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 confirmation of election, the bill would  create the Rose Hill Special Utility District in Kaufman County with the powers and duties of a Special Utility District (SUD) governed by Water Code Chapters 49 and 65.

1) Population-  The Rose Hill WSC reported in the 2000 Water Use Survey a population served of 3,576 and 1,192 connections.  The portions of Kaufman County not served by a named water utility in the 2006 Region C Water Plan are expected to increase in population from 10,239 in 2000 to 14,426 in 2010.

2) Location & Size- The District includes an area within Kaufman County containing approximately 27,817 acres. The proposed district will be composed of 27,817 acres in essentially the same location of the current Rose Hill WSC.  The WSC is located in central Kaufman County, between the City of Kaufman, the City of Terrell, the City of Oak Ridge, and North Kaufman Water Supply Corporation.

3) Powers- As with general law SUDs, the District would have the power to provide water, wastewater, drainage, irrigation and fire fighting services.

4) District Finances- Consistent with general law for special utility districts. The District may issue revenue bonds and set fees and rates. The District may charge initial impact fees equal to those charged by Rose Hill Water Supply Corporation as of January 15, 2005.

5) Board of Directors- The District is to be governed by a board of no less than 5 and no more than 11 elected directors. The bill appoints 5 initial directors named in the bill.

6) Eminent Domain- Same as general law districts, the District will have the power of eminent domain under Texas Water Code Chapter 49. The District may condemn either fee simple title or a lesser property interest.  The District may not exercise the power of eminent domain to condemn, for sanitary sewer purposes, land, easements, or other property located outside the District's boundaries.

7) Ability to Tax- None, which is consistent with general law for SUDs.

8) Ability to Exclude Property- Same as a general law district under Texas Water Code Chapter 49.

9) Overlapping Services- The proposed District boundary overlaps Rose Hill Water Supply Corporation which currently holds a Certificate of Convenience and Necessity (10849). However, the Commission does not have the information to perform overlap checks of the proposed District boundary relative to other city service areas, county service areas, and unknown district service areas.

10) Adequacy of Boundary Description- The description provided follows known landmarks and survey lines however a closure computation could not be performed as the bill does not provide a detailed metes and bounds description.

11) Comments on Powers /Duties Different from Similar Types of Districts-General law SUDs are created through the conversion of existing water supply corporations (WSCs). Any assets and liabilities of the WSC would be transferred to the SUD and then upon confirmation of the voters, the WSC would be dissolved. The existing WSC will proceed with dissolution proceedings within 30 days after transferring assets and liabilities. Upon dissolution of the WSC the TCEQ shall re-issue the Certificate of Convenience and Necessity No. 10849 in the name of the SUD. The District has specific authority to establish standard specifications for facilities designed or constructed for storage treatment or transportation of water; collection, treatment, and disposal of wastewater or disposal of solid waste within its boundaries.

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: The Rose Hill WSC has historically purchased its water from the City of Terrell (Terrell Reservoir) and North Texas Municipal Water District (Lavon Lake in Collin County).  Since the proposed district is not located over a major aquifer and all of the surrounding water utilities use surface water, it is most likely that the proposed district will continue to purchase surface water.  The portions of Kaufman County not served by a named water utility in the 2006 Region C Water Plan are expected to decrease in water demand from 256 acre feet in 2000 to 250 acre feet in 2010.