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 creates Caldwell 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 of the Texas Constitution to benefit the property within the District and the power of eminent domain. 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 names five temporary directors. The Directors are: Joseph John Mazzola III, Hunter Wallace Dehn, Seth Thatcher, Scott Guesner, and Mark Solomon.

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 Caldwell County. According to the 2007 State Water Plan, Caldwell County is projected to grow from 32,194 people in 2000 to 45,958 in 2010 and to 59,722 in 2020.
 
Martindale is the closest city and had a population of 953 in 2000 and is projected to grow to 1,150 in 2010 and to 1,291 in 2020.

2)     Location - The proposed district is located in western Caldwell County between the cities of Martindale and Fentress, near the intersection of Highway 80 and County Road 110. The proposed area does not appear to overlap any known CCN boundaries.

3) Comments on Powers/Duties Different from Similar Types of Districts - The bill gives the District the ability to levy a contract tax. The District may be divided into two or more districts. The bill limits developer construction and development unless the developer has entered into a contract for provision of water and sewer services and an agreement with the Texas Department of Transportation, Commissioners court, or other appropriate entity for provision of roads or improvements to mitigate traffic problems due to development. The bill grants to the District road powers and limits the power of eminent domain to within the District’s boundaries.

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 Caldwell County is needed to complete overlapping services check. 

The District may overlap Canyon Regional Water Authority, Guadalupe C Blanco River Authority, Maxwell Water Supply Corporation, Staples Farmers Corporation, and Tri Community Water Supply Corporation.

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 Caldwell County, 60 percent of the total water used in 2004 was groundwater. Of this, over 93 percent was for municipal purposes. Groundwater in Caldwell County is primarily pumped from the Carrizo-Wilcox Aquifer.