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  North Fort Bend County Regional Water Authority (Authority) in Fort Bend County with the powers and duties of Section 59, Article XVI, Texas Constitution and Water Code Chapter 49 related to general law districts. The purpose of the Authority includes: the conservation, preservation, protection, recharge, and prevention of waste of groundwater; the control of subsidence caused by withdrawal of water from those groundwater reservoirs or their subdivisions; the power of eminent domain; and the provisions for a civil penalty.

1) Population- The detailed description of the proposed authority’s boundaries only allows staff to make broad estimates of populations that would currently be residing in the district. It appears as though up to 73,000 people may reside in the proposed authority: 40,000 in Fort Bend County and 33,000 in Harris County

Eleven Water User Groups (districts) to be in the 2006 Region H Water Plan would be initially included in the authority; eight in Fort Bend County and three in Harris County. The total population for these districts is expected to grow from 26,165 in the year 2000 to 45,087 in 2010. The potential authority population not in these eleven districts is approximately 38,000 and 76,000 in Fort Bend and Harris Counties (Census 2000). These populations would be over 1/3 of the County-Other populations for each county (based on projections approved for the 2006 Region H Plan).

2) Location & Size- The acreage is not referenced in the bill; however, the Authority is located in northern Fort Bend County on the Harris-Fort Bend county line . The proposed authority is located in northern Fort Bend County located roughly between the City of Fulshear, City of Katy, the Barker Reservoir, the City of Houston and the extraterritorial jurisdictions of the cities of Sugar Land, Richmond and Rosenberg. The authority may include roughly 40 water districts in northern Fort Bend County, a number of districts overlapping the Harris-Fort Bend County boundary, and areas in Fort Bend County not currently served by a water utility. Any of these districts may petition for exclusion from the authority.

3) Powers- The District may adopt rules to conserve, preserve, protect, recharge and prevent waste of groundwater, and reduction of withdrawal from groundwater. The District has the specific power to construct and operate a water treatment or supply system and provide wholesale water inside or outside the District boundaries.

4) District Finances- The Authority may issue revenue notes and revenue bonds without voter authorization. The Authority may levy fees and user fees as necessary. The District may levy a special assessment fee for improvement projects in a definable area.

5) Board of Directors- The Bill appoints seven temporary directors in single member districts which will serve staggered four-year terms. Vacancies and expired terms will be filled by appointment from the governing bodies of the member districts and municipalities. The number of votes a district uses to elect a member is based on water usage within the voting district.

6) Eminent Domain- Same as general law districts. The Authority may condemn by either fee simple title or an easement only. The Authority may not condemn property to acquire water rights or acquire water rights to groundwater.

7) Ability to Tax- The Authority may not levy ad valorem tax.

8) Ability to Exclude Property- The Authority has the power to exclude property upon receipt of a petition from the district or municipality approved by majority of the members of the governing body .

9) Overlapping Services- The boundaries overlap numerous existing utility districts and municipalities in the area of the District. The proposed District would have the authority to provide regional water supply services. The bill states that the District may cooperate with agencies of the United States and Texas as well as other local governments.

10) Adequacy of Boundary Description- The description provided follows generally along streets and roads, state highways and railways, county lines, existing special law district boundaries, indicates distances and form closure. The bill does not provide a detailed metes and bounds description for the entire District.

11) Comments on Powers /Duties Different from Similar Types of Districts- The District’s powers are limited but specifically provide for contracting with the political subdivisions within its boundaries and other water providers to provide regional water supplies. The District must adopt a groundwater reduction plan and drought contingency plans. The District may not impose ad valorem taxes.

12) TCEQ’s Supervision- TCEQ is available to provide general supervision authority, however, the District would be exempt from Commission’s bond review authority.

13) State Water Plan Objectives- Water Use:  Within Fort Bend County, 77 percent of the total water use was groundwater in the year 2000. Sixty-nine percent of the groundwater use was for municipal purposes. The proposed district will be located over the Gulf Coast Aquifer and would be locate in both the Fort Bend County Subsidence District and the Harris-Galveston County Subsidence District.

Board staff finds that creation of the proposed authority is not in conflict with the State Water Plan objectives of promoting the efficient use of local groundwater resources and the implementation of practices and programs to effectively manage local groundwater resources.