TO:	Honorable Doug Miller, Chair, House Committee on Special Purpose Districts
FROM:	Ursula Parks, Director, Legislative Budget Board
IN RE:	HB4183 by Isaac (Relating to the creation of the Hays County Municipal Utility District No. 7; 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 the Hays County Municipal Utility District No. 7 (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 4183, staff is not able to determine a population estimate.
     
Population growth in the specific area since the 2010 census is unknown. The 2010 population estimate for areas of Hays County served by small systems or private wells (County-Other) is 20,249. The Hays County-Other population projections approved for the 2016 Region K Water Plan projects the population to grow to 25,255 in 2020, 30,845 in 2030 and 39,310 in 2040.
  
Location - The Proposed districts initial boundaries are described with a combination of Original Texas Land Surveys, Official Public Records of Hays 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 1.65 square miles in Northern Hays County. The proposed district is located directly north of Dripping Springs, and West of Austin in Travis County. The proposed district could overlap with the existing Certificate of Convenience and Necessity for Dripping Springs WSC, and City of Dripping Springs.
  
Comments on Powers/Duties Different from Similar Types of Districts:  The bill grants the District road powers; the bill allows the District to divide; 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 bond review authority and review of financial reports.
 
Water Use - HB 4183 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 Hays County, 48 percent of the total water use was groundwater (Trinity Aquifer and Edwards BFZ Aquifer) in 2012. Ninety percent of all the groundwater pumping was for municipal use. The water source of the proposed district might pursue is unknown.