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 Fort Bend County Municipal Utility District No. 167 with the powers and duties of a Municipal Utility District (MUD) governed by Water Code Chapters 30, 49, 50 and 54.

1) Population- Staff has not been able to make a population estimate for the proposed district due to the complexity of the boundary descriptions.  The population projections to be used in the 2006 Region H Water Plan for the rural, unincorporated potions of Fort Bend County show an increase from 38,168 in 2000 to 64,065 in 2010.

2) Location & Size- The proposed district appears to be located in central Fort Bend County, in the vicinity of the City of Rosenberg.  The district is described in six different tracts with sizes from less than an acre to 300 acres.  A short review time did not allow staff a more detailed understanding of the district location

3) Powers- As with general law MUDs, the District would have the power to provide water, wastewater, and drainage services. The District would also have 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 District is to be governed by a board of five initial directors named in the bill. Of the initial directors, three terms will expire on election date in May of 2006 and two terms will expire on election date in May of 2008. Directors will serve staggered 4-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; however, eminent domain powers limited outside the District only to acquiring easements for underground water, wastewater, and drainage facilities.

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- From the information provided, there appears to be an overlap with the City of Rosenberg.

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 District may provide for the construction, maintenance, and operation of roads inside the District. Bonds or other obligations issued for these purposes may not exceed 1/4 of the assessed valuation of the real property of the District. A bond issuance for these purposes also requires a 2/3 majority vote at a bond issue election.

12) TCEQ’s Supervision- As with general law districts, the TCEQ will have general supervision authority, including bond review authority and review of audit reports. For road projects and bonds, TCEQ does not have bond review authority.

13) State Water Plan Objectives-Water Use: Within Fort Bend County, 77 percent of the total water use was groundwater in the year 2000.  Sixty-nine percent of the groundwater use was for municipal purposes.  The proposed district will be located over the Gulf Coast Aquifer and would be located in both the Fort Bend County Subsidence District and the Harris-Galveston County Subsidence District.