Title
Consider/Discuss/Act on an Ordinance Allowing the City of Princeton to Provide Wastewater Utilities to Two Properties Totaling Approximately 163 Acres of Land Generally Located South and East of the Intersection of F.M. 1827 and C.R. 409 and West of McKinney’s and Princeton’s Shared Boundary Line
Summary
COUNCIL GOAL: Operational Excellence
(2.1: Balance available resources to accommodate the growth and maintenance needs of the city)
MEETING DATE: January 6, 2026
DEPARTMENT: Development Services / City Attorney
CONTACT: Michael Quint, Executive Director of Development Services
Mark Houser, City Attorney
RECOMMENDED CITY COUNCIL ACTION:
• Staff recommends approval of the proposed ordinance.
ITEM SUMMARY:
• Representatives for D.R. Horton - Texas, Ltd. have requested the City of McKinney’s consent to allow the City of Princeton to provide wastewater (sanitary sewer) services to two properties located west of a shared boundary line between McKinney and Princeton. The proposed joint ordinance, if approved by the City Council, would permit Princeton to provide sanitary sewer service to the properties. Approving this ordinance does not authorize the City of Princeton to annex the subject properties into its city limits; it only allows Princeton to provide sewer services.
• The properties are currently owned by JMA Estates, LLC (39.928 Acres - Tax ID: R-6741-003-0330-1) and Blue Jasmine TX Investments, LLC (123.482 Acres - Tax ID: R-6741-003-0310-1). The 39-acre property is currently located within McKinney’s Extraterritorial Jurisdiction (“ETJ”), while the 123-acre property has opted out of McKinney’s ETJ.
• These properties were included in the City’s 2023 request to the Public Utility Commission (“PUC”) of Texas to decertify portions of our sanitary sewer Certificate of Convenience and Necessity (“CCN”). This request essentially signals that the City of McKinney is no longer interested in having the obligation to provide sanitary sewer service to these properties.
• The applicant has indicated that the subject properties will be developed as single-family residential dwelling units.
BACKGROUND INFORMATION:
• In April 2008, a Joint Boundary Ordinance between the City of McKinney and the City of Princeton was recorded with the Collin County Clerk’s Office. This ordinance established a boundary line that limits where each city could annex and provide municipal utility services. Specifically, the ordinance prohibits the City of Princeton from providing municipal utility services west of the shared boundary line without the City of McKinney's written consent. Likewise, it prohibits the City of McKinney from providing municipal utilities east of the shared boundary line without the City of Princeton's written consent.
• In 2017, the Texas State Legislature adopted Senate Bill 6, which significantly impacted a municipality’s ability to initiate annexations involuntarily. Additionally, in 2023, the Legislature adopted Senate Bill 2038, which allowed property owners to opt out of a municipality’s ETJ, thereby prohibiting a city from seeking involuntary annexation. To date, over five square miles of land have been removed from McKinney’s ETJ. These changes in state law, amongst others, have significantly impacted McKinney’s ability to master plan and construct utilities outside our city limits.
• In September 2023, the City of McKinney filed a request with the PUC to decertify portions of our water and sewer CCNs in our ETJ. A hearing regarding the City’s request is anticipated in February 2026.
FINANCIAL SUMMARY:
• N/A
BOARD OR COMMISSION RECOMMENDATION:
• N/A