LEGISLATIVE BUDGET BOARD
Austin, Texas
 
WATER DEVELOPMENT POLICY IMPACT STATEMENT
 
78TH LEGISLATIVE REGULAR SESSION
 
April 29, 2003

TO:
Honorable Robert Puente, Chair, House Committee on Natural Resources
 
FROM:
John Keel, Director, Legislative Budget Board
 
IN RE:
HB3612 by Cook, Robby (Relating to the creation, administration, powers, duties, operation, and financing of the Garfield Municipal Utility District No. 1.), 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 Garfield Municipal Utility District No. 1 (District) in Bastrop County with the powers and duties of Water Code Chapters 49 and 54 related to general law districts.

1) Population - The proposed district would be composed of over 3,000 acres in Bastrop County and partially within the extraterritorial jurisdiction of the City of Bastrop. 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 Montgomery County population from 57,773 in the year 2000 to 97,601 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 3,030.926 acres on several tracts in Bastrop County.

3) Powers - The District has the general powers and duties granted to Municipal Utility Districts (MUDs) under Water Code Chapter 54, the powers and provisions of all general law districts under Water Code Chapters 49.

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

5) Board of Directors - Same as general law. 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 an even-numbered year not later than three years after confirmation election, five permanent directors shall be elected to replace the five initial directors, two directors for two-years terms, and three for four-year terms. 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 MUDs, the District has the power to exclude property.

10) Adequacy of Boundary Description - The boundary description has been reviewed and found 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 Bill contains a provision which allows for a division of the District into two or more new districts with only approval of the City of Bastrop needed. The new districts shall have the powers and authorities of the District created by this Bill.

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 85 percent of Bastrop County’s total water use. Municipal water use accounted for 72 percent of the total water use and 85 percent of the county’s groundwater use. The next highest groundwater-use categories are livestock raising, and irrigated agriculture.

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