TO:	Honorable Robert Puente, Chair, House Committee on Natural Resources
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	HB4127 by Puente (Relating to the creation of the Southern Travis Special Utility District; providing authority to 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 that:
 
This version of the bill adds Section 7214.003 which requires a confirmation election and indicates that if the District is not confirmed by September 1, 2011, then the District is dissolved September 1, 2011.  This version also adds Section 7214.022 which requires the District to hold an election to confirm the District and to elect not more than 11 directors.  This version also removes Section 7214.102 which gave the District eminent domain powers under Texas Water Code Chapters 49 and 65.  This version also gives the District road powers.  The bill amends Special District Local Laws Code by adding Chapter 7214 to create Southern Travis Special Utility District with the powers and duties of a special utility district under Water Code, Chapters 49 and 65, and Article XVI, Section 59 of the Texas Constitution.  The District is subject to confirmation election. The District is not being created from a Water Supply Corporation’s conversion, but it may annex land released from an existing Water Supply Corporation’s Certificate of Convenience and Necessity. 
 

1)   Population - The detailed description of the proposed boundaries does not allow staff to develop precise population estimates.  The 2000 Census population of Travis County was 812,280, with 44,016 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 1,185,499 by 2020, the County-Other population is projected to be 27,853.
 
2)   Location - The district is located within Travis County.

3)  Comments on Powers/Duties Different from Similar Types of Districts-    The District will have road powers.  If the District is not confirmed by September 1, 2011, then the District is dissolved September 1, 2011.
 
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 Hays County is needed to complete overlapping service check.  A metes and bounds description (preferably with the source Abstract listed) is also needed.
 
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 - 37 percent of Travis County water use in 2004 was for municipal purposes, with 26 percent for manufacturing.   94 percent of the total water use, and 93 percent of the municipal water use, comes from surface water sources.