Title
Consider/Discuss/Act on a Joint Ordinance Allowing the City of Princeton to Provide Wastewater Utilities to Approximately 250 Acres of Land Generally Located East of the Intersection of C.R. 409 and F.M. 1827 and Situated on the North and South Sides of F.M. 1827 and to Approximately 240 Acres of Land Generally Located North of C.R. 408 and Approximately 3,600 Feet East of F.M. 1827, and for which Both Areas are Located West of the McKinney and Princeton Shared Boundary Line
Summary
COUNCIL GOAL: Operational Excellence
MEETING DATE: April 21, 2026
DEPARTMENT: City Attorney’s Office
City Manager’s Officer
CONTACT: Mark Houser, City Attorney
Jennifer Arnold, Assistant City Manager
RECOMMENDED CITY COUNCIL ACTION:
• Staff recommends approval of the proposed joint ordinance
ITEM SUMMARY:
• The proposed Joint Ordinance is to authorize the City of Princeton as the sole provider of sewer services for three specific residential developments known as Silvertrails, Bailey Crossing, and Tivoli.
o Silvertrails is approximately 199 total acres owned/contracted by D.R. Horton - Texas, Ltd.
o Bailey Crossing is approximately 49.926 acres owned/contracted by Allied Development, LLC.
o Tivoli is approximately 239.5 acres owned/contracted by GRBK Edgewood LLC and Meritage Homes of Texas, LLC.
• All properties have or intend to exercise their right to release from the Extraterritorial Jurisdictions (ETJ) of both cities under the allowances of State Law. However, the jurisdictional and utility service boundaries between McKinney and Princeton are still governed by the 2008 Joint Boundary Ordinance and a corresponding Settlement Agreement.
• Under Section 3.06 of the Settlement Agreement, Princeton is prohibited from providing sewer service west of the Boundary Line without McKinney’s express written consent.
• To ensure controlled growth and infrastructure stability, service is strictly limited to single-family residential development as follows:
o Silvertrails: Maximum of 998 equivalent single-family connections (ESFCs) and no multi-family residential units.
o Bailey Crossing: Maximum of 252 ESFCs and no multi-family residential units.
o Tivoli: Maximum of 1,046 ESFCs and no multi-family residential units.
• At their March 23 Council meeting, Princeton City Council indicated their concurrence to provide wastewater utilities to the three projects and approved the proposed Joint Ordinance
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 later this year