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 C, Title 4, Special District Local Laws Code by adding Chapter 3869 to create the Padre Island Gateway Municipal Management District (District) with the powers and duties of a municipal utility district under Water Code Chapters 49 and 54 and a municipal management district. The purpose of the District includes providing works and projects under powers conferred by Article XVI, Section 59, Texas Constitution, Article III, Section 52 and 52-a, Texas Constitution, Chapters 1371 and 1509, Government Code, Subchapter A, Chapter 372, and Chapters 375, 380 and 505, Local Government Code, Chapters 311 and 312, Tax Code, and Chapter 441, Transportation Code, to benefit the property within the District. 

The bill states that the District will be governed by five voting directors and three nonvoting ex officio directors. The governing body of the city of Corpus Christi will appoint the five voting directors. Of the three nonvoting directors, one director will be the assistant city manager of the city appointed by the Corpus Christi City Manager, one director will be the chief financial officer of the city, and one director will be the economic director of the city. The board shall appoint a presiding officer, an assistant presiding officer, and a secretary. The bill names the initial voting directors.

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 Nueces County. According to the 2007 State Water Plan, Nueces County is projected to grow from 313,645 in 2000 to 358,278 in 2010 and to 405,492 in 2020. The county-other population of Nueces County was 7,748 in 2000 and is projected to be 5,252 in 2010 and 3,560 in 2020.

2)     Location - The proposed district is located on Padre Island in Nueces County.

3) Comments on Powers/Duties Different from Similar Types of Districts - The District is eligible for inclusion in special zones. The District may enter into a contract for improvement projects including road projects. The District may adopt rules to provide for public safety and security in the District and may enforce these rules by injunctive relief. The board may change the District’s name by resolution. The District may regulate the private use of public roadways, open spaces, parks, sidewalks, or similar public spaces. The board may add or remove territory as provided under Subchapter J, Chapter 49, Water Code, and Section 54.016, Water Code except that additional or removal must be approved by the governing body of the city and the owners of the territory. The District may divide into two or more districts prior to issuance of debt. The District may create economic development. The District may be dissolved by city ordinance. The District does not have the power of eminent domain. The District may impose an assessment on property within the District. Residential property will not be exempt from assessments, impact fees, and taxes as provided in Section 375.161, Local Government Code.

4) Overlapping Services - The stated boundaries do not 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 Nueces County is needed to complete overlapping services check.  A metes and bounds description is needed.

5) TCEQ Supervision - The TCEQ supervision is limited to review of the District’s bonds to finance water, wastewater, or drainage facilities and financial reports required by the Water Code; otherwise, the District is not subject to TCEQ supervision.

6) Water Use - Within Nueces County, 4 percent of the total water used in 2004 was groundwater. Of this, 45.5 percent was for municipal purposes. The groundwater in Nueces County is pumped from the Gulf Coast Aquifer. Most of the surface water provided to municipal users is obtained from the Corpus Christi-Choke Canyon Lake system and Lake Texana. The only water management strategy for Nueces County is municipal water conservation.