LEGISLATIVE BUDGET BOARD
Austin, Texas
 
WATER DEVELOPMENT POLICY IMPACT STATEMENT

88TH LEGISLATIVE REGULAR SESSION
 
April 24, 2023

TO:
Honorable Tracy O. King, Chair, House Committee on Natural Resources
 
FROM:
Jerry McGinty, Director, Legislative Budget Board
 
IN RE:
HB5406 by Rogers (Relating to the creation of the Cross Timbers Regional Utility Authority; granting a limited power of eminent domain; providing 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 Cross Timbers Regional Utility Authority (Authority) as a conservation and reclamation district created under Section 59, Article XVI, Texas Constitution.

Population: HB 5406 states that the authority is composed of all of the territory contained in Palo Pinto County, Parker County, and Stephens County.

The 2020 Census population for Palo Pinto County was 28,409. The Palo Pinto County projections adopted for the 2022 State Water Plan projects the population to grow to 32,771 in 2030 and 34,280 in 2040.

The 2020 Census population for Parker County was 148,222. The Parker County projections adopted for the 2022 State Water Plan projects the population to grow to 260,194 in 2030 and 276,979 in 2040.

The 2020 Census population for Stephens County was 9,101. The Stephens County projections adopted for the 2022 State Water Plan projects the population to grow to 10,293 in 2030 and 10,455 in 2040.

Location: The proposed district would be composed of the following North Texas counties:

Palo Pinto County which is approximately 985 square miles and Mineral Wells is the largest city within the county.

Parker County which is approximately 906 square miles and Weatherford is the county seat and largest city within the county.

Stephens County which is approximately 922 square miles and Breckenridge is the county seat and largest city within the county.

Comments on Powers/Duties from Similar Types of Districts: The Authority is composed of all of the territory contained in Palo Pinto County, Parker County, and Stephens County. The Authority is governed by a board of seven directors, which are appointed as follows: one director appointed by the Commissioners Court of Palo Pinto County; three directors appointed by the Commissioners Court of Parker County; one director appointed by the Commissioners Court of Stephens County; and two directors appointed by the city council of the City of Mineral Wells. The bill grants the Authority the powers and duties of a municipal utility district under Chapters 49 and 54, Water Code. The authority may acquire, develop, and use rights to groundwater or surface water. The Authority may exercise the power of eminent domain under Chapter 49, Water Code. The Authority may not impose a tax. The Authority may issue revenue bonds. If permitted by a contract with a municipal corporation the Authority may issue bonds to improve or extend a facility operated by the Authority. If the bill does not receive a two-thirds vote of all members elected to each house, the Authority 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, but that is limited to the review of financial reports.  Due to the size of the Authority, TCEQ will not have jurisdiction to review bonds issued by the Authority.

Water Use: Within Palo Pinto County, 91% of the total water use was supplied by surface water, and municipal was the largest volume water use category comprising 64% of the county total water use in 2020.

Within Parker County, 57% of the total water use was supplied by surface water, and municipal was the largest volume water use category comprising 82% of the county total water use in 2020.

Within Stephens County, 94% of the total water use was supplied by surface water, and municipal was the largest volume water use category comprising 68% of the county total water use in 2020.

The water source the proposed district might pursue is unknown.


Source Agencies:
580 Water Development Board, 582 Commission on Environmental Quality
LBB Staff:
JMc, AF