LEGISLATIVE BUDGET BOARD
Austin, Texas
 
WATER DEVELOPMENT POLICY IMPACT STATEMENT
 
79TH LEGISLATIVE REGULAR SESSION
 
May 16, 2005

TO:
Honorable Frank Madla, Chair, Senate Committee on Intergovernmental Relations
 
FROM:
John S. O'Brien, Deputy Director, Legislative Budget Board
 
IN RE:
HB2079 by Keffer, Jim (Relating to the creation, administration, powers, duties, functions, operations, and financing of the Stephens Regional Special Utility District.), As Engrossed

The Legislative Budget Board in cooperation with the Water Development Board (TWDB) and Texas Commission on Environmental Quality (TCEQ), has determinded the following:

Subject to a confirmation election, the Act would create the Stephens Regional Special Utility District in Stephens, Eastland, Palo Pinto, Shackelford, and Throckmorton Counties with the powers and duties of a Special Utility District (SUD) governed by Water Code Chapters 49 and 65.

1) Population- The populations served by the Stephens County Rural WSC to be used in the 2006 Region G Water Plan was estimated to be 2,482 in the year 2000 and is projected to be 2,533 in 2010.  Stephens County, as a whole is projected to groww from 9,674 in 2000 to 9,873 in 2010..

2) Location & Size- The District includes an area within Stephens, Eastland, Palo Pinto, Shackelford, and Throckmorton Counties.

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

4) District Finances- Consistent with general law for special utility districts. The District may issue revenue bonds and set fees and rates. The District may charge initial impact fees equal to the equity buy-in fee charged by the Stephens County Rural Water Supply Corporation on January 31, 2005 under its tariff.

5) Board of Directors- The District is to be governed by a board of no less than 5 and no more than 11 elected directors. The bill appoints 7 initial 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. The District may condemn either fee simple title or a lesser property interest.

7) Ability to Tax- None, which is consistent with general law for SUDs.

8) Ability to Exclude Property- A Special Utility District does have the power to exclude property from its domain.

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- The description provided follows known landmarks and survey lines; however a closure computation could not be performed as the bill does not provide a detailed metes and bounds description.

11) Comments on Powers /Duties Different from Similar Types of Districts-General law SUDs are created through the conversion of existing water supply corporations (WSCs). Any assets and liabilities of the WSC would be transferred to the SUD and then upon confirmation of the voters, the WSC would be dissolved. The existing WSC will proceed with dissolution proceedings within 30 days after transferring assets and liabilities. The District has specific authority to establish standard specifications for facilities designed or constructed for storage treatment or transportation of water; collection, treatment, and disposal of wastewater or disposal of solid waste within its boundaries..If the District is not confirmed by an election before January 1, 2007, 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:  With the transfer of the WSC’s extensive CCN and distribution lines and the additional areas within the proposed district boundaries, the district will serve a large area of rural Stephens County and portions of surrounding counties. The WSC has been purchasing all of its water from the City of Breckenridge (surface water from Lake Daniel and from Hubbard Creek Lake, through West Central Texas Municipal Water District). It is expected that the proposed district would utilize the same sources. The creation of this district would not be in conflict with the State Water Plan objectives.



Source Agencies:
580 Water Development Board, 582 Commission on Environmental Quality
LBB Staff:
JOB, WK