TO:	Honorable Kip Averitt, Chair, Senate Committee on Natural Resources
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	HB4081 by O'Day (Relating to the creation of the Sedona Lakes Municipal Utility District No. 1 of Brazoria County; 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 creates Sedona Lakes Municipal Utility District No. 1 (District) of Brazoria County with the powers and duties of a municipal utility district under Water Code Chapters 49 and 54. The chapter number of the Special District Local Laws Code for this creation has not been determined. 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 also gives the District road powers. 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 Brazoria County was 241,767, with 65,266 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 331,731 by 2020, the County-Other population is projected to increase to 69,005.
 
2)  Location - The district is located within Brazoria 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. An area map containing at least two reference points (major road names, road intersections) and the proposed district’s geographic location mapped within Brazoria County is needed to complete overlapping services check. The known overlapping service providers may be: Brazoria County MUDs 2, 3, 6, and, 25; West Brazoria County Drainage District No. 11; Manvel Utilities LP (CCN Nos. 12924 and 20871); Walker Water Works Inc. (CCN No. 11862); 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 - Sixty-two percent of Brazoria County water use in 2004 was for manufacturing, with 28 percent for irrigation, and 9 percent for municipal purposes. Ninty-two percent of the total water use and 32 percent of the municipal water use comes from surface water sources.