Leander City Council approves Palmera Ridge MUD

Construction of buildings, however, will likely not begin for at least another year.

Residents will likely first see work on a new sewer line—roughly alongside Ronald Reagan Boulevard—that would also provide resources for other development in that area, Cagle said.

At the meeting, Yantis said the Palmera Ridge MUD can provide financing for the developer to front the cost of the sewer line. The line will range from 12 inches to 30 inches in diameter and serve all the property in the Brushy Creek watershed, Yantis said.

The result is a better way for the city to achieve its planned utility structure without also fronting the line's construction costs, Yantis added.

A MUD allows developers to finance new subdivisions' infrastructure costs through separate property taxes. Often MUDs function outside city limits, but the Palmera Ridge MUD would likely be fully annexed this January, Cagle said. The new agreement allows for any additional land acquired by the developer to be added to the existing MUD, he said.

Between the city and MUD taxing rates, future property owners within the MUD would likely pay property taxes no higher than $1 per $100 of valuation, Cagle said. Moreover, unlike other MUDs outside city limits that can remain active for decades, the agreement sets out a specific timespan for Palmera Ridge of 35 years, Cagle said.

City residents will not yet see much change in the area, but the changes are coming, he said.

"[The MUD] adds another subdivision, adds more taxbase to the city—probably an above-average residential taxbase that's positive—[and] brings some significant public infrastructure that will open other property for development," Cagle said.