Texas Code § 49.3182

CONDITIONS FOR EXCLUSION OF URBAN PROPERTY
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Sec. 49.3182. CONDITIONS FOR EXCLUSION OF URBAN PROPERTY. Urban property that is located in a district may be excluded from the district as provided by this subchapter only after the following have been paid to the district:
(1) all taxes, assessments, and other charges of the district accrued on the property to be excluded, together with all interest and penalties accrued on those taxes, assessments, and charges;
(2) the proportionate part of the outstanding bonded indebtedness or indebtedness in connection with a loan from an agency of the United States for which the property proposed to be excluded is liable, as determined under this subchapter; and
(3) agreement on a reasonable determined amount to be paid by the municipality or other supplier of potable water to compensate the district for loss of revenue occasioned by the exclusion.

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