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 8355 and 8356 to create Montgomery County Municipal Utility District Nos. 128 and 129 (Districts) with the powers and duties of municipal utility districts under Water Code Chapters 49 and 54. The purpose of the Districts includes providing works and projects under powers conferred by Article XVI, Section 59, Texas Constitution and Article III, Section 52, Texas Constitution, to benefit the property within the Districts. 

The Districts are subject to confirmation election by the voters. The Districts are subject to consent of all municipalities in whose corporate limits or extraterritorial jurisdiction the district is located. 

The bill names five temporary directors for each District. If permanent directors have not been elected, the majority owners of the assessed land value inside the District may submit a petition requesting the TCEQ appoint the five successor temporary directors as listed in the petition.

The Districts will have the authority for road projects. The Districts will have the power of eminent domain limited to within the Districts for road projects or recreational facilities.  The Districts have the ability to impose contract tax. The Districts may be divided into two or more districts. The Districts may undertake water and sanitary sewer improvements inside or outside the District’s boundaries. The bill becomes effective September 1, 2009.

1)     Population - The proposed districts are located in rural Montgomery County. The 2007 State Water Plan projects Montgomery County to grow from 293,768 in 2000 to 417,692 in 2010 and continue to grow to 542,051 in 2020. The county other population for Montgomery County was 99,788 in 2000 and is projected to grow to 198,870 in 2020.

2)     Location - The proposed districts are located northwest of Panorama Village in north-central Montgomery County. The districts do not appear to overlap any known CCN boundaries.

3) Comments on Powers/Duties Different from Similar Types of Districts - The Districts will have the authority for road projects. The Districts will have the power of eminent domain, but it is limited to within the Districts for road projects or recreational facilities.  The Districts have the ability to impose contract tax. District may be divided into two or more districts. The Districts may undertake water and sanitary sewer improvements inside or outside the District’s boundaries.

4) Overlapping Services - Some tracts within Montgomery County MUD No. 128’s listed boundaries do not form an acceptable closure.  An area map containing at least two reference points (major road names, road intersections) and the proposed Districts’ geographic locations mapped within Montgomery County is needed to complete overlapping services check. Montgomery County MUD No. 128 may overlap the following providers: Certificate of Convenience and Necessity (CCN) Nos. 13131 and 20814 for Algonquin Water Resource, CCN Nos. 12902 and 20867 for AquaTexas Inc., CCN Nos. 11981 and 20651 for Wagner Services, Far Hills Utility District (UD), Montgomery County UD No. 2, CCN No. 10339 for City of Conroe, and CCN No. 12983 for Monarch Utilities LP.

The boundaries for Montgomery County MUD NO.129 form an acceptable closure. An area map containing at least two reference points (major road names, road intersections) and the proposed Districts’ geographic locations mapped within Montgomery County is needed to complete overlapping services check. Montgomery County MUD No. 129 may overlap the following providers: CCN No. 12983 for Monarch Utilities LP and CCN No. 10339 for City of Conroe.

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 Montgomery County, over 98 percent of the total water used in 2004 was groundwater. Of this, almost 97 percent was used for municipal purposes. Groundwater in Montgomery County is pumped from the Gulf Coast Aquifer. Water management strategies for Montgomery County include municipal conservation and drilling new groundwater wells. Additional strategies are in place to incorporate additional surface water to reduce the county’s reliance on groundwater resources.