When the approximately 1,000 homeowners who live in River Place wake up Dec. 15, they will drink their morning coffee as residents of the city of Austin as annexation takes effect.

It is likely a final chapter in a failed political battle fought last summer to include the community under a new state law that will allow homeowners to decide if they want to be annexed by a larger municipal entity. That law passed in August and takes effect Dec. 1. River Place was excluded from the law despite the efforts of state Rep. Paul Workman, R-Austin.

But with annexation approaching, the River Place Municipal Utility District is hoping to save its ratepayers money in the long run, MUD Chairman Pat Reilly said. City of Austin staffers are considering a proposal from the MUD to waive city drainage fees in exchange for the district’s ongoing maintenance of eight ponds—a task that will otherwise fall to city of Austin parks crews, he said.

At the district’s Oct. 24 board meeting, Reilly said the offer will save the district significant funds since it costs River Place homeowners roughly $10 monthly for pond care, while Austin’s drainage charge, which considers impervious cover ratios, costs city taxpayers between $8 and $25 per month. Reilly said he expects city staff to provide an answer before annexation day.

Since The MUD’s inception in spring 1985 it has set its own local tax rate as well as managed its water, sewage and trash-collection rates.

In 2009 the River Place MUD made a strategic partnership agreement, or SPA, with Austin for the city to provide water service using a local water treatment plant.

Once annexed by Austin the MUD will convert to a limited district and will have the same responsibilities the MUD has, such as continued management of River Place’s parks, nature trails and solid-waste collection.

River Place homeowners has authority to fund the limited district through a property tax rate of up to $0.50 per $100 of assessed valuation placed specifically on River Place homeowners, according to the SPA.

On May 5, 2018 River Place voters will decide whether to formally approve the limited district for the long term. In September the River Place board approved an order to levy a maintenance and operations tax of $0.075 per $100 assessed valuation, according to board minutes. The debt collection rate was set at $0.00.

If voters do not approve the limited district, Reilly said Austin’s charges to provide solid-waste collection services would be higher than the combined amounts charged by the limited district for solid-waste collection and property taxes.

Reilly said the city of Austin does not plan to assume collecting city taxes in River Place until the 2019 tax year.