EFFECT OF ANNEXATION BY OR INCLUSION WITHIN THE CORPORATE BOUNDARIES OF THE CITY OF LEANDER.

(a) The City of Leander may annex all of the district into its corporate limits under the terms of an agreement entered into before the effective date of the Act enacting this chapter between the city and the owners of the land being annexed, and, in that instance, the district may not be dissolved, except as provided by Subsection (b).

(b) The district may be dissolved and its debts and obligations assumed by the city in accordance with Chapter 43, Local Government Code, including Sections 43.075 and 43.0715, on completion of the construction of the water, sanitary sewer, and drainage improvements and roads required to serve at least 95 percent of the land in the district.

(c) Notwithstanding Section 54.016(f)(2), Water Code, an agreement between the City of Leander 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 that property.