Board of Directors
Gerry Lowry, President (Term Expires: 5/26)
Bernie Scarry, Vice President (Term Expires: 5/26)
David Plummer, Secretary (Term Expires: 5/26)
Desiree Irby, Deputy Secretary (Term Expires: 5/24)
Larry Linzer, Director (Term Expires: 5/24)
Brazoria County Municipal Utility District No. 2, a political subdivision of the State of Texas, was created by the Texas Water Commission, predecessor to the Texas Commission on Environmental Quality (the “TCEQ” or the “Commission”), on July 16, 1981. The District contains approximately 636.6 acres of land. The District lies within the extraterritorial jurisdiction (“ETJ”) of both the City of Pearland, Texas, and the City of Manvel, Texas (together, the “Cities”). Under Texas statutes, each City may annex that portion of the District that is within its ETJ. If the Cities agree, they may jointly annex the District and dissolve the District pursuant to such agreement. However, neither City, on its own, may annex the part of the District in its ETJ and dissolve the District. The District will remain in existence and responsible for its debt in the event that the City of Pearland or the City of Manvel annexes the part of the District within its ETJ. The District and the City of Pearland have in the past discussed the execution of a strategic partnership agreement (“SPA”) one element of which would result in the City of Pearland postponing the annexation of that part of the District that lies within the City of Pearland’s ETJ until December 31, 2016, by which time the District will have levied its 2016 tax, which will provide the debt service tax revenue by which the last maturity (2017) of the District’s outstanding debt will be retired. Until such time as a SPA is executed by the District and the City of Pearland, the District cannot represent any specific element of such SPA, or that it will become effective at all. Therefore, no representation is made that the District and the City of Pearland will enter into a SPA or that the City of Pearland will delay annexation until the District’s outstanding debt is retired. One of the key purposes of the SPA would be to avoid the burden of taxation that would result if the City of Pearland were to annex the District prior to the extinguishment of the District’s outstanding debt, which would result in the imposition of both the District’s debt tax and the City of Pearland’s tax upon District taxpayers. The City of Pearland terminated such negotiations and has indicated that it will place the District’s Pearland ETJ area back on the City of Pearland’s annexation plan. The District is considering its options in such regard, including availing itself of the provisions of Section 54.0163 of the Texas Water Code that allow a District in two ETJ’s to select a city and include that District wholly within that city’s jurisdiction. The quoted Section of the Water Code states that after the District makes an ETJ selection, it will be wholly in that city’s ETJ. Since there are strip annexations which placed small portions of the District in the city limits of both Cities, the application of this selection could challenged. The District is located approximately 5 miles west of the City of Pearland, Texas. State Highway 288 is located approximately 0.6 miles west of the northwestern boundary of the District and County Road 518 forms the northernmost boundary of the District. The District is located approximately twelve and one-half miles south of the central business district of the City of Houston and approximately eleven and one-half miles south of the Texas Medical Center complex.