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 Van Alstyne Municipal Utility District No. 1 of Grayson County (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 and Article III, Section 52 of the Texas Constitution to benefit the property within the District. 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 does not name five temporary directors. The majority owners of the assessed land value inside the District may submit a petition requesting the TCEQ appoint the five temporary directors listed in the petition.

The bill becomes effective immediately with two-thirds vote of the members or on September 1, 2009.

1)     Population – The proposed Van Alstyne Municipal Utility District No. 1 of Grayson County is located in a county that is expected to grow in the future.  While the proposed MUD covers a rural area, development is anticipated.

According to the 2007 State Water Plan, Grayson County is projected to grow from a population of 110,595 in the year 2000 to 133, 913 in 2010 and to 163,711 in 2020.  The county-other population of Grayson County was 26,766 people in 2000 and is projected to remain relatively constant through 2020, growing only slightly.

2)     Location – The proposed district is located in the south central part of Grayson County bordering Collin County.  It is southwest of Van Alstyne, southeast of Elmont, and next to US-75.  It appears that the proposed area may overlap with the boundaries of the South Grayson Water Supply Corporation.

3)  Comments on Powers/Duties Different from Similar Types of Districts- The District will have the authority for road projects. The District will have the power of eminent domain, but it is limited to within the District for road projects or recreational facilities.  The bill gives the District the ability to levy a contract tax. The District may be divided into two or more districts with consent of the City of Van Alstyne.

4)  Overlapping Services- The bill states boundaries that form an acceptable closure. It provides insufficient mapping information to complete an overlapping services check because it does not submit an area map containing at least two reference points (major road names, road intersections) and the proposed district’s geographic location mapped within Grayson County. Tract 1 may overlap with existing service providers as follows: Greater Texoma Utility Authority, Red River Authority of Texas, Certificate of Convenience and Necessity (CCN) Nos. 10181 and 20067: City of Van Alstyne, and CCN No. 10182: South Grayson WSC. Insufficient information was provided to complete an overlap check of Tract 2.

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 Grayson County, 41 percent of the water used was groundwater in 2003.  Of the total groundwater used, about 70 percent was for municipal purposes.  The groundwater in Grayson County is drawn almost equally from the Woodbine and Trinity aquifers in 2003.  Water management strategies for the area include municipal conservation in Van Alstyne, installing supplemental wells on the Trinity and Woodbine aquifers, and purchasing from additional water providers.