The bill creates the Southwest Montgomery County Improvement District (District) in Montgomery County with all the powers and duties provided by general law for municipal management districts (MMDs) governed by Local Government Code Chapter 375, conservation and reclamation districts, governed by Water Code Chapters 49 and 54, and the economic development powers provided by general law for municipalities of populations over 100,000 governed by Local Government Code Chapter 380.

1) Population - The proposed district is entirely within Montgomery County. The complexity of the proposed boundaries (largely based on election precincts) does not allow staff to make an estimate of current or future population for the District. The population projections recently approved for use in the 2006 Regional Water Plans show an increase in the Montgomery County population from 293,768 in the year 2000 to 542,051 in the year 2020. Staff are unable to predict how much, if any, of this growth will come from the District.

2) Location & Size - The District is located in southwest Montgomery County and includes all of the areas within the boundaries of Montgomery County election precinct numbers 13, 18, 28, 29, 30, 34, 65, 66, 69, 74, 75, 76, and 81 with the exception of areas within the city limits of Conroe, Houston, Magnolia, Stagecoach, and Shenandoah, Texas and within the boundaries of the Town Center Improvement District.

3) Powers - The District has the rights, powers, privileges, authority, and functions provided by general law for MMDs governed by Chapter 375, Local Government Code, conservation and reclamation districts, governed by Water Code Chapters 49 and 54, and the economic development powers provided by general law for municipalities of populations over 100,000 governed by Chapter 380, Local Government Code.

4) District Finances - Similar to general law MMDs governed by Chapter 375, Local Government Code, and conservation and reclamation districts, governed by Water Code Chapters 49 and 54, and municipalities of populations over 100,000 governed by Chapter 380, Local Government Code including the authority to levy benefit assessments, ad valorem taxes, and issue bonds. In addition, the District would have the ability to impose a sales tax.

5) Board of Directors - The initial board will consist of eleven appointed directors, of which four will serve two-year terms, three will serve three-year terms and four will serve four-year terms. Subsequent directors will serve staggered four-year terms. All directors must be at least 18 years old, residents of the District and meet other qualifications outlined in the bill.

6) Eminent Domain - Like general law MMDs, the District may not exercise the power of eminent domain.

7) Ability to Tax - The District may impose assessments, impact fees, ad valorem debt service and operation and maintenance taxes according to Local Government Code Chapter 375. With voter approval, the District may impose a sales-and-use tax. The District may not impose an impact fee or assessment on a residential property, multi-unit residential property, or condominium; or on the property, equipment, or facilities of an electric utility.

8) Overlapping Services - The bill states that the District is created to supplement and not supplant the County or water district services provided within the District's boundaries.

9) Adequacy of Boundary Description - The bill does not provide a detailed metes and bounds description; however, the boundary description provided generally includes all of the areas within the boundaries of Montgomery County election precinct numbers 13, 18, 28, 29, 30, 34, 65, 66, 69, 74, 75, 76, and 81 with the exception of areas within the city limits of Conroe, Houston, Magnolia, Stagecoach, and Shenandoah, Texas and within the boundaries of the Town Center Improvement District.

10) Comments on Powers /Duties Different from Similar Types of Districts - The District has the economic development powers provided by general law for municipalities of populations over 100,000 governed by Chapter 380, Local Government Code. Subject to limitations on amount and voter authorization, the District may impose sales taxes. Also, the District may authorize the creation of a nonprofit corporation to assist and act on behalf of the District in implementing a project or providing a service.

11) Texas Commission on Environmental Quality (TCEQ) Supervision - Similar to general law municipal management districts which are exempt from TCEQ auditing and bond review authority unless the bonds are issued specifically for water, wastewater, or drainage facilities.

12) State Water Plan Objectives - Groundwater accounted for 99 percent of the county’s total water use in the year 2000. Municipal water accounted for 95 percent of the county’s water use in the year 2000, all of it being groundwater. Board staff finds that creation of the proposed District is not in conflict with the State Water Plan objectives of promoting the efficient use of local groundwater resources and the implementation of practices and programs to effectively manage local groundwater resources.