The bill creates the Harborside Management District (District) in Galveston County with the powers and duties of a Municipal Management District (MMD) governed by Local Government Code Chapter 375.

1) Population - The proposed district appears to be at least partially within the City of Galveston, though it does not include all of the city. Due to the complexity of the proposed boundaries, staff are not able determine the exact location of the district in the short review period and 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 projects a constant population of for the City of Galveston through the year 2020.

2) Location & Size - The District includes an area within Galveston County.

3) Powers - The District has the rights, powers, privileges, authority, and functions of a general law MMD The District also has the power given to a corporation under the Development Corporation Act (Section 4B, Article 5190.6, VTCS) and the power to create a nonprofit corporation under Transportation Code Chapter 431.

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. Approval of bonds by the Attorney General’s Office is required.

5) Board of Directors - The initial board consists of nine persons named in the bill, four of which will serve two-year terms, and five of which will serve four-year terms. Subsequent directors will serve staggered four-year terms. At least one director must be a resident of the District. By resolution, the board may increase or decrease the number of directors. The members of the governing body shall appoint directors from persons recommended by the board.

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, 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.

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) Adequacy of Boundary Description - The description provided follows generally along streets and roads, a state highway and a railway, and indicates some approximate distances; however, there appears to be a discrepancy in some distances used in describing the northeast portion of the District. The discrepancy may affect the use of the boundary description for taxing purposes. The bill does not provide a detailed metes and bounds description

10) Comments on Powers /Duties Different from Similar Types of Districts - Subject to limitations on amount and voter authorization, the District may impose sales taxes. Also, the District may authorize the creation of a nonprofit corporation to assist and act on behalf of the District in implementing a project or providing a service.

11) 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.

12) State Water Plan Objectives - In the year 2000, approximately 99 percent of the City water system’s intake was purchased surface water. Based on the year 2000 reported water use, the Gallons-Per-Capita-Daily for the city residents was 254. In Section 3(c), the bill states that "The creation of the district and this legislation may not be interpreted to relieve Galveston County or the City of Galveston from providing the level of services provided, as of the effective date of this Act, to the area in the district".

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.