LEGISLATIVE BUDGET BOARD
Austin, Texas
 
WATER DEVELOPMENT POLICY IMPACT STATEMENT
 
82ND LEGISLATIVE REGULAR SESSION
 
March 27, 2011

TO:
Honorable Allan Ritter, Chair, House Committee on Natural Resources
 
FROM:
John S O'Brien, Director, Legislative Budget Board
 
IN RE:
HB2521 by Sheffield (Relating to the creation of the Bell County Municipal Utility District No.1; providing authority to impose a tax and issue bonds; granting a limited power of eminent domain. ), Committee Report 1st House, Substituted

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 Bell County Municipal Utility District No. 1 (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 1,440 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 City of Belton, Dog Ridge Water Supply Corporation (WSC), and Salado WSC.  Based on the 2011 Region G Water Plan, Belton is projected to grow from 14,623 in 2000 to 17,633 in 2010 and 20,399 in 2020. Dog Ridge WSC is projected to grow from 3,534 in 2000 to 4,434 in 2010 and 5,060 in 2020. Salado WSC is projected to grow from 3,847 in 2000 to 4,743 in 2010 and 5,366 in 2020. Bell County is projected to grow from 237,974 in 2000 to 289,672 in 2010 and 327,610 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 0.74 square miles, and will be located in central Bell County.  The district overlaps portions of CCNs held by the City of Belton, Dog Ridge WSC, and Salado WSC.

 

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 to 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.  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 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.

 

 

 

 

 

 

4)  Overlapping Services - The stated boundaries for the District do not form an acceptable closure.  Additionally, an area map containing at least two reference points (major road names, road intersections) and the proposed district’s geographic location mapped within Bell County is needed to complete overlapping services check. 

 

The District may overlap the Brazos River Authority, Dog Ridge Water Supply Corporation (CCN No. 10048), City of Belton (CCN No. 11133) and Salado Water Supply Corporation (CCN No. 10879). 

 

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 2521 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 Bell County 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 Bell County, 5.6 percent of the total water use was groundwater (Edwards BFZ, Trinity, and other aquifers) in 2008.  Eighty-six percent of the groundwater pumping was for municipal use. The water source that the district might pursue is unknown.



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