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 East Montgomery County Municipal Utility District No. 10 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 proposed district boundaries are based upon tracts of land recorded in the Montgomery County Clerk’s office, so an estimate of current population is not possible. Unincorporated areas not already being served by a water utility are included in the State Water Plan as ‘County-Other’. The Montgomery County-Other population projections for use in the 2006 State Water Plan show an increase from 99,788 in 2000 to 156,912 in 2010, a 57 percent increase. 

2) Location & Size- The District includes approximately 400 acres within Montgomery County.  The proposed district is located entirely within southeastern Montgomery County.

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.

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- The District would have the power to exclude property from its domain.

9) Overlapping Services- From the boundary description provided for the proposed district, there appears to be a possible overlap with Quadvest Inc. CCN:11612.

10) Adequacy of Boundary Description- A closure check of the description of the proposed District has been performed and the boundary does 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 Plan:  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.