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 Harris County Municipal Utility District No. 465 (District) in Harris County with the powers and duties of Water Code Chapters 49, 50, and 54 related to general law Municipal Utility District.   The District has powers to provide for road projects.

1) Population- The area in which the proposed district would be located had virtually no resident population in the 2000 Census.  The population projection to be used in the 2005 Region H Water Plan for the West Harris County Regional Water Authority (much of western Harris County west of the City of Houston and south of US Highway 290) shows an increase from 245,708 in the year 2000 to 282,352 in 2010. 

2) Location & Size- The proposed district is composed of three tracts of land totaling approximately 335 acres and is located in western Harris County.  The district will be located along FM 529, north of the City of Katy,  the location of the district would place it within the West Harris County Regional Water Authority (WHCRWA), although the district could petition for exclusion.  

3) Powers- The District will have the general powers and duties granted to municipal utility districts under Texas Water Code Chapters 49, 50, and 54 and can provide for road projects.

4) District Finances- Same as general law districts under Texas Water Code Chapter 54, including the issuance of bonds, levying a tax, and setting fees.

5) Board of Directors- Same as general law districts. On or after the effective date, a person who owns land in the District may petition to appoint the temporary directors. After which, permanent directors are elected to the positions.

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. Property may be acquired for any authorized purpose, which may include water, wastewater, and storm drainage. The District may condemn by either fee simple title or an easement only.

7) Ability to Tax- As with general law districts, upon voter approval, the District may levy ad valorem debt service and operation and maintenance taxes.

8) Ability to Exclude Property- Same as general law MUDs, the District has the power to exclude property.

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- An adequate boundary description was not provided. Therefore, there was not enough information to determine if the boundaries form an acceptable closure.

11) Comments on Powers /Duties Different from Similar Types of Districts- The district may fund the construction maintenance, and operation of macadamized, graveled, or paved roads and turnpikes through bonds. Bonds for the above purpose must be approved by 2/3 majority of voters and may not exceed 1/4 of the assessed value of the District. The District may exercise the power of eminent domain outside the District only to acquire an easement necessary for a pipeline serving the District. The District may not impose an impact fee or assessment on the property, rights-of-way, facilities, or improvements of electric utilities, gas utilities, telecommunications providers, and cable providers.

Creation of the District is subject to a confirmation election to be held before September 1, 2007.

12) TCEQ’s Supervision- As with general law districts, the TCEQ will have general supervision authority, including bond review authority and review of financial reports.

13) State Water Plan Objectives-Water Use: The proposed district would be located over the Gulf Coast Aquifer and would be part of the Harris-Galveston Coastal Subsidence District.  Twenty-four percent of Harris County’s water use was supplied by groundwater.  Of the groundwater used, 69 percent went towards municipal uses.

Because the district could be part of the WHCRWA the district may utilize surface water through the Authority, but this would depend on the Authority’s infrastructure development.  In the short term, the use of groundwater is likely.

Board staff fins 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 an

-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,