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 Schertz Municipal Utility District No. 1 of Bexar County with the powers and duties of a Municipal Utility District (MUD) governed by Water Code Chapters 30, 49, 50 and 54

1) Population- A population estimate for the proposed is not available; however, the small size of the district would indicate a relatively small population.  The population projections approved for use inn the 2006 South Central Regional Water Plan (Region L) show a decrease in the Bexar County-Other area (portion not served by the San Antonio Water System) from 11,469 in 2000 to 7,607 in 2010.  This district appears to be located in a high-growth part of the county, so a fast population growth within the district would be expected.

2) Location & Size- The District includes one tract of land containing approximately 101.22 acres within Bexar 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.

5) Board of Directors- The District is to be governed by a board of 5 elected directors named in the bill proposal. 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- Same as general law MUDs, the District would have the power to exclude property.

9) Overlapping Services- An adequate location map was not provided for the proposed District. Therefore, an overlap check could not be determine.

10) Adequacy of Boundary Description- A closure check of the description of the proposed District boundaries has been performed and they appear to form an acceptable closure.

11) Comments on Powers /Duties Different from Similar Types of Districts- The District may also divide into multiple districts at any time before the District issues indebtedness provided the new district is at least 100 acres and the board passes resolution approving the division.

If the District is not confirmed by an election before the second anniversary of the effective date of the Act, 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:  Within Bexar County, 99 percent of the total water use was groundwater in the year 2000. Eighty-eight percent of the groundwater use was for municipal purposes. Nearby utilities use both surface water and groundwater as sources. The proposed district does not appear to be located over the Edwards-BFZ Aquifer, but the limited boundary description did not allow staff to determine the exact location.