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 the power of eminent domain.), As Introduced

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 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.  If the District has not been confirmed before September 1, 2011, then the District is dissolved on September 1, 2011.   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 District will have road powers. 
 
4)  Overlapping Services-    The bill did not include the names of the temporary directors.  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: CCNs 11916 and 20629:Suetrack USA; CCN 20061:City of Justin; CCN 2086:Town of Northlake; CCNs 11157 and 20867:Aqua Texas; and, CCN 12311:City of Fort Worth.
 
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- 96 percent of Denton County water use in 2004 was for municipal purposes, with 2 percent for irrigation.   84 percent of the total water use comes from surface water sources.