Southwest Austin - Dripping Springs Edition | July 2024

Real estate

BY GRANT CRAWFORD

As the population of Texas grows, housing communities constructed outside the jurisdiction of existing cities and counties require developers to find alternative solutions to provide key infrastructure supporting subdivisions. This solution often comes in the form of a communities—such as wastewater treatment, waste management, recreational facilities and roads—MUDs may issue bonds to reimburse a developer, repaying the debt using property tax revenues and user fees received from utility services, said Amy Giannini, district engineer for Brushy Creek MUD in the Round Rock area. “In addition to other user fees, MUDs use these municipal utility district, or MUD. In order to provide core services for revenue and financing sources to operate, maintain and improve infrastructure services throughout the district,” Giannini said. MUDs now routine fix for developers

The framework

within 120 days, developers can petition the TCEQ to form a MUD. Voters who live in the proposed district must also give their approval. Municipal utility districts are governed by a board of directors, made up of property owners who are elected. Giannini said the Brushy Creek MUD board includes five residents. “At BCMUD, there are also several resident advisory committees that meet regularly to discuss issues pertaining to district infrastructure and operations,” Giannini said.

A MUD is a type of special district allowed under state law that functions as an independent, limited government, Giannini said. According to state law, developers can petition the Texas Legislature or the Texas Commission on Environmental Quality to create a MUD. If the land where developers want to establish a MUD falls within a city’s jurisdiction, the city must provide consent to create the MUD. Developers are able to negotiate terms with a city, but if the parties can’t come to an agreement

Special-purpose districts by county Special-purpose districts can include MUDs, water conservations districts, emergency services districts and others to provide residents with key infrastructure and resources.

What else?

There are a variety of limited government districts that can be created throughout the state. In Texas, thousands of special-purpose districts are set up to provide a wide range of services, according to the Texas Comptroller. These can include emergency services, library, crime control, development, fire control and health services districts. Similar to MUDS, these districts may also impose property tax, sales tax or users fees, depending on the services they provide. In 2017, a state law was passed to improve transparency, requiring certain special districts to annually provide records regarding district finances and tax rates to the Comptroller of Public Accounts. More information about special district finance reports can be found by visiting www.comptroller.texas.gov.

Travis County

113

Services provided by MUDs

Williamson County

97

Water supply

Wastewater treatment

Hays County

44

Solid waste management

Drainage systems

Dallas County

40

Parks and recreation facilities

Roads

Bexar County 24

SOURCE: TEXAS COMPTROLLER OF PUBLIC ACCOUNTS/COMMUNITY IMPACT

SOURCE: CITY OF AUSTIN/COMMUNITY IMPACT

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