LEGISLATIVE BUDGET BOARD
Austin, Texas
 
WATER DEVELOPMENT POLICY IMPACT STATEMENT
 
80TH LEGISLATIVE REGULAR SESSION
 
April 16, 2007

TO:
Honorable Robert Puente, Chair, House Committee on Natural Resources
 
FROM:
John S. O'Brien, Director, Legislative Budget Board
 
IN RE:
HB3979 by Laubenberg (Relating to the creation of the McKinney Municipal Utility Districts Nos. 1 and 2; 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 McKinney Municipal Utility District Nos. 1 and 2 of Collin County (Districts) with the powers and duties of municipal utility districts under Water Code Chapters 49 and 54. The purpose of the Districts include: providing works and projects under powers conferred by Article XVI, Section 59 of the Texas Constitution to benefit the property within the Districts and the power of eminent domain.  The bill indicates that the Commission shall appoint the Districts’ temporary directors.  The Districts are 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 Collin County was 491,774, with 6,149 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 1,033,173 by 2020, the County-Other population is projected to be 5,981.
 
2)   Location - The district is located within Collin County.


3)  Comments on Powers/Duties Different from Similar Types of Districts-    The Districts will have road powers.  The Districts may be divided into multiple districts.  If the Districts have not been confirmed before September 1, 2011, then the Districts are dissolved on September 1, 2011.
 
4)  Overlapping Services-    The stated boundaries for McKinney MUD No. 1’s Tract B & Save and Except form a closure. The stated boundaries for McKinney MUD No. 1’s Tract A and McKinney MUD No. 2’s Tracts A & B do not form a closure.  An area map containing at least two reference points (major road names, road intersections) and the proposed Districts’ geographic location mapped within Collin County are needed to complete overlapping services checks.  McKinney MUD No. 1’s Tracts A & B may overlap: CCN No. 11035: North Collin Water Supply Corporation and CCN No. 10194: City of McKinney.  McKinney MUD No. 2’s Tracts A & B may overlap: CCN No. 11035: North Collin Water Supply Corporation, and CCN No. 10194: City of McKinney.
 
5)  TCEQ's  Supervision-    As with general law districts, the TCEQ will have general supervisory authority over these Districts, including bond review authority and review of financial reports.


6)  Water Use - 97 percent of Collin County water use in 2004 was for municipal purposes.   96 percent of the total water use comes from surface water sources.



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