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 would create the Sunrise Municipal Utility District in Hunt County with the powers and duties, including road powers of a Municipal Utility District (MUD) governed by Water Code Chapters 30, 49, 50 and 54.

1) Population- The year 2000 population located within the proposed district could be as high as 225 (based on Census blocks in the approximate area).  The population projections approved for use in the 2006 Regional Water Plans show an increase in the Hunt County-Other (Sabine river-basin portion) area from 5,985 in 2000 to 6,536 in 2010 (a 9% increase).  Cash SUD is projected to grow 14.5 percent from 11,699 in 2000 to 13,401 in 2010.

2) Location & Size- The District includes 1,305.607 acres within Hunt County. The proposed district is completely within Hunt County.  From the extensive district boundary description, the district appears to be located in southern Hunt County, to the west of Lake Tawakoni and to the southwest of the City of Quinlan.  The district appears to be surrounded by four other water utilities: Poetry Water Supply Corporation (WSC), Cash SUD (formerly Cash WSC), Whispering Oaks Water Coop and the City of Quinlan. 

3) Powers- As with general law MUDs, the District would have the power to provide water, wastewater, and drainage services. The District would also have road powers.

4) District Finances- Consistent with general law for municipal utility districts. The District may issue tax and/or revenue bonds, levy a maintenance tax, and set fees and rates. 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 or a power generation company, gas utility, telecommunications provider, cable operator or person who provides to the public advanced telecommunications services. The District may pay out of bond proceeds or other available District money all expenses related to obtaining a new certificate of convenience and necessity.

5) Board of Directors- The District is to be governed by a board of 5 elected directors. The directors will serve staggered 4-year terms. The bill appoints 5 temporary directors, named in the bill.

6) Eminent Domain- Same as general law districts, the District will have the power of eminent domain under Texas Water Code Chapter 49.

7) Ability to Tax- Yes, for bonds and maintenance purpose, subject to voter consent, which is consistent with general law for MUDs.

8) Ability to Exclude Property- Data not available.

9) Overlapping Services- An adequate boundary description and location map was not provided for the proposed district. Therefore, an overlap check could not be performed.

10) Adequacy of Boundary Description- A closure check of the description of the proposed District has been performed and the boundary appears not to form an acceptable closure.

11) Comments on Powers /Duties Different from Similar Types of Districts- The District may construct, acquire, improve, maintain, or operate macadamized, graveled, or paved roads or turnpikes, inside or outside the District. Bonds or other obligations issued for each District for these purposes may not exceed 1/4 of the assessed valuation of the real property of each District. A bond issuance for these purposes also requires a 2/3 majority vote at a bond issue election.

If the District is not confirmed by an election before the second anniversary of the effective date of the Act, the Act expires.

12) TCEQ’s Supervision- As with general law districts, the TCEQ will have general supervision authority, including bond review authority and review of audit reports.

13) State Water Plan Objectives-Water Use: Within Hunt County, 13 percent of the total water use was groundwater in the year 2000.  Eighty percent of the groundwater use was for municipal purposes.  Nearby utilities use both surface water and groundwater as sources.  The proposed district is located over the Nacatoch Aquifer.  A small amount of use from this aquifer is noted in the 2001 Region C Water Plan for Hunt County-Other.