Ord 1985-117 - Laserfiche WebLink

Home Browse Search

option, may revoke its authorization for or approval of the installation of any further items of District facilities, and may also revoke its authorization for the issuance of the balance of the District's unissued bonds; provided, however, that the City's right to revoke such authorizations may be exercised only if the City concurrently annexes into the City the entire District as it then exists. Because the regional facilities will need to be installed in advance of completing construction of the internal water and wastewater system in the District, the parties agree that when the actual connections of water and wastewater service to the District's systems corresponding to eighty percent (80%) of the total number of living unit equivalents of service to be provided in the District have been made; this shall be considered to be at least equal to the ninety percent (90%) of facilities required to be installed. (3) The District shall be dissolved on the date and in the manner specified in the ordinance completing such annexation. Upon the dissolution of the District, the City shall, subject to the provisions of Paragraph II A, immediately succeed to all properties, powers, duties, assets, debts, liabilities, and obligations of the District. At the time the City finds annexation of the District to be feasible, the City shall give written notice of its intent to proceed to annex the District, by registered or certified mai 1, return receipt requested, to the address of the District designated in the registration statement on file with the Texas Water Commission, with a copy to the District's attorney of record. If the installation of any item of authorized District facilities financed with the proceeds of the District bonds has commenced in good faith in compliance with and in reliance upon the provisions of this Agreement and is in progre s s, the District within thirty (30) days from receipt of the notice from the City shall notify the City in writing, registered or certified mai I, return receipt requested, with a copy to the City Attorney, of such installation and the annexation of the District shall be postponed unti I: ( i) the installation of the items has been completed; or (ii) the expiration of one (1) year from the date of the annexation notice from the City, whichever occurs first. Within thirty (30) days of receipt of such notice from the City, the District shall furnish the City Secretary of the City with a report on the status of all current construction projects and obligations of the District. After receipt of annexation notice from the City the District shall not cause any further obligations to be made which in the City's reasonable judgment might affect the City's annexation plans, notwithstanding the other provisions of this section. (4) After annexation of the District into the City and dissolution of the District resulting therefrom, the City is required to collect a surcharge, in addition to the rates for water and sewer services, for property that was within the territorial boundaries of the District at the time of annexation, as provided by Section 54.016(h) of the Texas Water Code. Such surcharge shall be calculated according to the criteria and formula provided for in Exhibit "D" attached hereto and incorporated herein by reference. The surcharge is required to continue for thirty (30) years after the initial District debt is issued, until the bonded indebtedness of the District has been retired, or until the City has been wholly compensated for th~ assumption of obligations under the Water Code, whichever occurs last, but in no case for a longer period of time than is necessary to wholly compensate the City for its assumption of the obligations of the District. If the total amount of the District's obligations assumed by the City is greater or less than the total estimated amount of obligations which was used to calculate the surcharge, if the average annual effective interest rate of such obligations becomes greater or less than the rate used to calculate the surcharge, or if it becomes evident as a result of the subdivision process or annexation of land to the District that the total number of dwelling unit equivalents within the District will be greater or less than the total number A:SMMUD1.3-10 (1/22/86)