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 8 to create Lake Texoma 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 project under powers conferred by Article XVI, Section 59, Texas Constitution 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 District may annex land upon landholder petition or annexation by the City of Denison. The District may annex the land within the District previously owned by United States Army Corps of Engineers without consent of the City of Denison. The District may be dissolved by the ordinance of the City of Denison subject to certain requirements as listed in the bill.

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 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 - Based on the Original Texas Land Surveys mentioned in House Bill 4737, the area’s population in the 2000 census could be as high as 343.  Population growth in the area since 2000 is unknown.

According to the 2007 State Water Plan, Grayson County is projected to grow from a population of 110,595 in 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.

2)     Location - The proposed district is located in northern Grayson County near the intersection of FM 406 and FM 84. The area is north of Pottsboro and northwest of Denison. While it is not possible to determine precise district boundaries, there are potential overlaps with the CCN boundaries of the City of Dennison and the City of Pottsboro.

3) Comments on Powers/Duties Different from Similar Types of Districts - The District will have the authority for road projects and the power of eminent domain limited to within the District’s boundaries for road projects or recreational facilities. The District may impose an assessment and a contract tax. The District may be divided into two or more districts. The District is eligible to be included in special zones.

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 Texoma Municipal Utility District No. 1 is needed to complete overlapping services check. The district may overlap the following providers: Greater Texona Utility Authority, Red River Authority of Texas, Certificate of Convenience and Necessity (CCN) Nos. 10204 & 20077 for City of Denison, CCN Nos. 12954 & 20884 for City of Pottsboro, CCN No. 12983 for Monarch Utilities LLP, CCN Nos. 13016 & 20919 for Munson Point Property Owners’ Association.

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. 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 in the Trinity and Woodbine aquifers, and purchasing additional water from water providers.