Relating to the creation of the Hills of Walnut Creek Municipal Utility District of Parker County; granting a limited power of eminent domain; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes.

Contracts

• Reimbursement Agreements: Contracts between developers and the District must be drafted to reflect that road project bonds are capped at 25% of the assessed value of real property in the District.
• Easement Agreements: All off-site utility easements must be renegotiated immediately. You cannot utilize standard condemnation clauses or threats of eminent domain; acquisition must be purely commercial/voluntary.
• Utility Service Agreements: Any contract securing water/wastewater that is funded by a "Contract Tax" requires a specific voter approval clause before execution.

Hiring/Training

• Board Appointments: You must identify five qualified temporary directors to be named in the TCEQ petition. These individuals must secure Public Official Bonds and D&O liability insurance immediately upon appointment.
• Sales Staff Training: Homebuilder sales teams must be trained on the mandatory "Notice to Purchaser" requirements to prevent contract termination rights by future buyers.

Reporting & Record-Keeping

• Notice to Purchasers: Upon District confirmation, sellers must provide the statutory notice (Texas Water Code § 49.452) disclosing tax rates and bond authorization to all buyers.
• Engineering Records: Maintain proof that all road projects meet Parker County or municipal construction standards to satisfy bond release requirements.

Fees & Costs

• New Taxing Authority: The District is authorized to levy ad valorem taxes for operations and debt service, subject to voter confirmation.
• Election Costs: The developer must front the costs for the confirmation, bond, and maintenance tax elections, reimbursable only after successful bond issuance.