TO:	Honorable Royce West, Chair, Senate Committee on Intergovernmental Relations
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	HB4080 by Talton (Relating to the creation of the Harris County Municipal Utility District No. 509; 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 amends Special District Local Laws Code by adding Chapter 8217 to create Harris County Municipal Utility District No. 509 (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 will have road powers.
 
4)  Overlapping Services  -  The stated boundaries form a closure. 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 Harris County is needed to perform an overlapping service check. The District may overlap Clear Brook City MUD and City of Pearland (CCN Nos. 11008 and 20403).
 
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.