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 Lajitas Utility District No. 1 of Brewster 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 1,301 based on the 2000 Census.

Population growth in that specific area since the 2000 census is unknown. Brewster County is projected to grow from 8,866 in 2000 to 9,468 in 2010 and 9,944 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 46 square miles, and will be located in southwestern Brewster County.  The district overlaps portions of CCNs held by Study Butte Water Supply Corporation and Lajitas Municipal Services Co.

3)  Comments on Powers/Duties Different from Similar Types of Districts - The bill creates the District as a municipal utility district; however, the bill allows the District to fund public improvement projects and services in the same manner as a municipal management district under the Local Government Code that a typical municipal utility district cannot fund.  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 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 construct, acquire, maintain, and operate electric power generating, transmission, and distribution facilities, and may construct, acquire, maintain, and operate an airport and improvements in aid of the airport.  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 bond debt and is not imposing ad valorem taxes.  The bill specifies that the District shall transfer electric power facilities on the later of the date that the District acquires or completes the electrical power facility improvement or the date the receiving entity approves the transfer.  The bill also specifies that the transfer of electrical power facilities is to be conveyed without debt or other encumbrance.  The bill specifies that the District may not levy an impact fee or an assessment on electrical utility property.  The bill allows the District to levy assessments, and/or a sales and use tax.  The bill provides that a groundwater well owned or used by the district in the Brewster County Groundwater Conservation District is subject to the rules and regulations of the Brewster County Groundwater Conservation District.

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

There is insufficient information to determine if the District overlaps any other service providers. 

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 3804 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 Lajitas Utility District Number 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 Brewster County, 95.6 percent of the total water use was groundwater (Edwards-Trinity Plateau, Capitan Reef Complex, Igneous, Marathon, and other aquifers) in 2008.  Forty-seven percent of the groundwater pumping was for municipal use. The water source that the district might pursue is unknown.