TO:	Honorable Doug Miller, Chair, House Committee on Special Purpose Districts
FROM:	Ursula Parks, Director, Legislative Budget Board
IN RE:	HB4161 by Schofield (Relating to the creation of the Harris County Municipal Utility District No. 538; 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 Harris County Municipal Utility District No. 538 (the "District") 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 does not allow staff to develop precise population estimates. Based on the Original Texas Land Surveys mentioned in HB 4161, population as of the 2010 Census could be as high as 123.
     
Population growth in the specific area since the 2010 census is unknown. The 2010 population estimate for areas of Harris County served by small systems or private wells (County-Other) is 204,630. The Harris County-Other population projections approved for the 2016 Region H Water Plan projects the population to grow to 245,944 in 2020, 291,438 in 2030 and 311,968 in 2040.
  
Location - The Proposed districts initial boundaries are described with a combination of Original Texas Land Surveys, Official Public Records of Harris 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 0.62 square miles in Western Harris County. The proposed district is located Northwest of Houston, and North of Katy. The proposed district could fall within the existing Certificate of Convenience and Necessity for South Central Water Company.
 
Comments on Powers/Duties Different from Similar Types of Districts:  The bill grants the District road powers; and if the bill does not receive a two-thirds vote of all members elected to each house, the District 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 the review of bonds issued by the District and the review of financial reports.

Water Use - HB 4161 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 Harris County, 29 percent of the total water use was groundwater (Gulf Coast Aquifer) in 2012. Eighty-six percent of all the groundwater pumping was for municipal use. The water source of the proposed district might pursue is unknown.