- Mason MUD, in San Marcos
- Buda MUD No. 2
- Travis County MUD No. 27
- Travis County MUD No. 32
MUDs are typically established by developers in undeveloped areas outside the jurisdiction of existing city or county governments. They can also be formed within city boundaries to provide infrastructure.
The Mason MUD will appear on the ballot for voters in its district. If approved, it will fund utility services in the Mason Subdivision, a 306-acre master-planned community on Centerpoint Road in San Marcos.
Although Marcus Pacheco, Hays County development services director, could not confirm if the MUD is specifically tied to the Mason Subdivision, the MUD map provided by the Texas Commission on Environmental Quality, or TCEQ, matches the subdivision’s plans.
“The Mason developers have worked closely with the county and are setting aside over 60 acres of open space with a trail system, which is needed on the east side,” Debbie Ingalsbe, Hays County commissioner of Precinct 1, said in an email to Community Impact. “They are providing a voting location and dedicating a two acre site for a future ESD, Emergency Services District.”
If approved, the MUD will levy an operation and maintenance tax not to exceed $1.20 per $100 valuation of taxable property. The four propositions on the ballot for the Mason MUD total $775 million in bonds to fund water, wastewater and road projects within the development.
The details
Buda MUD No. 2 will be formed for a new residential development called The Colony, which was approved by Buda City Council on March 12, 2024, according to previous Community Impact reporting. The Colony is creating a MUD to build transportation infrastructure, including a bridge that has already been built over Onion Creek to connect the development to FM 2770, according to Buda City Manager Micah Grau.
If approved, the Buda MUD No. 2 will levy an operation and maintenance tax not to exceed $1 per $100 valuation of taxable property. Ballot propositions for Buda MUD No. 2 include a total of $278.5 million in bonds for water, wastewater and road infrastructure.
There will also be two MUDS on the Travis County ballot, in the northeast Buda area.
Both the Travis County MUD No. 27 and MUD No. 32 will have a potential operation and maintenance tax not to exceed $1.20 per $100 valuation of taxable property. The ballot will also include multiple propositions for each MUD totaling $625.43 million in bonds—for MUD No. 27—and $272 million—for MUD No. 32—to fund water, road and wastewater infrastructure within the development.
The purposes for and possible developments on the two Travis County MUDs are currently unknown.
Voters in all four districts will also elect board directors for the respective MUDs.
What are MUDs?
A municipal utility district, or MUD, is a limited form of independent government that allows developers to levy fees on residents within the district to finance infrastructure projects, according to Pacheco.
For a more specific definition, a TCEQ representative said in an email to Community Impact that a MUD is a political subdivision of the state that has varying powers and duties as specified under Chapters 49 and 54 of Water Code.
What do MUDs provide?
As a special-use district, MUDs can provide a variety of essential utility services and infrastructure, including:
- Water supply
- Wastewater treatment
- Solid waste management
- Drainage systems
- Parks and recreation facilities
- Road facilities
Who governs MUDs?
Each MUD is governed by a board of directors elected by residents who live within the district. The board is responsible for overseeing operations and may enter into contracts and agreements with service providers and other entities.
How are MUDs formed?
Developers may petition the Texas Legislature or the TCEQ to form a MUD. If the property lies within city limits, the city must authorize its creation.
Typically, MUD elections don’t receive a lot of votes because a resident has to be in the district to vote, and the district usually is undeveloped land, according to Grau. Some MUDs will have people that live in the district for the purpose of voting on the MUD.
How do MUD finances work?
MUDs finance infrastructure through the issuance of bonds, which are repaid through property taxes levied on residents within the district. Other financial resources include:
- Utility fees on residents and businesses
- Impact fees on new developments
- Grants and loans from federal, state and local governments
