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 would create Hunt 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 III, Section 52 and Article XVI, Section 59 of the 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.  Additionally, the bill requires a development agreement executed between the owners of the land covered by the development agreement and the City of Greenville.  The bill also gives the District road and rail powers and limits the power of eminent domain to exclude the use of eminent domain for road and recreational projects.  The bill gives the District the ability to levy a contract tax.  The District may be divided into two or more districts.  The bill names the five temporary directors.

1)  Population – The very specific description of the proposed boundaries does not allow staff to develop precise population estimates.  Based simply on the Original Texas Land Surveys mentioned in the bill, the population within the proposed district in the 2000 census could be as high as 990. 

Population growth in that specific area since the 2000 census is unknown, however the majority of the proposed district is within the Caddo Basin Special Utility District (SUD), and portions of the proposed district are located within the City of Greenville CCN, and Hickory Creek SUD.  In the 2011 Region D Water Plan, the Caddo Basin SUD was projected to grow from 4,083 in 2000 to 4,676 in 2010 and 5,784 in 2020.  The City of Greenville to the southeast is project to grow from 23,960 in 2000 to 24,431 in 2010 and 25,178 in 2020.   The Hickory Creek SUD to the northeast is projected to grow from 2,027 in 2000, to 2,323 in 2010, and 2,871 in 2020. Hunt County is projected to grow from 76,596 in 2000 to 82,948 in 2010 and 94,401 in 2020.

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’s area is approximately 10 square miles, and will be located in western Hunt County, to the northwest of the City of Greenville and generally between and along US Highways 69 and 380.  The district overlaps portions of CCNs held by Caddo Basin SUD, the City of Greenville, and Hickory Creek SUD.

3)  Comments on Powers/Duties Different from Similar Types of Districts - The bill also gives the District road and rail powers.  The District may construct, acquire, improve, maintain, and operate rail facilities.  The bill limits the District's use of eminent domain to exclude the use of eminent domain for road and recreational projects, but does not limit the use of eminent domain for rail projects.  However, the bill indicates that if the bill does not receive two-thirds vote of all members elected to each house, then the District may not exercise the power of eminent domain.  The bill gives the District the ability to levy a contract tax.  The District may be divided into two or more districts.

4)  Overlapping Services - The stated boundaries for Tracts 1 through 10 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 Hunt County is needed to complete overlapping services check. 

Tract 1 may overlap Caddo Basin SUD (CCN No. 10165), City of Greenville (CCN Nos. 10836 and 20472), Caddo Basin SUD, and Sabine River Authority.  Tract 2 may overlap Caddo Basin SUD (CCN No. 10165), City of Greenville (CCN Nos. 10836 and 20472), Hickory Creek SUD (CCN No. 10809), Caddo Basin SUD, and Sabine River Authority.  Tract 3 may overlap Caddo Basin SUD (CCN No. 10165), City of Greenville (CCN Nos. 10836 and 20472), Hickory Creek SUD (CCN No. 10809), Caddo Basin SUD, and Sabine River Authority.  Tract 4 may overlap Caddo Basin SUD (CCN No. 10165), Caddo Basin SUD, and Sabine River Authority.  Tract 5 may overlap Caddo Basin SUD (CCN No. 10165), Caddo Basin SUD, and Sabine River Authority.  Tract 6 may overlap Caddo Basin SUD (CCN No. 10165), Caddo Basin SUD, and Sabine River Authority.  Tract 7 may overlap Caddo Basin SUD (CCN No. 10165), Caddo Basin SUD, and Sabine River Authority.  Tract 8 may overlap Caddo Basin SUD (CCN No. 10165), Caddo Basin SUD, and Sabine River Authority.  Tract 9 may overlap Caddo Basin SUD (CCN No. 10165), City of Greenville (CCN Nos. 10836 and 20472), Hickory Creek SUD (CCN No. 10809), Caddo Basin SUD, and Sabine River Authority.  Tract 10 may overlap Caddo Basin SUD (CCN No. 10165), City of Greenville (CCN Nos. 10836 and 20472), Hickory Creek SUD (CCN No. 10809), Caddo Basin SUD, and Sabine River 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 – The bill specifies that “The district shall make available any district water or wastewater facility to each person that holds a certificate of convenience and necessity [CCN] to which any land in the district is subject” and “The district may not provide retail water or wastewater services.”  Hence, it appears as though Hunt County MUD 1 would sell water wholesale and/or provide water/wastewater treatment to Caddo Basin SUD, Hickory Creek SUD, and the City of Greenville.  Currently, the Caddo Basin SUD reports their primary water supply is purchased Lake Lavon water from North Texas Municipal Water District, Hickory Creek SUD reports groundwater use from the Woodbine aquifer, and Greenville reports their primary water supply is purchased Lake Tawakoni water from the Sabine River Authority.