Subject to a confirmation election, the bill is related to the creation, administration, powers, duties, operation, and financing of Kingsborough Municipal Utility District No. 8.

1) Population - The proposed district is entirely within Kaufman County and is composed of less than 325 acres. The complexity of the proposed boundaries does not allow staff to make an estimate of current or future population for the District. The population projections recently approved for use in the 2006 Regional Water Plans show an increase in the Kaufman County population from 71,313 in the year 2000 to 148,580 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 proposed District includes an area within Kaufman County of 323.765 acres.

3) Powers - The proposed District has the general powers and duties granted to municipal utility districts, under Texas Water Code Chapters 49, 50 and 54. The proposed District will have the authority to construct and maintain streets and issue bonds for that purpose.

4) District Finances - Same as general law municipal utility districts under Chapters 49 and 54 of the Texas Water Code, including the issuance of bonds, levying a tax, and setting fees.

5) Board of Directors - Same as general law. The TCEQ will appoint five temporary directors to serve until five initial directors are elected. The five directors will serve staggered four-year terms.

6) Eminent Domain - Yes, same as general law districts according to 49.222 of the Water Code.

7) Ability to Tax - As with general law districts, the District may levy ad valorem debt service and operation and maintenance taxes, upon voter approval.

8) Overlapping Services - None known.

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

10) Adequacy of boundary description - A check of the metes and bounds description by TCEQ staff indicates a proper closure.

11) Comments on powers and duties different from similar types of districts - The proposed District will have the authority to issue bonds on street and road construction and maintenance with approval of two-thirds of qualified voters. Chapter 54.234 of the Water Code requires a MUD to seek authorization for taxing powers for road construction from the Texas Transportation Commission. Chapter 54.522 authorizes a MUD after ten years of existence to issue bonds for the maintaining of streets upon approval of a majority of qualified residents.

With the ability to issue tax supported bonds for the construction of streets and roads, the proposed District’s ability to fully fund water, wastewater and drainage facilities could be limited based on the TCEQ’s bond review rules regarding financial feasibility.

12) TCEQ supervision - As with general law districts, the TCEQ will have general supervision authority, including bond review authority and review of financial reports. TCEQ bond review authority does not extend to bond issues associated with the road powers.

13) State Water Plan Objectives - Groundwater made up only 2 percent of the County’s water use in the year 2000. Municipal water use (almost entirely surface water) accounted for 66 percent of the county’s total water use in that year. Irrigated agriculture accounted for 19 percent of the County’s water use and livestock accounted for 9 percent.

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.