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 Harris County Municipal Utility District No. 524 (District).   

1)  Population – The very specific description of the proposed boundaries does not allow staff to develop precise population estimates.  The description in HB 709 utilizes the Harris County School Land Survey, which is not readily accessible for review.    

Population growth within the 1.55 square mile area since the 2000 census is unknown.  However, the proposed district is roughly 2 miles from the City of Waller and the majority lies within the West Harris County Regional Water Authority.  In the 2011 Region H Water Plan, the City of Waller was projected to grow from 2,092 in 2000 to 2,637 in 2010 and 3,240 in 2020.  The West Harris County Regional Water Authority was projected to grow from 245,708 in 2000 to 317,303 in 2010 and 367,954 in 2020. 

2)  Location – The proposed district’s initial boundaries are described in a combination of Harris County School Land Surveys, metes and bounds, and proximity to current road networks.  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 1.55 square miles, and will be located in far northwestern Harris County along US 290, roughly 2 miles to the southeast of the City of Waller and to the northwest of the unincorporated community of Hockley, generally between Waller-Tomball Road to the north and Hempstead Highway to the south, and is divided into five distinct tracts.  The proposed district does not appear to overlap any known CCN boundaries.

3)  Comments on Powers/Duties Different from Similar Types of Districts - The bill specifies that the District may not hold a confirmation election until all municipalities in which the District is located consent to the creation.  Current statutes require directors of districts to meet eligibility requirements.  However, the bill specifies that on or after the effective date of the bill, 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 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 to acquire a site for a water treatment plant, water storage facility, wastewater treatment plant, or wastewater disposal plant, a site for a park, swimming pool, or other recreational facility except a trail, a site for a trail on real property designated as a homestead, or an exclusive easement through a county regional park.  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.  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 if it has no outstanding bonded debt and is not imposing an ad valorem tax.

4)  Overlapping Services - The stated boundaries for Tracts 1, 2, and 5 form acceptable closures.  The stated boundaries for Tracts 3 and 4 do not form acceptable closures.  Additionally, 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 Coastal Water Authority, Gulf Coast Waste Disposal Authority, HMW Special Utility District, Harris County FCD, Harris County MUD 496, Harris County MUD 497, North Harris County Regional Water Authority, Port of Houston Authority, Waller Town Center Management District, West Harris County Regional Water Authority, Lass Utility Service Company (CCN No. 12258), HMW Special Utility District (CCN No. 10342), and Kickapoo Meadows (CCN No. 10033). 

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 - Within Harris County, approximately 31 percent of the total water used in 2008 was groundwater (Gulf Coast Aquifer).  Eighty-four percent of the groundwater pumping was for municipal use.  The water source that the district might pursue is unknown.