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 add specific road powers to Galveston County Municipal Utility District No. 52 that allow the District to construct, acquire, improve, maintain and operate roads and road facilities, inside and outside of the boundaries of the district, to the extent authorized by Article III, Section 52, of the Texas Constitution; and, adds specific navigation powers that allow the District to purchase, construct, acquire, own, operate, maintain, improve or extend inside and outside its boundaries canals, waterways, bulkheads, docks, and any other improvements necessary to accomplish the navigation purposes of the district.

1) Population- Recent Census data shows that the district area was uninhabited in the year 2000. The Texas City population projections approved for use in the 2006 Region H Water Plan show a slight increase for the city from 41,521 in 2000 to 41,891 in 2010.

2) Location & Size- The District in located within Galveston County. The proposed district will contain approximately 277 acres on an area of land located off of Skyline Drive in the City of Texas City. This potion of land is located between Moses Lake / Dollar Bay and Galveston Bay.

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 the power to provide road and navigation facilities.

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.

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.

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 general law MUDs, the District has the power to exclude property.

9) Overlapping Services- The boundary description provided for the proposed District was insufficient to determine any overlap.

10) Adequacy of Boundary Description- No information provided.

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 or other obligations issued for these purposes may not exceed 1/4 of the assessed valuation of the real property of the District.

The District may purchase, construct, acquire, own, operate, maintain, improve or extend inside and outside its boundaries canals, waterways, bulkheads, docks, and any other improvements or facilities.

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 relating to Water code only.

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.