LEGISLATIVE BUDGET BOARD
Austin, Texas
 
WATER DEVELOPMENT POLICY IMPACT STATEMENT
 
84TH LEGISLATIVE REGULAR SESSION
 
March 31, 2015

TO:
Honorable Doug Miller, Chair, House Committee on Special Purpose Districts
 
FROM:
Ursula Parks, Director, Legislative Budget Board
 
IN RE:
HB2091 by Zerwas (Relating to the creation of the Fulshear Municipal Utility Districts Nos. 4, 5, and 6; granting a limited power of eminent domain; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes.), 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 creates Fulshear Municipal Utility Districts (MUD) Nos. 4, 5, and 6 (the "Districts") with the powers and duties of a standard municipal utility district under Water Code, Chapters 49 and 54.

 

Population - The very specific description of the proposed boundaries of the three districts does not allow staff to develop precise population estimates. Based on the Original Texas Land Surveys mentioned in HB 2091, as of the 2010 census the proposed districts appear to have a combined population of 308.
 

Population growth in the specific area since the 2010 census is unknown. The 2010 population estimate for areas of Fort Bend County served by small systems or private wells ('County-Other') is 67,197. The Fort Bend County-Other population projections approved for the 2016 Region H Water Plan projects the population to grow to 184,306 in 2020, 235,839 in 2030 and 269,995 in 2040.
 

Location - The Proposed districts initial boundaries are described with a combination of Original Texas Land Surveys, Official Public Records of Real Property of Fort Bend County 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 proposed district's area is approximately 2.4 square miles in northwest Fort Bend County, and could encompass the portions of the small community of Weston Lakes. The proposed districts will be adjacent to Fulshear City to the north and west. Portions of the proposed district could be located within the CCN of Aqua Development INC.


 

Comments on Powers/Duties Different from Similar Types of Districts:  The bill grants the District road powers; For Fulshear MUD Nos. 5 and 6, the bill specifies that if the districts are annexed into the corporate limits of a municipality before a confirmation election is held, the districts may not be dissolved and shall continue until the districts are dissolved pursuant to standard Local Government Code provisions relating to the abolition of districts within a municipality.  Water Code Section 54.016(f) states that a city may provide in its written consent for the inclusion of land in a district that is initially located wholly or partly outside the corporate limits of the city that a contract ("allocation agreement") between the district and the city be entered into prior to the first issue of bonds, notes, warrants, or other obligations of the district.  The bill specifies that this provision does not apply to the Districts.  The bill grants Fulshear MUD Nos. 5 and 6 levee improvement district powers and duties as provided for under Water Code Chapter 57.  If the bill does not receive a two-thirds vote of all members elected to each house, the Districts may not exercise the power of eminent domain.
 

Overlapping Services:  TCEQ does not have mapping information for water and/or wastewater providers because this function was transferred from the TCEQ to the Public Utility Commission on September 1, 2014.  As a result, TCEQ is unaware of possible overlapping service providers.
 

TCEQ's Supervision:  As with general law districts, the TCEQ will have general supervisory authority, including bond review authority and review of financial reports over the Districts. 

Water Use - HB 2091 specifies that "the district has the powers and duties provided by the general law of the state, including Chapters 49 and 54, Water Code, applicable to municipal utility districts created under Section 59, Article XVI, Texas Constitution".


 

Within Fort Bend County, 60 Percent of the total water use was groundwater (Gulf Coast Aquifer) in 2012. Eighty-three percent of all the groundwater pumping was for municipal use. The water source of the proposed district might pursue is unknown.





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