LEGISLATIVE BUDGET BOARD
Austin, Texas
 
WATER DEVELOPMENT POLICY IMPACT STATEMENT
 
81ST LEGISLATIVE REGULAR SESSION
 
April 20, 2009

TO:
Honorable Allan Ritter, Chair, House Committee on Natural Resources
 
FROM:
John S. O'Brien, Director, Legislative Budget Board
 
IN RE:
HB4725 by Rose (Relating to the creation of the Caldwell 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 (TPWD) 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 8307 to create Caldwell 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 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 names 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 subsequent temporary directors listed in the petition.
 
The District has the authority to levy a contract tax and for road projects. The District has the power of eminent domain power limited to within the district’s boundaries for road projects and recreational facilities. The District may be divided into two or more districts.
 
The bill becomes effective immediately with two-thirds vote of all the members or on September 1, 2009.

 

1)     Population - The proposed district is located in rural Caldwell County. According to the 2007 State Water Plan, Caldwell County is projected to grow from 32,194 people in 2000 to 45,958 in 2010 and to 59,722 in 2020.
 
Martindale is the closest city and had a population of 953 in 2000 and is projected to grow to 1,150 in 2010 and to 1,291 in 2020.

 

2)     Location - The proposed district is located in western Caldwell County between the cities of Martindale and Fentress, near the intersection of Highway 80 and County Road 110. The proposed area does not appear to overlap any known CCN boundaries.

 

3) Comments on Powers/Duties Different from Similar Types of Districts – The District has the authority to levy a contract tax and for road projects. The District has the power of eminent domain power limited to within the district’s boundaries for road projects and recreational facilities. The developer may not begin construction or development until they have entered into a contract for water and sewer services for the project, and must enter into an agreement with the Texas Department of Transportation, the County Commissioners Court and any other governing body before beginning a project that improves roads surrounding the District.  The District may be divided into two or more districts.

 

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 Caldwell County is needed to complete overlapping service check. The District may overlap Canyon Regional Water Authority, Guadalupe-Blanco River Authority, Certificates of Convenience and Necessity (CCN) No. 10293 for Maxwell Water Supply Corporation (WSC), CCN No. 12435 for Staples Farmers Corporation, CCN No. 10313 for Tri Community WSC.

 

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 Caldwell County, 60 percent of the total water used in 2004 was groundwater. Of this, over 93 percent was for municipal purposes. Groundwater in Caldwell County is primarily pumped from the Carrizo-Wilcox Aquifer.



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