WATER CODE
CHAPTER 53. FRESH WATER SUPPLY DISTRICTS
§ 53.001. DEFINITIONS. In this chapter:
(1) "District" means a fresh water supply district
established under this chapter.
(2) "Board" means the board of supervisors of a
district.
(3) "Improvement" means a facility for conserving,
transporting, or distributing fresh water.
Acts 1971, 62nd Leg., p. 397, ch. 58, § 1, eff. Aug. 30, 1971.
SUBCHAPTER B. CREATING AND DIVIDING A DISTRICT
§ 53.011. CREATING A DISTRICT. A district is created by
petition, hearing, and election.
Acts 1971, 62nd Leg., p. 397, ch. 58, § 1, eff. Aug. 30, 1971.
§ 53.012. CITIES AND TOWNS. Cities and towns are
includable in a district.
Acts 1971, 62nd Leg., p. 397, ch. 58, § 1, eff. Aug. 30, 1971.
§ 53.013. PRESENTING PETITION. A person may present a
petition requesting creation of a district to the commissioners
court of the county which includes the land in the proposed
district. If the commissioners court is not in session, the
petition may be presented to the county judge.
Acts 1971, 62nd Leg., p. 397, ch. 58, § 1, eff. Aug. 30, 1971.
§ 53.014. REQUISITES OF PETITION. To be sufficient, the
petition must:
(1) contain the signatures of 50 or a majority of the
electors of the proposed district who own land in the proposed
district; and
(2) state:
(A) the boundaries of the proposed district;
(B) the general nature of the projects proposed
to be done;
(C) the necessity for the proposed district;
(D) the feasibility of the proposed district;
and
(E) the proposed name for the district, which
must include the name of the county in which it is situated.
Acts 1971, 62nd Leg., p. 397, ch. 58, § 1, eff. Aug. 30, 1971.
§ 53.015. DEPOSIT. The person who presents the petition
shall at the same time pay a deposit of $100 to the county clerk.
The clerk shall pay out the deposit on vouchers approved by the
county judge for all expenses necessary for the hearing and the
election for the creation of the district. After the election, the
clerk shall return any portion of the deposit which is left to the
petitioners or their attorney.
Acts 1971, 62nd Leg., p. 397, ch. 58, § 1, eff. Aug. 30, 1971.
§ 53.016. TIME AND PLACE OF HEARING. The commissioners
court or county judge shall immediately set a time and place for a
hearing on the petition by the commissioners court. The hearing
must be held during the period beginning on the 15th day and ending
with the 30th day after the day the petition is presented.
Acts 1971, 62nd Leg., p. 398, ch. 58, § 1, eff. Aug. 30, 1971.
§ 53.017. NOTICE. (a) The county clerk shall issue
notice of the time and place of the hearing, and in the notice he
shall include a statement that any person is entitled to appear at
the hearing, challenge the form and allegations of the petition,
and contest the proposition that the projects to be undertaken by
the proposed district would benefit the land inside its boundaries.
(b) The county clerk may deliver the notice to any adult who
is willing to execute it as directed by Section 53.018 of this code.
Acts 1971, 62nd Leg., p. 398, ch. 58, § 1, eff. Aug. 30, 1971.
§ 53.018. POSTING NOTICE. (a) The person receiving
the notice shall post a copy of it at the courthouse door and a copy
at each of four different places inside the proposed district. He
shall post the notice for at least the 10 days that immediately
precede the day set for the hearing.
(b) The person posting the notice shall swear in writing,
before some officer who is authorized by law to administer oaths,
that he posted the notice according to the provisions of Subsection
(a) of this section. The sworn written statement is conclusive of
the facts sworn to.
Acts 1971, 62nd Leg., p. 398, ch. 58, § 1, eff. Aug. 30, 1971.
§ 53.019. HEARING POWERS. (a) The commissioners court
shall have jurisdiction to determine all issues pertaining to the
sufficiency of the petition and shall allow any interested person
to appear before it in person or by attorney to offer testimony
relative to the sufficiency of the petition.
(b) The commissioners court may adjourn the hearing from day
to day as is necessary to complete the hearing.
(c) The commissioners court may make all orders necessary to
determine the matters before it.
Acts 1971, 62nd Leg., p. 398, ch. 58, § 1, eff. Aug. 30, 1971.
§ 53.020. TEMPORARY SUPERVISORS;
QUALIFICATIONS. (a) If the commissioners court grants a petition
presented under Section 53.013, the court shall appoint five
temporary supervisors to serve on the board of the district until
permanent supervisors are elected.
(b) A temporary supervisor appointed under Subsection (a)
shall execute a bond as required under Section 49.055 and take the
oath of office.
(c) After the commissioners court appoints five temporary
supervisors under Subsection (a), the temporary supervisors shall
meet and organize.
Added by Acts 1997, 75th Leg., ch. 1070, § 26, eff. Sept. 1,
1997.
§ 53.021. OFFICERS TO BE ELECTED. In the election, five
supervisors are elected.
Acts 1971, 62nd Leg., p. 399, ch. 58, § 1, eff. Aug. 30, 1971.
Amended by Acts 2001, 77th Leg., ch. 1423, § 28, eff. June 17,
2001.
§ 53.029. DIVISION OF OR ASSUMPTION OF AUTHORITY BY
CERTAIN DISTRICTS. (a) This section applies to a district
located in a county that:
(1) has a population of 1.3 million or more and in
which a municipality with a population of more than one million is
primarily located; or
(2) is adjacent to a county having the characteristics
described by Subdivision (1).
(b) A district covered by this section may be divided into
two new districts if it has no outstanding bonded debt and is not
levying ad valorem taxes. The division procedure is prescribed by
Sections 53.030 to 53.041 of this code.
(c) The board of a district covered by this section may
order an election to be held in the district to determine whether
the district should assume the rights, authority, privileges, and
functions of a road district under Article III, Section 52(b)(3),
of the Texas Constitution. The election shall be ordered,
conducted, and the results canvassed in the manner provided by the
applicable provisions of this chapter and the Election Code. The
ballots for the election shall be printed to provide for voting for
or against: The assumption by the __________ Fresh Water Supply
District of the rights, authority, privileges, and functions of a
road district under Article III, Section 52(b)(3), of the Texas
Constitution. If a majority of the persons voting in the election
vote in favor of the proposition, the district shall assume the
rights, authority, privileges, and functions of a road district
operating under Article III, Section 52(b)(3), of the Texas
Constitution, Chapter 257, Transportation Code, and other general
laws of this state relating to road districts.
(d) A district operating as a road district may not issue
bonds or otherwise lend its credit for road district purposes
except on approval of not less than two-thirds of the qualified
voters of the district voting at an election called and held for
that purpose. The total amount of bonds, notes, and other
obligations of the district issued or incurred under this
subsection may not exceed one-fourth of the assessed valuation of
real property in the district.
(e) A district that has adopted the rights, authority,
privileges, and functions of a road district in the manner provided
by Subsection (c) may, following approval of a construction
contract by the district's governing body, reimburse expenditures
as provided by Sections 257.003(a) and (b), Transportation Code,
without any additional approval under Section 257.003,
Transportation Code.
Acts 1971, 62nd Leg., p. 400, ch. 58, § 1, eff. Aug. 30, 1971.
Amended by Acts 1981, 67th Leg., p. 598, ch. 237, § 139, eff.
Sept. 1, 1981; Acts 1987, 70th Leg., ch. 122, § 1, eff. May 19,
1987; Acts 1991, 72nd Leg., ch. 597, § 110, eff. Sept. 1, 1991;
Acts 1997, 75th Leg., ch. 165, § 30.277, eff. Sept. 1, 1997;
Acts 2001, 77th Leg., ch. 669, § 146, eff. Sept. 1, 2001; Acts
2003, 78th Leg., ch. 248, § 26, eff. June 18, 2003.
§ 53.030. ORDERING ELECTION. The board may order a
special election on its own motion or on presentation of a petition
signed by 20 or more qualified property taxpaying electors of the
district.
Acts 1971, 62nd Leg., p. 400, ch. 58, § 1, eff. Aug. 30, 1971.
§ 53.031. ORDER: METES AND BOUNDS. The petition for
election and the order and notices of election must set forth the
metes and bounds of the two proposed new districts.
Acts 1971, 62nd Leg., p. 400, ch. 58, § 1, eff. Aug. 30, 1971.
§ 53.032. ORDER: TIME OF ELECTION. In the order the
board shall set the time for the election, which must be held before
the expiration of the 30th day after the day the order is made.
Acts 1971, 62nd Leg., p. 400, ch. 58, § 1, eff. Aug. 30, 1971.
§ 53.033. ORDER: ELECTION OF SUPERVISORS. The board
shall include in the order a statement that if the election results
in division of the district, the two new districts will each be
governed by a board of five supervisors elected in the same
election.
Acts 1971, 62nd Leg., p. 401, ch. 58, § 1, eff. Aug. 30, 1971.
§ 53.034. ORDER: DIVISION OF PROPERTY AND MONEY. In
the election order the board shall state in a general way how the
properties and any money on hand will be divided between the two new
districts if the election is in favor of dividing into two
districts. The basis set by the board is controlling.
Acts 1971, 62nd Leg., p. 401, ch. 58, § 1, eff. Aug. 30, 1971.
§ 53.040. ELECTED SUPERVISORS TAKE OFFICE. If the
election results in a division of the district, the five candidates
receiving the most votes in each new district shall be declared
elected. They shall immediately qualify in accordance with Section
49.055.
Acts 1971, 62nd Leg., p. 402, ch. 58, § 1, eff. Aug. 30, 1971.
Amended by Acts 1995, 74th Leg., ch. 715, § 11, eff. Sept. 1,
1995.
§ 53.041. COMPLETING MEMBERSHIP OF THE BOARD. If no
supervisors are elected, or if a full board is not elected, the
commissioners court shall appoint the needed members of the board.
Acts 1971, 62nd Leg., p. 402, ch. 58, § 1, eff. Aug. 30, 1971.
§ 53.042. NEWLY ELECTED SUPERVISORS--TERM OF
OFFICE. The newly elected supervisors hold office until the new
district's next supervisors election.
Acts 1971, 62nd Leg., p. 402, ch. 58, § 1, eff. Aug. 30, 1971.
Amended by Acts 1995, 74th Leg., ch. 715, § 12, eff. Sept. 1,
1995.
§ 53.043. POWERS OF NEW DISTRICT. A district created by
the division of an existing district into two districts has all the
powers and duties given by this chapter to any other district.
Acts 1971, 62nd Leg., p. 402, ch. 58, § 1, eff. Aug. 30, 1971.
SUBCHAPTER C. ADMINISTRATIVE PROVISIONS
§ 53.061. CREATION OF DISTRICT. A commissioners court
may create one or more fresh water supply districts in its county by
following the procedure prescribed in Sections 53.011-53.029 of
this code.
Acts 1971, 62nd Leg., p. 402, ch. 58, § 1, eff. Aug. 30, 1971.
§ 53.062. BOARD OF SUPERVISORS. A district created
under this chapter is governed by a board of five elected
supervisors.
Acts 1971, 62nd Leg., p. 402, ch. 58, § 1, eff. Aug. 30, 1971.
Amended by Acts 1981, 67th Leg., p. 2665, ch. 720, § 2, eff. Aug.
31, 1981; Acts 1995, 74th Leg., ch. 715, § 13, eff. Sept. 1,
1995.
§ 53.063. SUPERVISOR'S QUALIFICATIONS. To be qualified
for election as a supervisor, a person must be a registered voter of
the district.
Acts 1971, 62nd Leg., p. 402, ch. 58, § 1, eff. Aug. 30, 1971.
Amended by Acts 1999, 76th Leg., ch. 1354, § 13, eff. Sept. 1,
1999.
§ 53.072. ASSESSOR AND COLLECTOR'S QUALIFICATIONS. To
be qualified for election as assessor and collector, a person must
be a resident of the district and a qualified voter in the district.
Acts 1971, 62nd Leg., p. 404, ch. 58, § 1, eff. Aug. 30, 1971.
§ 53.073. ASSESSOR AND COLLECTOR'S TERM OF OFFICE. The
first elected assessor and collector holds office until the next
general election of officers following his election. The
succeeding assessor and collectors hold office for terms of two
years. The board shall fill any vacancy in the office of assessor
and collector by appointment for the unexpired term.
Acts 1971, 62nd Leg., p. 404, ch. 58, § 1, eff. Aug. 30, 1971.
§ 53.075. ASSESSOR AND COLLECTOR'S SALARY. The board
shall fix the salary of the assessor and collector at not more than
$10,000 a year.
Acts 1971, 62nd Leg., p. 404, ch. 58, § 1, eff. Aug. 30, 1971.
Amended by Acts 1985, 69th Leg., ch. 461, § 1, eff. Aug. 26,
1985.
§ 53.088. STATUS OF THE DISTRICT. A district is:
(1) a governmental agency;
(2) a body politic and corporate; and
(3) a defined district within the meaning of Article
XVI, Section 59, of the Texas Constitution.
Acts 1971, 62nd Leg., p. 406, ch. 58, § 1, eff. Aug. 30, 1971.
Amended by Acts 1995, 74th Leg., ch. 715, § 14, eff. Sept. 1,
1995.
SUBCHAPTER D. POWERS AND DUTIES
§ 53.101. PURPOSE OF DISTRICT. Fresh water supply
districts may be created to conserve, transport, and distribute
fresh water from any sources for domestic and commercial purposes.
Acts 1971, 62nd Leg., p. 407, ch. 58, § 1, eff. Aug. 30, 1971.
§ 53.102. CONSTITUTIONAL BASIS. The constitutional
basis for this chapter is Article XVI, Section 59, of the Texas
Constitution.
Acts 1971, 62nd Leg., p. 407, ch. 58, § 1, eff. Aug. 30, 1971.
§ 53.103. GOVERNMENTAL POWERS OF DISTRICT. A district
has the powers of government and authority to exercise the rights,
privileges, and functions given to it by this chapter or by any
other state law.
Acts 1971, 62nd Leg., p. 407, ch. 58, § 1, eff. Aug. 30, 1971.
§ 53.104. AUTHORITY TO ACQUIRE WATER RIGHTS. A district
may acquire water rights and privileges in any way that an
individual or corporation may acquire them. A district may hold
water rights and privileges, either by gift, purchase, devise,
appropriation, or by other means.
Acts 1971, 62nd Leg., p. 407, ch. 58, § 1, eff. Aug. 30, 1971.
§ 53.107. DISTRIBUTION OF WATER AND USE OF REVENUES
OBTAINED FROM DISTRIBUTION OF WATER. (a) The board shall:
(1) prescribe the terms on which water will be
furnished;
(2) fix the rate to be paid by users of water from the
district; and
(3) make rules and regulations governing the
distribution and use of water.
(b) The board shall apply any revenue obtained from the sale
of water to operation and maintenance expenses. Any revenue left
after paying these expenses shall be used to pay interest on bonds
and other indebtedness incurred by the district with the remainder
to be placed in the sinking fund.
Acts 1971, 62nd Leg., p. 408, ch. 58, § 1, eff. Aug. 30, 1971.
§ 53.112. USE OF ROADWAYS. In order to secure fresh
water, a district may construct necessary levees, bridges, and
other improvements across or under:
(1) railroad embankments, tracks, or rights-of-way;
(2) public or private roads and their rights-of-way;
(3) rivers;
(4) improvements of other districts and their
rights-of-way; and
(5) other improvements and their rights-of-way.
Acts 1971, 62nd Leg., p. 409, ch. 58, § 1, eff. Aug. 30, 1971.
§ 53.113. CONSTRUCTING IMPROVEMENTS ON RAILROAD
WAYS. (a) Before the district may construct an improvement
across or under any railroad property, the district must notify the
railroad authorities of the district's intention to construct the
improvement if the railroad does not do so.
(b) The railroad has 30 days from the day it receives the
notice in which to decide whether or not to build the improvement
itself, at its own expense and according to its own plans.
(c) If the railroad builds the improvement, it must do so in
a manner which is satisfactory to the district.
Acts 1971, 62nd Leg., p. 409, ch. 58, § 1, eff. Aug. 30, 1971.
§ 53.115. DUTIES OF ENGINEER. (a) The engineer shall
make maps and profiles of the district improvements, including any
part of the improvements which extends beyond the boundaries of the
district.
(b) The engineer may adopt other correct maps, plats, and
surveys.
(c) The engineer shall perform other duties required of him
by the board.
Acts 1971, 62nd Leg., p. 409, ch. 58, § 1, eff. Aug. 30, 1971.
§ 53.121. CONSTRUCTING SANITARY SEWER SYSTEMS. (a) A
district may purchase, construct, acquire, own, operate, repair,
improve, and extend sanitary sewer systems to control wastes, if no
other public sanitary sewer system is available for the area inside
the fresh water supply district.
(b) Before a district may exercise the power given by this
section, it must hold an election in the same manner as provided in
this chapter for other elections of the district.
Acts 1971, 62nd Leg., p. 411, ch. 58, § 1, eff. Aug. 30, 1971.
§ 53.122. REGULATING SANITARY CONDITIONS INSIDE THE
DISTRICT. (a) A district may regulate the installation,
maintenance, and operation of plumbing fixtures and facilities
inside the district for the purpose of:
(1) maintaining safe and sanitary conditions; and
(2) protecting the lives, health, and welfare of the
people in the district.
(b) The board may set a reasonable penalty for violating any
rule authorized by Subsection (a) of this section, within these
limits:
(1) a fine of not more than $200;
(2) confinement in the county jail for not more than 30
days; or
(3) both the fine and the jail sentence.
(c) The penalty set by the supervisors is in addition to
other penalties provided by law. A court of proper jurisdiction in
the county where the district's principal office is located may
enforce the penalties.
(d) A penalty for the violation of a rule is not valid unless
a brief, substantial statement of the rule and the penalty is
published once a week for two consecutive weeks in a newspaper of
general circulation in the area in which the district is located. A
penalty takes effect seven days after the second publication.
(e) The courts shall take judicial notice of the rules made
by a district under this section.
Acts 1971, 62nd Leg., p. 411, ch. 58, § 1, eff. Aug. 30, 1971.
§ 53.126. EFFECT OF ENUMERATION OF POWERS. No statement
of specific powers in this chapter is a limitation on the general
powers given by this chapter, unless it is specifically so stated.
Acts 1971, 62nd Leg., p. 412, ch. 58, § 1, eff. Aug. 30, 1971.
SUBCHAPTER E. GENERAL FISCAL PROVISIONS
§ 53.145. PAYMENT OF ELECTION EXPENSES. The board shall
pay all expenses of calling and holding each election, except the
creation election, from any district funds except the interest and
sinking fund.
Acts 1971, 62nd Leg., p. 413, ch. 58, § 1, eff. Aug. 30, 1971.
§ 53.146. MAINTENANCE FUND. (a) A district shall have
a maintenance and operating fund. The fund consists of all money
collected by assessment or otherwise for maintaining and operating
the property of the district.
(b) The board shall use the money in this fund to pay:
(1) all salaries of officers and employees, other than
that of the assessor and collector; and
(2) operating expenses.
Acts 1971, 62nd Leg., p. 413, ch. 58, § 1, eff. Aug. 30, 1971.
§ 53.150. PAYMENT OF DAMAGES. The district shall pay
out of any funds or property of the district, except the interest
and sinking fund:
(1) compensation and damages adjudicated in
condemnation proceedings; and
(2) compensation for damage done to the property of
any person or corporation in the construction and maintenance of
improvements.
Acts 1971, 62nd Leg., p. 413, ch. 58, § 1, eff. Aug. 30, 1971.
§ 53.151. COST OF SANITARY SEWER SYSTEMS. (a) The
board may pay the cost of acquiring and repairing sanitary sewer
systems from:
(1) the proceeds of sale of bonds or other obligations
issued by the district;
(2) revenue obtained from maintenance taxes; or
(3) revenue from the operation of the district's
improvements.
(b) The board may pay the cost of maintaining and operating
sanitary sewer systems with funds obtained from maintenance taxes
or from operating revenues. The board may not pay these costs with
borrowed money.
Acts 1971, 62nd Leg., p. 414, ch. 58, § 1, eff. Aug. 30, 1971.
SUBCHAPTER F. BOND AND TAX PROVISIONS
§ 53.171. POWER TO ISSUE BONDS. (a) A district may
issue bonds to secure indebtedness.
(b) A district may not issue tax bonds or incur any debt
which is to be paid with tax revenue unless an election is first
held in the district and the proposition is approved by a majority
of the electors of the district who vote in the election.
Acts 1971, 62nd Leg., p. 414, ch. 58, § 1, eff. Aug. 30, 1971.
§ 53.172. ORDERING BOND ELECTION. After the creation of
a district and the qualification of the supervisors, the board may
order an election in the district to authorize a bond issue. At
this election, the board shall submit only a proposition
authorizing the issuance of bonds and the levy of a tax to pay the
bonds. The ballots shall be printed to allow for voting for or
against the proposition: "The issuance of bonds and the levy of
taxes to pay the bonds."
Acts 1971, 62nd Leg., p. 414, ch. 58, § 1, eff. Aug. 30, 1971.
Amended by Acts 1995, 74th Leg., ch. 715, § 15, eff. Sept. 1,
1995.
§ 53.176. ISSUING BONDS. (a) After declaring the
result of the election, the board shall make and enter an order in
the minutes directing the issuing of bonds sufficient to pay for the
proposed improvements. The board may not issue bonds in an amount
greater than that specified in the order and notice of election.
(b) Subchapter L, of Chapter 55 of this code, providing for
the issuing, denominations, rate of interest, manner and conditions
of payment, and maturity dates of water improvement district bonds,
apply to bonds of a fresh water supply district.
Acts 1971, 62nd Leg., p. 415, ch. 58, § 1, eff. Aug. 30, 1971.
§ 53.177. APPROVING BONDS. (a) Before the board
offers bonds for sale, it shall send to the attorney general a
certified copy of all proceedings relating to organizing the
district and issuing the bonds. They shall also provide other
relevant information he requires.
(b) The attorney general shall carefully examine the bonds
in connection with the record and the constitution and laws of this
state governing the issuance of bonds. The attorney general shall
certify the bonds if he finds that they conform to the record and
the constitution and laws of this state and that they are valid and
binding obligations of the district.
Acts 1971, 62nd Leg., p. 415, ch. 58, § 1, eff. Aug. 30, 1971.
§ 53.178. REGISTERING BONDS. When the attorney general
approves the bonds, the comptroller shall register them in a book
kept for that purpose. The comptroller shall record the
certificate of the attorney general as to the bonds' validity. The
bonds are then prima facie valid in any action, suit, or proceeding.
In a suit to enforce collection of the bonds and interest on the
bonds, the only defense against the validity of the bonds is forgery
or fraud.
Acts 1971, 62nd Leg., p. 415, ch. 58, § 1, eff. Aug. 30, 1971.
§ 53.179. SELLING BONDS. After the bonds are
registered, the board shall sell them on the best terms and for the
best price possible. The board shall promptly pay to the district
depository the money received from the sale of the bonds. The
district depository shall hold the money for the district.
Acts 1971, 62nd Leg., p. 415, ch. 58, § 1, eff. Aug. 30, 1971.
§ 53.180. RECORDING OF BOND ISSUES. (a) After the
bonds are issued, the board shall deliver a well-bound book to the
county treasurer, who shall keep in the book a list of:
(1) all bonds which have been issued;
(2) their manner of payment;
(3) the amount of each bond;
(4) the rate of interest on each bond;
(5) the date of issuing each bond;
(6) the date when each bond is due;
(7) the place where each bond is payable;
(8) the amount received for each bond; and
(9) the tax levy to pay interest on and redeem the
bonds.
(b) The county treasurer shall keep the books open at all
times for inspection by any taxpayer or bondholder. When a person
pays for a bond, the treasurer shall enter the payment in the book.
The treasurer is entitled to receive for his services the same fee
allowed by law to the county clerk for recording deeds.
Acts 1971, 62nd Leg., p. 416, ch. 58, § 1, eff. Aug. 30, 1971.
§ 53.181. PAYING BONDS AND INTEREST. At the time for
paying interest or for redeeming the bonds, the district depository
shall receive and cancel any interest coupons paid or any bonds
redeemed. When the board receives an interest coupon or a bond, it
shall credit the account of the depository with the amount
received. The board shall then cancel and destroy the bond or
coupon.
Acts 1971, 62nd Leg., p. 416, ch. 58, § 1, eff. Aug. 30, 1971.
§ 53.182. BONDS PAYABLE FROM REVENUES AND AD VALOREM
TAXES. (a) For the purpose of constructing, purchasing,
repairing, improving, and extending authorized improvements, a
district may issue bonds payable solely from the revenues of:
(1) the operation of the district's water system, less
the reasonable cost of maintaining and operating the system; or
(2) the operation of the district's sanitary sewer
system, less the reasonable cost of maintaining and operating the
system; or
(3) both the water system and the sanitary sewer
system.
(b) The district may also issue bonds for the purposes set
out in this section, payable both from ad valorem taxes and the
revenues of:
(1) its water system; or
(2) its sanitary sewer system; or
(3) both its water system and sanitary sewer system.
(c) If the district issues combination tax and revenue
bonds, it shall levy, assess, and collect ad valorem taxes until the
net revenues from the operation of the water system or the sanitary
sewer system, together with the revenue from taxes, have
accumulated a surplus in the sinking fund at least equal to the
principal of and interest on the bonds scheduled to accrue in the
next year. When this accumulation is completed, the board may
reduce the tax levy to a rate that will produce at least 25 percent
of the principal and interest requirements for each of the next
succeeding years. When actual experience of three successive years
demonstrates that the net revenues are adequate to pay the
principal of and the interest on the bonds as they mature, the board
may discontinue the tax until it becomes necessary to levy the tax
again to avoid default in paying the bonds and interest.
Acts 1971, 62nd Leg., p. 416, ch. 58, § 1, eff. Aug. 30, 1971.
§ 53.183. ELECTION REQUIRED. (a) A district may not
issue bonds as authorized in Section 53.182 of this code unless an
election is first held in the district and the proposition is
approved by a majority of the electors of the district who vote in
the election.
(b) If the election is held to authorize revenue bonds only,
the board shall have the ballots printed to allow for voting for or
against the proposition: "The issuance of bonds and the pledge of
net revenues for the payment of the bonds."
(c) If the election is held to authorize combination tax and
revenue bonds, the board shall have the ballots printed to allow for
voting for or against the proposition: "The issuance of bonds to be
paid for from an adequate pledge of net revenues and levy of ad
valorem taxes."
(d) Except as provided in this section, the provisions of
Sections 53.172-53.175 of this code, relating to tax bond
elections, apply to elections held under this section.
Acts 1971, 62nd Leg., p. 417, ch. 58, § 1, eff. Aug. 30, 1971.
§ 53.184. REFUNDING BONDS. (a) With the consent of the
holders, a district may refund outstanding bonds by issuing new
coupon bonds in their place.
(b) Interest is shown by coupons attached to the bonds. The
board may pay the interest on the bonds annually or semiannually.
(c) The board may pay the refunding bonds serially or in any
other manner it chooses, but it shall pay the bonds not later than
40 years from the date the bonds are issued.
(d) The board shall issue the bonds in denominations of $100
or a multiple of $100. The board shall levy a tax sufficient to meet
the payment of principal of and interest on the refunding bonds
before the bonds are delivered. The refunding of bonds does not
affect any taxes already due.
(e) The board shall issue refunding bonds in the manner
provided for other district bonds. The board shall deduct any sum
on hand to the credit of any sinking fund account in ascertaining
the amount of refunding bonds to be issued, and it shall apply the
money to the payment of the outstanding bonds.
(f) The board shall not issue refunding bonds until they are
approved by the attorney general and registered by the comptroller.
The comptroller shall not register the refunding bonds until the
old bonds being replaced are presented to him for cancellation.
After the comptroller registers the new bonds, he shall cancel the
old bonds and interest coupons and deliver the new bonds to the
proper bondholders. The district may present the old bonds for
cancellation in installments, and the comptroller may register and
deliver a like amount of the new bonds.
Acts 1971, 62nd Leg., p. 417, ch. 58, § 1, eff. Aug. 30, 1971.
§ 53.185. RATES AND CHARGES. If the board issues
revenue bonds or combination tax and revenue bonds, the board, at
the time it authorizes the bonds, shall fix rates and charges for
the use of the facilities or the services rendered in an amount
which, together with any tax which is levied, will assure the prompt
payment of the principal of and interest on the bonds as they
mature.
Acts 1971, 62nd Leg., p. 417, ch. 58, § 1, eff. Aug. 30, 1971.
§ 53.186. INTEREST AND SINKING FUND. (a) A district
shall have an interest and sinking fund. The board shall credit to
this fund all taxes collected for the payment of interest or
redemption of district bonds.
(b) The board shall use money in this fund only:
(1) to pay interest on district bonds;
(2) to cancel and surrender district bonds; and
(3) to pay the expenses of assessing and collecting
the taxes.
Acts 1971, 62nd Leg., p. 418, ch. 58, § 1, eff. Aug. 30, 1971.
§ 53.187. INVESTMENT OF SINKING FUND. The board may
invest the district's sinking funds in county, municipal, district,
or other bonds in which other sinking funds may by law be invested.
The board may also invest the sinking funds in bonds of the series
to which the funds apply, if the bonds are offered for redemption
before maturity on terms the board deems advantageous to the
district.
Acts 1971, 62nd Leg., p. 418, ch. 58, § 1, eff. Aug. 30, 1971.
§ 53.188. LEVY OF TAXES. After the district has issued
bonds, the board shall levy taxes on all property in the district,
whether real, personal, or mixed. The board shall levy the taxes
based on the full value of each piece of property. The board shall
levy the taxes in an amount which is enough to pay the interest on
the bonds and to create a sinking fund sufficient to redeem and
discharge the bonds when they mature. The board shall levy taxes
annually for this purpose as long as the bonds are outstanding.
Acts 1971, 62nd Leg., p. 418, ch. 58, § 1, eff. Aug. 30, 1971.
§ 53.189. ASSESSOR AND COLLECTOR--OFFICE. The assessor
and collector shall maintain an office.
Acts 1971, 62nd Leg., p. 418, ch. 58, § 1, eff. Aug. 30, 1971.
§ 53.190. SUBJECT TO RULES OF BOARD. The assessor and
collector is subject to the rules and regulations of the board in
the same manner as provided by law for assessors and collectors of
water improvement districts.
Acts 1971, 62nd Leg., p. 418, ch. 58, § 1, eff. Aug. 30, 1971.
