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 East Central Water District (District) in Wilson, Guadalupe, and Bexar Counties with the powers and duties of Water Code Chapter 49 related to the general law for water districts..

1) Population - The boundaries of the proposed district are based upon the area contained within the current certificate of convenience and necessity of the East Central Water Supply Corporation. The WSC is partially within Bexar, Guadalupe and Wilson Counties. The population projections recently approved for use in the 2006 Regional Water Plans show an increase in the WSC from 8,533 in the year 2000 to 14,682 in the year 2020.

2) Location & Size - Boundaries are coextensive with the boundaries of the CNN of the East Central Water Supply Corporation. The size of the District is not indicated.

3) Powers - The District has the general powers and duties granted to water districts, under Water Code Chapter 49. The Bill prevails over any inconsistent provision of general law.

4) District Finances - Same as general law conservation and reclamation districts under Water Code Chapter 49. Including the issuance of bonds, levying a tax, and setting fees.

5) Board of Directors - Same as general law. The Bill appoints nine temporary directors composed of the nine individuals serving as directors of the East Central Water Supply Corporation to serve until nine initial directors are elected. On the first Saturday in May of the first even-numbered year after confirmation election, permanent directors are elected at large, four directors are elected at the first election and five directors are elected at the second.

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 either fee simple title or an easement only.

7) Ability to Tax - The District may not levy ad valorem debt service and operation and maintenance taxes.

8) Overlapping Services - There are no overlapping water districts.

9) Ability to Exclude Property - As with general law GCDs, there are no provisions to exclude property.

10) Adequacy of Boundary Description - The District’s boundaries are the same as that of the CCN of the East Central Water Supply Corporation.

11) Comments on Powers /Duties Different from Similar Types of Districts - If the District has not been confirmed before the fourth anniversary of the effective date of the Act, the Act expires on that date.

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, the 88 percent of the water used by the WSC was purchased groundwater and the remainder was purchased surface water.

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.