TO:	Honorable Robert Puente, Chair, House Committee on Natural Resources
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	HB4025 by Zerwas (Relating to the creation of the Waller County Municipal Utility District No. 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 the following:
 
The bill creates Waller County Municipal Utility District No. 2 (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 did not include the names of the temporary directors. The District is subject to confirmation election by the voters.
 
1)  Population - The description of the proposed boundaries does not allow staff to develop precise population estimates. The 2000 Census population of Waller County was 32,663, with 16,755 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 51,175 by 2020, the County-Other population is projected to increase to 29,844.
  
2)  Location - The district is located within Waller County.

3)  Comments on Powers/Duties Different from Similar Types of Districts  -  The District will have road powers. 
 
4)  Overlapping Services  -  The stated boundaries form a closure. The known overlapping service providers may be: CCN Nos. 10978 and 20389:Brookshire Municipal Water District; City of Brookshire; and Fort Bend-Waller Counties Municipal Utility District No. 1.  
 
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 - Eighty-two percent of Waller County water use in 2004 was for irrigation, with 12 percent for municipal purposes. Ninty-seven percent of the total water use and 99 percent of the municipal water use comes from groundwater sources.