MUDs engage in the supply of water, conservation,
irrigation, drainage, fire fighting, solid waste (garbage)
collection and disposal (including recycling activities),
waste-water (sewage) treatment, and recreational facilities.
A MUD can require its customers to use its solid waste
services as a condition for receiving other MUD services. A
MUD may provide solid waste and recycling services
through a private company.
While they can develop, maintain, or acquire parks or
recreational facilities, MUDs are prohibited from issuing
bonds to pay for these facilities. They can, however, set and
charge user fees.
(For more detailed information, visit the source at www.tceq.texas.gov)
How is a MUD created?
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.
How does a MUD work?
The publicly elected Board of Directors manages and controls all of the affairs of the MUD subject to the continuing supervision of the Texas Commission of Environmental Quality. 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.
What Can Utility Districts do?
While there are several different types of utility districts, here's a list of the powers granted most types of districts, by state law:
- to incur debt
- to levy taxes
- to charge for services and adopt rules for those services
- to enter contracts
- to obtain easements
- to condemn property
What is a developer's responsibility to the MUD?
Developers must petition the Texas Commission of Environmental Quality to
create a MUD. Developers are prohibited from serving or placing employees,
business associates, or family members on the MUD Board of Directors.
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. 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.
I Used No Water for Months, But Still Got Billed. Why?
If you did not ask the district to terminate your service,
the district may assess a minimum service charge each
billing period, regardless of whether you actually use the
service. On the other hand, if the district terminated your
service—with or without your request—you should not be
billed for this minimum service charge.
If you would like to have your service cut off while you
are away, remember that your district is allowed to charge
you for the cost of disconnecting and reconnecting its
services. Although your district must honor your request to
terminate service, you should consider which is cheaper if
you plan to return—to pay the cost of terminating service
plus the related fees to renew services, or to keep an inactive
account and pay a minimum charge each billing period.
Does Anyone Review a District’s Rates?
Although rates should reflect the true cost of service, the
TCEQ does not have the authority to review these rates
unless customers appeal a rate change. Usually, a district will
have a consultant develop rates that, if appealed, can be
demonstrated to be reasonable and not to discriminate
against a class of users.
Making Sure Your Concerns Are Addressed
Unless your district’s directors are aware of your specific concerns, they cannot respond in an informed, proactive
manner. To enable them to respond effectively, you must give them a factual account of your particular situation.
Though there’s no guarantee, you can improve your chances of having your concerns addressed by taking these steps:
■ Briefly outline your situation, concerns, or questions.
■ Write a letter based upon that outline.
■ Indicate in your letter whom you contacted to resolve the situation—and when.
■ Clearly state what outcome or resolution you are seeking from the board.
■ Send the letter to the district’s board of directors by certified mail.
■ Keep a copy of the letter for your records.
■ Ask to be placed on the agenda of the next board meeting to have the directors address your concerns. (Remember
that directors can make a decision only during a properly posted, open board meeting.)
■ Attend the board meeting to present your situation.
If one director is unresponsive to your concerns, try approaching another director. And keep in mind that your
district’s voters elect the directors to serve the community. If you’re not voting in each election, you’re giving up your
strongest avenue of relief.
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