Kaufman County Water Control and Improvement District

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 Kaufman County Water Control and Improvement District No. 1 with the powers and duties of Water Code Chapters 49, 50, and 54 related to general law Municipal Utility District and the powers for road projects.

1) Population- The area of the district does not appear to have had any resident population in the 2000 census.  The neighboring City of Terrell’s population was projected to grow from 13,606 in the year 2000 to 15,196 in 2010.  The portions of Kaufman County not served by a named water utility in the 2006 Region C Water Plan are expected to increase in population from 10,239 in 2000 to 14,426 in 2010.

2) Location & Size- The proposed district appears to be located just west of the City of Terrell in Kaufman County; on the north side of US. Highway 80 and approximately one mile west of the intersection of US Highway 80 and FM 1382.  This location would appear to place the district within the Certificate of Necessity and Convenience of the Lawrence Water Supply Corporation (12234).

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.

4) District Finances- The District may impose a tax to pay the principle of or interest on bonds with the approval of a 2/3 majority of the voters.

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 to serve staggered four year terms.

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.

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- The metes and bounds description provided appears to 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. The road projects cannot exceed 1/4 of the assessed value of property in the District.

The District may also be divided into two new districts before issuing any debt. Any new districts have the same powers and duties of the original District. If a new district annexes land, it may not divide if the result is that the annexed land wholly constitutes one of the districts created by the division.

If the District is not confirmed before September 1, 2007, 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 financial reports.

13) State water Plan Objectives-Water Use: The City of Terrell receives water from Lake Tawakoni and Lake Terrell.  The city then provides water to Lawrence WSC and Rose Hill WSC.  Since the proposed district is not located over a major aquifer and all of the surrounding water utilities use surface water, it is most likely that the proposed district will purchase surface water. 

Board staff find 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 and

• 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.

Las Lomas Municipal Utility District

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 Las Lomas Municipal Utility District No. 4 of Kaufman County with the powers and duties of a Municipal Utility District (MUD) governed by

Water Code Chapters 30, 49, 50 and 54, and powers for road projects.

1) Population- The area within the approximate boundaries above was sparsely populated in the year

2000: the census recorded 24 residents in the area. The neighboring City of Terrell’s population was

projected to grow from 13,606 in the year 2000 to 15,196 in 2010. The portions of Kaufman County

not served by a named water utility in the 2006 Region C Water Plan are expected to increase in

population from 10,239 in 2000 to 14,426 in 2010.

2) Location & Size- The proposed district will be located in north-central Kaufman County, west of

the City of Terrell. Tracts to be included in the districts are located in the area roughly bordered by:

Big Bushy Creek on the west, Interstate Highway 20 on the south, State Spur 557 on the northeast, and

US Highway 88 on the north. This area would be at least partially in the Extra Territorial Jurisdiction

of the City of Terrell.

Surrounding water utilities include the Lawrence Water Supply Corporation (WSC) to the north, the

City of Terrell to the east, and Rose Hill WSC to the south. (Active legislation, HB 3498, would create

the Rose Hill Special Utility, taking the place of the Rose Hill WSC.)

3) Powers- As with general law MUDs, the District would have the power to provide water,

wastewater, and drainage services. Additionally, the District has road powers, the ability to purchase a

CCN with bond proceeds, and the ability, pre-bond indebtedness, to divide into two or more districts.

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 pay

out of bond proceeds or other available District money all expenses related to obtaining a new

certificate of convenience and necessity.

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; however, eminent domain powers limited outside of the

1 of 2 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 and location map was not provided for

the proposed district. Therefore, an overlap check could not be performed.

10) Adequacy of Boundary Description- A closure check of the description of the proposed District

has been performed and the boundary does appear to create an acceptable closure.

11) Comments on Powers /Duties Different from Similar Types of Districts- The District must be

confirmed by September 1, 2007, or the District is dissolved. The District may be divided into two or

more districts prior to incurring tax or revenue indebtedness. The District would have road project

powers inside the District; generally MUDs do not initially have that power but may obtain at a later

date. Eminent domain powers outside the District limited to acquiring easements for a pipeline that

serves the District.

12) TCEQ’s Supervision- As with general law districts, the TCEQ will have general supervision

authority, including bond review authority (for water, wastewater, and drainage only) and review of

audit reports.

13) State Water Plan Objectives-Water Use: The City of Terrell receives water from Lake Tawakoni

and Lake Terrell. The city then provides water to Lawrence WSC and Rose Hill WSC. Since the

proposed district is not located over a major aquifer and all of the surrounding water utilities use

surface water, it is most likely that the proposed district will purchase surface water.

2000: the census recorded 24 residents in the area. The neighboring City of Terrell’s population was

projected to grow from 13,606 in the year 2000 to 15,196 in 2010. The portions of Kaufman County

not served by a named water utility in the 2006 Region C Water Plan are expected to increase in

population from 10,239 in 2000 to 14,426 in 2010.

Cedar Creek Lake, Trinity river and the East Fork of the Trinity River Watersheds

The Legislative Budget Board in cooperation with the water Development Board (TWDB) and the Texas Commission on Environmental Quality (TCEQ), has determined that ther would be no fiscal impact on state water-development policy to either TWDB or TCEQ  as a result of  HB3552.

Rose Hill Special Utility District