LEGISLATIVE BUDGET BOARD
Austin, Texas
 
WATER DEVELOPMENT POLICY IMPACT STATEMENT
 
82ND LEGISLATIVE REGULAR SESSION
 
March 23, 2011

TO:
Honorable Allan Ritter, Chair, House Committee on Natural Resources
 
FROM:
John S O'Brien, Director, Legislative Budget Board
 
IN RE:
HB2360 by Schwertner (Relating to the creation of the Corn Hill Regional Water Authority; providing authority to issue bonds.), As Introduced

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 Corn Hill Regional Water Authority (Authority).   

 

1)  Population – The proposed regional water authority will be initially comprised of Sonterra Municipal Utility District and the CLL Municipal Utility District, both created in 2005 in the 79th Legislative Session.  Descriptions of the proposed boundaries of those two districts were used here as no new proposed boundaries were described in HB 2360. The very specific description of the proposed boundaries is in terminology which does not match Census geography, thus population can be estimated only for an area somewhat larger than the authority will actually cover. Population in this larger area could be as high as 3,237 based on the 2000 Census.

 

Population growth in that specific area since the 2000 census is unknown.  The proposed authority is adjacent to the City of Jarrell in­ northern Williamson County and will also cover area in southern Bell County.  Based on 2011 Regional Water Plan data, the City of Jarrell is projected to grow from 1,433 in 2010 to 1,474 in 2020. Williamson County is projected to grow from 241,136 in 2000 to 408,743 in 2010 and 553,412 in 2020.  The authority also extends into Bell County, which is projected to grow from 237,974 in 2000 to 289,672 in 2010 and 327,610 in 2020.

 

2)  Location – The proposed authority’s initial boundaries are described in the original House Bills for the creation of the two districts in the 79th Legislative Session (HB 3497 for Sonterra Municipal Utility District and HB 1346 for CLL Municipal Utility District No. 1) with 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 authority, staff is able to determine only the general location of the proposed authority. 

 

The proposed authority’s area is approximately 3 square miles, and will be located in far northern Williamson County and far southern Bell County near the City of Jarrell.  The authority does not appear to overlap any CCN held by another entity.

 

3)  Comments on Powers/Duties Different from Similar Types of Districts - The bill gives the Authority the powers and duties conferred to municipal utility districts under the Water Code.  The bill specifies that the Authority is not required to hold a confirmation election and that the initial member entities of the Authority are Sonterra Municipal Utility District and CLL Municipal Utility District.  The bill requires the Authority to notify the TCEQ of any changes to its membership or territory. Current statutes require directors of districts to meet eligibility requirements; however, the bill specifies that each member entity shall appoint two directors, regardless of eligibility.  The bill specifies that a municipality or other political subdivision may petition to the board to be included as a member entity of the Authority, subject to approval by each of the participating member entities.  The bill also specifies that a member entity may petition the board to leave the Authority, subject to a determination by the Authority that the removal of the entity will not impair any outstanding bonds or other obligations of the Authority.  If the Authority has outstanding bonds or obligations, the petition to leave the Authority may only be approved if the member entity agrees to pay its share of the bonds or other obligations and the Authority determines that as a result of that payment the remaining bonds or other obligations of the authority will not be impaired.  The bill allows the Authority to issue bonds that are to be paid by payments made under a contract between the Authority and the member entities.  The bill specifies that the Authority does not have the authority to impose a tax.  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.  Although the bill allows the Authority to issue bonds supported by contract taxes, the Local Government Code and Water Code require that the member entities receive approval from the TCEQ to enter into contracts described in the bill.

 

4)  Overlapping Services - There is insufficient information to determine if the stated boundaries for the Authority form an acceptable closure.  Additionally, an area map containing at least two reference points (major road names, road intersections) and the District’s geographic location mapped within Williamson County is needed to complete overlapping services check.   

 

The Authority may overlap Donahoe Creek Watershed Authority and the Brazos River Authority. 

 

5)  TCEQ Supervision - As with general law districts, the TCEQ will have general supervisory authority, including review of financial reports

 

6)  Water Use – HB 2360 specifies that “The authority is created to accomplish the control, storage, conservation, preservation, distribution, and use of water for domestic, industrial, municipal, and all other useful purposes as provided by Section 59, Article XVI, Texas Constitution.”

 

Within Williamson County, 30.1 percent of total water use was groundwater (Edwards BFZ, Trinity, and other aquifers) in 2008.  Ninety-one percent of the groundwater pumping was for municipal use.  Within Bell County, 5.6 percent of the total water use was groundwater (Edwards BFZ, Trinity, and other aquifers) in 2008.  Eighty-eight percent of the groundwater pumping was for municipal use. The water source that the authority might pursue is unknown.



Source Agencies:
582 Commission on Environmental Quality, 580 Water Development Board
LBB Staff:
JOB, SZ