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R-95-05-11-15D - 5/11/1995WHEREAS, Senator Barrientos has filed Senate Bill 1395 ( "S.B. 1395 ") in the Texas Senate; and WHEREAS, S.B. 1395 will provide statutory authority for local governments to cooperate in economic development on a regional basis; and WHEREAS, the City Council determines that S.B. 1395 will provide significant benefits for City and the surrounding area, Now Therefore BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK, TEXAS, That the Council hereby supports the passage of S.B. 1395, and the City Manager is authorized to communicate this support to the appropriate individuals. RESOLVED this llth day of May, 1995. ATTEST: KS /RESOLUTION RS50511D E LAND, City Secretary RESOLUTION NO. R- 95- 05- 11 -15D CHARLES COEPPER, Mayor City of Round Rock, Texas Ukiet 0 )j‘1)2_ 4t0L,LAk_31 Zane vaLQS 4, w: MAY -08 -95 MOH 13:5j, TEXAS MUNICIPAL LEAGUE FAX NO, 5127196390 ,P,04114 Bill Number: TX74RSB 1395 Date: 5/ 5/95 ENGROSSED A BILL TO BE ENTITLED 1 AN ACT 2 relating to authorizing agreements affecting annexation between 3 certain political subdivisions of the state. 4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 5 SECTION 1. Subchapter C, Chapter 42, Local Government Code, 6 is amended by adding Section 42.048 to read as follows: 7 Sec. 42.048. REGIONAL ECONOMIC DEVELOPMENT AGREEMENTS. 8 (a) The governing body of a municipality may transfer parts of its 9 extraterritorial jurisdiction to one or more specified 10 municipalities to facilitate extension of municipal services to the 11 area and the growth of the region's tax base. The distance limits 12 set forth in Section 42.021 do not apply to transfers of 13 extraterritorial jurisdiction under this section. A municipality 14 may not transfer, territory in a utility district created under 15 Chapter 51 or 54, Water Code, unless the transfer results in the 16 district being entirely within the jurisdiction of the 17 extraterritorial jurisdiction of one municipality or the transfer 18 is authorized under Section 42.042 and involves a district in the 19 extraterritorial jurisdiction of more than two municipalities on 20 the effective date of this section. 21 (b) The governing bodies of neighboring municipalities and 22 districts as defined in Section 43.0751 may enter into a regional 23 economic development agreement for contiguous, unincorporated 24 territory that is partially within the extraterritorial MAY -08 -95 M0N 13:5j. TEXAS MUNICIPAL LEAGUE FAX NO. 5127196390 P.05/14 1 jurisdiction of each municipality that is a yarty to the agreement. 2 A regional economic development agreement may provide for the 3 following: 4 (1) the boundaries of the area covered by the 5 agreement; 6 (2) the duration of the agreement and means for 7 renewing or terminating the agreement.; 8 (3) apportionment of the area covered by the agreement 9 into service areas assigned to participating municipalities; 10 (4) a regional economic development board composed of 11 representatives of parties to an agreement to provide planning for 12 service delivery to the territory covered by the agreement; 13 (5) revenue sharing among participating municipalities 14 in order to reduce destructive competition for commercial and 15 industrial tax base; and 16 (6) such other lawful terms as the parties consider 17 appropriate. 18 (c) A municipality may annex for limited purposes a service 19 area assigned to that municipality by a regional economic 20 development agreement adopted under this section in Order to 21 provide planning and zoning in the service area, notwithstanding 22 the ]imitations imposed by Section 43.121(a). 23 (d) A municipality that has annexed an assigned service area 24 for limited purposes under this section may impose a retail sales 25 tax within the boundaries of the assigned service area. Sales tax 26 collected under this section shall be used to fund the activities 27 of the regional economic development board and construct facilities 2 MAY -08 -95 MON 13:52. TEXAS MUNICIPAL LEAGUE FAX Na 5127196390 .P.06/14 1 necessary to extend municipal services to the arca covered by the 2 regional economic development agreement. 3 SECTION 2. Subchapter D, Chapter 43, Local Government Code, 4 is amended by adding Section 43.0751 to read as follows: 5 Sec. 43.0751. STRATEGIC PARTNERSHIPS FOR CONTINUATION OF 6 CERTAIN DISTRICTS. (a) In this section: 7 (1) "District" means a water control and improvement 8 district or a municipal utility district created or operating under 9 Chapter 51 or 54, water Code. 10 (2) "Limited district" means a district that, pursuant 11 to a strategic partnership agreement, continues to exist after 12 full- purpose annexation by a municipality in accordance with the 13 terms of a strategic partnership agreement. 14 (3) "Strategic partnership agreement" means a written 15 agreement between a municipality and a district that provides terms 16 and conditions under which services will be provided and funded by 17 the parties to the agreement and under which the district will 18 continue to exist for an extended period of time if the land within 19 the district is annexed for limited or full purposes by the 20 municipality. 21 (b) The governing bodies of a municipality and a district 22 shall negotiate and may enter into a written strategic partnership 23 agreement for the district. The governing bodies of the 24 municipality and the district shall evidence thcir intention to 25 negotiate such an agreement by resolution, each of which 26 resolutions shall specify an expiration date if the other governing 27 body fails to adopt a resolution under this section on or before 3 MAY - 08 - 95 MON 13:52 TEXAS MUNICIPAL LEAGUE FAX NO. 5127196390 P.07/14 1 the specified date. The governing body of a municipality that has 2 evidenced its intention by unexpired resolution to enter into 3 negotiations with a district for an agreement under this section 4 may not initiate proceedings to annex the district under any other 5 section of this code prior to the expiration of two years after the 6 adoption date of the resolution unless the municipality has 7 previously instituted annexation proceedings in granting consent to 8 the creation of the district prior to January 1, 1995_ 9 (c) A strategic partnership agreement shall not be effective 10 until adopted by the governing bodies of the municipality and the 11 district. The agreement shall be recorded in the deed records of 12 the county or counties in which the land included within the 13 district is located and shall bind each owner and each future owner 14 of land included within the district's boundaries on the date the 15 agreement becomes effective. 16 (d) Before the governing 'body of a municipality or a 17 district adopts a strategic partnership agreement, it shall conduct 18 two public hearings at which members of the public who wish to 19 present testimony or evidence regarding the proposed agreement 20 shall be given the opportunity to do so. Notice of public hearings 21 conducted by the governing body of a municipality under this 22 subsection shall be published in a newspaper of general circulation 23 in the municipality and in the district. The notice must be in the 24 .format prescribed by Section 43.123(b) and must be Eublished at 25 least once on or after the 20th day before each date. Notice of 26 public hearings conducted by the governing body of a district under 27 this subsection shall be given in accordance with the district's 4 MAY -08 -95 MON 13:53. TEXAS MUNICIPAL LEAGUE FAX NO. 5127196390 .P.08/14 1 notification procedures for other matters of public importance. 2 Any notice of a public hearing conducted under this subsection 3 shall contain a statement of the purpose of the hearing, the date 4 time, and place of the hearing, and the location where copies of 5 the proposed agreement may be obtained prior to the hearing. The 6 governing bodies of a municipality and a district may conduct loint 7 public hearings under this subsection, provided that at least one 8 public hearing is conducted within the district. A municipality 9 may combine the public hearings and notices required by this 10 subsection with the public hearings and notices required by Section 11 43.124. 12 (e) The governing body of a municipality may not annex a 13 district for limited purposes under this section or under the 14 provisions of Subchapter F until it has adopted a strategic 15 partnership agreement with the district. The governing body of a 16 municipality may not adopt a strategic partnership agreement before 17 the agreement has been adopted by the governing body of the 18 affected district. 19 (f) A strategic partnership agreement may provide for the 20 following: 21 (1) limited- purpose annexation of the district under 22 the provisions of Subchapter F provided that the district shall 23 continue in existence during the period of limited- purpose 24 annexation; 25 (2) such amendments to the timing requirements of 26 Sections 43.123(d) (2) and 43.127(b) as may be necessary or 27 convenient to effectuate the purposes of the agreement; 5 MAY -08 -95 HON 13:54. TEXAS MUNICIPAL LEAGUE FAX NO, 5127196390 .P.09/14 1 (3) payments by the municipality to the district for 2 services provided by the district: 3 (4) annexation of any commercial property in a 4 district for full purposes by the municipality, notwithstanding any 5 other provision of this code or the Water Code, except for the 6 obligation of the municipality to provide directly or through 7 agreement with other units of government, full provision of 8 municipal services to annexed territory, in lieu of any annexation 9 of residential property or payment of any fee on residential 10 property in lieu of annexation of residential property in the 11 district authorized by this subsection; 12 (5) a full purpose annexation provision that specifies 13 one of the following: 14 (A) the date on which the land included within 15 the district's boundaries shall be converted from the 16 municipality's limited - purpose jurisdiction to its full - purpose 17 jurisdiction, provided that such date shall not be later than 10 16 years after the effective date of the strategic partnership 19 agreement; or 20 (3)(i) terms for payment of an annual fee to the 21 municipality by the district in lieu of full - purpose annexation, 22 the form in which each such payment must be tendered, a method of 23 calculating the fee, and the date by which each euch payment must 24 be made; failure by a district to timely make an annual payment in 25 lieu of full- purpose annexation in the amount and form required by 26 a strategic partnership agreement shall be the only ground for 27 termination oL the agreement with respect to annexation at the 6 MAY -06 -95 MON 13:54. TEXAS MUNICIPAL LEAGUE FAX NO, 5127196390 .P,10/14 1 option of the municipality, 2 (ii) to determine a reasonable fee to be 3 derived from residential property in a district, the municipality 4 or the district may request a cost -of- service study by an 5 independent third party agreeable to both parties if 6 cost -of- service data prepared by the municipality is not 7 acceptable. Both parties shall be equally responsible for the cost 8 of the study, which shall include an evaluation of the estimated 9 annual cost of providing municipal services to the residential 10 portion of the district over the next 10 years and the estimated 11 annual amount of ad valorem taxes from residential property the 12 city would receive on full - purpose annexation of the district over 13 the net 10 Years. The fee shall not exceed the estimated annual 14 amount of residential ad valorem taxes that would be derived by 15 full- purpose annexation of the district, less the estimated annual 16 amount required to provide municipal services to the residential 17 property in the district if annexed for full purposes. A fee 18 determined through this methodology is subject to renegotiation 19 every 10 years at the request of either party to the agreement 20 following the same procedure used to set the fee in the original 21 agreement. This methodology does not apply to fees from commercial 22 property; 23 (6) conversion of the district to a limited district 24 including some or all of the land included within the boundaries of 2S the district, which conversion shall be effective on the 26 full- purpose annexation conversion date established under 27 Subdivision (5)(A); 7 MAY -08 -95 MO .13:55_ TEXAS MUNICIPAL LEAGUE FAX NO. 5127196390 _P.11 /14 1 (7) agreements existing between districts and 2 governmental bodies and private providers of municipal services in 3 existence on the date a municipality evidences its intention by 4 adopting a resolution to negotiate for a strategic partnership 5 agreement with the district shall be continued and provision made 6 for modifications to such existing agreements; and 7 (8) such other lawful terms that the parties consider 8 appropriate. 9 (q) A strategic partnership agreement that provides for the 10 creation of a limited district under Subsection (f)(6) shall 11 include provisions setting forth the following: 12 (1) the boundaries of the limited district; 13 (2) the functions of the limited district and the term 14 during which the limited district shall exist after full - purpose 15 annexation, which term may be renewed successively by the governing 16 body of the municipality, provided that no such original or renewed 17 term shall exceed 10 years; 18 (3) the name by which the limited district shall be 19 known; and 20 (4) the procedure by which the limited district may be 21 dissolved prior to the expiration of any term established under 22 Subdivision (2). 23 (h) On the full - purpose annexation conversion date set forth 24 in the strategic partnership agreement pursuant to Subsection 25 (f)(5)(A), the land included within the boundaries of the district 26 shall be deemed to be within the full- purpose boundary limits of 27 the municipality without the need for further action by the 8 MAY -08 -95 MON.13:55. TEXAS MUNICIPAL LEAGUE FAX NO. 5127196390 .P.12/14 1 governing body of the municipality. The full - purpose annexation 2 conversion date established by a strategic partnership agreement 3 may be altered only by mutual agreement of the district and the 4 municipality. However, nothing herein shall prevent the 5 municipality from terminating the agreement and instituting 6 proceedings to annex the district, on request by the governing body 7 of the district, on any date prior to the full- purpose annexation 8 conversion date established by the strategic partnership agreement. 9 Land annexed for limited or full purposes under this section shall 10 not be included in caiculations prescribed by Section 43.055(a). 11 (i) A district that is negotiating for or that has adopted a 12 strategic partnership agreement shall not incur additional debt, 13 liabilities, or obligations, to construct additional utility 14 facilities, or sell or otherwise transfer property without prior 15 approval of the municipality, which approval shall not be 16 unreasonably withheld or delayed. An action taken in violation of 17 this subsection is void. 18 (j) Except as limited by this section or the terms of a 19 strategic partnership agreement, a district that has been annexed 20 for limited purposes by a municipality and a limited district shall 21 have and may exercise all functions .powers, and authority 22 otherwise vested in a district. 23 (k) A municipality that has annexed a district for limited 24 purposes under section may impose a retail sales tax within 25 the boundaries of the district. 26 (1) An agreement or a decision made under this section and 27 an action taken under the agreement by the parties to the agreement 9 MAY -08 -95 MON.13:5B_ TEXAS MUNICIPAL LEAGUE FAX NO. 5127196390 .P.13/14 1 are not subiect to approval or an appeal brought under the Water 2 Code unless it is an appeal of a utility rate charged by a 3 municipality to customers outside the corporate boundaries of the 4 municipality. 5 (m) A municipality that may annex a district for limited 6 purposes to implement a strategic partnership agreement under this 7 section shall not annex for full purposes any territory within a 8 district created pursuant to a consent agreement with that 9 municipality executed before August 27, 1979. The prohibition On 10 annexation established by this subsection shall expire on 11 September 1, 1997, or on the date on or before which the 12 municipality and any district may have separately agreed that 13 annexation would not take place whichever is later. 14 SECTION 3. The importance of this legislation and the 15 crowded condition of the calendars in both houses create an 16 emergency and an imperative public necessity that the 17 constitutional rule requiring bills to be read on three several 18 days in each house be suspended, and this rule is hereby suspended. 10 DATE: May 9, 1995 SUBJECT: City Council Meeting, May 11, 1995 ITEM: 15.D. Consider a resolution for support of S.B. 1395. Staff Resource Person: Joe Vining Staff Recommendation: Approval Analysis: The attached bill by Barrientos has been described as a compromise bill to satisfy numerous bills designed to "bash" Austin. While some may see this as only an Austin /Round Rock bill, it has statewide applications. The bill has two major sections: Section 1 provides for Regional Economic Development agreements and Section 2 allows Strategic Partnerships for Continuation of Certain Districts. Section 1: The bill allows cities to transfer parts of its ETJ to neighboring cities to facilitate the extension of municipal services. These cities may also enter into regional economic development agreements for territory that is partially within the ETJ of each municipality. These agreements may provide the following: (1) boundaries of the area covered by the agreement; (2) the duration of the agreement and means for renewing or terminating the agreement; (3) apportionment of the area covered by the agreement into service areas assigned to participating municipalities; (4) a regional economic development board composed of representatives of parties to an agreement to provide planning for service delivery to the territory covered by the agreement; (5) revenue sharing among participating municipalities in order to reduce destructive competition for commercial and industrial tax base; and (6) such other lawful terms as the parties consider appropriate. The bill also allows all cities to annex for limited purposes areas covered under such agreements and impose a retail sales tax within the boundaries. Section 2; This section pertains to partnerships between cities and districts. These districts can be either municipal utility districts or water control and improvement districts. The "strategic partnership agreement" is an agreement specifying terms of service provision and annexation requirements.