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 Union Valley Ranch 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 proposed district is entirely within Hunt County.  The Year 2000 population located within the proposed district could be as high as 277 (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 Specialty Utility District, (SUD), is projected to grow 14.5 percent from 11,699 in 2000 to 13,401 in 2010.

2) Location & Size- The District includes approximately 652 acres within Hunt County.  Based on the extensive district boundary description, the district appears to be located in southwestern Hunt County; in the area to the southeast of the intersection of State Highway 276 and FM 1565.

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 rated.  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) Overlapping Services- The District’s boundaries do not appear to be within the Certificate of Convenience and Necessity or boundary of another entity.

9) Ability to Exclude Property- Same as general law MUDs, the District has the power to exclude property.

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

12) Texas Commission on Environmental Quality 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- 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.