Subject to a confirmation election, the bill creates North Hardin Special Utility District (District) in Hardin County with the powers and duties of Water Code Chapters 49 and 65 related to the general law for special utility districts.

1) Population - The proposed district is entirely within Hardin. The complexity of the proposed boundaries does not allow staff to make an estimate of current or future population for the District in the short review period. The population projections recently approved for use in the 2006 Regional Water Plans show an increase in the Williamson County population from 48,073 in the year 2000 to 59,115 in the year 2020. Staff are unable to predict how much, if any, of this growth will come from the District.

2) Location & Size - The boundaries of proposed district are located in Hardin County.

3) Powers - As with general law SUD’s, the District would have the power to provide water, wastewater drainage, irrigation and fire fighting services. Additionally, the bill includes specific language which gives the District the ability to adopt and administer standard specifications for water, wastewater and solid waste facilities within its boundaries.

4) District Finances - Consistent with general law for special utility districts. The District may issue revenue bonds and set fees and rates.

5) Board of Directors - The District is to be governed by a board of seven elected directors. The directors will serve staggered 3-year terms. The bill appoints seven initial directors named in the bill.

6) Eminent Domain - Same as general law districts, the District will have the rights and powers of eminent domain. The District may condemn either fee simple title or a lesser property interest.

7) Ability to Tax - None, which is consistent with general law for special utility districts

8) Overlapping Services - The District’s boundaries include those of the North Hardin Water Supply Corporation which currently holds a Certificate of Convenience and Necessity.

9) Adequacy of Boundary Description - The boundary follows known landmarks and survey lines; however, a closure computation could not be performed.

10) Comments on Powers /Duties Different from Similar Types of Districts - General law SUD’s are created through the conversion of existing water supply corporations (WSCs). Any assets and liabilities of the WSC would be transferred to the SUD and then upon confirmation of the voters, the WSC would be dissolved. This bill does not address what would happen to the existing WSC.

The District has specific authority to establish standard specifications for facilities designed or constructed for storage treatment or transportation of water; collection, treatment, and disposal of wastewater or disposal of solid waste within its boundaries.

11) TCEQ Supervision - As with general law districts, the TCEQ will have general supervision authority, including bond review authority and review of financial reports.

12) State Water Plan Objectives - Groundwater use constitutes 60 percent of Hardin County’s annual water use (year 2000). The county’s groundwater use is essentially divided between municipal use (61.5 percent) and irrigate agriculture (37 percent). The county’s surface water use is nearly all in the mining category.

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.