TO:	Honorable Robert Puente, Chair, House Committee on Natural Resources
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	SB682 by Hegar (Relating to the creation of the Fulshear Municipal Utility District No. 1 of Fort Bend County; providing authority to impose a tax and issue bonds; granting the power of eminent domain.), 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:
 
The bill creates Fulshear Municipal Utility District No. 1 (District) in Fort Bend 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.
 

1)   Population - The description of the proposed boundaries does not allow staff to develop precise population estimates. It appears that at least some of this district may lie within the city of Fulshear.  The 2000 Census population of Fort Bend County was 354,452, with 38,168 living in areas identified in the 2007 State Water Plan as “County-Other” (outside cities of more than 500 and established water utility districts), and with 716 in Fulshear.  The total county population is projected to increase to 630,624 by 2020, the County-Other population is projected to increase to 120,315, the population of Fulshear is projected to increase to 1,056.
 
2)   Location - The district is located within Fort Bend County.

3)  Comments on Powers/Duties Different from Similar Types of Districts-    The District will have road powers.  Sections 49.181 and 49.182 of the Texas Water Code do not apply to the District’s road projects.  The District may be divided into multiple districts.  If the District has not been confirmed before September 1, 2011, then the District is dissolved on September 1, 2011.
 
4)  Overlapping Services-    The stated boundaries form a closure. The District may overlap the City of Fulshear’s public water system.
 
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 - 42 percent of Fort Bend County water use in 2004 was for municipal purposes, with 33 percent for power generation and 19 percent for irrigation.   53 percent of the total water use and 92 percent of the municipal water use comes from groundwater sources.