TO:	Honorable Kip Averitt, Chair, Senate Committee on Natural Resources
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	HB4085 by Laubenberg (Relating to the creation of the Triple Creek Municipal Management District; providing authority to levy an assessment, impose a tax, 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 that:
 
This version of the bill contains wording and structure changes, and removes a Section from the Filed version that had indicated that the District was not subject to the Commission’s jurisdiction under the provisions in Section 375.208, Local Government Code.  This version also names the Chapter (3581) of the Special District Local Laws Code the District will be created under.  This version of the bill names the temporary directors, and reduces the types of improvement projects the District can provide.  The bill creates Triple Creek Municipal Management District (District) within the City of McLendon-Chisholm, Texas.  The District is granted the powers and duties of a municipal management district under Local Government Code Chapter 375. The District would also have the powers of conservation and reclamation districts including Chapters 49 and 54 Water Code, powers of a road utility district under Chapter 441 Transportation Code, the powers of a municipality to impose, levy and collect special assessments under Chapter 372, Local Government Code, and of a corporation under Section 4B, Development Corporation Act of 1979.  The District is subject to a confirmation election.
 

1)    Population - According to the description, the proposed district boundaries are the same as the city of McLendon-Chisholm.  The 2000 Census population of McLendon-Chisholm was 914, projected to increase to 1,664 by 2020.
 
2)    Location - The district is located within Kaufman and Rockwall Counties.

3)  Comments on Powers/Duties Different from Similar Types of Districts-   he District will have powers of a corporation under Section 4B, Development Corporation Act of 1979, and road powers.  The bill also indicates that if the District is not confirmed before September 1, 2010, then the District is dissolved September 1, 2010. 
 
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 reference points (major road names, road intersections) and the proposed district’s geographic location mapped within Rockwall and Kaufman Counties is needed to complete overlapping services check.  The overlapping service providers may be: CCN No. 10087: RCH Water Supply Corporation; CCN No. 10841: High Point Water Supply Corporation; and, the City of McLendon-Chisolm.
 
5)  TCEQ's  Supervision-    In the event the District issues bonds to finance water, wastewater, or drainage projects it will require review by TCEQ.  Otherwise, the District is not subject to TCEQ supervision.

6)  Water Use – In 2000, water use in McLendon-Chisholm was 145 acre-feet, projected to increase to 246 acre-feet in 2020.  Water is provided from surface water sources by the North Texas Municipal Water District.