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. 464 with the powers and duties of a Municipal Utility District (MUD) governed by Water Code Chapters 49, 50 and 54.

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 396 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- As with general law MUDs, the District would have the power to provide water, wastewater, and drainage services.

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. The District may not impose an impact fee or assessment on an electric utility, gas utility, telecommunications or cable provider.

5) Board of Directors- The District is to be governed by a board of 5 elected directors. The directors will serve staggered 4-year terms. On or after September 1, 2005 a person owning land within the District may submit a petition to the TCEQ requesting that the Commission appoint as temporary directors the persons named in the petition.

6) Eminent Domain- Same as general law districts, the District will have the power of eminent domain under Texas Water Code Chapter 49. The Bill additionally states limitations on the use of eminent domain outside the district only to acquire an easement necessary for a pipeline that serves the district.

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 was not provided for the proposed District. Therefore, an overlap check could not be determined.

10) Adequacy of Boundary Description- A closure check of the description of the proposed District boundaries has been performed. Tracts 1 and 2 did not close, and tracts 3 did close.

11) Comments on Powers /Duties Different from Similar Types of Districts-The District may construct, acquire, improve, maintain, or operate macadamized, graveled or paved roads or turnpikes, or improvements in aid of those roads or turnpikes, inside or outside the district. Bonds to be used for the above purpose must be approved by a 2/3 majority and may not exceed 1/4 of the assessed valuation of the District.

If the District is not confirmed by an election before the second anniversary of the effective date of the Act, the District is dissolved.

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. However, TCEQ bond issuance approval and project review are not applicable to road projects.

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,