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 Galveston County Municipal Utility District No. 53 with the powers and duties of a Municipal Utility District (MUD) governed by Water Code Chapters 30, 49, 50 and 54.

1) Population- The population projections approved for use in the 2006 Region H Water Plan show a slight increase for the county from 250,158 in 2000 to 268,714 in 2010.

2) Location & Size- The District includes 4 tracts of land within Galveston County, totaling 299 acres and appears to be located in a small area between the cities of League City, Texas City and Dickinson.  The proposed district’s boundaries are described through named tracts recorded in the Galveston County Clerk’s Office, so staff was not able to provide a more detailed description of location or population.

3) Powers- As with general law MUDs, the District would have the power to provide water, wastewater, and drainage services. The District would also have road powers.

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. 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 has the power to exclude property.

9) Overlapping Services- An adequate boundary description was not provided for the proposed District. Therefore, an overlap check could not be determined.

10) Adequacy of Boundary Description- A closure check of the description of the proposed District boundaries has been performed. Tract 1 did not close, tracts 2 and 4 did close, and tract 3 did not provide enough information to check the closure.

11) Comments on Powers /Duties Different from Similar Types of Districts-The District may also provide for the construction, maintenance, and operation of roads or works, facilities, or improvements in aid of those roads. Bonds to be issued for these purposes must be approved by a 2/3 majority of voters within the District’s area. Bonds or other obligations issued for these purposes may not exceed 1/4 of the assessed valuation of the real property of the District. If the District is not confirmed by an election before September 1, 2009, 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 proposed district would be located over the Gulf Coast Aquifer and would be located in the Harris-Galveston Coastal Subsidence District.  Only seven percent of Galveston County’s water use was supplied by groundwater.  Of the groundwater used, 89 percent went towards municipal uses.

The vast majority of water used by the cities of League City and Texas City is surface water purchased from the Gulf Coast Water Authority.  Though the proposed district may obtain its water from groundwater wells, it is perhaps more likely that the district will contract with the Gulf Coast Water Authority or one of the surrounding cities for surface water.