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 City of Fort Worth Municipal Utility District No. 2 (District) in Tarrant County with the powers and duties of Water Code Chapters 49, 50, and 54 related to general law Municipal Utility Districts.

1) Population- The area of the proposed district did not have any resident population in the 2000 census.  The population for the unincorporated potion of Tarrant County not within a water utility named in the 2006 Region C Water Plan (described as ‘County-Other’) is expected to remain constant at 23,911.  The City of Fort Worth (Tarrant County portion) is projected to grow from 534,650 in the year 2000 to 613,940 in 2010.

2) Location & Size- The proposed district is composed of approximately 260 acres and is just east of the boundary between Tarrant and Parker Counties.  The area appears to be equal located between FM 1886 and Interstate Highway

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, including road powers.

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- From the information provided, there appears to be an overlap with the City of Fort Worth CCN:12311 and a possible overlap with Thompson Utility Service CCN:11745.

10) Adequacy of Boundary Description- The boundary description forms 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. Requires the creation consent and road project approval of municipality, if in ETJ or corporate limits or county, if outside ETJ or corporate limits of a municipality.

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: Within Tarrant County, only 5 percent of the total water use was groundwater (Trinity Aquifer) in the year 2000.  However, 91 percent of the groundwater use was for municipal purposes.  Though the district may obtain water from groundwater wells, a more likely scenario might be the purchase of water from the City of Fort Worth or other large water providers in the area.

Board staff find that creation of the proposed district is not in conflict with the 2002 State Water Plan objective of providing for the:

• orderly development, management, and conservation of water resources and

• preparation for a response to drought conditions, in order that sufficient water will be available at a reasonable cost to ensure public health, safety and welfare; further economic development; and protect the agricultural and natural resources of the entire State.