TO:	Honorable Royce West, Chair, Senate Committee on Intergovernmental Relations
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	SB1967 by Nichols (Relating to the creation of the Montgomery County Municipal Utility District No. 124; 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 8232 to create Montgomery County Municipal Utility District No. 124 (District) 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 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. 
 
4)  Overlapping Services-    The stated boundaries did not form an acceptable closure for Track 1. There is insufficient information provided in the Bill because an area map containing at least two reference points (major road names, road intersections) and the proposed District’s geographic location mapped within the county are needed for Track 1 and Track 2.  A revised metes and bounds description for Track 1 is needed to determine an overlapping service.  The known overlapping service providers for Track 2 may be: AquaSource Development Inc., CCN Nos. 12902 and 20867; BC Utilities Inc., CCN Nos. 13068 and 20987; Silverleaf Resorts Inc., CCN Nos. 11072 and 20815; Wagner Services, CCN Nos. 11981 and 20651; Far Hills Utility District; and, Montgomery County Utility District.
 
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.