LEGISLATIVE BUDGET BOARD
Austin, Texas
 
WATER DEVELOPMENT POLICY IMPACT STATEMENT
 
80TH LEGISLATIVE REGULAR SESSION
 
May 19, 2007

TO:
Honorable Eddie Lucio, Jr., Chair, Senate Committee on International Relations & Trade
 
FROM:
John S. O'Brien, Director, Legislative Budget Board
 
IN RE:
HB3994 by King, Phil (Relating to the creation of the Morning Star Ranch Municipal Utility Districts Nos. 1 and 2 of Parker County; providing authority to impose a tax and issue bonds; granting the power of eminent domain. ), Committee Report 2nd 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 that:
 
The bill amends Subtitle F, Title 6, Special District Local Laws Code by adding Chapters 8829 and 8830 to create Morning Star Ranch Municipal Utility District Nos. 1 and 2 of Parker County (Districts) with the powers and duties of municipal utility districts under Water Code Chapters 49 and 54 and Article XVI, Section 59 of the Texas Constitution.  The bill also grants the Districts road powers under Article III, Section 52 of the Texas Constitution, inside the Districts.  The Districts have eminent domain powers, but they are limited outside their boundaries (same in the House Committee Substitute, Engrossed, and Senate Committee Substitute versions).  The House Committee Substitute, Engrossed, and Senate Committee Substitute versions include language on the payment of impact fees.  The Districts are subject to confirmation election by the voters. If the Districts have not been confirmed by September 11, 2011, then the Districts are dissolved.  Municipal consent is required prior to holding a confirmation election, but the Senate Committee Substitute version also requires that the municipality and developer enter into a development agreement prior to holding a confirmation election.  The bill indicates that the Commission shall appoint the temporary directors of the Districts upon a landowner submitting a petition.  Effective on September 1, 2007.

1)  Population- The detailed description of the proposed boundaries does not allow staff to develop precise population estimates.  The 2000 Census population of Parker County was 88,495, with 42,671 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 172,136 by 2020, the County-Other population is projected to be 37,824.
 
 
2)  Location- The district is located in Parker County.
 

3)  Comments on Powers/Duties Different from Similar Types of Districts-    The Districts will have road powers inside their boundaries. The Districts eminent domain powers are limited outside their boundaries.  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 Morning Star Ranch MUD Nos. 1 and 2 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 Parker County is needed to complete overlapping services check.  There are no known overlapping service providers.
 
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 - 82 percent of Parker County water use in 2004 was for municipal purposes, with 7 percent for livestock.   51 percent of the total water use, and 45 percent of the municipal use, comes from surface water sources.



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