TO:	Honorable Royce West, Chair, Senate Committee on Intergovernmental Relations
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	HB4017 by Smith, Wayne (Relating to the creation of the Harris County Municipal Utility District No. 510; providing authority to impose a tax and issue bonds; granting the power of eminent domain.), As Engrossed

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 amended Special District Local Laws Code by adding Chapter 8240 to create Harris County Municipal Utility District No. 510 (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 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 may divide into two new districts. The District will have road powers. 
 
4)  Overlapping Services – The stated boundaries did not form an acceptable closure for Track 2. There is insufficient information provided in the Bill because an area map containing at least two reference points (major road names, road intersections) and the proposed District’s geographic location mapped within the county are needed for Track 1 and Track 2. A revised metes and bounds description for Track 2 is needed to determine an overlapping service. The overlapping service providers for Track 1 may be AquaSource Development Inc. (CCN 12902); Baytown Area Water Authority (CCN 10872); Gulf Coast Waste Disposal Authority (CCN 20465); Enchanted Place Public Utility District; Harris County Municipal Utility District No. 80; Harris County Municipal Utility District No. 213; Spring Meadows Municipal Utility District; and, the City of Baytown.
 
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 – Fifty-nine percent of Harris County water use in 2004 was for municipal purposes, with 39 percent for manufacturing. Sixty-one percent of the total water use, and 43 percent of the municipal use, comes from surface water sources.