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 West Ranch Management District in Harris and Galveston Counties with the powers and duties of a Municipal Management District (MMD) governed by Local Government Code Chapter 375.

1) Population- The City of Friendswood’s population projection for use in the 2006 State Water Plan shows an increase from 29,037 to 32,353.

2) Location & Size- The proposed district would be composed of approximately 765 acres within the City of Friendswood, Harris County and Galveston County.

3) Powers- The District has the rights, powers, privileges, authority, and functions of a general law MMD governed by Local Government Code Chapter 375. Government Code Chapter 2303, Tax Code Chapters 311 and 312 also applies to this District relating to development zones.

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. A petition signed by the owners of a majority of the assessed value or surface area in the District, is required prior to financing projects.

5) Board of Directors- The initial board consists of five persons, two directors will serve two-year terms, and three directors will serve four-year terms. Subsequent directors will serve staggered four-year terms. Directors from places 1 and 2 will be appointed by The City of Friendswood.

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. The District may not impose an impact fee or assessment on the property, equipment, or facilities of an electric utility, power generation company, gas utility, or telecommunications provider.

8) Ability to Exclude Property- Same as a general law municipal management district under Local Government Code Chapter 375.

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. A Parcel in Tract A, the 506.20 acre parcel in Tract C, and Tract D did not form acceptable closures.

11) Comments on Powers /Duties Different from Similar Types of Districts- Subject to limitations on amount and voter authorization, the District may impose sales taxes. Also, 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.

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: Although the district would be given powers to sell bonds and to develop a capital improvement plan, the main intent of the district would be to promote "employment, commerce, transportation, housing, tourism, etc". The creation of this district does not relieve the City of Friendswood, Harris County or Galveston County from providing services that they are currently providing, including water and wastewater service. For this reason, I believe that the creation of this district would have no conflict with State Water Plan objectives.