Ord 2022-005/Granting the Consent of the city of San Marcos to the creation of Hays County Municipal Utility District No. 8 including approx 567.663 Acreas vicinity of old Bastrop Hwy. Between Redwood Rd and San Marcos River.

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C. All the terms and conditions contained in this Agreement are lawful and appropriate to provide for the provision of municipal services and annexation. d. The District is not obligated to make payments to the City for services except as otherwise provided herein. e. This Agreement has been duly adopted by the City and the District after conducting two public hearings at which members of the public who wanted to present testimony or evidence regarding the Agreement were given the opportunity to do so. Notice of each hearing was published in the format required by TEX. LOCAL GOVT CODE, Section 43.123(b) and was published at least once on or after the 20th day before each public hearing of the City. The District's notice of each hearing was given as required under the TEX. WATER CODE for other district notifications. ARTICLE 2 ANNEXATION OF THE DISTRICT 2.01. Conditions to annexation. The parties agree that the District and its residents should be allowed to develop and function with certainty regarding the conditions under which annexation will be authorized by the City. As a result, the City and the District agree that, without regard to the City's right and power under existing or subsequently enacted law and subject to Section 2.02, the City will not fully annex any property within District until both of the following conditions have been satisfied, and shall thereafter be authorized, but not required, to fully annex the District for any purpose: a. All of the District's water, sanitary sewer, drainage, and road facilities have been constructed to serve at least ninety percent (90%) of the property within the District. b. The Developer, and the Developer's successors or assigns, have been fully reimbursed by the District to the maximum extent permitted by the rules of the Commission or other applicable law, hz addition to satisfaction of the conditions provided above, if the District has bonds, notes or other indebtedness outstanding that is payable from and secured by the District's ad valorem taxes, the City shall not be authorized to annex the District for full purposes unless and until the City is authorized to levy an ad valorem tax on property in the District and is authorized to levy an ad valorem tax in an amount sufficient to pay the assumed District indebtedness. -3- 964507_3