Section 293.142 - Application Requirements for Imposition of Standby Fees To Be Used To Supplement the Debt Service Account(a) Only those districts which meet the following criteria may seek approval from the commission to use standby fee revenues to supplement the debt service account: (1) the district's combined tax rate as defined under § 293.59(f) of this title (relating to Economic Feasibility of Projects) and calculated as described in subsection (c)(1) of this section, excepting standby fees and developer contribution, over the period over which standby fees are to be levied exceeds those limits defined under § 293.59(k)(3) of this title, for the county in which the district is situated. Any increases in assessed valuation used in calculating the combined projected tax rate shall be based on historical growth rates experienced in the district; and(2) the district's actual buildout is less than the buildout projected under the most recent bond issue.(b) In determining whether a district which meets the requirements of subsection (a) of this section is to be allowed to impose standby fees and the amount of the standby fees authorized to be imposed, the following factors may be considered: (1) the tax rate projected in the district's most recent bond application;(2) actual buildout compared to projected buildout;(3) actual tax bill for various types of land uses compared to projected tax bills for such land uses, which have resulted from increases or decreases in appraised values or the granting or denial of exemptions or special valuations;(4) historical tax rates of the district;(5) whether the developer(s) or other landowner(s) have made or have agreed to make contributions;(6) whether the developer(s) or other landowner(s) have materially reduced the value of their unimproved property from that projected in the district's bond application or other representations to the district;(7) the availability of other funds such as impact fee revenue for debt service purposes or the availability of advance refunding to reduce debt service;(8) a comparison of actual buildout to projected buildout as between various developers or landowners within the district; and(9) evidence of an active building program not otherwise demonstrated by historical growth rates.(c) Standby fee amounts shall be determined so that:(1) the resultant combined projected tax rate as defined under § 293.59(f) of this title is not less than those limits defined under § 293.59(k)(3) of this title when calculated based on:(A) the current debt service fund balance, less 25% of the average annual debt service payment, being drawn down equally over the life of the outstanding bonds;(B) interest earnings on the ending debt service fund balance being applied toward the next year's debt service payments for the first two years of a standby fee levy;(C) the cumulative ending debt service fund balance not increasing to an amount greater than 25% of the next year's debt service payment; and(D) not less than 90% collection of ad valorem taxes and standby fee(s) unless the district's historical collection rate(s) justify different percentage(s);(2) the total taxes and standby fee assessment for debt service for water, wastewater, and drainage facilities against undeveloped property does not exceed the amount of district taxes levied for water, wastewater, and drainage facilities against a comparable lot or tract with completed improvements. In the absence of a comparable lot or tract with completed improvements, the projected value of the lot or tract with completed improvements as contained in the district's bond application(s) shall be used; and(3) in the case of nonuniform standby fees, the relative standby fee assessments are consistent with the level of service available. A suggested form for calculating nonuniform fees may be obtained from the commission on request.(d) Applications shall include the following items.(1) a filing fee of $100;(2) a certified copy of a board resolution which shall contain a request for commission approval of the fee and shall state the designated fund to which standby fee revenues will be applied, the amount of the fee, the three years for which the fee is proposed for levy, and the projected debt service and operations and maintenance tax rates the district expects to achieve through the levy of the standby fee;(3) a map of the district (not larger than 24 inches by 36 inches) which shall clearly designate the properties against which the proposed standby fee will be levied. If such information cannot be located in agency files, the executive director may require that water, wastewater, and drainage facilities serving those properties and financed by the district be identified. An accounting of district-financed water supply, wastewater treatment facilities, and drainage facilities and capacity available in those facilities may also be required;(4) a copy of the most recent tax appraisal roll by the Central Appraisal District accompanied by a table prepared by the district which delineates the district's assessed valuation. The table should list each component of the district's assessed valuation attributable to raw acreage and acreage with and without vertical improvements. The component attributable to acreage with vertical improvements should be further divided into single family residential sections according to similar home value, multi-family sections, commercial sections, industrial sections, and any other type of vertical development existing within the district;(5) a table which compares the cumulative buildout for the current fiscal year to the cumulative buildout for the same fiscal year projected at the time of the bond issue. Indicate according to section, the number of lots, homes, commercial and industrial development, etc., and raw acreage within the district;(6) a list by source of the following tax rates:(A) the combined tax rate projected at the time of the most recent bond issue;(B) the actual combined tax rate set for the current fiscal year; and(C) the combined tax rate projected over the period during which the standby fee will be levied. Any increases in assessed valuation for this calculation should be based on the district's historical growth rate.(7) a debt service schedule for all bonds outstanding.(8) a cash flow table based on the reduced combined projected tax rate the district expects to achieve through the standby fee levy. Distinguish between debt service revenues obtained from taxes and other sources of debt service revenues. List as a separate column the additional revenues required to produce the reduced debt service tax rate. Any increases in assessed valuation shown on this table should be based on the historical buildout rate experienced in the district. If the district's assessed valuation has been declining, show the assessed valuation as fixed at the current value. The district shall use the latest certified assessed value or estimated assessed valuation provided by the central appraisal district.(9) a comparison of the actual versus the approved cost summary from the district's most recent bond issue with separate costs shown for water, wastewater and drainage projects.(10) any other information as the executive director may require to assure that the fees are consistent with the criteria contained herein.(11) in the event that a district provides the executive director with a written consent of all landowners of undeveloped property in the district identified on the district's tax rolls and of all mortgagees of undeveloped property who have submitted a written request to be informed of any hearing pursuant to § 293.145 of this title (relating to Public Hearing and Notice Requirements), to the proposed levy of standby fees, the district shall be exempted from the requirements of paragraphs (4) and (5) of this subsection except that the district shall provide a copy of the most recent tax appraisal roll by the central appraisal district.30 Tex. Admin. Code § 293.142
The provisions of this §293.142 adopted to be effective December 17, 1990, 15 TexReg 6849; amended to be effective October 22, 1996, 21 TexReg 9905.