Leander plans annexation of new Palmera Ridge MUD

Leander is poised to grow by another 197 acres after Leander City Council approved a resolution on Jan. 16 for Palmera Ridge's voluntary annexation.

The property includes a recently created municipal utility district in two parcels, one of about 145 acres and the other about 52 acres. The resolution also outlines a timetable for annexation, starting with public hearings on Feb. 20 and March 6.

Tom Yantis, the city's development services director, said the city would need to hold a first reading by March 27, likely during a special-called meeting, and a final reading on April 3.

On Dec. 5, City Council approved an ordinance that established the Palmera Ridge MUD, including the site's development agreement and facilities agreement. City leaders said they plan to annex the district this year. Its future residents would pay city property taxes and an additional MUD property tax to fund infrastructure, City Manger Kent Cagle said in December.

City leaders expect the new MUD—located northwest of the Hero Way and Ronald Reagan Boulevard intersection—will have 600 homes, which could spur more development in the area.

However, construction would not begin for at least another year, Yantis said on Dec. 5.

According to the city's municipal services plan for the property, the Palmera Ridge MUD, once annexed, would benefit from Leander's police and fire services. Future Palmera Ridge residents would also receive city utility maintenance. However, developers pay for utility lines.

A MUD allows developers to front construction and infrastructure costs with anticipated property taxes collections. If a MUD is not annexed, MUD residents may have a city address but not utilize city services or vote in city elections.