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 La Salle Water Control and Improvement District No. 1, (District) in Calhoun County with the powers and duties of Water Code Chapters 49, 50, and 51 related to general law Water Control and Improvement Districts.

1) Population- The area in which the proposed district would be located had no resident population in the 2000 Census.  The population for the unincorporated potion of Calhoun County not within a water utility named in the plan (described as ‘County-Other’) is projected to decrease from 778 in the year 2000 to 472 in 2010.

2) Location & Size- The proposed district is composed of approximately 2,396 acres and is located in the area surrounding the intersection of State Highway 185 and Farm to Market Road 1289 in Calhoun County.

3) Powers- The District will have the powers and duties granted to a general law water control and improvement district under Texas Water Code Chapters 49, 50, and 51. Upon voter approval the District will also have the powers of a Road District granted under Transportation Code Chapter 257.

4) District Finances- Same as general law water control and improvement district under Texas Water Code Chapters 49 and 51, including the issuance of tax and revenue bonds, levy of maintenance tax and benefit assessments, and setting fees.

5) Board of Directors- Same as a general law water control and improvement district under Texas Water Code Chapter 51, the District is governed by a board of five directors who are elected at large for staggered four-year terms. The Act appoints five temporary directors to serve until permanent directors are elected by the voters.

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.

7) Ability to Tax- Same as a general law water control and improvement district under Texas Water Code Chapter 51, upon voter approval the District may levy ad valorem debt service and operation and maintenance taxes.

8) Ability to Exclude Property- Same as a general law water control and improvement district under Texas Water Code Chapter 51, the District has the power to exclude property prior to the issuance of tax supported bonds.

9) Overlapping Services- An adequate location map was not provided for the proposed District. Therefore, an overlap check could not be performed.

10) Adequacy of Boundary Description- The boundary description has been reviewed and forms an acceptable closure.

11) Comments on Powers/Duties Different from Similar Types of Districts- If the District has not been confirmed before the second anniversary of the effective date of the Act, the Act expires. The District may divide into 2 or more districts. Bonds to be sold to fund road projects must be approved by a 2/3 majority of voters and may not exceed 1/4 of the District’s assessed valuation.

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-Water Use: The proposed district would be located over the Gulf Coast Aquifer.  Four percent of Calhoun County’s water use was supplied by groundwater.  Of the groundwater used, 20 percent went towards municipal uses.

Board staff find that creation of the proposed district is not in conflict with the 2002 State Water Plan objective of providing for the:

• orderly development, management, and conservation of water resources and

• preparation for a response to drought conditions, in order that sufficient water will be available at a reasonable cost to ensure public health, safety and welfare; further economic development; and protect the agricultural and natural resources of the entire State.