New Braunfels-area MUD proposals grow From the cover
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, Comal County Elections Coordinator Cynthia Jaqua said. Developers also use other forms of special purpose districts, such as water improvement districts, or WIDs depending on the type of infrastructure available. In Comal County, where population growth has outpaced the reach of incorporated cities like New Braunfels, Jaqua said MUDs have become a go-to development tool, particularly after state legislation implemented in 2023 gave landowners the ability to opt out of a city’s ETJ.
The cost of property within them would be much higher
Be much smaller
How are MUDS created?
1. Petition
2. Review
TCEQ reviews public hearing requests from interested parties and the county court. If a requester is affected, there will be a hearing followed by a judge’s ruling. 3. Government
4. Annexation
Property owners within a proposed district must petition TCEQ to create the MUD. The developer must put up a letter of credit equal to 30 percent 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.
To live 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 CODE/COMMUNITY IMPACT
The impact
“When you move in, there’s not really clarity,” Beaudin said. “I lived in a city prior to this…and it was simple.” Beaudin said it’s difficult for MUD residents to know what jurisdiction to go to with issues, such as their HOA, the city or the MUD board.
property valuation, compared to $0.95 in nearby MUDs like Meyer Ranch and Kyndwood, according to the Comal County Tax Office. Meyer Ranch MUD resident David Beaudin said the higher costs and lack of transparency have been a source of confusion.
Since 2020, at least 17 MUDs and WIDs have been formed in Comal County, with 12 approved or proposed since 2023. Residents in MUDs often face higher tax rates than those within city limits. In 2024, New Braunfels had a tax rate of $0.4089 per $100 of
Comparing tax rates
MUD bonds can be used to fund:
$1
Water, sewer and drainage infrastructure
Road projects
$0.75
Waste services
Parks, trails and other recreational amenities
$0.5
When a resident buys a house in a district, he or she is notified of the following:
$0.25
$0
Money voted on in past bonds that can be sold The number
Tax rate
The purpose of the district
of bonds to be funded to date
SOURCE: COMAL COUNTY APPRAISAL DISTRICT/COMMUNITY IMPACT
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