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 Canyon Falls Water Control and Improvement District No. 2 of Denton County (District) with the powers and duties of a water control and improvement district under Water Code Chapters 49 and 51. The purpose of the District includes: providing works and projects under powers conferred by Article XVI, Section 59 of the Texas Constitution to benefit the property within the District and the power of eminent domain.  The District is subject to confirmation election.

1)   Population - The detailed description of the proposed boundaries does not allow staff to develop precise population estimates.  The 2000 Census population of Denton County was 432,976, with 21,332 living in areas identified in the 2007 State Water Plan as “County-Other” (outside cities of more than 500 and established water utility districts).  The total county population is projected to increase to 953,668 by 2020, the County-Other population is projected to increase to 43,946.
 
2)   Location- The district is located within Denton County.

3)  Comments on Powers/Duties Different from Similar Types of Districts-    The District will have road powers.  The confirmation election may not take place until all municipalities in which the district’s extraterritorial jurisdiction is located has consented to the creation.  If the District has not been confirmed before September 1, 2011, then the District is dissolved on September 1, 2011. 
 
4)  Overlapping Services-    The stated boundaries form a closure.  An area map containing at least two reference points (major road names, road intersections) and the proposed district’s geographic location mapped within Denton County is needed to complete overlapping services check.  For Tract 1 the overlapping service providers may be: CCN No. 10199: Argyle Water Supply Corporation; CCN No. 20826: City of Argyle; CCN No. 12983: Monarch Utilities 1 LP; CCN No. 10982: Town of Flower Mound; CCN Nos. 12915 and 20866: Town of Northlake; City of Corral City; and, Upper Trinity Regional Water District.  For Tract 2 the overlapping service providers may be: CCN No. 10982: Town of Flower Mound; CCN Nos. 12915 and 20866: Town of Northlake; and, Upper Trinity Regional Water District
 
5)  TCEQ's  Supervision-     As with general law districts, the TCEQ will have general supervisory authority, including bond review authority and review of financial reports.

6)  Water Use - 96 percent of Denton County water use in 2004 was for municipal purposes, with 2 percent for irrigation.   84 percent of the total water use comes from surface water sources.