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Council approves releases of development agreements tied to ETJ with protections against package plants
Summary
Council approved two resolutions releasing development/annexation agreements for ETJ properties while retaining certain protections (no package plants; off‑site wastewater must go to a government‑owned facility). One councilor raised concerns about Senate Bill 2038 and potential deannexation impacts.
The Hutto City Council approved two companion resolutions (R‑2026‑122 and R‑2026‑123) authorizing the city manager to execute releases of annexation and development agreements for two ETJ properties. Staff said the agreements mirror a June 2025 template and include stipulations intended to protect the city, including restrictions intended to prevent package wastewater plants on the parcels and language requiring off‑site wastewater service to be provided by a government entity.
One councilor asked whether Senate Bill 2038 (pending at the time) might affect the city's ability to deannex parcels in the future and expressed concern about creating 'donut holes' inside the city. Staff and council discussed that these properties are currently in the extraterritorial jurisdiction (ETJ) and that the agreements were structured to preserve city protections where possible. Staff noted the agreements require connection to municipal wastewater or pump‑and‑haul to a government facility, and they emphasized those protections had been 'buttoned up' by city legal counsel.
Both resolutions passed 7–0. Council members said they supported the releases with the caveat that staff should ensure the restrictive covenants (for example, prohibition on package plants) remain enforceable and that the city continues to monitor legislative developments affecting annexation law.
