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 8319 to create Gray 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, and Chapters 375, 377, and 380, Local Government Code, 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 proposed district is located in rural Gray County. According to the 2007 State Water Plan, Gray County had a population of 22,744 in 2000 and projected to be 21,988 in 2020. The county other population of Gray County was 559 in 200 and projected to be 540 in 2020.

2)     Location - The proposed district is located in northwest Gray County, north of the City of Pampa and east of SH 70. 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 for road projects.  The District has the power of eminent domain limited to inside the District’s boundaries for road projects or recreational facilities. The District has the ability to levy a contract tax.  The District may be divided into two or more districts.

4) Overlapping Services - The stated boundaries form an acceptable.  The district may overlap the following providers: Certificate of Convenience and Necessity (CCN) Nos. 10636 & 20255 for Pampa Municipal Water System; CCN No. 12212 for J&J Raw Water Utility Inc.; CCN No. 12464 for Walnut Creek Estates W/R System; Canadian River Management Water Authority; Red River Authority of Texas.

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 Gray County, 92 percent of the total water used in 2004 was groundwater. Of this, 3.4 percent was for municipal purposes and 84 percent was for irrigation. Groundwater in Gray County is primarily pumped from the Ogallala Aquifer.