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 Las Lomas Municipal Utility District No. 4 of Kaufman County with the powers and duties of a Municipal Utility District (MUD) governed by Water Code Chapters 30, 49, 50 and 54. Creation is subject to a confirmation election.

1) Population- The area within the approximate boundaries above was sparsely populated in the year 2000: the census recorded 24 residents in the area.  The neighboring City of Terrell’s population was projected to grow from 13,606 in the year 2000 to 15,196 in 2010.  The portions of Kaufman County not served by a named water utility in the 2006 Region C Water Plan are expected to increase in population from 10,239 in 2000 to 14,426 in 2010

2) Location & Size- The proposed district will be located in north-central Kaufman County, west of the City of Terrell.  Tracts to be included in the districts are located in the area roughly bordered by: Big Bushy Creek on the west, Interstate Highway 20 on the south, State Spur 557 on the northeast, and US Highway 88 on the north.  This area would be at least partially in the Extra Territorial Jurisdiction of the City of Terrell.

Surrounding water utilities include the Lawrence Water Supply Corporation (WSC) to the north, the City of Terrell to the east, and Rose Hill WSC to the south.  (Active legislation, HB 3498, would create the Rose Hill Special Utility, taking the place of the Rose Hill WSC.)

3) Powers- As with general law MUDs, the District would have the power to provide water, wastewater, and drainage services. Additionally, the District has road powers, the ability to purchase a CCN with bond proceeds, and the ability, pre-bond indebtedness, to divide into two or more districts.

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. The District may pay out of bond proceeds or other available District money all expenses related to obtaining a new certificate of convenience and necessity.

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-No data available.

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- A closure check of the description of the proposed District has been performed and the boundary does appear to create an acceptable closure.

11) Comments on Powers /Duties Different from Similar Types of Districts- The District must be confirmed by September 1, 2007, or the District is dissolved.

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 City of Terrell receives water from Lake Tawakoni and Lake Terrell.  The city then provides water to Lawrence WSC and Rose Hill WSC.  Since the proposed district is not located over a major aquifer and all of the surrounding water utilities use surface water, it is most likely that the proposed district will purchase surface water.