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  Rockwall County Municipal Utility District Nos. 6, 7, 8 and 9 with the powers and duties of a Municipal Utility District (MUD) governed by Water Code Chapters 30, 49, 50 and 54.

1) Population- Staff were not able to estimate a population within the proposed districts because the boundaries were primarily described through named land surveys.  The City of Fate is not included specifically in the 2006 Region C Water Plan because the city’s 2000 population was less than 500.  The 2000 census indicates 497 residents in the city.  The January 1, 2004 population estimate for the city by the Texas State Data Center is 1,240.  Evidently, dramatic growth is taking place in the city.

2) Location & Size- The proposed district No. 6 is composed of approximately 357 acres and appears to be located partially or entirely within the City of Fate, in the vicinity of State Highway 66 and the Union Pacific railway. 

District No. 7 is composed of approximately 130 acres and appears to be located within an eastern portion of the City of Fate in an area bordered by Interstate Highway 30, Blackland Road, Greenbriar Street and FM 551.

District No. 8 is composed of approximately 266 acres and appears to be located within a western portion of the City of Fate in an area near the intersection of State Highway 66 and Ben Payne Road.

District No. 9 is composed of approximately 222 acres and appears to be located in a western portion of the City of Fate in the vicinity of State Highway 66 and Prince Lane.

3) Powers- As with general law MUDs, the Districts would have the power to provide water, wastewater, and drainage services. Additionally, the District has road powers inside the District.

4) District Finances- Consistent with general law for municipal utility districts. The District may issue tax and/or revenue bonds, levy a maintenance tax, and set fees and rates.

5) Board of Directors- The board of each District consists of five temporary directors named in the bill, and the temporary directors will hold an election to confirm the creation of the Districts and elect the initial five directors. Directors will serve staggered four-year terms.

6) Eminent Domain- Same as general law districts, the District will have the power of eminent domain under Texas Water Code Chapter 49. The District may exercise the power of eminent domain outside the District only for water supply lines or wastewater lines.

7) Ability to Tax- Yes, for bonds and maintenance purpose, subject to voter consent, which is consistent with general law for MUDs.

8) Ability to Exclude Property- Data not available.

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- A closure check of the description of the proposed Districts has been performed and the boundaries do appear to create acceptable closures.

11) Comments on Powers /Duties Different from Similar Types of Districts- The Districts may also provide for the construction, maintenance, and operation of roads or works, facilities, or improvements in aid of those roads. Bonds or other obligations issued for each District for these purposes may not exceed 1/4 of the assessed valuation of the real property of each District. A bond issuance requires a 2/3 majority vote at a bond issue election. The District must be confirmed by September 1, 2007, or the District is dissolved. Eminent domain powers are limited.

12) TCEQ’s Supervision- As with general law districts, the TCEQ will have general supervision authority, including bond review authority of all water, wastewater and drainage facility projects and review of audit reports. The TCEQ does not have bond review authority of District road projects.

13) State Water Plan Objectives-Water Use: The City of Fate purchases all of its water from the North Texas Municipal Water District (Lake Levon).  Because the proposed districts are not located over a major aquifer and most of them appear within the City of Fate, it is probable that the district will purchase surface water from the city.  For Rockwall County-Other, of which Fate is a part, the 2001 Region C Water Plan includes the strategy of purchasing additional supply from the North Texas Municipal Water District.

Board staff finds 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.