A Municipal Utility District (MUD) is a political subdivision of the State of Texas authorized by the Texas Commission of Environmental Quality (TC...
MUDs vary in size, but they generally serve master-planned communities of a few hundred households. Homes in Shady Hollow, Belvedere, Anderson Mill...
A majority of property owners in the proposed district petitions the Texas Commission of Environmental Quality to create a MUD. The TCEQ evaluates...
The publicly elected Board of Directors manages and controls all of the affairs of the MUD subject to the continuing supervision of the Texas Commi...
Municipal Utility Districts are funded through bonds. Homeowners then pay off those bonds through MUD tax. As the debt decreases, MUD taxes may als...
MMUD tax rates, like all property tax rates, vary according to property values and debt requirements. MUD rates generally decline over time as the...
In addition to their common functions of water and wastewater service, MUDs are legally empowered to engage in conservation, irrigation, electrical...
Municipal Utility District (M UD) Basics . A Municipal Utility District (MUD) is one of several types of special districts that function as independent, limited governments.
Page 3 and Cinco Ranch (5,400 acres). The use of special districts has enabled Houston to sustain quality growth while retaining the lowest home prices of any major metropolitan area in the
A municipal utility district is one that is formed under specific circumstances to provide utility services to a designated area.
A water district is a local, governmental entity that provides limited services to its customers and residents. Examples of water districts include municipal utility districts, water control and improvement districts, special utility districts, and river authorities.
1. Most Management Districts are authorized to develop a wide variety of improvements, including:
A Municipal Utility District (MUD) is a political subdivision of the State of Texas authorized by the Texas Commission of Environmental Quality (TCEQ) to provide water, sewage, drainage and other utility-related services within the MUD boundaries.
Developers must pay for or put up a letter of credit equal to 30% of the cost of subdivision utilities. This requirement ensures against "fly-by-night operators" who are not committed to the success of the MUD.
A majority of property owners in the proposed district petitions the Texas Commission of Environmental Quality to create a MUD. The TCEQ evaluates the petition, holds a public hearing, and grants or denies the petition. After approval, the TCEQ appoints five temporary members to the MUD's Board of Directors, until an election is called to elect permanent Board members, to confirm the MUD's creation, and to authorize bonds and taxing authority for bond repayment.
The Board establishes policies in the interest of its residents and utility customers . A MUD may adopt and enforce all necessary charges, fees, and taxes in order to provide district facilities and service.
In addition to their common functions of water and wastewater service, MUDs are legally empowered to engage in conservation, irrigation, electrical generation, firefighting, solid waste collection and disposal, and recreational activities (such as parks, swimming pools, and sports courts). A MUD can provide for itself the recreational amenities that are approved by the Board of Directors and funded by the District.
The "30% rule" also offers protection to MUD residents in the event that a subdivision is not built according to schedule. Unless they are voting residents within a MUD, developers have no authority or control over the MUD's Board of Directors. If they are voting members of a district, they have the same power to vote and attend Board meetings as any other resident.
MUD tax rates, like all property tax rates, vary according to property values and debt requirements. MUD rates generally decline over time as the MUD is built out and operating and debt service costs are shared by more homeowners.
A district shall be created for the following purposes: (1) the control, storage, preservation, and distribution of its storm water and floodwater, the water of its rivers and streams for irrigation, power , and all other useful purposes;
(2) "Board" means the board of directors of a district. (3) "Director" means a member of the board of directors of a district. (4) "Commission" means the Texas Natural Resource Conservation Commission. (5) "Executive director" means ...
The city's consent to the inclusion of land in a district may restrict the purposes for which a district may issue bonds to the purposes of the purchase, construction, acquisition, repair, extension and improvement of land, easements, works, improvements, facilities, plants, equipment and appliances necessary to:
Sec. 54.101. BOARD OF DIRECTORS. A district shall be governed by a board of five directors.
Sec. 54.014. PETITION. When it is proposed to create a district, a petition requesting creation shall be filed with the commission. The petition shall be signed by a majority in value of the holders of title of the land within the proposed district, as indicated by the tax rolls of the central appraisal district.
A district shall not allow the owner of a tract to connect to the district's water or wastewater system unless such tract is a legally subdivided lot which is part of a recorded subdivision plat or is otherwise legally exempt from the subdivision requirements of the applicable governmental authority.
Upon final disposition, a court may award damages, including any damages for delays, attorney's fees, and costs of court to the prevailing party. Under no circumstances shall land within the corporate limits of a city be included in a district without the written consent, by ordinance or resolution, of the city.
MUDs have been a highly effective and well accepted development tool in Texas because they benefit all of the represented interests: (i) bond investors , (ii) developers , (iii) consumers , and (iv) good public policy . In fact, the only current opposition to the use of MUDs comes from those opposed to the promotion of growth and the creation of affordable housing.
Most of the special districts in Texas, however, are located in the Houston metropolitan area. In 2010 it was estimated that more than 2.1 million people resided in the approximately 650 special districts located in the Houston metropolitan area. Those districts were estimated to have had in excess of $6.5 billion in outstanding bonds.
Texas cities are granted a sphere of influence outside their boundaries known as extraterritorial jurisdiction (“ETJ”). A city must consent to the creation of a MUD within its ETJ or its corporate limits. In its consent, the city may require the MUD to submit all plans for its infrastructure for approval and limit the length of maturity and interest rate of the MUD bonds. The city bears no risk for the development or the MUD, while controlling the quality of the infrastructure. The city has the legal option to annex the MUD, acquire all the assets and assume the debt, subject to certain procedural steps.
The objective of a MUD is to provide various services such as water, sewer, and drainage (including detention ponds) to certain areas where municipal services are not available. A MUD also has the ability to construct parks, street lighting, fire prevention facilities, and certain types of roads. The funds used to construct the MUD’s facilities are obtained through the public sale of tax-exempt municipal bonds. The MUD provides for the payment of the principal and interest on the bonds through its unlimited power to levy and collect ad valorem taxes on all taxable property in the MUD. The taxes are then paid by homeowners and landowners in the MUD. In addition, homeowners and other users pay monthly water and sewer fees to pay for the costs of operating and maintaining the system.
By contract, the municipality and district may also provide for: (1) the lease of the municipality's water production, water supply, and water supply facilities to the district; (2) the district to operate the municipality's water production, water supply, and water supply facilities; or.
Sec. 552.012. MUNICIPALITIES IN OR CONTRACTING WITH A WATER DISTRICT. (a) In this section, "water district" means a municipal water authority or other district created under Article XVI, Section 59, of the Texas Constitution.
DRAINAGE CHARGES. (a) The governing body of the municipality may charge a lot or tract of benefitted property for drainage service on any basis other than the value of the property, but the basis must be directly related to drainage and the terms of the levy, and any classification of the benefitted properties in the municipality must be nondiscriminatory, equitable, and reasonable.
Sec. 552.051. DRAINAGE REVENUE BONDS. By majority vote of the governing body, the municipality may issue drainage revenue bonds. The municipality may use Chapter 1201, Government Code. In addition, the municipality may pledge income received by contracts for the provision of drainage to other governments or governmental subdivisions located inside or outside the service area.
CONTRACT WITH WATER IMPROVEMENT DISTRICT OR WATER CONTROL AND IMPROVEMENT DISTRICT. (a) A municipality may contract with a water improvement district or water control and improvement district created under Article XVI, Section 59, of the Texas Constitution for the supplying of water to the municipality.
WATER SYSTEMS IN HOME-RULE MUNICIPALITIES. (a) A home-rule municipality may exercise the exclusive right to own, construct, and operate a water system for the use of the municipality and its residents. The municipality may regulate the system and may prescribe rates for the water furnished.
Sec. 552.0025. CONNECTION, DISCONNECTION, AND LIABILITY FOR MUNICIPAL UTILITY SERVICES. (a) A municipality may not require a customer to pay for utility service previously furnished to another customer at the same service connection as a condition of connecting or continuing service.
In Texas the natural gas industry is principally overseen by the Texas Railroad Commission (RRC). You can contact the RRC with complaints about the billing, purchasing, selling, shipping, transportation, or gathering practices of natural gas providers.
Several types of organizations provide water service in Texas. Cities and co-ops as well as Municipal Utility Districts (MUDs) can supply water. If you have a concern about water quality, service, or billing, you can contact your water supplier directly.
The Federal Communications Commission also accepts consumer complaints about telephone service. The OPC provides representation to residential and small commercial consumers in matters involving telephone service as well.
If you belong to an electric cooperative, you can contact the administrators of the co-op with your concerns. Because co-ops are member-owned, their customers typically need to resolve disputes through the co-op. If you have a billing dispute that the co-op does not resolve, you can file a consumer complaint with our office.
Power and telephone lines crisscross our neighborhoods, and water and natural gas flow into our homes. In today's modern world, these utilities are necessities. It is thus important to know where to find information about your utilities when you have questions and whom to contact when there's a problem.
In Texas there are three major types of electricity providers: cities, cooperatives, and private companies. If a city provides your power, you can contact them with any concerns you have regarding service or billing. Municipally owned electric companies typically are not overseen by state regulators.
Regardless of the utility, you can file complaints with our office . While the OAG may be limited in its ability to remedy your complaint, certain conduct may be actionable by our office as well .
A district shall be created for the following purposes: (1) the control, storage, preservation, and distribution of its storm water and floodwater, the water of its rivers and streams for irrigation, power , and all other useful purposes;
(2) "Board" means the board of directors of a district. (3) "Director" means a member of the board of directors of a district. (4) "Commission" means the Texas Natural Resource Conservation Commission. (5) "Executive director" means ...
The city's consent to the inclusion of land in a district may restrict the purposes for which a district may issue bonds to the purposes of the purchase, construction, acquisition, repair, extension and improvement of land, easements, works, improvements, facilities, plants, equipment and appliances necessary to:
Sec. 54.101. BOARD OF DIRECTORS. A district shall be governed by a board of five directors.
Sec. 54.014. PETITION. When it is proposed to create a district, a petition requesting creation shall be filed with the commission. The petition shall be signed by a majority in value of the holders of title of the land within the proposed district, as indicated by the tax rolls of the central appraisal district.
A district shall not allow the owner of a tract to connect to the district's water or wastewater system unless such tract is a legally subdivided lot which is part of a recorded subdivision plat or is otherwise legally exempt from the subdivision requirements of the applicable governmental authority.
Upon final disposition, a court may award damages, including any damages for delays, attorney's fees, and costs of court to the prevailing party. Under no circumstances shall land within the corporate limits of a city be included in a district without the written consent, by ordinance or resolution, of the city.