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 creates Case Creek Municipal Utility District No. 1 of Grayson County (District).   

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 HB 1524, the population within the proposed district in the 2000 census could be as high as 2,278. 

Population growth in that specific area since the 2000 census is unknown; however, the entirety of the proposed district is within the Two Way Special Utility District (SUD). In the 2011 Region C Water Plan, the Two Way SUD was projected to grow from 3,474 in 2000 to 4,997 in 2010 and 6,630 in 2020.  Grayson County is projected to grow from 110,595 in 2000 to 126,099 in 2010 and 152,028 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 2.6 square miles, and will be located in southwest Grayson County, generally east of US highway 377 and south of state highway 56.  The district overlaps portions of CCNs held by the Two Way SUD.

3)  Comments on Powers/Duties Different from Similar Types of Districts - Current statutes require directors of districts to meet eligibility requirements.  However, the bill specifies that on or after the effective date of the bill, the owner or owners of a majority of assessed valuation of the real property within the District may submit a petition to the Commission for the appointment of the five temporary directors for the District and that the Commission shall appoint the five persons named in the petition, regardless of eligibility.  The bill gives the District road powers.  Current statute does not permit a municipal utility district to exercise the power of eminent domain outside the district boundaries to acquire a site for a water treatment plant, water storage facility, wastewater treatment plant, or wastewater disposal plant, a site for a park, swimming pool, or other recreational facility except a trail, a site for a trail on real property designated as a homestead, or an exclusive easement through a county regional park. 

The bill further limits the District's power of eminent domain by specifying that the District may not exercise the power of eminent domain to acquire a site for a road or recreational facility.  The bill also specifies 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 specifies that the District may not act as a retail provider of water or wastewater service and shall convey all water and wastewater facilities to Two Way Special Utility District, unless Two Way Special Utility District refuses or is unable to provide water supply or wastewater services to customers located within the District.  Current statutes only allow water control and improvement districts and certain fresh water supply districts to divide.  The bill specifies that the District may divide if the District has no outstanding bonded debt and is not imposing an ad valorem tax.

4)  Overlapping Services - The stated boundaries for the District form an acceptable closure.  However, an area map containing at least two reference points (major road names, road intersections) and the proposed district’s geographic location mapped within Grayson County is needed to complete overlapping services check. 

The District may overlap the Red River Authority of Texas and Two Way Special Utility District (CCN No. 11085). 

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 – HB 1524 specifies that “the district has the powers and duties provided by the general law of this state, including Chapters 49 and 54, Water Code, applicable to municipal utility districts created under Section 59, Article XVI, Texas Constitution” and “the district may not act as a retail provider of water or wastewater services in the district”.  Hence, it appears as though Case Creek MUD No. 1 would serve to accomplish the conservation and development of natural resources, including the control, storing, preservation and distribution of storm and flood waters, the waters of rivers and streams, for irrigation, power and all other useful purposes, among other duties specified in Section 59, Article XVI of the Texas Constitution.  

Within Grayson County, 55 percent of the total water use in 2008 was groundwater sourced from the Trinity and Woodbine aquifers.  Seventy-five percent of groundwater pumping was for municipal use.  The water source that the district might pursue is unknown.