Relating to the creation of the Montgomery County Water Control and Improvement District No. 7; granting a limited power of eminent domain; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes.

Contracts

• Easement Agreements: You must secure voluntary easements for all water, sewer, and road infrastructure immediately. You cannot rely on condemnation clauses; revise land acquisition contracts to reflect this lack of leverage.
• Reimbursement Agreements: Developers must draft agreements with the District to define how infrastructure costs will be reimbursed via bond proceeds.
• Construction Contracts: Contracts must stipulate compliance with prevailing wage statutes and public bidding requirements under the Texas Water Code once the District is active.

Hiring/Training

• Governance: Developers must identify five qualified individuals to serve as temporary directors and include their names in the TCEQ petition.
• Professional Services: Retain bond counsel and a financial advisor specializing in special districts to structure the initial bond election and tax rate proposals.

Reporting & Record-Keeping

• TCEQ Petition: Prepare a petition requesting the appointment of temporary directors. This must be signed by owners of a majority of the assessed value of real property in the District.
• Road Standards: Maintain engineering records proving road projects meet Montgomery County or Texas Transportation Commission standards to ensure future conveyance and liability transfer.

Fees & Costs

• New Tax Liability: Update pro formas to account for future ad valorem taxes (M&O and Debt Service) and "Contract Taxes" authorized by Section 9094.0403.
• Impact Fees: Anticipate the imposition of impact fees under Local Government Code Chapter 395 to fund capital improvements; these must be factored into lot pricing.
• Bond Cap: Road bonds are capped at 25% of the assessed value of real property; costs exceeding this must be covered by developer equity without reimbursement.