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 City of Fort Worth Municipal Utility District Nos. 3, 4, 5, and 6 (Districts) in Denton and Wise Counties with the powers and duties of Water Code Chapters 49, 50, and 54 related to general law Municipal Utility Districts.

1) Population- The area in which all four districts would be located was very sparsely populated in the year 2000. 

The population for the unincorporated potion of Denton County not within a water utility named in the Region C Water Plan (described as ‘County-Other’) is projected to grow from 21,332 in the year 2000 to 34,643 in 2010.  The population for the Wise County Other is projected to grow from 26,129 in the year 2000 to 32,364 in 2010. 

A more applicable population projection may be for the neighboring City of Fort Worth.  The districts will be within the extraterritorial jurisdiction of the city and must abide by all city ordinances.  The City of Fort Worth in Denton County is projected to grow from 44 in the year 2000 to 5,000 in 2010.  The portion of Fort Worth in Wise County is projected to grow from 0 in the year 2000 to 2,000 in 2010.

2) Location & Size- The proposed district No. 3 will be composed of 410 acres, located in Wise and Denton Counties, on either side of State Highway 114 where the highway crosses the boundary of the two counties.

The proposed district No. 4 will be composed of 408 acres, located on the southern side of State Highway 114 where the highway crosses the boundary of Denton and Wise counties.

The proposed district No. 5 will be composed of 335 acres, located on the southern side of State Highway 114 just west of the Denton-Wise County boundary.

The proposed district No. 6 will be composed of 335 acres, located on the southern side of State Highway 114 just west of the Denton-Wise County boundary.

3) Powers- The Districts will have the general powers and duties granted to municipal utility districts under Texas Water Code Chapters 49, 50, and 54.

4) Districts Finances- Same as general law districts under Texas Water Code Chapter 54, including the issuance of bonds, levying a tax, and setting fees.

5) Boards 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 temporary directors. After which, permanent directors are elected to the positions.

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. Property may be acquired for any authorized purpose, which may include water, wastewater, and storm drainage. The Districts may condemn by either fee simple title or an easement only.

7) Ability to Tax- As with general law districts, upon voter approval, the Districts may levy ad valorem debt service and operation and maintenance taxes.

8) Ability to Exclude Property- Same as general law MUDs, the Districts has the power to exclude property.

9) Overlapping Services- An adequate boundary description and location map was not provided for the proposed districts; therefore, an overlap check could not be performed.

10) Adequacy of Boundary Description- The tracts for Nos. 3, 4, and 5 do not form an acceptable closure. The tract for No. 6 does form an acceptable closure.

11) Comments on Powers /Duties Different from Similar Types of Districts- The Districts may fund the construction maintenance and operation of macadamized, graveled, or paved roads and turnpikes through bonds.

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: Within Denton County, only 16 percent of the total water use was groundwater (Trinity Aquifer) in the year 2000.  However, 84 percent of the groundwater use was for municipal purposes. Within Wise County, only 34 percent of the total water use was groundwater (Trinity Aquifer) in the year 2000.  However, 78 percent of the groundwater use was for municipal purposes.  Though the districts may obtain water from groundwater wells, a more likely scenario might be the purchase of water from the City of Fort Worth or the other large water providers in the area.

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.