May 13, 1988 

Honorable D.C. Jim Dozier 

Montgomery County Attorney 

Courthouse 

Conroe, Texas 77301 

Dear Mr. Dozier: 

Opinion No. JR-902 

Re: What constitutes an 

"improvement district" for 

purposes of article 1667, 

V.T.C.S. (RQ-1253) 

You have asked questions concerning article 1667, 

V.T.C.S. This statute, enacted in 1915 and most recently 

amended in 1941, provides in relevant part: 

In all counties which have or may have a 

County Auditor and containing a population of 

[llO,OOO] or more . . . and in which counties 

there exists or in which there may be created 

any improvement, navigation, drainage, or 

road or irrigation district, or any other 

character of district having for its purpose 

the expenditure of public funds for improvement purposes, or for improvements of any 

kind whether derived from the issuance. of 

bonds or through any character of special 

assessment, the County Auditor shall exercise 

such control over the finances of said district as hereinafter provided. [See V.T.C.S. 

art. 1668 et sea.] 

You expressed concern about the effect of this statute on 

certain districts in Montgomery County, which has a population exceeding 110,000. Your letter states: 

We find no clear authority defining the 

'improvement districts' to which article 

1667, V.T.C.S., on its face applies. Accordingly, we ask the following questions: 

1. What constitutes an 'improvement district' as contemplated by the statute? 

p. 4445 
Honorable D.C. Jim Dozier - Page 2 (JR-982) 

2. Is an emergency communication district 

created pursuant to article 1432e, V.T.C.S., 

an improvement district subject to the 

financial control of the county auditor? 

3. Is a county hospital district an improvement district subject to the financial 

control of the county auditor? 

4. Is a rural fire prevention district 

created pursuant to article 2351a-6, 

V.T.C.S., an improvement district subject to 

the financial control of the county auditor? 

5. Is the county entitled to reimbursement from improvement districts under the 

financial control of the county auditor for 

the salaries of such additional assistant 

auditors as may be required to perform the 

duties imposed by article 1667? 

In answer to your first question, we have found no precise 

definition of "improvement district" in Texas statutory or 

case law. However, definitions of "improvement" found 

elsewhere may be useful. 

Black's Law Dictionary (5th ed. 1979) defines an 

improvement as: 

A valuable addition made to property (usually 

real estate) or an amelioration in its condition, amounting to more than mere repairs or 

replacement, costing labor or capital, and 

intended to enhance its value, beauty or 

utility or to adapt it for new or further 

purposes. . . . An expenditure to extend the 

useful life of an asset or to improve its 

performance over that of the original asset. 

This definition essentially addresses the subject matter of 

real estate, land or property. An improvement generally 

involves a "permanent addition" or "betterment" of real 

property that enhances its capital value and involves 

expenditure of labor and money and is designed to make 

property more useful or valuable. Richview Nursina Home v. 

Minnesota Dewartment of Public Welfare, 354 N.W.2d 445, 458 

(Minn. App. 1984). An improvement must be permanent and it 

p. 4446 
Honorable D.C. Jim Dozier - Page 3 (-902) 

must enhance the value of the premises for general purposes. 

- Overcase v. Akra, 197 Mont. 76, 642 P.2d 1058, 1062 (1982). 

An improvement involves a change in the condition of 

property or real estate from a lesser developed stage to a 

more developed stage. Improvement means the state of 

improved, 

being 

especially enhanced in value of excellence. Mvra 

Foundation v. Harvey 100 N.W.2d 435, 439, (N.D. 1959). In 

order for an improv;ment to be made there must previously 

have been something to be improved. An improvement consists in the amelioration or betterins of certain wremises. 

Provident Mutual Life Insurance Co; of Philadeiwhia v. 

Douaherty, 125 N.J. Eq. 442, 6 A.2d 184, 187 (N-J. ch. 

1939). 

P 

P 

A definition of an improvement district that takes into 

consideration the legal meaning of "improvementl' as it has 

been traditionally interpreted by the courts will necessarily imply a type of special district that is concerned 

with the permanent enhancement or betterment of real 

property to make it more useful or valuable. An improvement 

district is thus concerned with the enhancement or betterment of real property from a lesser developed stage to a 

more developed stage. This definition describes the intent 

and purpose of the various types of special districts 

that are mentioned in article 1667, V.T.C.S. 

drainage, road and 

Navigation, 

irrigation districts are all 

established in 

basically 

order to enhance the value of 

increasing its usefulness. 

land by 

The Texas Constitution includes two provisions that 

pertain to the betterment or enhancement of land through the 

establishment of special districts. These provisions are 

found in article III, section 52, and article XVI, section 

59. Article III, section 52 generally empowers 

cities, 

counties, 

towns or other political corporations or subdivisions to issue bonds, levy and collect taxes for the 

following purposes: 

(1) The improvement of rivers, creeks and 

streams to prevent overflows, and to permit 

of navigation thereof, or irrigation thereof 

or in aid of such purposes. 

(2) The construction and maintenance of 

pools, lakes, reservoirs, dams, canals and 

waterways for the purposes of irrigation, 

drainage or navigation, or in aid'thereof. 

p. 4447 
Honorable D.C. Jim Dozier - Page 4 (m-902) 

(3) The construction, maintenance and 

operation of macadamized, graveled or paved 

roads and turnpikes, or in aid thereof. 

Tex. Const. art. III, 552(b). This constitutional provision 

relates to the general improvement of lands. Bonds may be 

raised by a local government or by a special district. 

Article XVI, section 59, of the Texas Constitution 

specifically deals with the establishment of special 

districts for conservation and reclamation purposes. It 

provides that: 

(a) The conservation and development of 

all of the natural resources of this State, 

including the control, storing, preservation 

and distribution of its storm and flood 

waters, the waters of its rivers and streams, 

for irrigation, power and all other useful 

purposes, the reclamation and irrigation of 

its arid, semi-arid and other lands needing 

irrigation, the reclamation and drainage of 

its overflowed lands, and other lands needing 

drainage, the conservation and development of 

its forests, water and hydro-electric power, 

the navigation of its inland and coastal 

waters, and the preservation and conservation 

of all such natural resources of the State 

are each and all hereby declared public 

rights and duties: and the Legislature shall 

pass all such laws as may be appropriate 

thereto. 

(b) There may be created within the State 

of Texas, or the State may be divided into, 

such number of conservation and reclamation 

districts as may be determined.to be essential to the accomplishment of the purposes of 

this amendment to the constitution, which 

districts shall be governmental agencies and 

bodies politic and corporate with such powers 

of government and with the authority to 

exercise such rights, privileges and functions concerning the subject matter of this 

amendment as may be conferred by law. 

Improvement districts that are established under 

article III, section 59, and article XVI, section 59, are 

p. 4448 
P 

Honorable D.C. Jim Dozier - Page 5 (m-902) 

classified as "natural resource special districts" by the 

United States Census Bureau. The Census Bureau has established twelve functional classifications for special 

districts. These classifications are based on two criteria. 

(1) The name of the entitv involved which 

in many instances, such as for housing 

authorities and hospital districts provide a 

specific guide. . . . 

(2) the function or functions reported as 

being performed bv individual units. . . . 

(Emphasis added.) 

United States Census Bureau of the Census, Census of Governments: 1977, Vol. I, No. 1, Governmental Organization (U.S. 

Government Printing Office, Washington D.C., 1977), at 5. 

Using this criteria, the United States Census Bureau has 

established a classification that includes twelve types of 

special district. They are as follows: 

(1) 

(2) 

(3) 

(4) 

(5) 

(6) 

(7) 

(8) 

(9) 

Natural Resources 

Soil Conservation 

Drainage 

Irrigation, Water Conservation 

Flood Control 

Other Natural Resources 

Fire Prevention 

Urban Water Supply 

Housing and Urban Renewal 

Cemeteries 

Sewerage 

School Building Authorities 

Parks and Recreation 

Highways 

(10) Hospitals 

(11) Libraries 

p. 4449 
Honorable D.C. Jim Dozier - Page 6 (-902) 

(12) Other Single-Function and Multi-Function 

Districts 

? 

Since improvement districts are fundamentally concerned with 

the amelioration or change in the character of land, they 

generally fall within the "natural resources" type of 

special district. Improvement districts serve very distinct 

functions that are exclusively related to improvements in 

land. In our opinion, an "improvement district" for purposes of article 1667, V.T.C.S., pertains to a district 

which is primarily concerned with the enhancement or 

betterment of the land or other natural resources. 

ment districts 

Improveare distinguishable from fire prevention, 

hospital and emergency communications districts. 

Fire prevention districts are created under the 

provisions of article III, section 48-d. This article 

provides: 

The Legislature shall have the power to 

provide for the establishment and creation of 

rural fire prevention districts and to 

authorize a tax on the ad valorem property 

situated in said districts. . . . 

These districts are created to combat fires in rural areas 

through the purchase of modern fire-fighting equipment and 

the hiring of necessary personnel. 

Hospital districts are created under the provisions of 

article XI, section 9, of the Texas Constitution. This 

article states: 

Sec. 9. The Legislature may by law provide for the creation, establishment, maintenance and operation of hospital districts . . . providing that any district so 

created shall assume full responsibility for 

providing medical and hospital care for its 

needy inhabitants. . . . 

Providing medical facilities and services is the primary 

purpose of a hospital district. 

-. 

Emergency communication districts are created under the ? 

provisions of the Emergency Telephone Number Act, article 

1432~ of the Business Corporation Code. This act provides: 

p. 4450 
Honorable D.C. Jim Dozier - Page 7 (JM-902) 

Sec. 2. It is the purpose of this Act to 

establish the number 9-l-l as the primary 

emergency telephone number of use by certain 

local governments in this state and to 

encourage units of local government and 

combinations of those units of local government to develop and improve emergency communication procedures and facilities in a 

manner that will make possible the quick 

response to any person calling the telephone 

number 9-l-l seeking police, fire, medical, 

rescue, and other emergency services. 

. . . . 

Sec. 5. An emergency communication district may be created as provided by this Act. 

There is nothing in the character or function of a 

hospital, fire prevention or emergency communication 

district that relates to the enhancement or betterment of 

land. Their purpose is primarily to provide a distinct 

service to a select population rather than to make permanent 

changes to real property or land. Although it can be argued 

that these districts result in general improvements for the 

community at large, the courts have not 

defined "improvement" in 

traditionally 

this manner. A definition of 

"improvement district" that takes into consideration both 

the legal definition of "improvement" and the United States 

Census Bureau classification of special districts 

excludes a hospital, fire prevention and emergency 

generally 

communication district from its meaning. 

The auditing provisions of article 1672, 

apply to improvement districts 

V.T.C.S., 

and other similar districts 

that make improvements to land such as navigation, 

tion, drainage and road districts. 

irrigaThey do 

hospital, fire prevention 

not apply to 

and emergency communication 

districts. 

Finally, you ask whether a county is entitled to reimbursement by districts for salaries of assistants who aid in 

the auditing functions performed by the county auditor 

F- pursuant to article 1672. As you point out, former article 

1673, V.T.C.S. (now repealed), authorized county auditors in 

counties with a population in excess of 330,000 to apply for 

assistants to help carry -out the duties imposed by article 

1667 et sea. No current statute expressly authorizes 

p. 4451 
Honorable D.C. Jim Dozier - Page 8 (-502) 

assistants for these specific purposes. However, section 

84.021 of the Local Government Code provides in part: 

(a) From time to time the county auditor 

may certify to the district judges a list 

stating the number of assistants to be 

ZErinted, the name, duties, qualifications, 

experience of each appointee, and the 

salary to be paid each appointee. The district judges, after careful consideration of 

the application for the appointment of the 

assistants and after inquiry concerning the 

appointees' qualifications, the positions 

sought to be filled, and the reasonableness 

of the requested salaries, shall prepare a 

list of the appointees that the judges 

approve and the salary to be paid each. The 

judges shall certify this list to the commissioners court, which shall order the salaries 

to be paid on the performance of services and 

shall appropriate an adequate amount of money 

for this purpose. 

Article 1672, V.T.C.S., provides that county auditors shall 

receive for their services in auditing the affairs of 

special districts within article 1667 

such compensation as the commissioners court 

may prescribe, which shall be paid by the 

county out of the general fund and reoaid to 

the county by such districts by warrants 

drawn upon the proper funds of such district. 

In such counties which have or may have as 

many as five such districts, the compensation 

allowed the county auditor for his services 

on behalf of such districts shall be not less 

than the sum of twelve hundred dollars per 

annum, to be prorated among the districts in 

such proportion as the commissioners court 

may determine. (Emphasis added.) 

? 

h 

Your letter states that article 1672 "does not on its 

face authorize the payment of such assistants from funds to 

be reimbursed by the improvement districts." We believe, 

however, that such authority is at least implicitly conferred by section 84.021 of the Local Government Code in 

combination with article 1672, V.T.C.S. The former statute 

permits the hiring of needed assistants, and the latter 

p. 4452 
Honorable D.C. Jim Dozier - Page 9 @M-902) 

authorizes compensation by special districts for the 

r "services@* of county auditors in auditing the affairs of 

such districts. In our opinion, the services contemplated 

by article 1672 necessarily include the services of needed 

assistants hired under the authority of section 84.021. 

SUMMARY 

The provisions of article 1667, V.T.C.S., 

do not districtay~os;~t~~ d~~~=~~~Yorc~m~~=h~a~~~~ 

prevent& district. These districts are not 

"improvement districts" within the meaning of 

article 1667, V.T.C.S. 

Section 84.021 of the Local Government Code 

and article 1672, V.T.C.S., entitle a county 

to reimbursement from special districts for 

the salaries of such additional assistant 

auditors as may be required to perform the 

duties imposed by article 1667. 

Very truly yo J - 

& NzJ7t 

JIM MATTOX 

Attorney General of Texas 

MARY KELLER 

First Assistant Attorney General 

LOU MCCREARY 

Executive Assistant Attorney General 

JUDGE ZOLLIE STEAKLEY 

Special Assistant Attorney General 

,- 

RICK GILPIN 

Chairman, Opinion Committee 

Prepared by Karen C. Gladney 

Assistant Attorney General 

p. 4453