Austin, Texas
May 15, 2007

Honorable Royce West, Chair, Senate Committee on Intergovernmental Relations
John S. O'Brien, Director, Legislative Budget Board
HB4073 by Eissler (Relating to the creation of the Montgomery County Municipal Utility District No. 103; providing authority to impose taxes and issue bonds.), 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 amends Special District Local Laws Code by adding Chapter 8262 to create Montgomery County Municipal Utility District No. 103 with the powers and duties of a municipal utility district under Water Code, Chapters 49 and 54, and Article XVI, Section 59 of the Texas Constitution. The bill also gives the District road powers under Article III, Section 52 of the Texas Constitution. The district also has recreation facility powers, but may not condemn land for such facilities. The District is required to comply with municipality consent requirements.  The District is subject to confirmation election.

1)  Population – The detailed description of the proposed boundaries does not allow staff to develop precise population estimates. The 2000 Census population of Montgomery County was 293,768, with 99,788 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 542,051 by 2020; the County-Other population is projected to increase to 198,870.
2)  Location –The district is located within Montgomery County.
3)  Comments on Powers/Duties Different from Similar Types of Districts – The District will have road powers. The District can issue tax bonds for recreational facilities, subject to voter approval.
4)  Overlapping Services – The stated boundaries do not form a closure for Tract 2, but form a closure for Tract 1. An area map containing at least two reference points (major road names, road intersections) and the proposed district’s geographic location mapped with the counties is needed. The overlapping service provider may be Montgomery County MUD 72; City of Spring; City of Houston; Quadrest Inc., CCN 11612; and, Amberwood Utility Company, CCN 12163.
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 –
Ninety-five percent of Montgomery County water use in 2004 was for municipal purposes, with 3 percent for manufacturing. Ninety-nine percent of the total water use, and 100 percent of the municipal use, comes from groundwater sources.

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