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 Montgomery County Municipal Utility District No. 101 in Montgomery County with the powers and duties 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 have been as high as 89, based on Census block populations in the approximate area.  The population projections for use in the 2006 State Water Plan show an increase in the Montgomery County-Other area from 99,788 in 2000 to 156,912 in 2010, a 57 percent increase.  The projection for the City of Willis is to grow from 3,985 in 2000 to 5,695 in 2010, a 43 percent increase

2) Location & Size- The District includes approximately 725 acres within Montgomery County, located northwest of the City of Willis.  The district would be part of the Montgomery County-Other water user group in the regional planning process.

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

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 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. On or after September 1, 2005 a person owning land within the District may submit a petition to the TCEQ requesting that the Commission appoint as temporary directors the persons named in the petition.

6) Eminent Domain- Same as general law districts, the District will have the power of eminent domain under Texas Water Code Chapter 49.  However, the District may not exercise the power of eminent domain outside the District boundaries to acquire a site for a water treatment plant, water storage facility, wastewater treatment plant, or wastewater disposal facility.

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 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 does not appear to create an acceptable closure.

11) Comments on Powers /Duties Different from Similar Types of Districts- The District must be confirmed by September 1, 2010, or the District is dissolved.

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 Montgomery County, 99 percent of the total water use in the year 2000 was groundwater.  The proposed district would be located over the Gulf Coast Aquifer and within the Lone Star Groundwater Conservation District.  The 2001 Region H Water Plan projects relatively stable use of the aquifer over the next 50 years.