Subject to a confirmation election, the Bill creates Paseo del Este Municipal Utility District No. 1 though 9 (Districts) in El Paso County with the powers and duties of Water Code Chapters 49 and 54 related to the general law for Municipal Utility Districts (MUD’s). This bill further dissolves Paseo del Este Municipal Utility District created by the 75th Legislature.

1) Population - The proposed districts are entirely within El Paso County. The complexity of each of the proposed districts’ boundaries does not allow staff to make an estimate of current or future population for the proposed districts. 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 districts.

2) Location & Size - The Districts includes 3,666.436 acres of land in El Paso 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 existing board of directors of Paseo del Este Municipal Utility District appoints five temporary directors of the Districts 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. The five directors will serve staggered four-year terms expiring on June 1.

6) Eminent Domain - Same as general law districts, the Districts 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.

7) Ability to Tax - As with general law districts, upon voter approval, the Districts may levy ad valorem debt service and operation and maintenance taxes except on land owned by the permanent school fund.

8) Overlapping Services - There are no overlapping services.

9) Ability to Exclude Property - Same as general law MUD’s, the Districts has the power to exclude property.

10) Adequacy of Boundary Description - Not adequate to conduct a boundary closure, however; the description follows original land surveys and platted landmarks which should be sufficient for taxing purposes.

11) Comments on Powers /Duties Different from Similar Types of Districts - The Districts are charged with providing affordable housing.

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.