HomeMy WebLinkAboutResolution 3406E-09-2006,A Resolution
Np 3406E-09-2006
Requesting the Texas Municipal League to Seek Introduction of, or Support Legislation Giving
Greater Municipal Control over the Creation of Special Districts within Extraterritorial
Jurisdictions
WHEREAS the Texas Municipal League will hold its annual conference on October 25-27
2006, in Austin, Texas, and will consider resolutions supported by TML members and affiliates in
anticipation of the 2007 state legislative session; and
WHEREAS special infrastructure districts were originally formed to allow rural areas to obtain
adequate water and sewer supplies in areas not served by municipal facilities, and are also known as
municipal utility districts, water control and improvement districts, special utility districts, and fresh
water supply districts; and
WHEREAS, in conjunction with recent state legislation that reduces city authority to annex and
increases vested rights designed to protect developers, developers of urban developments are using
special infrastructure district legislation to ereateguasi-political subdivisions in rural extraterritorial
jurisdictions (ETJs); and
WHEREAS the incentive for creating special infrastructure districts is that the developer obtains
public financing such that all of the development costs are reimbursed on the front end when the bonds
for special district infrastructure are sold, and the bond holders are paid back through ad valorem taxes
assessed against the future homeowners; and
WHEREAS if a city decides to annex the special infrastructure district area it must assume the
district's debt, thus creating a disincentive to annex the area until the debt is paid off, and eroding the
city's ability to annex area within its ET3• and
WHEREAS these districts typically propose dense urban development in rural areas, which
bypasses undeveloped areas more economically served by public facilities and services, and is not
compatible with the rural development pattern of the ETJ and
WHEREAS cities, and generally counties, do not have the legal authority to apply land use
controls in the ETr thus requiring cities to negotiate development agreements with the entity proposing
the special infrastructure district on an ad hoc basis; and
Resolution No. 3406E-09-2006
WHEREAS cities may only prevent the creation of special districts by initiating annexation of
property which may be against property owner wishes and infeasible due to inadequate municipal
facilities;
NOW, THEREFORE, THE CITY CODUNCIL OF THE CITY OF FORT WORTH
HEREBY RESOLVES
1 To request that the Texas Municipal League seek introduction of or support legislation that
would provide greater municipal authority over the creation of special infrastructure districts
within extraterritorial jurisdictions.
2. That the City,Manager is authorized to forward a Dopy of this resolution to Mr Frank Sturzl,
}~~~: Executive Director of the Texas Municipal League.
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ADOhTED this the 5th day~of September 2006.
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Marty Hendrix, Cry Sep
APPROVED
CITY COUNCIL
SEF' S 2006
~~ ~
city Sec=~~ at~exas
City of Fact Worth,