TO:	Honorable Garnet Coleman, Chair, House Committee on County Affairs
FROM:	John McGeady, Assistant Director     Sarah Keyton, Assistant Director Legislative Budget Board
IN RE:	HB4653 by Bailes (Relating to the creation of Tarkington Management District No. 1 of Liberty County; providing authority to issue bonds; providing authority to impose assessments, fees, or 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:

This bill creates Tarkington Management District No. 1 of Liberty County (District) with the powers and duties of a standard municipal management district under Local Government Code Chapter 375.

Population - The very specific description of the proposed boundaries does not allow staff to develop precise population estimates.
     
Population growth in the specific area since the 2010 census is unknown. The 2010 population estimate for areas of Liberty County served by small water systems or private wells (County-Other) was 37,622. The Liberty County-Other population projections adopted for the 2022 State Water Plan projects the population to grow to 38,297 in 2020 and 41,651 in 2030.
 
Location - The proposed district's initial boundaries are described with a combination of Original Texas Land Surveys, Liberty County Clerk's File, and metes and bounds. Due to the complexity of these boundaries for the various subareas of the district, staff is only able to determine the general location of the proposed district.
 
The proposed district's area is approximately 1.26 square miles in northwest Liberty County, located east of the City of Plum Grove, and north of the City of Dayton. The proposed boundary appears to be near the intersection of State Highway 321 and County Road 2322.

Comments on Powers/Duties Different from Similar Types of Districts:
A director is entitled to receive fees of office and reimbursement for actual expenses provided by Section 49.060, Water Code. Sections 375.069 and 375.070, Local Government Code, do not apply to the board; this bill grants the District authority for road projects; the District may exercise the powers given to a development corporation under Chapter 505, Local Government Code; the board by resolution may authorize the creation of a nonprofit corporation with the powers created under Subchapter D, Chapter 431, Transportation Code; the District may contract to provide law enforcement services in the District; the District may join and pay dues to a charitable or nonprofit organization that performs a service or provides an activity consistent with the furtherance of a District purpose; the bill allows the District to engage in economic development activities and exercise economic development powers under Chapter 380, Local Government Code and Subchapter A, Chapter 1509, Government Code; the District may acquire, lease, construct, develop, own, operate, and maintain parking facilities; the District may not construct, acquire, maintain, or operate a toll road; the District may construct, acquire, improve, maintain, finance, and operate rail facilities and improvements in aid of those facilities; the District may provide and coordinate rural public transportation in its territory in the manner provided by Sections 458.010 and 458.011, Transportation Code; the bill specifies that Section 458.012(a), related to public passenger transportation services, does not apply to the operations of the District; the bill specifies that the District may add or exclude land as provided by Subchapter J, Chapter 49, Water Code.  Section 375.044(b), Local Government Code, does not apply to the District; the bill allows the District to divide; the District may not exercise the power of eminent domain; the board may not finance a service or improvement project with assessments under this chapter unless a written petition requesting that service or improvement has been filed with the board; the bill specifies that Section 375.161, Local Government Code, related to certain residential property exemptions, does not apply to a tax authorized or approved by the voters of the District or a required payment for a service provided by the District, including water and sewer services; the bill specifies that Subchapter I, Chapter 49, Water Code, relating to competitive bidding applies to the District; Section 375.243, Local Government Code, 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 District may levy an operation and maintenance tax as provided for in Section 49.107 of the Water Code; Section 49.107(h), Water Code states that an operation and maintenance tax to be used for recreational facilities, as defined by Section 49.462, Water Code, levied by a district located in a county with a population of more than 3.3 million or in a county adjacent to that county may not exceed 10 cents per $100 of assessed valuation of taxable property in the District, the bill specifies that this section does not apply to the District; 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; and the bill allows the District to establish defined areas.

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 - Within Liberty County, 59% of the total water use was supplied by surface water, and irrigation was the largest volume water use category comprising 57% of the county total water use in 2016. Municipal water use accounted for 39% of the county total water use in 2016. The water source the proposed district might pursue is unknown.