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 La Joya Special Utility District (District) in Hidalgo and Star Counties with the powers and duties of a Special Utility District (SUD) governed by Water Code Chapters 49 and 65.

1) Population- The latest Water Use Survey submitted by the Corporation (year 2001), reports 9,847 connections and a population served of 30,000.  Using Census Blocks, a 2000 estimate of the population within the CCN boundary is 42,800 (42,603 within Hidalgo County).

2) Location & Size- The proposed district is coextensive with the service area of the La Joya Water Supply Corporation (CCN 10559).  The WSC is located primarily in western Hidalgo County, with a small portion of service in Starr County.  The WSC serves at least portions of the Cities of Mission, Palmview, Penitas and La Joya.  The Corporation also serves the unincorporated areas of Sullivan City, Curevitas, Los Ebanos, Havana, Abran-Perezville, Doffing, La Homa and Palmview South

3) Powers- As with general law SUDs, the District would have the power to provide water, wastewater, drainage, irrigation and fire fighting services.

4) District Finances- Consistent with general law for special utility districts. The District may issue revenue bonds and set fees and rates.

5) Board of Directors- The District is to be governed by a board of nine elected directors with the two of initial directors appointed by the Commissioners Court of Starr County and seven appointed by the Commissioners Count of Hidalgo County. The directors will serve staggered terms from 1 to a maximum of three years.

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- None, which is consistent with general law for SUDs.

8) Ability to Exclude Property- Same as a general law district under Texas Water Code Chapter 49.

9) Overlapping Services- The District’s boundaries include the area of the La Joya Water Supply Corporation which currently holds Certificates of Convenience and Necessity (CCN) Nos. 10559 and 20785. There are overlapping CCNs with Hidalgo 10) County Municipal Utility District No. 1, Sharyland Water Supply Corporation, and the City of Mission for water service and the City of Penitas and the City of Mission for wastewater service. The District overlaps the City of Los Ebanos, City of Palm View, City of LaJoya, Sullivan City, Hidalgo County Water Control and Improvement District No. 18 and United Irrigation District.

10) Adequacy of Boundary Description- The boundary of the District is the service areas of Certificates of Convenience and Necessity (CCN) Nos. 10559 and 20785 as recorded on the Texas Commission on Environmental Quality maps.

11) Comments on Powers /Duties Different from Similar Types of Districts-General law SUDs are created through the conversion of existing water supply corporations (WSCs). Any assets and liabilities of the WSC would be transferred to the SUD and then 30 days after the confirmation of the voters, the WSC will commence dissolution procedures.

If the District is not confirmed by an election before September 1, 2009, the Act expires one year later and the assets after payment of debts will be transferred to the Hidalgo or Starr County.

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: In 2001, the WSC reported purchasing surface water from Hidalgo County Water District No. 6 (3,512 acre feet of water) and Hidalgo County Water District No. 16 (1,684 acre feet).  However, the reporting of this utility has been rather spotty.  Due to the recent distribution problems, I believe that the WSC may also be receiving water on a temporary basis from nearby cities.