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 Bearpen Creek Municipal Utility District of Hunt County (District).  

1)    Population –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 district will actually cover. Population in this larger area, of which this district will only be a part, could be as high as 7,057 based on the 2000 Census.

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 Cash SUD.  In the 2011 Region D Water Plan, Caddo Basin SUD is projected to grow from 4,083 in 2000 to 4,676 in2010 and 5,784 in 2020. Cash SUD is projected to grow from 11,699 in 2000 to13,401 in 2010 to 16,574 in 2020. Hunt County is projected to grow from 76,596in 2000 to 82,948 in 2010 and 94,491 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 1.5 square miles, and will be located in southwestern Hunt County, to the southwest of the City of Greenville.  The district overlaps portions of CCNs held by Caddo Basin SUD and Cash SUD.

3)  Comments on Powers/Duties Different from Similar Types of Districts - The bill specifies that the District may not hold an election to confirm the District or elect the five permanent directors until all municipalities in which the District is located consent to the creation.  Current statutes require directors of districts to meet eligibility requirements.  The bill names the five temporary directors and specifies that if permanent directors are not elected, 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 or re-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.  The bill grants the District the right to exercise the powers given to a municipality under Water Code, Chapter 13.255, to take over take over a nonprofit water supply or sewer service corporation, a special utility district or a fresh water supply district service that provides service within the District’s boundaries.  If the District does exercise this provision, the Commission shall grant single certification to the District as provided under Water Code, Section 13.255(b).  Current statute allows for a municipality to exercise this right, but does not allow for a district to do so.  Current statute does not permit a municipal utility district to exercise the power of eminent domain outside the district boundaries for certain purposes.  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 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 issue bonds until the governing body of the city in which the District is located approves a bond issuance plan authorizing and setting forth the limitations on the issuance of the bonds.

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 District’s geographic location mapped within Hunt County is needed to complete overlapping services check.   

The Authority may overlap the Verandah Municipal Utility District, Sabine River Authority, North Texas Municipal Water District, Caddo Basin Special Utility District, Caddo Basin Special Utility District (CCN No. 10165), BHP Water Supply Corporation (CCN No. 10064), and City of Royse City (CCN Nos. 12827 and 20813). 

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 2363 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.” Therefore, it appears as though Bearpen Creek MUD 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 Hunt County, 20percent of the total water use was groundwater (Nacatoch and Woodbine Aquifers)in 2008.  Ninety-three percent of the groundwater pumping was for municipal use. The water source that the district might pursue is unknown.