The Legislative Budge Board, in cooperation with the Texas Water Development Board (TWDB) and the Texas Commission on Environmental Quality (TCEQ), has determined the following:

The bill would create the Dickinson Management District No. 1 in Galveston County with the powers and duties of a Municipal Management District (MMD) governed by Chapter 375, Local Government Code.

1) Population- The City of Dickinson’s population projection for use in the 2007 State Water Plan shows an increase from 17,093 in the year 2000 to 19,955 in 2010.

2) Location & Size- The District would include all territory in the City of Dickinson, approximately 6,324 acres.

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

4) District Finances- Similar to general law MMDs, including the authority to levy benefit assessments and ad valorem taxes, and to 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 which will be appointed by the City of Dickinson. 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 Chapter 375, Local Government Code. 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 MMD under Chapter 375, Local Government Code.

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 metes and bounds description was not provided; however, the District will encompass the City of Dickinson’s corporate limits.

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- Creation of this district would not conflict with State Water Plan objectives.