§ 70.054. Additional requirements and policy statement.

The city should require the following of all utility districts as permitted by Texas law, and these requirements shall be stipulated by the appropriate set of consent resolutions and agreements:

(1)

All development activities within the utility district shall conform to all of the substantive aspects of all city ordinance requirements in existence on the date of approval of the creation petition by the city council.

(2)

Underground utilities may be required by the city council.

(3)

All development construction by the utility district or the developers must be designed and constructed in accordance with the city standards for similar facilities, including, without limitation, fire flow standards and utility and road design, construction and installation standards in accordance with plans and specifications approved by the city before construction begins.

(4)

All public improvements shall be constructed in accordance with the City of San Marcos Land Development Code.

(5)

The city shall have the right to inspect all facilities of the utility district at any time during construction. Final approval by the city must be obtained by the applicant before additional construction in the district can begin. In addition, the city shall have the right to charge inspection fees for review of facilities, the cost of which is not covered by other appropriate charges.

(6)

Bonds shall be issued only for those purposes specifically authorized by the consent agreement, and bonds authorized for one purpose shall not be used for another.

(7)

Before the utility district issues bid invitations for its bonds, the city council shall have the right of review of all bond issues and sales, including bond prices, interest rates and redemption premiums, and copies of all documents submitted to state agencies shall be concurrently submitted to the city.

(8)

All records, files, books, information, etc., of the utility district shall be a matter of public record and available for city inspection at all times.

(9)

The utility district shall prepare for and submit to the city annual reports on the status of construction and bond sales.

(10)

The utility district shall comply with V.T.C.A., Local Government Code § 212.012 and V.T.C.A., Water Code § 54.106 regarding connection of utilities.

(11)

The utility district shall not provide service outside its boundaries unless approval is obtained from the city council. If permission is granted, no bond funds shall be expended or indebtedness incurred to provide service without approval of the city council.

(12)

No land within the utility district shall be allowed at any time in the future to incorporate, join in an incorporation or be annexed into any incorporated city other than the City of San Marcos.

(13)

No land may be annexed to or acquired by a utility district without the approval of the city council.

(14)

Right-of-way, public parkland, utility and drainage easements and all other appropriate lands and easements shall be dedicated to the public, by the utility district and its ultimate successor.

(15)

Any wastewater treatment plant constructed in whole or in part with bond proceeds under this policy must be reviewed and approved by the city council prior to the issuance of the state permit or any amendment thereto if it is to discharge instead of irrigate.

(16)

The district shall provide copies of any material event notices filed under applicable federal securities laws or regulations to the city manager, city attorney and finance director within 30 days after filing such notices with the applicable federal agency.

(17)

Construction of capital improvements such as fire stations and recreational amenities will be encouraged.

(18)

Sharing of fire stations, recreation amenities and other capital improvements by the city and the district will be encouraged.

(19)

The city and the owners of all land in the proposed district may reach agreement on the terms of a development agreement pursuant to V.T.C.A., Local Government Code § 212.171, et seq. to extend the city's planning authority over land included in the district by providing for approval of a development plan, authorizing enforcement by the city of land use and development regulations, and including other lawful terms and considerations the parties consider appropriate. The development agreement may include provisions that mutually acceptable to the parties relating to the following matters:

a.

Land use plan reflecting all approved land uses and residential densities;

b.

Compliance with city construction codes, including permit requirements;

c.

Compliance with city and other applicable stormwater and water quality regulations;

d.

Development standards comparable to city zoning regulations; and

e.

Dedication and development of park areas.

The above list is not intended to be exhaustive. It is expected that the parties will cooperate to identify those matters unique to that district that may be addressed in a development agreement.

(20)

The district shall send a copy of the order or other action setting an ad valorem tax rate to the city manager, city clerk and city attorney within 30 days after district adoption of the rate.

(21)

The district shall send a copy of its annual audit to the city manager and finance director within 30 days after approval.

(Ord. No. 1986-85, Part E, § 3, 7-21-86; Ord. No. 1987-18, §§ 1—4, 2-9-87; Ord. No. 2011-54, § 1, 10-18-11)