From the cover
MUDs take o in Leander and Liberty Hill
In a nutshell
How do MUDS work?
Without MUDs, these projects would either:
A MUD is a type of special-purpose district authorized by the state Legislature that functions as an independent limited government.
MUDs are special-purpose districts created by the state and used by developers to fund the upfront costs of building new communities in unincorporated areas—land outside city limits that isn’t governed by a municipal government— such as infrastructure for water, sewer, drainage and roads, according to the Texas Municipal League. Unlike city residents, MUD residents typically do not receive municipal trash pickup, parks access or police services, and instead rely on county resources or private services. MUDs are governed by locally elected boards, often chosen in low-turnout elections where only a few residents qualify to vote because the land is typically undeveloped at the time, according to previous Community Impact reporting. Developers also use other forms of special- purpose districts, such as water improvement districts, or WIDs, depending on the type of infrastructure available. Dozens of MUDs exist in the Leander and Liberty Hill area, many of which are located along US 183 and Hwy. 29 in or near Leander’s ETJ. Since 2023, new state legislation has allowed landowners to leave a city’s ETJ through petition or election, making way for the creation of more MUDs.
The cost of property within them would be much higher
Be much smaller
or
How are MUDS created?
1. Petition
2. Review
TCEQ reviews public hearing requests from interested parties and the county court. If a requester is aected, there will be a hearing followed by a judge’s ruling. 3. Government
4. Annexation
Property owners must petition Texas Commission on Environmental Quality. The developer must put up a letter of credit equal to 30% or more of the cost of subdivision utilities.
The TCEQ evaluates the petition, holds a public hearing and either grants or denies the requests.
New sites can be annexed into a MUD through a formal request to the MUDs attorney or engineer. The board votes to approve or deny the request.
Living in a MUD outside of the city
To live in the city
Higher property tax rates than city residents
Lower property tax rates than MUD residents
Fewer property regulations
City zoning and property regulations
More new housing options
High city impact fees for new developments
Typically more access to outdoor amenities
Parks and rec development funded by city
Vote for representatives of MUD boards
Residents can vote in city elections
SOURCE: TEXAS MUNICIPAL LEAGUE, TEXAS WATER CODECOMMUNITY IMPACT
The impact
community requests, including maintenance work and landscaping projects. “I think that smaller government programs like this that keep more decisions in the hands of the communities that they’re in is valuable,” Dunn said.
valuation, compared to $0.9226 in nearby MUDs like Williamson County MUD 31, according to the Williamson County information. Laurie Dunn, a resident of Williamson County MUD 31, said she’s willing to pay higher taxes as the board of her MUD has been very responsive to
Over the last decade, at least 16 MUDs have been formed in the Leander and Liberty Hill area, with 12 approved since 2020. Residents in MUDs often face higher tax rates than those within city limits. In 2024, Leander had a tax rate of $0.417282 per $100 of property
$1.20 $1 Comparing tax rates
MUD bonds can be used to fund:
Water, sewer and drainage infrastructure
Road projects
$0 $0.40 $0.20 $0.60 $0.80
Waste services
Parks, trails and other recreational amenities
When a resident buys a house in a district, they are notied of the following:
Money voted on in past bonds The number of bonds to be funded to date
Tax rate
The purpose of the district
SOURCE: WILLIAMSON COUNTYCOMMUNITY IMPACT
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