TO:	Honorable Royce West, Chair, Senate Committee on Intergovernmental Relations
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	HB2734 by Gattis (Relating to the creation of the Williamson-Liberty Hill Municipal Utility District; providing authority to impose a tax and issue bonds; granting the power of eminent domain.), As Engrossed

The Legislative Budget Board, in cooperation with the Texas Water Development Board (TWDB) and the Texas Commission on Environmental Quality (TCEQ), has determined that:
 
The bill creates Williamson-Liberty Hill Municipal Utility District (District) with the powers and duties of a municipal utility district under Water Code Chapters 49 and 54. The purpose of the District includes: providing works and projects under powers conferred by Article XVI, Section 59 of the Texas Constitution to benefit the property within the District and the power of eminent domain. The District is subject to confirmation election by the voters. If the District is not confirmed before September 1, 2011, the District is dissolved.
 

1)   Population - The detailed description of the proposed boundaries does not allow staff to develop precise population estimates.  The 2000 Census population of Williamson County was 249,967, with 25,519 living in areas identified in the 2007 State Water Plan as “County-Other” (outside cities of more than 500 and established water utility districts).  The total county population is projected to increase to 476,833 by 2020, the County-Other population is projected to be 16,269.
 
2)   Location - The district is located within Williamson County.

3)  Comments on Powers/Duties Different from Similar Types of Districts -  The District must comply with the Brazos River Authority for the design of any district wastewater treatment facility and use only providers of wastewater treatment that have been approved by the Brazos River Authority. The District must also comply with the October 2003 Agreement regarding sewer services areas and customers.
 
4)  Overlapping Services - The stated boundaries form an acceptable closure. An area map containing at least two references points (major road names, road intersections) and the proposed district’s geographic location mapped within the county is needed to complete overlapping service check. The overlapping service providers may be CCN #11590: Chisholm Trail SUD; CCN #20969: LCRA-Brazos River Authority-City of Liberty Hill; and, Williamson County MUD No. 17.
 
5)  TCEQ's Supervision-    As with general law districts, the TCEQ will have general supervisory authority, including bond review authority and review of financial reports.
 

6)  Water Use - Ninty-two percent of Williamson County water use in 2004 was for municipal purposes. Fifty-three percent of the total water use, and 54 percent of the municipal water use, comes from surface water sources.