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 creates Fort Bend Waller Counties Municipal Utility District No. 2 (District) with the powers and duties with the powers and duties of a municipal utility district under Water Code Chapters 49 and 54 and road powers under Section 52, Article III, Texas Constitution.

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 except for road projects or recreational facilities.  The District is subject to confirmation election by the voters.  The District is subject to consent of all municipalities in whose corporate limits or extraterritorial jurisdiction the district is located.

The bill names five temporary directors, and directs the TCEQ, in response to a landowner petition, to appoint additional temporary directors if permanent directors have not been elected by the time the terms of the initial temporary directors expire.

1)     Population – The proposed Fort Bend- Waller Counties Municipal Utility District No. 2 lies in two counties that are expected to grow in the future and although the area is very rural, development is anticipated.

Fort Bend County had a population of 354,452 in 2000 and is projected to grow to 490,072 in 2010 and to 630,624 in 2020.  The county-other population for Fort Bend County was 38,168 in 2000 and is expected to grow to 64,065 in 2010 and continue up to 120,315 in 2020.

Waller County had a population of 32,663 in 2000 and it is expected to grow to 41, 137 in 2010 and to 51,175 in 2020.  The county-other population for Waller County was 16, 755 in 2000 and is projected to grow to 22,746 in 2010 and to 29,844 in 2020.

2)     Location – The proposed district’s initial boundaries are described in a combination of county surveys and metes and bounds.  Due to the complexity of these boundaries for the various sub-areas of the district, staff is able to determine only the general location of the proposed district.

The district will be located in the northern point of Fort Bend County crossing over county lines in to the southeastern corner of Waller County.  The proposed area appears to be north of IH-10 and south of US-90.  The district overlays part of the western city limits of Katy.

3) Comments on Powers/Duties Different from Similar Types of Districts-The District will have road powers. The District will have the ability to levy a contract and a contract tax upon voter approval.

4) Overlapping Services- The stated boundaries form an acceptable closure. With information provided, it appears that the District boundaries may overlap Brookshire Katy Drainage District, Fort Bend County Drainage District, West Harris County Regional Water Authority, and Willow Point Municipal Utility District. An area map containing at lest two reference points (major road names, road intersections) and the proposed district’s geographic location mapped in Fort Bend and Waller Counties is needed to complete overlapping services check.

5) TCEQ 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 - Within Fort Bend County, 50 percent of the total water used was groundwater in 2004.  Around 79 percent of the groundwater used was for municipal purposes.  Groundwater is primarily pumped from the Gulf Coast Aquifer (96%), while the rest comes from the Brazos River Alluvium Aquifer.

Within Waller County, 97 percent of the total water used was groundwater in 2004.  Around 14 percent of the groundwater used was for municipal purposes and 83 percent was used for irrigation.  Groundwater is pumped from the Gulf Coast Aquifer.

Future water management strategies for Katy include municipal conservation and additional yield from Lake Houston.