TO:	Honorable Tracy O. King, Chair, House Committee on Natural Resources
FROM:	Jerry McGinty, Director, Legislative Budget Board
IN RE:	HB2525 by Huberty (Relating to the creation of the Lake Houston Dredging and Maintenance District; providing the authority to issue bonds; providing authority to impose assessments and fees.), 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 Lake Houston Dredging and Maintenance District (District) with the powers and duties under Water Code Chapter 49.

Population: HB 2525 states that the boundaries of the proposed district are coextensive with the boundaries of Harris County. The 2010 Census population for Harris County was 4,093,176. The 2018 population estimate for the county was 4,698,619. The Harris County population projections adopted for the 2022 State Water Plan project the population to grow to 5,058,144 in 2030 and 5,376,099 in 2040.

Location: The proposed district's area is approximately 1,777 square miles, and the proposed boundaries of the district are coextensive with the boundaries of Harris County.

Comments on Powers/Duties Different from Similar Types of Districts: The bill states that the District's boundaries are coextensive with the boundaries of Harris County. The bill states that the District shall perform, and may form interlocal agreements for, dredging and maintenance operations on Lake Houston. The bill states that the District may not: finance, develop, or maintain a recreational facility under Subchapter N, Chapter 49, Water Code; exercise the power of eminent domain; or perform the same functions as another conservation and reclamation district whose territory overlaps with the territory of the District. The bill states that the district may not impose an ad valorem tax.

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 Harris County, 76% of the total water use was supplied by surface water, and municipal use was the largest volume water use category comprising 67% of the county total water use in 2018. The water source the proposed district might pursue is unknown.