Subject to a confirmation election, the bill creates Elgin Municipal Utility District No. 1 (District) in Williamson County with the powers and duties of Water Code Chapters 49 and 54 related to the general law for Municipal Utility Districts (MUD’s).

1) Population - The proposed district is entirely within Williamson 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 Williamson County population from 211,474 in the year 2000 to 416,122 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 384.83 acres of land in Williamson County.

3) Powers - The District has the general powers and duties granted to MUD’s, under Water Code Chapter 54 and applicable to all districts under Water Code Chapter 49.

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

5) Board of Directors - Same as general law districts. 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 permanent directors are elected for two-year terms and three directors are elected for four-year terms. Thereafter, the appropriate number of directors are elected on the first Saturday in May of each subsequent even-numbered year following the election. 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 by 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 MUD’s, 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 District and/or developer in the District may enter into an agreement with any municipality or vice versa to guarantee annexation after 25 years, and regulating development.

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 91 percent of the county’s total water use; 87 percent of the county’s groundwater use and 94 percent of the county’s surface water use. The next highest water-use categories include mining, livestock raising, and manufacturing; each with approximately 2% or less of the county’s total water use. 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.