LEGISLATIVE BUDGET BOARD
Austin, Texas
 
WATER DEVELOPMENT POLICY IMPACT STATEMENT
 
78TH LEGISLATIVE REGULAR SESSION
 
April 28, 2003

TO:
Honorable Robert Puente, Chair, House Committee on Natural Resources
 
FROM:
John Keel, Director, Legislative Budget Board
 
IN RE:
HB3581 by Quintanilla (Relating to the creation, administration, powers, duties, operation, and financing of the Rio Grande 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 Rio Grande Municipal Utility District (District) in El Paso County with the powers and duties Water Code Chapters 30, 49, 50, and 54 related to the general law for Municipal Utility Districts (MUD’s).

1) Population - The proposed district is entirely within El Paso County. The complexity of the proposed district boundaries does not allow staff 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 El Paso County population from 679,622 in the year 2000 to 986,443 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 140.01 acres of land in El Paso County.

3) Powers - The District has the general powers and duties granted to MUD’s under Water Code Chapters 30 and 54 and applicable to all districts under Water Code Chapters 49 and 50.

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.

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 known 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 - Staff was unable to form an acceptable closure with the boundary description provided in the bill.

11) Comments on Powers /Duties Different from Similar Types of Districts - Water Code Chapter 30 on "Regional Waste Disposal" applies to this District.

12) 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 - In the year 2000, groundwater accounted for 28 percent of El Paso County’s total water use. Irrigation accounted for 62 percent of the county’s total water use and 86 percent of the surface water use. Municipal water use accounted for 35 percent of the total water use and 91 percent of the county’s groundwater 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.



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