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 8314 to create Van Alstyne County Municipal Utility District No. 2 of Collin County (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 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 simply on the Original Texas Land Surveys mentioned in HB 4751, the population in the 2000 census could be as high as 342.  Population growth in that area since the 2000 census is unknown. 
 
The 2007 State water plan projects Collin County to grow from 491,774 in 2000 to 756,088 in 2010.  The Collin County portion of South Grayson WSC, of which the proposed district overlaps, is projected to grow from 1,440 in 2000 to 1,500 in 2010.  The City of Van Alstyne, just to the north of the district, is projected to grow from 2,502 in 2000 to 5,014 in 2010.  The US Highway 75 corridor coming out of the Dallas metropolitan area is identified as a high growth corridor, so growth is expected to be high in this area.

2)     Location - The proposed district’s initial boundaries are described in a combination of Original Texas Land 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 district will be located in northern Collin County along US Highway 75 and State Highway 5.  The district is south of the City of Van Alstyne (Grayson County), northeast of the City of Anna (Collin County) and northeast of the City of Weston (Collin County).  The district may overlap a small portion of Weston.  A significant portion of the district may be in the water CCN area (10182) for South Grayson Water Supply Corporation (WSC).

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, but the District must have the city’s consent within the corporate limits of the City of Van Alstyne.  The District has the authority to impose a contract tax and for road projects.  The District may divide into two or more districts.   The District may not annex land, unless given consent by the City of Van Alstyne.

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 Certificate of Convenience and Necessity (CCN) Nos. 12976 and 20898 for City of Anna, CCN No. 10181 for City of Van Alstyne, CCN No. 10182 for South Grayson Water Supply Corporation, and Greater Texoma Utility Authority.

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 Collin County, only 4 percent of the total water use was groundwater (Trinity Aquifer) in the year 2000.  Seventy-eight percent of the groundwater use was for municipal use.  Both South Grayson WSC’s and the City of Van Alstyne’s current water supplies are the Trinity and Woodbine Aquifers.  Future water management strategies include the further development of groundwater, as well as the utilization of existing and proposed surface water sources.  It is expected that the proposed district would utilize groundwater similar to surrounding systems and may tie into a surface water system at some point in the future.
 
While HB 1836 does include language requiring the approval of each municipality whose corporate limits or extraterritorial jurisdiction the district is located, no mention is made to the possible overlap with the South Grayson WSC’s CCN area.