| TO: | Honorable Robert Puente, Chair, House Committee on Natural Resources |
| FROM: | John S. O'Brien, Deputy Director, Legislative Budget Board |
| IN RE: | HB3579 by Hegar (Relating to the creation of the Fort Bend Copunty Municipal Utility District N. 182; providing authority to impose a tax and issue bonds; granting the power of eminent domain. ), Committee Report 1st House, Substituted |
The Legislative Budget Board, in cooperation with the Texas Water Development Board (TWDB) and the Texas Commission on Environmental Quality (TCEQ), has determined the following:
Subject to a confirmation election, the bill would create the Fort Bend County Municipal Utility District No. 182 in Fort Bend County, with the powers and duties of Chapters 49, 50, and 54, Water Code, related to general law Municipal Utility Districts (MUDs) and with the power related to road projects.
1) Population- The population projections to be used in the 2006 Region H Water Plan for the rural, unincorporated portions of Fort Bend County show an increase from 38,168 in 2000 to 64,065 in 2010. The City of Fulshear is expected to grow from 716 to 883 in that same time period.
2) Location & Size- The District is located in Fort Bend County and contains approximately 717.724 acres.
3) Powers- The District will have the general powers and duties granted to municipal utility districts under Texas Water Code Chapters 49, 50, and 54. The District also has road powers.
4) District Finances- The District may impose a tax to pay the principle of or interest on bonds with the approval of a 2/3 majority of the voters.
5) Board of Directors- Same as general law districts. On or after the effective date, a person who owns land in the District may petition to appoint the five temporary directors. After which, permanent directors are elected to the positions to serve staggered four year terms.
6) Eminent Domain- Same as general law districts, the District will have the rights and powers of eminent domain under Texas Water Code Chapter 49. The District may exercise the power of eminent domain outside the district only to acquire an easement necessary for a pipeline that serves the district.
7) Ability to Tax- As with general law districts, upon voter approval, the District may levy ad valorem debt service and operation and maintenance taxes. Utilities exempt from impact fees and assessments are electric, gas, telecommunications, and a person, who provides to the public cable television or advanced telecommunications services.
8) Ability to Exclude Property- Same as general law MUDs, the District has the power to exclude property.
9) Overlapping Services- An adequate boundary description and location map was not provided for the proposed District. Therefore, an overlap check could not be performed.
10) Adequacy of Boundary Description- A metes and bounds description was provided and the District boundaries appear to form an acceptable closure.
11) Comments on Powers/Duties Different from Similar Types of Districts. The district may fund the construction maintenance, and operation of macadamized, graveled, or paved roads and turnpikes through bonds. The road projects cannot exceed 1/4 of the assessed value of property in the District. The District may not undertake a road project unless each municipality or county in whose jurisdiction the district is located consents by ordinance or resolution. The District may also be divided into three new districts. If the District is not confirmed before September 1, 2007, 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 financial reports.
13) State Water Plan Objectives- Within Fort Bend County, 77 percent of the total water use was groundwater in the year 2000. Sixty-nine percent of the groundwater use was for municipal purposes. The proposed district will be located over the Gulf Coast Aquifer and would be located in the Fort Bend County Subsidence District.
| Source Agencies: | 582 Commission on Environmental Quality, 580 Water Development Board
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| LBB Staff: | JOB, DLBa
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