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

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 proposed district appears to be located over large area within Fort Bend County, perhaps including the Cities of Rosenberg and Richmond. The extensive boundary descriptions and the short review period does not allow for a more detailed description of location.

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 Transportation Code Chapter 431.

4) District Finances- Similar to general law MMDs, including the authority to levy benefit assessments, ad valorem taxes, and 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 Local Government Code Chapter 375. 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 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 generally along streets and roads, a state highway and a railway, and indicates some approximate distances. The bill does not provide a detailed metes and bounds description, thus, it cannot be determined if it creates 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: Although the district would be given powers to sell bonds and to develop a capital improvement plan, the main intent of the district would be to promote "employment, commerce, transportation, housing, tourism, etc". The creation of this district does not relieve Fort Bend County, the City of Rosenberg or the City of Richmond from providing services that they are currently providing, including water and wastewater service. For this reason, I believe that the creation of this district would not conflict on the State Water Plan objectives.