The bill creates the Katy Town Centre Development District (District) in the counties of Harris and Ft. Bend with the powers and duties of Texas Water Code Chapters 49 and 54 related to the general law for municipal utility districts.

1) Population - The proposed district appears to be entirely or partially within the City of Katy, which in turn is partially within Harris, Fort Bend and Waller Counties. Due to the complexity of the proposed boundaries, staff are not able determine the exact location of the district in the short review period. Hence, staff are not able to make an estimate of current or future population for the proposed district. The population projections recently approved for use in the 2006 Regional Water Plans show an increase in the City of Katy population from 11,775 in the year 2000 to 18,654 in the year 2020.

2) Location & Size - The proposed Districts is located in and around the City of Katy in Harris County.

3) Powers - The District has the general powers and duties granted to municipal utility districts under Texas Water Code Chapters 49 and 54 including providing drainage and flood control. In addition it has the powers included in Texas Transportation Code Chapters 257 and 441, and Texas Local Government Code Chapter 375.

4) District Finances - Same as special conservation and reclamation districts under Chapters 49 and 54 of the Texas Water Code, and Chapter 375, Local Government Code, except that the district’s bonds, and other securities are not subject to the jurisdiction or supervision of the Commission under Chapter 49.

5) Board of Directors - The bill appoints five directors named to serve staggered terms. Subsequently, the City of Katy will appoint the successor directors.

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 taxes for bond debt service and to finance operation and maintenance functions. In addition it has the power to impose and collect specific purpose assessments.

8) Overlapping Services - Unknown.

9) Ability to Exclude Property - Yes, same as general law districts according to section 49.303 of the Texas Water Code.

10) Adequacy of Boundary Description - Boundary closure has not been verified.

11) Comments on Powers /Duties Different from Similar Types of Districts - None observed.

12) TCEQ Supervision - Same as special conservation and reclamation districts under Chapters 49 and 54 of the Texas Water Code, and Chapter 375, Local Government Code, except that the district’s bonds, and other securities are not subject to the jurisdiction or supervision of the Commission under Chapter 49.

13) State Water Plan Objectives - All of the water utilized by the City’s water system was groundwater and the total intake was 2,320.4 acre-feet. This level of water use produced an approximate Gallons-Per-Capita-Daily of 175.

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.