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 Espada Development District in Bexar County with the powers and duties of a Municipal Management District (MMD) governed by Local Government Code Chapter 375.

1) Population- The City of San Antonio population for use in the 2006 South Central Texas Regional Water Plan is expected to grow from 1,144,646 in the year 2000 to 1,354,381 in 2010.

2) Location & Size- The proposed district appears to be located in southern San Antonio; in an area southeast of the intersection of US Highway 281 and Interstate Highway 410.  This location would place the district in the Certificate of Convenience and Necessity area of the San Antonio Water System. The District includes an area within Bexar County of approximately 1,110.11 acres.

3) Powers- The District has the rights, powers, privileges, authority, and functions of a general law MMD governed by Local Government Code Chapter 375. Tax Code Chapter 311 also applies to this District.

4) District Finances- Similar to general law MMDs, including the authority to levy benefit assessments, ad valorem taxes, and issue bonds. In addition, the District would have the ability to impose a sales tax.

5) Board of Directors- The board consists of five persons appointed by the City of San Antonio with nonvoting directors consisting the directors of finance, public works and the city manger. Subsequent directors will serve staggered four-year terms.

6) Eminent Domain- The District may not exercise the power of eminent domain.

7) Ability to Tax- The District may impose assessments, impact fees, ad valorem debt service and operation and maintenance taxes according to Local Government Code Chapter 375.

8) Ability to Exclude Property- Same as a general law municipal management district under Local Government Code Chapter 395.

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- The metes and bounds description provided includes several tracts of land to be included in the District and appears to form an acceptable closure.

11) Comments on Powers /Duties Different from Similar Types of Districts- The District may authorize the creation of a nonprofit corporation to assist and act on behalf of the District in implementing a project or providing a service.

Also, the District may acquire, construct and finance educational facilities, sites and appurtenances which benefit the District. The District is prohibited from providing utility service and Chapter 49 of the Water Code does not apply except as provided in the bill. The District is eligible to be included in a tax increment reinvestment zone.

12) TCEQ’s Supervision- The District is exempt from TCEQ auditing and bond review authority unless the bonds are issued specifically for water, wastewater, or drainage facilities.

13) State Water Plan Objectives-Water Use: The main intent of the district would be to promote “employment, commerce, transportation, housing, tourism, etc”.  Although the district will have the power to acquire, construct or maintain water lines and pump stations, the creation of this district does not relieve the City of San Antonio from providing services that they are currently providing, including water and wastewater service.  Consequently, it is assumed that the creation of this district would have no conflict with  State Water Plan objectives.