TO:	Honorable Jim Murphy, Chair, House Committee on Special Purpose Districts
FROM:	Ursula Parks, Director, Legislative Budget Board
IN RE:	HB4303 by Burns (Relating to the creation of the Prairie Ridge Municipal Management District No. 1; providing authority to issue bonds; providing authority to impose assessments, fees, or taxes; 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:
 
This bill creates Prairie Ridge Municipal Management District No. 1 (District) with the powers and duties of a standard municipal management district under Local Government Code Chapter 375 and a standard public improvement district under Local Government Code 372.

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 4303, staff is unable to determine a population estimate.
     
Population growth in the specific area since the 2010 census is unknown. The 2010 population estimate for areas of Johnson County served by small systems or private wells (County-Other) is 14,888. The Johnson County-Other population projections approved for the 2017 State Water Plan projects the population to be 15,131 in 2020, 14,810 in 2030 and 15,224 in 2040.
 
The 2010 population estimate for areas of Ellis County served by small systems or private wells (County-Other) is 6,012. The Ellis County-Other population projections approved for the 2017 State Water Plan projects the population to be 6,100 in 2020, 6,500 in 2030 and 7,177 in 2040.
 
Location - The Proposed district's initial boundaries are described with a combination of Original Texas Land Surveys, Johnson County Real Property Records, Ellis County Real Property Records 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 1.95 square miles on the northern boundary between Johnson and Ellis County. The proposed district is located south of the Cities of Mansfield and Grand Prairie, and west of the City of Midlothian.
 
Comments on Powers/Duties Different from Similar Types of Districts:  The initial directors shall hold an election to confirm the creation of the District and to elect five permanent directors as provided by Section 49.102, Water Code; Local Government Code Chapter 375, Subchapter B, relating to the creation of a district, and Subchapter O, relating to defense adjustment management authority, do not apply to the District; the District may not provide retail water or sewer services; the board may add or remove territory as provided by Subchapter J, Chapter 49, Water Code; the District may exercise the power of eminent domain in the manner and for the purposes provided by Section 49.222, Water Code; the bill allows the District to divide; Local Government Code Section 375.161 states that an MMD may not impose an impact fee, assessment, tax, or other requirement for payment, construction, alteration, or dedication under this chapter on single-family detached residential property, duplexes, triplexes, and fourplexes. The bill specifies that this section does not apply to the District; Local Government Code Section 375.164 states that the board may exempt residential property from all or a part of the assessments levied on that property or determine that residential property will not be benefited by the proposed improvement project or services. The bill specifies that this section does not apply to the District; Local Government Code Section 375.207(a) states that a district must obtain approval of the municipality in which it is located for bond issues and plans and specifications for an improvement project before bonds may be issued, and Local Government Code Section 375.207(b) states that instead of approval of bonds by the municipality, a district may obtain approval of a capital improvements budget. The bill specifies that these sections do not apply to the District; Local Government Code Section 375.208 states that a district must obtain approval of the TCEQ if it issues bonds to provide water, sewage, or drainage facilities. The bill specifies that this section does not apply to the District for a bond, note, or other obligation of the District payable from assessments; Local Government Code Section 375.243 states that the board may not call a bond election unless a written petition has been filed with the board requesting an election. The bill specifies that this section does not apply to the District; the City may dissolve the District by ordinance; 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 4303 specifies that the district "may not provide retail water or sewer services" but has limited powers and duties provided by the general law of the state, including "Subchapter J of Chapter 49 Water Code, applicable to management districts created under Section 59, Article XVI, Texas Constitution".
  
Within Johnson County, 31 percent of the total water use was groundwater (Trinity Aquifer) in 2014. Eighty two percent of all the groundwater pumping was for municipal use.
 
Within Ellis County, 31 percent of the total water use was groundwater (Trinity Aquifer) in 2014. Sixty four percent of all the groundwater pumping was for municipal use.