TO:	Honorable Royce West, Chair, Senate Committee on Intergovernmental Relations
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	SB2011 by Estes (Relating to the creation of the Morning Star Ranch Municipal Utility Districts Nos. 1 and 2 of Parker County; 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 the following:
 
The bill creates Morning Star Ranch Municipal Utility District Nos. 1 and 2 of Parker County (Districts) with the powers and duties of municipal utility districts under Water Code Chapters 49 and 54. The purpose of the Districts include: providing works and projects under powers conferred by Article XVI, Section 59 of the Texas Constitution to benefit the property within the Districts and the power of eminent domain. The bill indicates that the Commission shall appoint the Districts’ temporary directors. The Districts are 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 Parker County was 88,495, with 42,671 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 172,136 by 2020, the County-Other population is projected to be 37,824.
 
2)  Location  - The district is located in Parker County.
 
3)  Comments on Powers/Duties Different from Similar Types of Districts  -  The Districts will have road powers. If the Districts have not been confirmed before September 1, 2011, then the Districts are dissolved on September 1, 2011.
 
4)  Overlapping Services  -  The stated boundaries for Morning Star Ranch MUD Nos. 1 and 2 form a closure. Area maps containing at least two reference points (major road names, road intersections) and the Districts’ geographic locations mapped within Parker County are needed. There are no known overlapping service providers.
 
5)  TCEQ's Supervision  -  As with general law districts, the TCEQ will have general supervisory authority over these Districts, including bond review authority and review of financial reports.
 
6)  Water Use - Eighty-two percent of Parker County water use in 2004 was for municipal purposes, with 7 percent for livestock. Fifty-one percent of the total water use, and 45 percent of the municipal use, comes from surface water sources.