The bill creates the Buffalo Bayou Management District (District) in Harris County with all the powers and duties provided by general law for Municipal Management Districts 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. The District may authorize the creation of a non-profit corporation (Transportation Code Chapter 431) to assist and act on behalf of the District.

1) Population - The proposed district appears to be within the City of Houston, 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 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 the City of Houston growing from 1,953,631 in the year 2000 to 2,520,926 in the year 2020.

2) Location & Size - The District is located in 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; and powers of a finance corporation Local Government Code Chapter 394. The District may authorize the creation of a non-profit corporation (Transportation Code Chapter 431) to assist and act on behalf of 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 finance a service or improvements project unless a petition signed by the owners of a majority of the assessed value requesting such services or improvements has been filed with the board.

5) Board of Directors - The board will consist of eleven voting directors and 5 nonvoting directors. The initial eleven voting directors are named in the bill, of which five will serve through June 1, 2005 and six will serve through June 1 , 2007. Subsequent directors will be appointed from the governing body of the City of Houston and will serve staggered four-year terms with six directors’ terms expiring June 1 of an odd numbered year and five directors’ terms expiring June 1 of the following odd numbered year.

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 ad valorem taxes to pay for issued bonds or other obligations. Subject to voter approval, the District may levy a maintenance tax for the operation and maintenance of the District, or provision of a service.

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

9) Adequacy of Boundary Description - No boundary description has been provided.

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

11) TCEQ Supervision - Similar to general law municipal management districts 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 two-thirds of the City water system’s intake was surface water. Based on the year 2000 reported water use, the Gallons-Per-Capita-Daily for the city residents was 159.

As in other bills creating Management Districts, the creation of the district does not relieve the city of water or wastewater services. In Section 3(c), the bill states that "This Act and the creation of the district may not be interpreted to relieve Harris County or the City of Houston 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.