The Killeen City Council learned Tuesday that it might not have a say in whether a 1,400-acre municipal utility district is created in the city’s extraterritorial jurisdiction.
Local developer Bruce Whitis petitioned the city this month to consent to the creation of the Bell County Municipal Utility District No. 2, a 4,000-home development planned just south of Killeen’s city limits.
A previous attempt at an agreement between the developer and the council failed by a 4-3 vote March 5.
Scott Osburn, deputy city attorney for public works, said the Texas Commission on Environmental Quality could approve the MUD-2 without the city’s consent if Whitis follows an administrative process and acquires water and sewer services.
If created, MUD-2 — the largest planned residential development in Bell County — would become a new taxing entity, allowing it to levy property taxes to build water and transportation infrastructure.
The city has 90 days to come to an agreement with the developer before Whitis can send a second petition to the city — the next step in the process — requesting that the city provide the water and sewer services.
Osburn said, if the city commits to providing the water and sewer services, it also would have to build the water and sewer infrastructure.
If the city does not agree to provide the services, there would be no cost to the city; however, the city would lose its ability to set most building requirements within the development, Osburn said.
Councilman Jose Segarra said he was concerned about losing the ability to dictate the land use of the development, including controls on housing density and park space.
“In other words, we would lose control of those things,” Segarra said. “We, as a city, would have nothing to do with it.”
Osburn said there are some subdivision regulations that would apply to the development, because it would be located in the city’s extraterritorial jurisdiction, but little else.
In order to sell water to the development, the city also would have to acquire the Certificate of Convenience and Necessity, which is currently owned by West Bell County Water Supply Corporation, Osburn said.