LEGISLATIVE BUDGET BOARD
Austin, Texas
 
WATER DEVELOPMENT POLICY IMPACT STATEMENT
 
82ND LEGISLATIVE REGULAR SESSION
 
March 26, 2011

TO:
Honorable Royce West, Chair, Senate Committee on Intergovernmental Relations
 
FROM:
John S O'Brien, Director, Legislative Budget Board
 
IN RE:
SB352 by Williams (Relating to the creation of the Harris County Municipal Utility District No. 528; providing authority to impose a tax and issue bonds; granting a limited power of eminent domain.), 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 would create Harris County Municipal Utility District No. 528 (District) with the powers and duties of a municipal utility district under Water Code Chapters 49 and 54.

 

The purpose of the District includes providing works and projects under powers conferred by Article III, Section 52 and Article XVI, Section 59 of the Texas Constitution to benefit the property within the District.  The District is subject to confirmation election by the voters.  The creation of the District and the inclusion of land within the District are subject to the consent of all municipalities in whose corporate limits or extraterritorial jurisdiction the district is located.  The bill states that on or after September 1, 2011, 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.

 

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 the bill, the population within the proposed district in the 2000 census could be as high as 10,837. 

 

Population growth in that specific area since the 2000 census is unknown; however, the majority of the proposed district is within the City of Baytown, and Baytown Area Water Authority. In the 2011 Region H Water Plan, the City of Baytown was projected to grow from 66,430 in 2000 to 72,905 in 2010 and 75,379 in 2020.  The Baytown Area Water Authority is projected to grow from 63,276 in 2000 to 69,151 in 2010 and 71,168 in 2020. Harris County is projected to grow from 3,367,029 in 2000 to 4,078,231 in 2010 and 4,629,335 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 0.4 square miles, and will be located in eastern Harris County, on the southern side of the City of Baytown and generally along and to the west of the southern extent of Cedar Bayou.  The district overlaps portions of CCNs held by the City of Baytown, and Baytown Area Water Authority.

 

3)  Comments on Powers/Duties Different from Similar Types of Districts - The bill also gives the District road powers and limits the power of eminent domain to exclude the use of eminent domain for road and recreational projects.  However, the bill indicates 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 gives the District the ability to levy a contract tax.

 

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

 

The District may overlap the Harris County FCD, Port of Houston Authority, Coastal Water Authority, Gulf Coast Waste Disposal Authority, Baytown Area Water Authority, Baytown Area Water Authority, and City of Baytown (CCN Nos. 12995 and 20912).  The known overlapping services providers are the Baytown Area Water Authority (CCN No. 10872) and City of Baytown (CCN Nos. 10860 and 20333). 

 

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 – The bill 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.” Hence, it appears as though Harris County MUD No. 528 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.  Currently, both the City of Baytown and Baytown Area Water Authority report their primary water supply is Lake Livingston.

 

Within Harris County, 32 percent of the total water use in 2008 was groundwater sourced from the Gulf Coast Aquifer.  Eighty-four percent of groundwater pumping was for municipal use.  The water source that the district might pursue is unknown.



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