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 Zapata County Municipal Utility District No. 2 with the powers and duties of a municipal utility district created under Texas Water Code Chapters 30, 49, 50 and 54. With a favorable confirmation, the Zapata County shall transfer to the district the assets, debts, and contractual rights and obligations of the county associated with the Zapata County Waterworks under CCN Nos. 12877 and 20850.

1) Population- Zapata County Waterworks has not returned a Water Use Survey since 1998.  In the 1998 survey, the utility reported 2,867 connections and a population served of 8,200.  Using Census Blocks, a 2000 estimate of the population within the CCN boundaries is 10,199.

2) Location & Size- The initial territory of the district is coextensive with the Zapata County Waterworks’s CCN area.  Zapata County Waterworks serves the unincorporated area of Zapata at the intersection of State Highway 16 and US Highway 83 in central Zapata County.

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

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 the commissioners court and county judge shall each appoint one temporary director of the five temporary directors of the district (not named in the Bill)

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-Data not available.

9) Overlapping Services- The district’s boundary is coextensive with the service areas covered by CCN Nos. 12877 and 20850 (Zapata County Waterworks).

10) Adequacy of Boundary Description- The district’s boundary is coextensive with the service areas covered by CCN Nos. 12877 and 20850 (Zapata County Waterworks).

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: In 1998, the utility reported an intake of 1,731 acre feet of water from Falcon Reservoir under an owned water right.