LEGISLATIVE BUDGET BOARD
Austin, Texas
 
WATER DEVELOPMENT POLICY IMPACT STATEMENT
 
80TH LEGISLATIVE REGULAR SESSION
 
April 27, 2007

TO:
Honorable Robert Puente, Chair, House Committee on Natural Resources
 
FROM:
John S. O'Brien, Director, Legislative Budget Board
 
IN RE:
HB3182 by Parker (Relating to the creation of the Tradition Municipal Utility District No. 2 of Denton County; providing authority to impose a tax and issue bonds; granting a limited power of eminent domain. ), Committee Report 1st House, Substituted

The Legislative Budget Board, in cooperation with the Texas Water Development Board (TWDB) and the Texas Commission on Environmental Quality (TCEQ), has determined the following:
 
The bill creates Traditional Municipal Utility District No. 2 (District) in Denton County 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 bill did not include the names of the temporary directors. The District is subject to confirmation election by the voters.

1)  Population - The detailed description of the proposed boundaries does not allow staff to develop precise population estimates. The 2000 Census population of Denton County was 432,976, with 21,332 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 953,668 by 2020, the County-Other population is projected to increase to 43,946.
 
2)  Location - The district is located within Denton County.
 
3)  Comments on Powers/Duties Different from Similar Types of Districts -  The previous version did not include the division of District requirements and the House Committee Substitute version has stated that the District may be divided into two or more districts. The District will have road powers.   If the District has not been confirmed before September 1, 2011, then the District is dissolved on September 1, 2011. 
 
4)  Overlapping Services  -  The stated boundaries form an acceptable closure. There is insufficient information provided in the bill to determine if the District overlaps any water supply or sewer‑service corporations, investor‑owned utilities, or local water districts or authorities. An area map containing at least two reference points (major road names, road intersections) and the proposed district’s geographic location mapped within Denton County is needed to perform an overlapping service check. The District may overlap: CCN Nos. 11916 and 20629: Suetrack USA; CCN No. 20061: City of Justin; CCN No. 2086: Town of Northlake; CCN Nos. 11157 and 20867: Aqua Texas; CCN No. 12311: City of Fort Worth; and, Upper Trinity Regional Water District.
 
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-six percent of Denton County water use in 2004 was for municipal purposes, with 2 percent for irrigation. Eighty-four percent of the total water use comes from surface water sources.


Source Agencies:
580 Water Development Board, 582 Commission on Environmental Quality
LBB Staff:
JOB, DB