City receives legislative update on bills affecting water reuse, taxes, annexation and local authority

City staff provided a legislative update at the May 1 workshop outlining multiple bills in the 2025 Texas legislative session that could affect Temple’s projects, revenues and local authority.

Staff reported that Temple’s priority, Senate Bill 2885 (authored by Senator Flores in the presentation), which would permit certain reclaimed-water uses in aquifer storage and recovery (ASR) projects, was voted out of the Senate and had been received by the Texas House. City representatives including the mayor and members of city leadership testified in support of that bill; staff said efforts are underway to secure a House companion or a House member to carry the measure so it may be calendared in the House before May 25 deadlines.

The presentation covered a broad set of other measures the city is monitoring:

• Property tax and bond election bills — Multiple bills would change ballot language, notice requirements and timing for bond elections (including proposals to require clearer “this is a tax increase” language and proposals to move many elections to November). Staff highlighted House Bill 925/companion Senate language on business personal property exemptions and bills that would affect how cities advertise tax-rate impacts for bond questions.

• Debt and expenditure restrictions — House Bill 19 (Rep. Meyer) contains a set of proposals that would cap annual property‑tax‑supported debt service at 20 percent, restrict certain funding sources for non‑motor-approved debt and move more bond and tax‑rate actions to mandatory November elections; staff called the bill a “nuclear option” for municipal financing and said the city is coordinating amendments and outreach.

• Annexation and disannexation — Staff flagged Senate Bill 1824 (placed on the senate intent calendar) as a disannexation bill that would allow property owners to petition to disannex from a city if the city does not provide water and wastewater service to them. Staff said passage as drafted could risk loss of tax base for areas built on septic systems and complicate future development approvals.

• Third‑party review and permitting — House Bill 23 (and related Senate bills) would allow applicants to request third‑party plan review. Staff said later amendments established that third‑party reviewers must follow city regulations, the city can rescind approvals, the city retains final inspection authority before a certificate of occupancy, and liability rests with the third‑party reviewer. The House and Senate versions have both moved in their respective chambers.

• Utilities and telecommunication — Bills would change cost responsibilities for relocating communication lines and add requirements for telecommunication co‑location; staff said those proposals may require cities to cover relocation costs.

• Water funding — Senate Bill 7 would create a new Water Supply for Texas Fund with large appropriations for water infrastructure, and House Bill 2867 would cap some city water late fees.

Staff emphasized several procedural deadlines: May 13 is the last day a House bill can be placed on the House calendar and May 25 is the deadline for Senate bills to be calendared in the House; bills not calendared by those dates are effectively stalled for the session. City staff said they are pursuing a House companion for SB 2885, monitoring House Ways and Means and House State Affairs for tax and lobbying‑related measures, and engaging lobbyists and legislative contacts to pursue amendments or companion sponsors where useful.

No formal council action or vote was taken during the workshop; staff asked the council to note the matters and authorized ongoing outreach. Staff also described how certain bills could be implemented administratively by state agencies (for example, TCEQ rulemaking) even if a bill does not pass, and that staff are working with legislative contacts and lobbyists on multiple fronts.