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 San Patricio County Groundwater Conservation District (District) providing for the powers, duties, administration, operations and financing of the District. The bill authorizes the District with the powers and duties of Texas Water Code, Chapter 36, related to the general law for Groundwater Conservation Districts (GCDs).

1) Population- The county is expected to grow from a 2000 population of 67,138 to 80,701 in 2010.

2) Location & Size- The District’s boundaries would be coextensive with the boundaries of San Patricio County.

3) Powers- Same as general law GCDs under Texas Water Code, Chapter 36.

4) District Finances- Same as general law GCDs under Texas Water Code, Chapter 36, including issuance of bonds and notes, levying of maintenance tax, assessing of production fees, export fees, and administrative fees.

5) Board of Directors- The District would be governed by a board of seven elected permanent directors serving staggered four-year terms. Five temporary directors are appointed and are responsible for scheduling and conducting the District's confirmation and election of initial directors. The temporary directors are appointed by the Commissioners Court of San Patricio County. Three initial directors would serve until the first permanent directors election and the other four initial directors would serve until the second permanent directors election. In November of the first even-numbered year at least six months after the date the District is confirmed by election, three permanent directors would be elected. The appropriate number of directors would then be elected in November of each subsequent second year. General law GCDs under Texas Water Code, Chapter 36, have 5 to 11 directors elected by the general precinct method.

6) Eminent Domain- Same as general law GCDs under Texas Water Code, Chapter 36, the District is authorized to exercise the power of eminent domain.

7) Ability to Tax- Similar to general law GCDs under Texas Water Code, Chapter 36, including the levy of taxes for the repayment of bonds or notes and the levy of a maintenance tax. Both types of taxes are subject to voter authorization. The District may not may not levy a tax that exceeds $0.05 per $100 of assessed valuation. Under Texas Water Code, Chapter 36, the maintenance tax for general law GCDs may not exceed $0.50 per $100 assessed valuation and the tax rate for the repayment of bonds or notes is not limited.

8) Ability to Exclude Property- As with general law for GCDs, there are no provisions to exclude territory.

9) Overlapping Services- There are no other GCDs in San Patricio County. The District’s boundaries include the service areas of other water utilities and districts with Certificates of Convenience and Necessity (CCN). The other known overlapping water supply or sewer-service corporations, investor-owned utilities, or local water districts or authorities are City of Aransas Pass, CCN No. 11181; City of Gregory, CCN No. P0659; City of Ingleside, CCN No. 10562; City of Mathis, CCN No. 11045; City of Odem, CCN No. 10555; City of Portland, CCN No. 10541; City of Sinton, CCN No. 10538; City of Taft, CCN No. P0826; Glasson Water Supply Corporation (WSC), CCN No. 12652; Rincon WSC, CCN No. 11440; Saint Paul WSC, CCN No. 10543; Seaboard WSC, CCN No. 11337; San Patricio County Municipal Utility District No. 1, CCN No. P0443; and, San Patricio Municipal Water District, CCN No. 10572.

The primary functions of GCDs are conservation and management of groundwater resources through data collection, rules and well permitting within their boundaries. These functions do not conflict with the services provided by the overlapping water utilities and districts.

A portion of the District would overlap another new proposed GCD. SB 1831_F proposes the creation of the Corpus Christi Aquifer Storage and Recovery Conservation District (CCASRCD) in parts of Nueces, Kleberg, and San Patricio counties. The bill provides that the CCASRCD and any overlapping GCD created in San Patricio County would have joint and coextensive authority.

10) Adequacy of Boundary Description- The District’s boundaries would be the same as the county boundaries of San Patricio County and form a closure. The District is located in Groundwater Management Area 16 designated by the Texas Water Development Board for the southern part of the Gulf Coast aquifer. San Patricio County is not located within a Priority Groundwater Management Area designated by the TCEQ.

11) Comments on Powers /Duties Different from Similar Types of Districts- The bill provides the Act would take effect immediately if passed by a two-thirds majority in each house. If passed otherwise, the Act would take effect September 1, 2005. The District would be dissolved on September 1, 2007, if it is not confirmed by the voters by this date, and Special District Local Law Code, Chapter 8817 would likewise expire on September 1, 2010.

12) TCEQ's Supervision- Same as for general law GCD's, including bond review authority.  The TCEQ's supervision authority as it is related to the District's development and implementation of a management plan would be the same as for general law GCD's.  As with general law GCD's, the District would not have to comply with TCEQ's financial auditing requirements.

13) State Water Plan Objectives-Water Use: Within San Patricio County, 25 percent of the total water use was groundwater (Gulf Coast Aquifer) in the year 2000.  Thirty-one percent of the groundwater use was for municipal purposes.  The county’s total water use to be included in the 2007 State Water Plan is projected to grow from a year 2000 total of 26,802 acre feet of use to 29,989 acre feet of use in 2010.

Board staff finds that creation of the proposed district is not in conflict with the State Water Plan objectives of promoting the efficient use of local groundwater resources and the implementation of practices and programs to effectively manage local groundwater resources.