The bill creates the Sharpstown International Improvement District (District) in Harris County with the powers and duties provided by general law for municipal management districts (MMDs) governed by Local Government Code Chapter 375; Government Code Chapter 311 (Code Construction Act); the powers of a corporation created under Section 4B, Development Corporation Act of 1979; and powers of a housing finance corporation Local Government Code Chapter 394.

1) Population - The proposed district appears to be entirely within the City of Houston in Harris County. Due to the complexity of the proposed boundaries, staff are not able determine the exact location of the district in the short review period. Hence, staff are not able 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 City of Houston population from 1,953,631 in the year 2000 to 2,520,926 in the year 2020.

2) Location & Size - The District includes the Sharpstown area within the City of Houston, Harris County.

3) Powers - The District has the rights, powers, privileges, authority, and functions provided by general law for municipal management districts (MMDs) governed by Local Government Code Chapter 375; Government Code Chapter 311 (Code Construction Act); the powers of a corporation created under Section 4B, Development Corporation Act of 1979 (Article 5190.6, Vernon’s Texas Civil Statutes); and powers of a housing finance corporation created under Chapter 394, Local Government Code, to provide housing or residential development projects in the district.

4) District Finances - Similar to general law MMDs governed by Chapter 375, Local Government Code. The District would have the authority to issue bonds payable from ad valorem taxes, assessments, impact fees, revenue, grants, or other money of the District. The board may not issue bonds for a service or improvement project under this Act unless a written petition signed by the owners of a majority of the assessed value of real property in the District requesting that improvement or service has been filed with the board.

5) Board of Directors - The District will be governed by a board of nine elected directors which will serve staggered terms of four years.

6) Eminent Domain - Like general law MMDs, the District may not exercise the power of eminent domain.

7) Ability to Tax - The District may impose assessments. Assessments are a first and prior lien against the property assessed; are superior to any other lien except for county, school district, or municipal ad valorem taxes; and are the personal liability of the property owners. The District may not impose an assessment on residential property. The District may not impose an impact fee or assessment on the property, including the equipment, rights-of-way, facilities, or improvements, of an electric utility.

8) Overlapping Services - The bill states that the District is created to supplement and not supplant Harris County or the City of Houston services provided within the District’s boundaries.

9) Ability to Exclude Property - Chapter 49 of the Water Code has provisions to exclude property.

10) Adequacy of Boundary Description - Inadequate metes and bounds have been provided, staff is unable to verify a closure of the boundary.

11) Comments on Powers /Duties Different from Similar Types of Districts - The District may authorize the creation of a nonprofit corporation (Chapter 431, Transportation Code) to assist and act on behalf of the District in implementing a project or providing a service.

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 - Over 33% of the water utilized by the City of Houston's water system was groundwater and the total intake was 345,855 acre-feet. This level of water use produced an approximate Gallons-Per-Capita-Daily of 159.

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.