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 amends Subtitle F, Title 6, Special District Local Laws Code by adding Chapter 8312 to create East Denton County Municipal Utility District No. 1 (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, 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 Texas Commission on Environmental Quality (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 East Denton County Municipal Utility District (MUD) No. 1 is located in a county that is expected to grow in the future, and although the proposed district is in a rural area, development is anticipated.

The 2007 State Water Plan projects Denton County to grow from its 2000 population of 432,976 people to 720,064 in 2010 and to 953,668 in 2020.  The county other population of Denton County was 21,332 in 2000 and is expected to grow to 34,643 in 2010 and to 43,946 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 proposed MUD lies in the northeastern part of Denton County.  The proposed district is east of FM 1385 and north of US 380.

3)  Comments on Powers/Duties Different from Similar Types of Districts-The District has the power of eminent domain limited to inside the District’s boundaries for road projects and recreational facilities. The District has the ability to impose a contract tax. The bill gives the District authority for road projects.

4)  Overlapping Services- The stated boundaries form an acceptable closure. An area map containing at least two reference points (major road names, road intersections) and the proposed district’s geographic location mapped within Denton County is needed to complete overlapping services check.

The District may overlap Upper Regional Water District, Certificate of Convenience and Necessity (CCN) Nos. 11157: Aqua Texas, Inc,  CCN Nos. 12967 and 20888: City of Prosper, CNN No. 11856 and 20930: Mustang Special Utility District.

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 Denton County, about 17 percent of the total water used was groundwater in 2004.  Of the total groundwater used, 90 percent was used for municipal purposes.  Groundwater within Denton County is primarily pumped from the Trinity Aquifer with 83 percent of the groundwater pumped coming from the Trinity Aquifer and 17 percent pumped from the Woodbine Aquifer.