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ORDINANCE 2011- 5 4 <br />AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN <br />MARCOS, TEXAS, AMENDING VARIOUS SECTIONS OF CHAPTER 70 <br />- SPECIAL DISTRICTS, OF THE SAN MARCOS CODE OF <br />ORDINANCES; AUTHORIZING AN INITIAL PRE- APPLICATION FEE <br />OF FIVE THOUSAND DOLLARS AND REQUIRING REIMBURSEMENT <br />FROM THE APPLICANT OF ALL CITY EXPENSES INCURRED WITH <br />THE CREATION AND REVIEW OF THE SPECIAL DISTRICT; AND <br />PROVIDING FOR AN EFFECTIVE DATE <br />RECITALS: <br />1. A Municipal Utility District ( "MUD ") created by the Texas Commission on <br />Environmental Quality ( "TCEQ ") or the Texas Legislature with the City's express <br />consent and approval can be used to meet community needs by funding public <br />improvements or services; and <br />2. The creation of MUDS may affect the City's ability to implement the City's <br />Comprehensive and Annexation Plans; and <br />3. The City can benefit if the owners of property in the MUD pay their fair share for <br />improvements and services funded through a MUD; and <br />4. A MUD that finances public infrastructure benefits developers by allowing them <br />to reduce their debt to private lenders by using public financing to pay the cost of <br />infrastructure for development; and <br />BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SAN MARCOS, <br />TEXAS: <br />SECTION 1. Chapter 70, Special Districts, of the Code of Ordinances is amended as <br />follows ( underlining indicates added text; stfikethfough indicates deleted text): <br />Chapter 70 SPECIAL DISTRICTS <br />Article 1. In General <br />Secs. 70.001 -- 70.025. Reserved. <br />Article 2. Utility Districts <br />