority of voters. Districts may also issue
preliminary bonds to pay for district operations, upon
approval by the electors in the district.
Taxes to pay for district activities may be levied on the
ad valorem basis, the basis of assessment of specific
benefits, the basis of assessment of benefits on an equal
sum per acre, or the ad valorem basis for part of the total
tax or defined area or property and on the benefit basis
for the other part of the tax or defined area or property.
Chapter 58 establishes provisions for adding and
excluding territory from a district, consolidating districts,
and dissolving districts.
ffRegional Districts
Chapter 59 (Regional Districts), Water Code, establishes
provisions for the creation of regional districts for
water, sanitary sewer, drainage, and municipal solid
waste disposal and only applies to counties with a
Page 24 October 2008