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

Subject to a confirmation election, the bill would create the Fort Bend County Municipal Utility District No. 167 in Fort Bend County with the powers and duties of a Municipal Utility District (MUD), governed by Chapters 49 and 54 of the Water Code.

1) Population- Staff has not been able to make a population estimate for the proposed district due to the complexity of the boundary descriptions. The population projections to be used in the 2006 Region H Water Plan for the rural, unincorporated portions of Fort Bend County show an increase from 38,168 in 2000 to 64,065 in 2010.

2) Location & Size. The District is located in Fort Bend County and contains approximately 122.49 acres.

3) Powers. The District will have the general powers and duties granted to municipal utility districts under Texas Water Code Chapters 49 and 54. Additionally, the District will have the power to do road projects inside the District.

4) District Finances. Same as general law districts under Texas Water Code Chapter 54, including the issuance of bonds, levying a tax, and setting fees.

5) Board of Directors. The District is to be governed by a board of 5 elected directors pursuant to the provisions of Chapter 49. The Bill appoints five initial directors named in the Bill to serve until three directors are elected on the uniform election date in May 2006 and two directors are elected on the uniform election date in May 2008.

6) Eminent Domain. Same as general law districts, the District will have the rights and powers of eminent domain under Texas Water Code Chapter 49; however, eminent domain powers are limited outside the District's boundary.

7) Ability to Tax. As with general law districts, upon voter approval, the District may levy ad valorem debt service and operation and maintenance taxes.

8) Ability to Exclude Property. Same as general law MUDs, the District has the power to exclude property.

9) Overlapping Services. Insufficient information has been provided in the bill to determine overlapping services.

10) Adequacy of Boundary Description. The boundary description has been reviewed and forms an acceptable closure.

11) Comments on Powers /Duties Different from Similar Types of Districts. The District has the additional power to accomplish road projects inside the District. Eminent domain powers outside of the District are limited to acquiring easements only for underground water, wastewater, and drainage facilities that serve the District.

12) TCEQ’s Supervision. As with general law districts, the TCEQ will have general supervision authority. The bill provides TCEQ supervision of projects and review authority over issuance of water, wastewater, drainage and recreational bonds. The bill does not provide for TCEQ review authority for road project bonds.

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 located in both the Fort Bend County Subsidence District and the Harris-Galveston County Subsidence District.