LEGISLATIVE BUDGET BOARD
Austin, Texas
 
WATER DEVELOPMENT POLICY IMPACT STATEMENT
 
78TH LEGISLATIVE REGULAR SESSION
 
April 22, 2003

TO:
Honorable Robert Puente, Chair, House Committee on Natural Resources
 
FROM:
John Keel, Director, Legislative Budget Board
 
IN RE:
HB3565 by Keel (Relating to the creation, administration, powers, duties, operation, and financing of the Lazy Nine Municipal Utility District.), As Introduced

The Legislative Budget Board in cooperation with the Water Development Board (TWDB) and Texas Commission on Environmental Quality (TCEQ), has determined the following:

Subject to a confirmation election, the Bill creates Lazy Nine Municipal Utility District (District) in Travis County with the powers and duties of Water Code Chapters 30, 49, 50, and 54 related to general law districts.

1) Population - The proposed district is entirely within Travis County. The complexity of the proposed boundaries 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 Travis County population from 812,280 in the year 2000 to 1,185,499 in the year 2020. Staff are unable to predict how much, if any, of this growth will come from the proposed District.

2) Location & Size - The District includes a 1,719.449 acre tract in Travis County.

3) Powers - The District has the general powers and duties granted to Municipal Utility Districts (MUDs) under Water Code Chapter 54, the powers and provisions of all general law districts under Water Code Chapters 49 and 50, and also regional waste disposal powers under Water Code Chapter 30.

4) District Finances - Same as general law municipal utility districts under Water Code Chapter 54, including the issuance of bonds, levying of taxes, and setting fees.

5) Board of Directors - Same as general law. The Bill appoints five temporary directors named in the Bill to serve until five initial directors are elected. On the first Saturday in May of the first even-numbered year after confirmation election, two directors shall be elected to replace two initial directors. On the first Saturday in May of each subsequent even-numbered year following the confirmation election, the appropriate number of directors shall be elected. The five directors will serve staggered four-year terms.

6) Eminent Domain - Same as general law districts, the District will have the rights and powers of eminent domain within five miles of its boundaries. Property may be acquired for sewer, water, storm drainage, and flood drainage only. The District may condemn either fee simple title or an easement only.

7) Ability to Tax - As with general law districts, upon voter approval, the District may levy ad valorem debt service and operation and maintenance taxes.

8) Overlapping Services - There are no overlapping services.

9) Ability to Exclude Property - Same as general law MUDs, the District has the power to exclude property.

10) Adequacy of Boundary Description - The boundary description has been reviewed and found not to form an acceptable closure; however, according to the Bill, this does not affect the validity of the District.

11) Comments on Powers /Duties Different from Similar Types of Districts - The Bill contains a provision which allows an election for a division of the District into two or more new districts at least 100 acres in size. The new districts shall have the powers and authorities of the District created by this Bill.

12) Texas Commission on Environmental Quality (TCEQ) Supervision - As with general law districts, the TCEQ will have general supervision authority, including bond review authority and review of financial reports.

13) State Water Plan Objectives - Year 2000 municipal water use accounted for 89 percent of the county’s total water use and 90 percent of the county’s surface water use. Manufacturing accounts for about 9 percent of the county’s total water use. Approximately 7 percent of the county’s total water use comes from 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.



Source Agencies:
582 Commission on Environmental Quality, 580 Water Development Board
LBB Staff:
JK, CL