TO:	Honorable Robert Puente, Chair, House Committee on Natural Resources
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	SB1990 by Hegar (Relating to the creation of the Calhoun County Municipal Utility District No. 1; 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:
 
No changes from the Senate Committee Substitute version.  The bill creates Calhoun County Municipal Utility District No. 1 (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 may be divided into two districts.  The District is subject to confirmation election by the voters. If the District has not been confirmed before September 1, 2011, then the District is dissolved on September 1, 2011.  
 

1)   Population- The detailed description of the proposed boundaries does not allow staff to develop precise population estimates.  The 2000 Census population of Calhoun County was 20,647, with 778 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 26,610 by 2020, the County-Other population is projected to be 287.
 
2)   Location - The district is located within Calhoun County.

3)  Comments on Powers/Duties Different from Similar Types of Districts-   None.
 
4)  Overlapping Services-    The stated boundaries do not 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 Calhoun County is needed to completeoverlapping service check. The District may overlap Calhoun County WCID No. 1.
 
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- 75 percent of Calhoun County water use in 2004 was for irrigation, with 21 percent for manufacturing and 3 percent for municipal purposes.   96 percent of the total water use, and 87 percent of the municipal use, comes from surface water sources.