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 Dallas County Municipal Utility District No. 3 in Dallas County with the powers and duties of a Municipal Utility District (MUD) governed by Water Code Chapters 49 and 54.

1) Population- The general area in which the district is proposed had approximately 22 residents in the year 2000.  The unincorporated portions of Dallas are projected to decline in population from 1,899 in 2000 to 1,474 (2006 Region C Water Plan approved projections).  The City of Wilmer is expected to grow from 3,393 in 2000 to 5,500 in 2010 (2006 Region C Water Plan).

2) Location & Size- The proposed district is composed of approximately 320 acres and is located in southeast Dallas County, east of Interstate Highway 45 and the City of Wilmer.  The district would be located in the Extra-Territorial Jurisdiction of the city.

3) Powers- As with general law MUDs, the District would have the power to provide water, wastewater, and drainage services. The District would also have the power to divide into 2 separate districts and to fund road projects.

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.

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. Five temporary directors are 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. The District may condemn either fee simple title or a lesser property interest.

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- Same as general law MUDs, the District has the power to exclude property.

9) Overlapping Services- A 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 boundaries has been performed and the boundary appears form an acceptable closure.

11) Comments on Powers /Duties Different from Similar Types of Districts- The District would also have the power to divide into 2 or more separate districts of at least 100 acres before the District issues any debt. The board may consider a proposal to divide on a petition from a landowner or a motion of the board. Approval by a majority of voters is required for division. Any new districts created have the same powers as the original.

The District may also provide for the construction, maintenance, and operation of roads or works, facilities, or improvements in aid of those roads. Bonds to be issued for these purposes must be approved by a 2/3 majority of voting qualified voters within the District’s area to be affected by the bonds. Bonds or other obligations issued for these purposes may not exceed 1/4 of the assessed valuation of the real property of the District.

The District may construct, acquire, improve, enlarge, extend, repair, or maintain dams, levees, walls, dikes, embankments, canals, reservoirs, lakes, or other improvements as necessary to control , store, or preserve water in the District.

The District may use bond proceeds to pay all expenses related to obtaining a new certificate of convenience and necessity. The District may also contract with a political subdivision for water or wastewater services.

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: Within Dallas County, only 1 percent of the total water use was groundwater in the year 2000.  Sixty-four percent of the groundwater use was for municipal purposes.  The proposed district would be located over the Trinity Aquifer.The adjacent City of Wilmer reports using self-supplied groundwater as its sole source of water.  Due to the district’s close proximity to Wilmer, the district may purchase water from the city or utilize groundwater itself.