Four Corner - Texas Water Development Board

9.0 IMPLEMENTATION AND FUNDING PLAN
9.1. DESCRIPTION OF ENTITIES NECESSARY TO IMPLEMENT
RECOMMENDED PROJECT
In order to access financing sewer facilities in the Four Corners area, a Water District will
have to be formed. Water Supply Corporations (WSC) formed to serve specific areas can
seek loans to construct water facilities however the loan requirements for sewer facilities
require the additional security that a district provides. Unlike WSC's, Districts have the
ability to levy taxes to cover their debt when revenues are insufficient.
Water districts are local political subdivisions of the state governed by a board of
directors. Water districts in Texas derive their authority from the Texas Constitution,
Article III, Section 52 or Article XVI, Section 59. All water districts must comply with
the laws contained in the Texas Water Code and other applicable statutes. The TNRCC
has "continuing right of supervision" over water districts in accordance with the Texas
Water Code. Districts also are subject to regulation by state and federal agencies that
issue and monitor permits for the various activities of the district. For example, drinking
water quality and wastewater discharges are regulated by the TNRCC and the U.S.
Environmental Protection Agency.
Districts are governed by a board of directors elected by the voters in the district. Board
members must meet the qualifications for serving outlined in the Texas Water Code. The
district's board is responsible for all the business of the district, including those functions
that are contracted to other parties. In order to meet the financial obligations of the
district a tax may be levied upon all property in the district on an ad valorem basis. The
tax rate authorized by voters cannot be exceeded without additional voter approval.
Once a district has been established, the TNRCC has "continuing right of supervision''
over water districts in accordance with the Texas Water Code. Districts also are subject to
regulation by state and federal agencies that issue and monitor permits for the various
Four Corners Area Water and Wastewater Facilities Planning Study
FINAL REPORT
Revised 2/10/99
Page 9-1