| economic and functional
obsolescence as evidenced by an on-site inspection.
(2) Contract revenue bonds proposed to be issued by
districts for facilities providing water, wastewater, or drainage,
under contracts authorized under Texas Local Government Code, §552.014,
or other similar statutory authorization, will be approved by the
commission only when the city's pro rata share of debt service on
such bonds is sufficient to pay for the cost of the water, wastewater,
or drainage facilities proposed to serve areas located outside the
boundaries of the service area of the issuing district.
(3) When a district proposes to obtain capacity in
or acquire facilities for water, wastewater, drainage, or other service
from a municipality, district, or other political subdivision, or
other utility provider, and proposes to use bond proceeds to compensate
the providing entity for the water, wastewater, drainage, or other
services on the basis of a capitalized unit cost, e.g., per connection,
per lot, or per acre, the commission will approve the use of bond
proceeds for such compensation under the following conditions:
(A) the unit cost is reasonable;
(B) the unit cost approximates the cost to the entity
providing the necessary facilities, or the providing entity has adopted
a uniform service plan for such water, wastewater, drainage, and other
services based on engineering studies of the facilities required;
and
(C) the district and the providing entity have entered
into a contract that will:
(i) specifically convey either an ownership interest
in or a specified contractual capacity or volume of flow into or from
the system of the providing entity;
(ii) provide a method to quantify the interest or contractual
capacity rights;
(iii) provide that the term for such interest or contractual
capacity right is not less than the duration of the maturity schedule
of the bonds; and
(iv) contain no provisions that could have the effect
of subordinating the conveyed interest or contractual capacity right
to a preferential use or right of any other entity.
(4) A district may finance those costs associated with
recreational facilities, as defined in §293.1(c) of this title
(relating to Objective and Scope of Rules; Meaning of Certain Words)
and as detailed in §293.41(e)(2) of this title (relating to Approval
of Projects and Issuance of Bonds) for all affected districts that
benefit and are available to all persons within the district. A district's
financing, whether from tax-supported or revenue debt, of costs associated
with recreational facilities is subject to §293.41(e)(1) - (6)
of this title and is not subject to the developer's 30% contribution
as may be required by §293.47 of this title. The automatic exemption
from the developer's 30% requirement provided in this paragraph supersedes
any conflicting provision in §293.47(d) of this title. In planning
for and funding recreational facilities, consideration is to be given
to existing and proposed municipal and/or county facilities as required
by TWC, §49.465, and to the requirement that bonds supported
by ad valorem taxes may not be used to finance recreational facilities,
as provided by TWC, §49.464(a), except as allowed in TWC, §49.4645.
(5) The bidding requirements established in TWC, Chapter
49, Subchapter I are not applicable to contracts or services related
to a district's use of temporary erosion-control devices or cleaning
of silt and debris from streets and storm sewers.
(6) A district's contract for construction work may
include economic incentives for early completion of the work or economic
disincentives for late completion of the work. The incentive or disincentive
must be part of the proposal prepared by each bidder before the bid
opening.
(7) A district may utilize proceeds from the sale and
issuance of bonds, notes, or other obligations to acquire an interest
in a certificate of public convenience and necessity, contractual
rights to use capacity in facilities and to acquire facilities, with
costs determined in accordance with applicable law such as paragraph
(3) of this subsection.
(8) If a district is approved for the issuance of bonds
by the commission to use a certain return flow of wastewater, the
approval applies to subsequent bond authorizations unless the district
seeks approval to use a different return flow of wastewater.
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| Source Note: The provisions of this §293.44 adopted to be effective September 5, 1986, 11 TexReg 3736; amended to be effective June 30, 1993, 18 TexReg 3758; amended to be effective April 15, 1994, 19 TexReg 2301; amended to be effective October 22, 1996, 21 TexReg 9905; amended to be effective September 14, 2000, 25 TexReg 8955; amended to be effective October 6, 2002, 27 TexReg 9365; amended to be effective May 5, 2005, 30 TexReg 2533; amended to be effective October 26, 2006, 31 TexReg 8699; amended to be effective July 14, 2011, 36 TexReg 4413; amended to be effective November 13, 2014, 39 TexReg 8730; amended to be effective January 3, 2019, 43 TexReg 8628;amended to be effective October 29, 2020, 45 TexReg 7593 |
