The Legislative Budget Board, in cooperation with the Texas Water Development Board (TWDB) 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 3858 to create the Driftwood Economic Development Municipal Management District (District) with the powers and duties of a municipal management district under Chapter 375, Local Government Code. 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, and Chapters 151 and 321, Tax Code, to benefit the property within the District. 
 
The bill names five temporary directors.  The commissioner's court shall appoint directors.  One director will be chosen as a public citizen from Hays County, a person who owns residential property in the District, a person who owns commercial property within the District, the city administrator of the City of Dripping Springs, and a person who meets the qualifications defined by Section 375.063, Local Government Code.
 
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 Hays County. According to the 2007 State Water Plan, Hays County is projected to grow from 97,589 in 2000 to 166,342 in 2010 and to 242,0514 in 2020. The county-other population of Hays County is projected to grow from 24,157 in 2000 to 33,783 in 2010 and to 45,032 in 2020.

2) Location – The proposed district is located in north-central Hays County, southeast of Dripping Springs, near the intersection of FM 967 and FM 1826. 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 may 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 District does not have the power of eminent domain. The District may impose an assessment and provide improvement projects, including a special or supplemental service of promotion, health and sanitation, fire protection and elimination of traffic congestion among others inside or adjacent to the District's boundaries. The District may provide law enforcement services or receive grants or gifts. The District may not issue bonds, borrow money or incur any type of debt.  The District may levy an ad valerom tax, but may not exceed 15 cents per $100 valuation. The District may levy a sales and use tax or a hotel occupancy tax.
 
4)  Overlapping Services - The boundaries form an acceptable closure on tracts 2 and 3 but not on tract 1. A metes and bounds description, an area map containing at least two reference points (major road names, road intersections) and the proposed district's geographic location mapped within Hays County is needed to complete overlapping services check. The District may overlap the following providers: Certificates of Convenience and Necessity No. 11670 for Lower Colorado River Authority, Guadalupe-Blanco River Authority and Greenhouse Water Control and Improvement District No. 2.
 
5)  TCEQ's 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 Hays County, 61 percent of the total water used in 2004 was groundwater. Of this, 93 percent was for municipal purposes. Groundwater in Hays County is primarily pumped from the Edwards (BFZ) Aquifer (75%), with the remaining 24 percent coming from the Trinity Aquifer. Water management strategies for Hays County include municipal conservation, additional supplies from the Edwards (BFZ) Aquifer, development of the Trinity Aquifer, building Onion Creek Recharge dams, expanding existing water rights, and implementing recycled water programs.