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. 64 with the powers and duties of a Municipal Utility District (MUD) governed by Water Code Chapters 30, 49, 50 and 54.

1) Population- Though the boundaries of the district could not be located, the area in which it would be sited is a sparsely populated part of Texas City.  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 includes 4 tracts of land containing approximately 91.94 acres within Galveston 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. 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 boundary description was not provided for the proposed District. Therefore, an overlap check could not be determine.

10) Adequacy of Boundary Description- Not enough information was provided to determine whether the tracts form adequate closures.

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.

If the District is not confirmed by an election before the third 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 proposed district would be located over the Gulf Coast Aquifer and would be part of the Harris-Galveston Coastal Subsidence District.  Only seven percent of Galveston County’s water use was supplied by groundwater.  Eighty-nine percent of the groundwater went towards municipal uses.

The vast majority of water used by 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 more likely that the district will contract with Texas City for surface water.