On May 9, 2009, voters approved a proposition that authorized the creation of a Municipal Development District (MDD) in Shenandoah’s city limits and also in the city’s extraterritorial jurisdiction (ETJ), and imposed the new sales tax to fund projects authorized by state law. The proposition also repealed a pre-existing 4b sales tax which was replaced by the new sales tax at the same amount under the terms of the MDD.