Austin, Texas
May 4, 2007

Honorable Robert Puente, Chair, House Committee on Natural Resources
John S. O'Brien, Director, Legislative Budget Board
SB323 by Deuell (Relating to the creation of the Fairfields Municipal Utility District of Kaufman County; providing authority to impose a tax and issue bonds; granting the power of eminent domain. ), Committee Report 2nd 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 creates Fairfields Municipal Utility District (District) in Kaufman County with the powers and duties of a municipal utility district under Water Code Chapters 49 and 54. 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 District is subject to confirmation election by the voters and the bill names the temporary directors.


1)  Population – The detailed description of the proposed boundaries does not allow staff to develop precise population estimates. The 2000 Census population of Kaufman County was 71,313, with 10,239 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 148,580 by 2020, the County-Other population is projected to increase to 14,426.


2)  Location – The proposed district is located within Kaufman County.


3) Comments on Powers/Duties Different from Similar Types of Districts – The District will have road powers. The District may be divided into multiple districts. If the District has not been confirmed before September 1, 2009, then the District is dissolved September 1, 2009.


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 Districts’ geographic location mapped within Kaufman County are needed to complete overlapping services checks. The District may overlap CCN No. 10819: Able Springs Water Supply Corporation, CCN Nos. 10851 and 20474: the City of Terrell, CCN No. 10825: College Mound Water Supply Corporation, and CCN Nos. 13108 and 20995: Terrell HRC LP.


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 – Eighty-four percent of Kaufman County water use in 2004 was for municipal purposes. Ninety-eight percent of Kaufman County’s water use comes from surface water sources.

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