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 Montgomery County Municipal Utility District No. 121 (District) 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 also grants the District road powers under Section 52, Article III of the Texas Constitution.  The bill authorizes the District to issue tax bonds, subject to voter approval, for recreational facilities.  The bill also grants the power of eminent domain except in regards to recreational facilities.  The District is subject to confirmation election by the voters, and municipal consent.

1)   Population - The detailed description of the proposed boundaries does not allow staff to develop precise population estimates.  The 2000 Census population of Montgomery County was 293,768, with 99,788 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 542,051 by 2020, the County-Other population is projected to increase to 198,870.
 
2)   Location - The district is located within Montgomery County.

3)  Comments on Powers/Duties Different from Similar Types of Districts-    The District will have road powers, and the power to issue tax debt for recreational facilities. 
 
4)  Overlapping Services-    The stated boundaries form a closure.  An area map containing at least two reference points (major road names, road intersections) and the proposed district’s geographic location mapped within Montgomery County is needed to complete overlapping services check.  The known overlapping service providers may be: CCN Nos. 10339 and 20135, City of Conroe; CCN No. 11157, Aqua Utilities, Inc.; CCN No. 12887, MSEC Enterprises, Inc.; CCN No. 11612, Quadvest, Inc.; and CCN No. 20960, The Grand Lake Utility Company, Inc.
 
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 - 95 percent of Montgomery County water use in 2004 was for municipal purposes, with 3 percent for manufacturing.   99 percent of the total water use, and 100 percent of the municipal use, comes from groundwater sources.