TITLE: Relating to the allocation of taxes and revenue after a city consents to the creation of a municipal utility district.

SUMMARY: Relating to the allocation of taxes and revenue after a city consents to the creation of a municipal utility district.

FULL TEXT:
AN ACT relating to the allocation of taxes and revenue after a city consents to the creation of a municipal utility district. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 54.016(f), Water Code, is amended to read as follows: (f) A city may provide in its written consent for the inclusion of land in a district that a contract ("allocation agreement") between the district and the city be entered into prior to the first issue of bonds, notes, warrants, or other obligations of the district. The allocation agreement shall contain the following provisions: (1) a method by which the district shall continue to exist following the annexation of all territory within the district by the city, if the district is initially located outside the corporate limits of the city; (2) an allocation of the taxes or revenues of the district or the city which will assure that, if the district is located outside the corporate limits of the city on the date its creation is confirmed by the voters, following the date of the inclusion of all the district's territory within the corporate limits of the city, the total annual ad valorem taxes collected by the city and the district from taxable property within the district does not exceed an amount greater than the city's ad valorem tax upon such property; (3) an allocation of governmental services to be provided by the city or the district following the date of the inclusion of all of the district's territory within the corporate limits of the city; (4) such other terms and conditions as may be deemed appropriate by the city. SECTION 2. The changes in law made by this Act apply only to an allocation agreement entered into on or after the effective date of this Act. An allocation agreement entered into before the effective date of this Act is governed by the law in effect on the date the allocation agreement was entered into, and that law is continued in effect for that purpose. SECTION 3. This Act takes effect September 1, 2011.