TO:	Honorable Robert Puente, Chair, House Committee on Natural Resources
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	HB4061 by Parker (Relating to the creation of the Denton County Municipal Utility District No. 7; 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 amended Special District Local Laws Code by adding Chapter 8190 to create Denton County Municipal Utility District No. 7 (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 Denton County was 432,976, with 21,332 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 953,668 by 2020, the County-Other population is projected to increase to 43,946.
 
2)   Location - The proposed district is located within Denton County.

3)  Comments on Powers/Duties Different from Similar Types of Districts-    The District will have road powers.  Sections 49.181 and 49.182 of the Texas Water Code do not apply to the District’s road projects.  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 do not form a closure and the gap appears to be 260 feet. There is insufficient information provided in the bill to determine if the District overlaps any water supply or sewer‑service corporations, investor‑owned utilities, or local water districts or authorities.  An area map containing at least two references points (major road names, road intersections) and the proposed district’s geographic location mapped within Denton County is needed to complete overlapping service check.  The known overlapping service providers may be: Upper Trinity Regional Water District; Smiley Road WCID; CCNs 11157 and 20867: Aqua Texas Inc.; and, CCNs 11856 and 20930: Mustang SUD.
 
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 - 96 percent of Denton County water use in 2004 was for municipal purposes, with 2 percent for irrigation.   84 percent of the total water use comes from surface water sources.