LEGISLATIVE BUDGET BOARD
Austin, Texas
 
WATER DEVELOPMENT POLICY IMPACT STATEMENT
 
80TH LEGISLATIVE REGULAR SESSION
 
April 24, 2007

TO:
Honorable Robert Puente, Chair, House Committee on Natural Resources
 
FROM:
John S. O'Brien, Director, Legislative Budget Board
 
IN RE:
HB4118 by Phillips (Relating to the creation of the Kimberlin Ranch Municipal Utility District No. 2 of Grayson County; providing authority to impose a tax and issue bonds; granting the power of eminent domain.), As Introduced

The Legislative Budget Board, in cooperation with the Texas Water Development Board (TWDB) and the Texas Commission on Environmental Quality (TCEQ), has determined that:
 
The bill amends Special District Local Laws Code by adding Chapter 8265 to create Kimberlin Ranch Municipal Utility District No. 2 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 District shall make its water or wastewater facilities available to the entity that holds the CCN for the District’s area.  The bill also gives the District road powers, under Article III, Section 52 of the Texas Constitution.  The District would have the power of eminent domain.  The District must be confirmed before September 1, 2011; otherwise the District is dissolved.  On or after September 1, 2007, a person who owns land in the district may petition the Texas Commission on Environmental Quality requesting the Commission appoint as temporary directors the five persons named in the petition. The bill also sets out a procedure allowing the District to divide.  
 

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.  The District would also have the authority to divide into two districts.
 
4)  Overlapping Services-    The stated boundaries form a closure for Tracts No.2 and No. 3, but do not form a closure for Tract No. 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: CCN No. 10150:Gunter Special Utility District and CCN Nos. 13105 and 20951:City of Gunter.
 
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 - 67 percent of Grayson County water use in 2004 was for municipal purposes, with 11 percent for manufacturing.   59 percent of the total water use, and 57 percent of the municipal use, comes from groundwater sources.


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