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 Smiley Road Water Control and Improvement District of Denton County with the powers and duties of a water control and improvement district including road powers, under Texas Water Code Chapters 49, 50, and 51. Creation is subject to a confirmation election prior to September 1, 2007. Effective immediately with a vote of 2/3 of each house or on 9/1/2005.

1) Population-  The area of the district could have held as many as 146 people in the year 2000.  The population for the unincorporated potion of Denton County not within a water utility named in the 2006 Region C Water Plan (described as ‘County-Other’) is projected to grow from 21,332 in 2000 to 34,643 in 2010.

2) Location & Size- The proposed district encompasses 517 acres in northeast Denton County.  The southwest corner of the district is the intersection of Smiley Road and Carey Road.  It appears as though the proposed district would be located within a Certificate of Convenience and Necessity area owned by Aqua Texas (formerly  Aquasource Utility Inc.).

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, including water, wastewater, and drainage powers. The District would also have road district powers inside the District.

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. The 5 temporary directors are named in the bill.

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 condemn by either fee simple title or an easement only.

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. Road bonds shall be approved by 2/3 vote at an election within the district and may not exceed 25% of the amount of the AV of the district.

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 boundary description was provided for the proposed district and the proposed district appears to overlap with certified water or wastewater service areas (AquaSource Utility CCN#11157 and Upper Trinity Regional Water District). However, the Commission does not have the information to perform overlap checks of the proposed district boundary relative to city service areas, county service areas, or unknown district service areas.

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 is not confirmed by an election before September 1, 2007, the Act expires.

District is to use its best efforts to acquire water, wastewater, sewer and other permitted powers, and if successful, to enter into a contract with the City of Celina to provide such services.

Prohibits the district from dividing into two or more districts in the manner specified by Section 53.029, Water Code.

Prohibits the district from issuing bonds until a development agreement has been signed with the City of Celina.

12) TCEQ’s Supervision- As with general law districts, the TCEQ will have general supervision authority, including bond review authority (except not for road projects) and review of financial reports. The bonds issued for road improvements will be reviewed by the Attorney General.

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. 

The small size of the proposed district may allow the district to obtain the water necessary for the residents from groundwater.  However, because one of the purposes of the district is to obtain water to sell to the City of Celina, the water supply information for Celina follows.

The City of Celina obtains its water from the Trinity and Woodbine Aquifers.  In the 2001 Region C Water Plan, the city was projected to have a significant shortage in a drought of record.  The strategies listed in this plan include conservation, reuse and purchase of water from the Upper Trinity Regional Water District (from Lake Chapman in Delta and Hopkins Counties or from Dallas Water Utilities).  The draft proposal for the city’s water management strategies to be used in the 2006 Region C Water Plan lists the previous strategies and adds the purchase of water from Greater Texoma Utility Authority or the North Texas Municipal Water District.

The proposed district may be instrumental in furthering any or all of the city’s water management strategies.