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 Harris County Municipal Utility District No. 460 (District) in Harris County with the powers and duties of Water Code Chapters 49, 50, and 54 related to general law Municipal Utility Districts.

1) Population- The detailed boundary descriptions did not allow staff to make a population estimate of the proposed district area, however, the City of Houston population projection for use in the 2006 State Water Plan shows an increase from 1,953,631 to 2,240,974.

2) Location & Size- The proposed district appears to be composed of four tracts of land totaling at least 50 acres and is located in the southern portion of the City of Houston; north of the Sam Houston Tollway (Loop 8) and between State Highway 288 and State Highway 35.

3) Powers- The District will have the general powers and duties granted to municipal utility districts under Texas Water Code Chapters 49, 50, and 54.

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- Same as general law districts On or after the effective date, a person who owns land in the District may petition to appoint the temporary directors. After which, permanent directors are elected to the positions.

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. Property may be acquired for any authorized purpose, which may include water, wastewater, and storm drainage. The District may condemn by either fee simple title or an easement only.

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- An adequate boundary description and location map was not provided for the proposed district. Therefore, an overlap check could not be performed.

10) Adequacy of Boundary Description- Tract I, II, III, IV, and VI form acceptable closures. Tract V does not form an acceptable closure.

11) Comments on Powers /Duties Different from Similar Types of Districts- The district may fund the construction maintenance, and operation of macadamized, graveled, or paved roads and turnpikes through bonds.

12) TCEQ’s Supervision- As with general law districts, the TCEQ will have general supervision authority, including bond review authority and review of financial 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.  Twenty-four percent of Harris County’s water use was supplied by groundwater.  Of the groundwater used, 69 percent went towards municipal uses.

Two thirds of the water taken in by the City of Houston is surface water from Lake Houston, with the remaining third being from groundwater wells.  Most likely the district will purchase water from the City.