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 Espada Development District in Bexar County with the powers and duties similar to a Municipal Management District (MMD) governed by Local Government Code Chapter 375.

1) Population- The City of San Antonio population for use in the 2006 South Central Texas Regional Water Plan is expected to grow from 1,144,646 in the year 2000 to 1,354,381 in 2010.

2) Location & Size- The proposed district appears to be located in southern San Antonio; in an area southeast of the intersection of US Highway 281 and Interstate Highway 410.  This location would place the district in the Certificate of Convenience and Necessity area of the San Antonio Water System.

3) Powers- The District has the rights, powers, privileges, authority, and functions similar to a general law MMD governed by Local Government Code Chapter 375. Tax Code Chapter 311 also applies to this District. The District may construct, purchase or maintain gas or electric transmission lines.

4) District Finances- Similar to general law MMDs, including the authority to levy an ad valorem tax and issue bonds. The district may pledge to the payment of the principal or interest or any other amounts due under district bonds all or any part of (1) district taxes; (2) revenue from a public improvement financed under the provisions of the bill, or (3) money from grants, donations, or other income or funds from any public or private entity. The District would not have the ability to impose a sales tax.

5) Board of Directors- The board would consist of five persons appointed by the City of San Antonio with nonvoting directors consisting of the directors of finance, public works, and the city manger. Subsequent directors will serve staggered four-year terms. The board would be required on at least a monthly basis to submit a written status report to each state senator and state representative who represents the district.

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.

8) Ability to Exclude Property- The District may not change its boundaries after the confirmation election.

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- The metes and bounds description provided includes two tracts of land to be included in the District and appears to form an acceptable closure.

11) Comments on Powers /Duties Different from Similar Types of Districts- The District may acquire, construct and finance educational facilities, sites and appurtenances which benefit the District. The District is prohibited from providing utility service and Chapter 49 of the Water Code does not apply except as provided in the bill. The District is eligible to be included in a tax increment reinvestment zone. The District may construct, purchase or maintain gas or electric transmission lines.

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 have no conflict with the State Water Plan objectives.