TO:	Honorable Robert Puente, Chair, House Committee on Natural Resources
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	HB4016 by Smith, Wayne (Relating to the creation of the Harris County Municipal Utility District No. 508; 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 Harris County Municipal Utility District No. 508 (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 bill does not include the names of 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 Harris County was 3,400,578, with 76,009 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 4,502,786 by 2020, the County-Other population is projected to be 51,260.
 
2)     Location - The proposed district is located within Harris County.

3)  Comments on Powers/Duties Different from Similar Types of Districts-    The District will have road powers.  The District may be divided into two districts. 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 a closure for tracts 4, 6, 7, and 10. The stated boundaries do not form a closure for tracts 1, 2, 3, 5, 8, and 9.  An area map for tracts 1-10 containing at least two reference points (major road names, road intersections) and the proposed district’s geographic location mapped within Harris County is needed to complete overlapping services check. A metes and bounds description (preferably with the source Abstract listed) is needed for tracts 1, 2, 3, 5, 8, and 9. The overlapping service providers for tracts 4, 6, 7, and 10 may be City of Baytown (CCNs 10860 and 20333), Bay Oaks Harbor Water System (CCN 10872), and Baytown Area Water Authority.
 
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 - 59 percent of Harris County water use in 2004 was for municipal purposes, with 39 percent for manufacturing.   61 percent of the total water use, and 43 percent of the municipal use, comes from surface water sources.