TO:	Honorable Royce West, Chair, Senate Committee on Intergovernmental Relations
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	SB1997 by Jackson, Mike (Relating to the creation of the Galveston County Municipal Utility District No. 65; providing authority to impose a tax and issue bonds; granting the power of eminent domain. ), Committee Report 1st 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 Galveston County Municipal Utility District No. 65 (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 Galveston County was 250,158, with 9,792 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 284,731 by 2020, the County-Other population is projected to be 7,429.
 
2) Location - The district is located in Galveston County.
 
3) Comments on Powers/Duties Different from Similar Types of Districts -  The District may exercise the powers given to a navigation district under Water Code Chapters 60 and 62.  The District will have road powers. The bill did not include the names of the temporary directors. 
 
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 references points (major road names, road intersections) and the proposed district’s geographic location mapped within Galveston County is needed to complete overlapping service check. The District may overlap CCN Nos. 10132 and 20050: City of Texas City.
 
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 - Fifty-nine percent of Galveston County water use in 2004 was for municipal purposes, with 33 percent for manufacturing. Ninty-two percent of the total water use, and 87 percent of the municipal use, comes from surface water sources.