LEGISLATIVE BUDGET BOARD
Austin, Texas
 
WATER DEVELOPMENT POLICY IMPACT STATEMENT
 
81ST LEGISLATIVE REGULAR SESSION
 
April 12, 2009

TO:
Honorable Allan Ritter, Chair, House Committee on Natural Resources
 
FROM:
John S. O'Brien, Director, Legislative Budget Board
 
IN RE:
HB4711 by Flynn (Relating to the creation of the Hunt County Municipal Utility District No. 1; providing authority to impose a tax and issue bonds; granting a limited 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 that:

The bill amends Subtitle F, Title 6, Special District Local Laws Code by adding Chapter 8341 to create Hunt 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, Texas Constitution and Article III, Section 52 and 52-a, 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 names five temporary directors. The directors are: Jason Claunch, Jon Smalling, Spencer Taylor, Derek Rogers, and Rome Barnes. 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 detailed description of the proposed boundaries does not allow staff to develop precise population estimates.  Based on the general boundaries determined from HB 4711, the population in the 2000 census could be as high as 1960.  Population growth in that area since the 2000 census is unknown.

 

Hunt County as a whole had a 2000 Census population of 76,596 and is projected to grow to 82,948 in 2010 and to 94,401 in 2020 by the 2007 State Water Plan.  The County Other population was 9,126 in 2000 and is projected to grow to 10,135 in 2010 and to 12,098 in 2020. 

 

2)     Location – The proposed district is a 6,600 acre tract located along Highway 380 west of the Greenville city limits in the central-western part of Hunt County.  A portion of the proposed MUD borders the extraterritorial jurisdiction of the city of Greenville and while it is not possible to determine precise district boundaries, there is a potential overlap with the CCN boundaries of the Caddo Basin Special Utility District (SUD). 

 

3)  Comments on Powers/Duties Different from Similar Types of Districts - The bill grants the District road powers. The District has the power of eminent domain but it is limited to within the District for road projects or recreational facilities. An inclusion in extraterritorial jurisdiction and development agreement is required for land included in the ETJ of the City of Greenville. The City of Greenville may annex a District only if water, wastewater, drainage, and road facilities have been constructed to serve 95 percent of the district and if the annexation occurs 20 years after the creation of the district. The District has the ability to levy a contract tax. The District may be divided into two or more districts. The District may construct, maintain, and operate rail facilities.

 

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 Hunt County is needed to complete overlapping services check. The district may overlap the following providers: Tract 1; Caddo Basin Special Utility District, Sabine River Authority, (CCN: 10165) Caddo Basin Special Utility District, (CCN: 10836 and 20472) City of Greenville, Tracts 4-10; Caddo Basin Special Utility District, Sabine River Authority, and (CCN: 10165) Caddo Basin Special Utility District, Tracts 2 and 3; (CCN: 10165) Caddo Basin Special Utility District, (CCN: 10836 and 20472) City of Greenville, (CCN: 10809) Hickory Creek Special Utility District, Caddo Basin Special Utility District, and Sabine River Authority.

 

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 - Within Hunt County, 9 percent of the total water used was groundwater in 2004.  Of this, 81 percent was for municipal purposes.  In Hunt County 71 percent of the groundwater is pumped from the Nacatoch Aquifer and 29 percent from the Woodbine Aquifer.



Source Agencies:
582 Commission on Environmental Quality, 580 Water Development Board
LBB Staff:
JOB, CL