Subject to a confirmation election, the Bill creates Lake Alan Henry Water District (District) in Garza and Kent Counties with the powers and duties of Municipal Management District (MMD) governed by Local Government Code Chapter 375 and Water Code Chapters 49, 51 and 54. The Bill amends zoning laws in the Local Government Code relating to land around Lake Alan Henry, Post Lake and Lake Cooper.

1) Population - The boundaries of the proposed district include several sections in southwest Kent County and roughly the southeast quarter of Garza County. From Census block populations, staff estimates that 101 residents of Garza County and 33 residents of Kent County lived within the proposed district boundaries in the year 2000. The Census 2000 population for Garza County was 4,872, and was 859 for Kent County. Population projections developed by the Texas Water Development Board indicate the population of the two counties should be 5,265 and 821 by the year 2020.

2) Location & Size - The District extends south and east from the City of Post to the Garza County line and and into Kent County, respectively. The size of the District is not indicated.

3) Powers - The District has the general powers and duties granted to MMD and Water Code Chapters 51 relating to Water Control and Improvement District (WCID) and Chapter 54 relating to Municipal Utility District (MUD), and applicable to all districts under Water Code Chapter 49.

4) District Finances - Similar to general law MMDs, including the authority to levy benefit assessments, ad valorem taxes, and issue bonds. In addition, the District would have the ability to impose a sales tax. A petition signed by the owners of a majority of the assessed value or surface area in the District is required prior to financing projects. Same as general law municipal utility districts under Water Code Chapter 51 and 54, including the issuance of bonds, levying a tax, and setting fees.

5) Board of Directors - The Bill appoints five temporary directors named in the bill to serve until a vacancy occurs with the Commissioner Court of Garza and Kent Counties appointing the replacement. Directors may include a member of a county commissioners court, an owner of 10% ownership of a corporation or general or limited partnership that owns property within the District, or an agent, employee, officer or director of a corporation or partnership that owns property.

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 - The District may impose assessments, impact fees, ad valorem debt service and operation and maintenance taxes according to Local Government Code Chapter 375. With voter approval, the District may impose a sales-and-use tax. The District may not impose an impact fee or assessment on a residential property, multi-unit residential property, or condominium; or on the property, equipment, or facilities of an electric utility. As with general law districts, upon voter approval, the District may levy ad valorem debt service and operation and maintenance taxes.

8) Overlapping Services - The bill states that the District is created to supplement and not supplant the County or water district services provided within the District's boundaries.

9) Ability to Exclude Property - Same as general law MUDs, the District has the power to exclude property.

10) Adequacy of Boundary Description - The bill states the boundaries of the proposed authority form a closure; however, a metes and bounds description was not provided, so staff could not verify a closure.

11) Comments on Powers /Duties Different from Similar Types of Districts - In addition to normal provisions, the District may pay operation and maintenance relating to lake recreation and dam construction.

12) TCEQ Supervision - Similar to general law MMDs which are exempt from TCEQ auditing and bond review authority unless the bonds are issued specifically for water, wastewater, or drainage facilities.

13) State Water Plan Objectives - In Garza County, 92 percent of the County’s year 2000 total water use was groundwater. Irrigated agriculture accounted for 90 percent of the Garza County groundwater usage and mining accounted for 8.5 percent. In Kent County, 75 percent of the County’s year 2000 total water use was groundwater. The groundwater usage was roughly split between municipal and mining uses.

Though the ratio of groundwater usage to total county water use was similar between the two counties, Garza County used roughly 10 times the amount of water as Kent County. The difference was essentially the large irrigation water use in Garza County.

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.