EFFECT OF ANNEXATION BY CITY OF WEATHERFORD

(a) The City of Weatherford may annex part of the territory of the district into its corporate limits without annexing all of the territory of the district under an agreement entered into before the effective date of the Act creating this chapter between the City of Weatherford and the landowners of the land being annexed. The district continues in existence following annexation of part of the territory of the district as described by this subsection. (b) The district shall be dissolved and its debts and obligations assumed by the City of Weatherford in accordance with Chapter 43, Local Government Code, including Sections 43.075 and 43.0715, on annexation of all of the territory of the district by the City of Weatherford, provided that: (1) water, sanitary sewer, and drainage improvements, and roads have been constructed to serve at least 95 percent of the territory of the district; or (2) the board adopts a resolution consenting to the dissolution of the district. (c) If all of the territory of the district is annexed by the City of Weatherford but the conditions under Subsection (b) have not been met, the City of Weatherford may dissolve the district by resolution only on or after the 20th anniversary of the effective date of the Act creating this chapter. (d) Notwithstanding Section 54.016(f)(2), Water Code, a contract ("Allocation Agreement") between the City of Weatherford and the district that provides for the allocation of the taxes or revenues of the district and the city following the date of inclusion of all the district's territory in the corporate limits of the city, may provide that the total annual ad valorem taxes collected by the city and the district from taxable property in the district may exceed the city's ad valorem tax on the property.