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

1) Population- The City of Pflugerville population projection for use in the 2006 State Water Plan shows an increase from 16,335 in the year 2000 to 24,709 in 2010.

2) Location & Size- The proposed district would be composed of 257 acres in the area of the intersection of FM 685 and Pflugerville Lane, located partially within the City of Pflugerville.  Within the boundary description are references to the district being adjacent to the future State Highway 130.

3) Powers- The District has the rights, powers, privileges, authority, and functions of a general law MMD. The District also has the power given to a corporation under the Development Corporation Act (Section 4B, Article 5190.6, VTCS) and the power to create a nonprofit corporation under Transportation Code Chapter 431. Eligible to be included in special zones, such as a tax increment reinvestment zone, a tax abatement reinvestment zone and an enterprise zone.

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 eleven persons serving staggered terms. The mayor and members of the governing body shall appoint the voting directors from persons recommended by the Board. The non-voting ex officio directors will be the directors or designees of the departments of parks and recreation, planning and development, public works, and civic center, the municipality’s chief of police, the general manager of the metropolitan transit authority of the county, and the president of each institution of higher learning located in the district.

6) Eminent Domain- Like general law MMDs, 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. With voter approval, the District may impose a sales-and-use tax. The District may not impose an impact fee or assessment on a residential property, multi-unit residential property, or condominium; or on the property, equipment, or facilities of an electric, gas, telephone, water and wastewater utility.

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- Tracts 1 & 2 do not form an acceptable closure. Tract 3 forms an acceptable closure.

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: It is assumed that the creation of this district would have no impact on the State Water Plan objectives.