LEGISLATIVE BUDGET BOARD
Austin, Texas
 
WATER DEVELOPMENT POLICY IMPACT STATEMENT
 
85TH LEGISLATIVE REGULAR SESSION
 
May 8, 2017

TO:
Honorable Jim Murphy, Chair, House Committee on Special Purpose Districts
 
FROM:
Ursula Parks, Director, Legislative Budget Board
 
IN RE:
HB4334 by Bailes ( Relating to the creation of the Liberty County Municipal Utility District No. 1; granting a limited power of eminent domain; providing authority to issue bonds; providing authority to impose assessments, fees, or taxes.), Committee Report 1st House, Substituted

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 Liberty County Municipal Utility District No. 1 (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 4334, 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 Liberty County served by small systems or private wells (County-Other) is 35,397. The Liberty County-Other population projections approved for the 2017 State Water Plan projects the population to grow to 36,449 in 2020, 37,531 in 2030 and 38,560 in 2040.
 
Location - The Proposed district's initial boundaries are described with a combination of Original Texas Land Surveys and the Liberty County Real Property Records. 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 6.87 square miles in western Liberty County, located northwest of the City of Dayton and south of the City of Plum Grove. The proposed district does not appear to overlap any existing Certificate of Convenience and Necessity (CCN) boundary.
 
Comments on Powers/Duties Different from Similar Types of Districts:  The House Committee Substitute changes the name of the District to Liberty County Municipal Utility District No. 1 (District); members of the board of directors must meet director's qualifications under Water Code Chapter 54.102; the temporary board of directors consists of: two directors appointed by the Liberty County Commissioners Court; two directors appointed by the Cleveland Independent School District; and one director appointed by the landowner of a majority of the assessed real property in the District; the District may regulate zoning for buildings, other structures, land for business, industrial, residential, or other purposes; and the District must enter into an agreement with the developer, the Cleveland Independent School District, and Liberty County for the transfer of land for sites for facilities for the school district and for emergency services before issuing bonds.
 
This bill grants the District authority for road projects; the bill allows the District to divide; and the bill specifies that at the time of issuance, the total principal amount of bonds or other obligations issued or incurred to finance road projects and payable from ad valorem taxes may not exceed one-fourth of the assessed value of real property in the District. 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 4334 specifies that "the district has the powers and duties provided by the general law of this state, including Chapters 49 and 54, Water Code, applicable to municipal utility districts created under Section 59, Article XVI, Texas Constitution".
 
Within Liberty County, 35 percent of the total water use was groundwater (Gulf Coast Aquifer) in 2014. Ninety five percent of all the groundwater pumping was for municipal use. The water source of the proposed district might pursue is unknown.


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