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

TO:
Honorable Robert Talton, Chair, House Committee on Urban Affairs
 
FROM:
John S. O'Brien, Deputy Director, Legislative Budget Board
 
IN RE:
HB3480 by Hegar (Relating to the creation of the West Fort Bend Management District; providing authority to levy an assessment, impose a tax, and issue bonds.), Committee Report 1st House, Substituted

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

 

The bill would create the West Fort Bend Management District (District) with the powers and duties of a Municipal Management District (MMD) governed by Chapter 375, Local Government Code.

 

1) Population- Fort Bend County is projected to grow from a population of 354,452 in the year 2000 to 490,072 in 2010.  The cities of Rosenberg and Richmond are expected to grow from 24,043 and 11,081 to 28,100 and 12,173 in that same period.

 

2) Location & Size- The District would include an area within the cities of Richmond and Rosenburg, Texas in Fort Bend County. It would be located in an area generally bounded by local freeways.

 

3) Powers- The District has the rights, powers, privileges, authority, and functions of a general law MMD The District also has the power given to a corporation under the Development Corporation Act (Section 4B, Article 5190.6, VTCS) and the power to create a nonprofit corporation under Chapter 431, Transportation Code.

 

4) District Finances- Similar to general law MMDs, including the authority to levy benefit assessments and ad valorem taxes, and to issue bonds. In addition, the District would have the ability to impose a sales tax. A petition signed by the owners of a majority of the assessed value or surface area in the District, is required prior to financing projects. Approval of bonds by the Attorney General’s Office is required.

 

5) Board of Directors- The initial board consists of five persons named in the bill, two directors appointed by Richmond, two directors appointed by the City of Rosenberg, and one jointly appointed. By resolution, the board may increase or decrease the number of directors. The members of the governing body shall appoint the four voting directors from persons recommended by the Board.

 

6) Eminent Domain- Like general law MMDs, the District may not exercise the power of eminent domain.

 

7) Ability to Tax- The District may impose assessments, impact fees, ad valorem debt service, and operation and maintenance taxes according to Chapter 375, Local Government Code. With voter approval, the District may impose a sales-and-use tax. The District may not impose an impact fee or assessment on a residential property, multi-unit residential property, or condominium; or on the property, equipment, or facilities of an electric utility.

 

8) Ability to Exclude Property- No data available.

 

9) Overlapping Services- An overlap check could not be performed.

10) Adequacy of Boundary Description- The description provided detailed metes and bounds for the eight tracts of the District. Only Tract G formed an acceptable closure. All others did not form an acceptable closure.

 

11) Comments on Powers/Duties Different from Similar Types of Districts- Subject to limitations on amount and voter authorization, the District may impose sales taxes. Also, the District may authorize the creation of a nonprofit corporation to assist and act on behalf of the District in implementing a project or providing a service.

 

12) TCEQ’s Supervision- The District is exempt from TCEQ auditing and bond review authority unless the bonds are issued specifically for water, wastewater, or drainage facilities.

 

13) State Water Plan Objectives: Water Use- The creation of this district would not conflict on the State Water Plan objectives.



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