TO:	Honorable Robert Puente, Chair, House Committee on Natural Resources
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	HB4099 by Phillips (Relating to the creation of the Preston Summit Municipal Utility District No. 1 of Grayson County; providing authority to impose a tax and issue bonds; granting the power of eminent domain. ), Committee Report 1st House, Substituted

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 8254 to create Preston Summit Municipal Utility District No. 1 of Grayson County 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 states that the District shall make available any district water or wastewater facility to each person that holds a certificate of convenience and necessity for land in the District. Also, the District may not provide retail water and wastewater services. The bill also gives the District road powers under Article III, Section 52 of the Texas Constitution. The temporary directors may not hold the election until the City of Gunter has annexed the District. 
 
1)  Population - The detailed description of the proposed boundaries does not allow staff to develop precise population estimates. The 2000 Census population of Grayson County was 110,595, with 26,766 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 163,711 by 2020, the County-Other population is projected to increase to 26,799.
 
2)  Location - The district is located within Grayson County.
 
3)  Comments on Powers/Duties Different from Similar Types of Districts  -  The District will have road powers.  If district territory is outside of the corporate limits of City of Gunter, the District shall maintain, improve, operate, and repair any road located in that territory. Temporary directors were not named.  The District may be divided into two new districts.   The bill states that the District shall make available any district water or wastewater facility to each person that holds a certificate of convenience and necessity for land in the District.  Also, the District may not provide retail water and wastewater services.
 
4)  Overlapping Services  -  The stated boundaries of Tracks 1, 3, and 4 form a closure; however, the stated boundaries for Tract 2 do not form a closure. A metes and bounds description for Tract 2 (preferably with the source Abstract listed) is needed. 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 providers for Tract 1 may be: City of Dorchester (CCN: 12013); Elmont Farmington WSC (CCN: 10183); and, Gunter SUD (CCN: 10150).  The overlapping service providers for Tracts 2, 3 and 4 may be: Elmont Farmington WSC (CCN: 10183), and City of Dorchester (CCN: 12013). 
 
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-seven percent of Grayson County water use in 2004 was for municipal purposes, with 11 percent for manufacturing. Fifty-nine percent of the total water use, and 57 percent of the municipal use, comes from groundwater sources.