LEGISLATIVE BUDGET BOARD
Austin, Texas
 
WATER DEVELOPMENT POLICY IMPACT STATEMENT
 
85TH LEGISLATIVE REGULAR SESSION
 
May 2, 2017

TO:
Honorable Eddie Lucio, Jr., Chair, Senate Committee on Intergovernmental Relations
 
FROM:
Ursula Parks, Director, Legislative Budget Board
 
IN RE:
SB904 by Birdwell (Relating to the creation of the Cresson Municipal Utility District No. 1 of Hood County; 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 Cresson Municipal Utility District No. 1 (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 Real Property Records of Hood County mentioned in SB 904 and using Census blocks, the estimated population for 2010 is determined to be less than 5 persons. 
 
Population growth in the specific area since the 2010 census is unknown. The 2010 population estimate for areas of Hood County served by small systems or private wells(County-Other) is 22,875. The Hood County-Other population projections approved for the 2017 State Water Plan projects the population to reach 26,999 in 2020, 22,057 in 2030 and 19,285 in 2040.
 
Location - The Proposed district's initial boundaries are described with a combination of Original Texas Land Surveys, Hood 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 0.55 square miles in northeastern Hood County, located one mile southwest of the City of Cresson, and north of Granbury. The proposed district does not appear to fall within any existing Certificate of Convenience and Necessity (CCN) boundary.
 
Comments on Powers/Duties Different from Similar Types of Districts: The bill requires the TCEQ to appoint the five initial temporary directors upon receipt of a petition from the owners of a majority of the assessed value of the real property in the district.

This bill grants the District authority for road projects.

This bill grants the District the authority to establish, operate, and maintain or contract for firefighting services in the District and may issue bonds and impose taxes to pay for the department and the activities.

The bill allows the District to adopt and enforce all necessary charges, mandatory fees, or rentals, in addition to taxes, for providing or making available any District facility or service, including firefighting activities.

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 - SB904specifies 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 Hood County, fifty-six percent of the total water use was groundwater (Trinity aquifer) in 2014. Fifty-six percent of all the groundwater pumping was for municipal use. The water source which the proposed district might pursue is unknown.


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