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 Galveston County Municipal Utility District No. 67 with the powers and duties of a Municipal Utility District (MUD) governed by Water Code Chapters 30, 49, 50 and 54 and powers for road projects.

1) Population- The Galveston County population projections approved for use in the 2006 Region H Water Plan show an increase from 250,158 in 2000 to 268,714 in 2010.

2) Location & Size- The proposed district is composed of multiple tracts in Galveston County. Boundary descriptions utilize subdivision tract names and very common street names, so staff was unable to locate the district within the county.

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

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. 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; however eminent domain powers limited outside of the District.

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- An adequate boundary description was not provided for the proposed District. Therefore, an overlap check could not be determine.

10) Adequacy of Boundary Description- A closure check of the description of the proposed District boundaries has been performed. Tracts C, E, F-b, G-a, G-b, I, and J did not close, tracts D and F did close, and tracts A and B did not provide enough information to check the closure.

11) Comments on Powers /Duties Different from Similar Types of Districts-The District may be divided into two or more districts if it has no outstanding bonded debt and is not levying ad valorem taxes.

If the District is not confirmed by an election before the second anniversary of the effective date of the Act, the Act expires.

The District would have road project powers inside the District; generally MUDs do not initially have that power but may obtain at a later date.

Eminent domain powers outside the District limited to acquiring an easement for a pipeline that serves the District.

12) TCEQ’s Supervision- As with general law districts, the TCEQ will have general supervision authority, including bond review authority (for water, wastewater, and drainage only) and review of audit reports.

13) State Water Plan Objectives-Water Use: The proposed district would be located over the Gulf Coast Aquifer and would be located in the Harris-Galveston Coastal Subsidence District. Only seven percent of Galveston County’s water use was supplied by groundwater; of the groundwater used, 89 percent went towards municipal uses.