## THE ATTCDIRXEY GENERAL OE' TEXAS
October 20, 1986

HonorableTerra1 R. Smith OpinionNo. JM-565 Chairman Criminal JurisprudenceCommL.ttee Re: Status of the city of Lago Texas House of Representatives Vista and the Travis County MuniP. 0. Box 2910 cipalUtilityDistrictNo. 1under Austin, Texas 78769 article 1182c-1,V.T.C.S.
Dear RepresentativeSmith:
You request an opinion construing sections 2 and 6 of article 1182c-1.V.T.C.S. This statute applies to cities and townswhich have annexed or may annex territ,ory within water districts. V.T.C.S. art. 1182c-1, Il. It sets out the city's powers and duties toward water districts it has annexed inwhole or inpart.
You inquire about the application of article 1182c-1.V.T.C.S., to the city of Lago Vista and Travis CountyMunicipal UtilityDistrict No. 1. The Municipal Ur:L!HtyDistrict [hereinafter the MUD] was created in 1972with an arenaof approximatelynine square miles. In 1984 Lago Vista was inco:rporatedas a general law village under chapter 11 of Title 28, 'I.,T.C.S.As originally incorporated, the village of Lago Vista was almost entirelywithin theMUD, encompassing two squaremiles of it. In April of 1985, the village of Lago Vista merged and consolidated w:Lththree other communities, so that the incorporated area of Lago Vista now includes approximately eight square miles of the MUD. The remaining square mile of the MlJDis located entirely within Lzlg;o Vista's extraterritorial jurisdiction. In September 1985, Lago Vista became a general law city operating under chapters 1 through 10 of Title 28, V.T.C.S. See V.T.C.S. art. - 961. The city of Lago V!.stanow has annexation authority under articles 970a. 974, and '374g.V.T.C.S., and wishes to annex the remaining one square mile portion of the MUD which is not included within its boundaries. The city proposes to annex the remaining portion of theMUD without automaticallyassuming all of its debts and taking over all of its asset:s.You askwhether itmay do so. Article 1182c-1,V.T.C.:3., applies to all incorporatedcities and towns "which have heretofore annexed, or hereafter may annex, all or any part of the territor),within one (1) or more . . . municipal

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utility districts.
. . ." V.T.C.S. art. 1182c-1, 91. If all the territorywithin the district is annexed, the city is required to take over the properties and assets of the district, assume all of its debts, liabilities and obli$;ations , and perform all of its functions. V.T.C.S. art. 1182c-1, 92. After the annexation, the district is to be abolished in accordancewith theprocedure outlined in section 2 of article 1182c-1.V.T.C.S. Section 6 of article 1182c-1,V.T.C.S..provides as follows:

Sec. 6. When c.nycity or town is newly incorporated over all or any part of the territory within a water control and improvementdistrict, a fresh water supply district or municipal utility district, the gove,rning body may adopt an ordinancemaking the Frovisions of this Act applicable to such city or t,Dwnand, upon the adoption of such an ordinance by a vote of not less than two-thirds (2/3) of the entire membership of such governing body, the provisions of this Act shall thereafterbe appXcable to such city or town and to such districts situated in whole or in part therein. Section 6 thusmakes tt.e provisions of article 1182c-1.V.T.C.S.. optional for "any city or town . . . newly incorporated over all or any part of the territorywithin a . . .municipal utility district." This section is in effect an exception to section 1 of article 1182c-1,V.T.C.S.,which stz:tes as follows: Section 1. Th:.s

Act shall apply to all incorporated cities~~d towns, including Home Rule Cities, and those;,peratingunder general laws or special charters-(hereinafter 'cities') called 'city' or

which-have heretofore annexed, or hereafter'may ar;ex, all or any part of the territorywithin orie(1)ormore water control and improvement dist&ts, fresh water supply districts or municcpal utility districts, which districts were organized for the primary purpose of providing such municipal functions & -the supply of fresh water for domestic or commercial uses, the furnishtng of sanitary sewer service or drainage services, any or all. Such cities shall succeed to thepowers. duties, assets, and obligations of such district or districts in the manner and to the extenthereinafterprovided. (Emphasis added).

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When a statute includes a general provision that apparently applies to all cases and a special provision which applies to a particular case, the special provision prevails over the general provision and governs the caseswithin its terms. Dolan v. Walker, 49 S.W.2d 695 (Tex. 1932);s+r v. Collins, 25 S.W.2d 804 (Tex. 1930). See also Gov't. Code, §31l.K!6. Lago Vista was incorporated in 1984 over territory included in the Travis CountyMUD No. 1. At that time, Lago Vista became a "city or town . . .newly incorpozatedover . . . any part of the territory" of a municipal utility districtwithin section 6 of article 1182c-1, V.T.C.S.
You state that the city of Lago Vista has never adopted an ordinance which would make the provisions of article 1182c-1, V.T.C.S., applicable to it and to the Travis County MUD No. 1. The city is therefore not subject to the provisions of article 1182c-1, V.T.C.S. See Ford v. Town of Co ell 407 S.W.2d 304. 305 (Tex.Civ. APP. - Da-as 1966, writ -d' ref d n.r.e.) (town incorporated over existing water district adopted ordinance "to authorize the Town to take over theWater Distric.:"). Itmay annex the remainingportion of the MUD without taking over its properties and assets, assuming its debts, liabilities and obligations, or performing its functions as required by section 2 of a:rticle1182c-1,V.T.C.S., for cities which are subject to this statott:., Nor is the Travis County MUD No. 1 to be abolished pursuant to s,ection2 of article 1182c-1, V.T.C.S., followingannexationby the city of Lago Vista. A citymay overlap in territory with a special purpose municipal entity invested with limitedpowers, even though some of theirpurposes are the same. city of Pell; v. Harris Count],Water Control and Improvement District No. 7. 198 S.W.2d 450 (Tex.71946) (citymay annex territory located in a water control and imprsrlementdistrict). See Attorney General Opinion JM-400 (1985) (city which incorporateswithin an existing rural firepreventiondistrict remainspart of the district).
SUMMARY The city of La3o Vista was "newly incorporated" over part of the territory within the Travis County Municipal Utility District No. 1. Lag0 Vista has not adopted an ordinance pursuant to section 6 of arti5Le 1182c-1, V.T.C.S..making the provisions of that statute applicable to it. If the city of Lago Vista annexes all of the remaining territory of the Travis County MUD No. 1, the city will not be subject to the requirements in article 1182c-1,V.T.C.S., that it take over the properties and ilssetsof the MUD, assume its debts, liabilitiesand obligations,or perform its

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functions. The MUI) will not be abolishedpursuant to article 1182c-l:, V.T.C.S..but will continue to exist as an entit:rlegallydistinct from the city.
VeryltrulyyoursAA , ,

-JIM MATTOX Attorney General of Texas
JACK HIGHTOWRR FirstAssistantAttorney Ge!u?ral
MARY KELLER ExecutiveAssistantAttorne:; General
RICK GILPIN Chairman,Opinion Committee Prepared by SusanL. Garrissm AssistantAttorney General

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RQ-805

JNINDEXHEADINGS

ANNEXATION CITIESAND TOWNS POLITICAL SUBDIVISIONS SPECIALDISTRICTS (?) WATER DISTRICTS (?)

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