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 would amend the Special District Local Laws Code by adding Chapter 8239 to create the Gunter Municipal Utility District No. 2 (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 would give the District road powers under Article III, Section 52 of the Texas Constitution. The District would be required to comply with municipal consent requirements. The District would be subject to a confirmation election.

1)     Population – The detailed description of the proposed boundaries does not allow staff to develop precise population estimates. The 2000 Census population of Grayson County was 110,595, with 26,766 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 163,711 by 2020, the County-Other population is projected to increase to 26,799.

2)     Location – The district is located within Grayson County.

3)  Comments on Powers/Duties Different from Similar Types of Districts – The District would have road powers. The District may not be dissolved if all the property of the district is annexed by the City of Gunter (City), unless it is dissolved under Section 43.074, Local Government Code. The initial directors may not hold an election until all of the territory of the District is included in the corporate limits of the City and the City has consented to the District’s creation.

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 reference points (major road names, road intersections) and the proposed district’s geographic location mapped with the counties is needed. The overlapping service providers may be the City of Celina; the City of Gunter (CCN Nos. 13105 and 20951); and, Gunter Special Utility District (CCN No. 10150).

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 – Sixty-seven percent of Grayson County water use in 2004 was for municipal purposes, with 11 percent for manufacturing. Fifty-nine percent of the total water use, and 57 percent of the municipal use, comes from groundwater sources.