By Liza Winkler

In and around Katy, new multimillion dollar improvement projects have been completed, are underway or will soon break ground in several municipal utility districts. These projects are designed to enhance the environment, create a better quality of life for residents and attract new development to the growing area.

Outside Katy city limits, many of the 86 MUDs in the area are carrying out water, sewer, transportation and environmental improvement projects, including Rick Rice Park in the Interstate MUD, a new park and green space in the Willow Fork Drainage District as well as utility and beautification efforts in the Cimarron MUD.

"[MUDs] are basically a small city, and they can do all the functions of a small city if they choose—water, sewage, parks, police and fire," said Rick Lawler, president of the Katy Area Districts Council. "A lot of [MUDs] get into parks because it improves trails, and a lot of them take on projects in the community where they adopt a neighborhood elementary school and provide playground equipment."

Districts council efforts

Founded in 2003, the Katy Area Economic Development Council seeks to offer a network of resources for existing businesses and attract new companies to the growing area, KAEDC President Lance LaCour said. In 2011, the KAEDC launched the Katy Area Districts Council as a special committee to offer educational programs and promote networking among the elected five-member MUD boards, commissioners of emergency services districts and other special purpose districts, LaCour said.

The districts council is funded in a similar way to the KAEDC through two levels of membership, including an associate title for an annual fee of $1,000 and a strategic partner title for $5,000 per year, LaCour said. The districts council is made up of 10 special purpose district members with two more pending approval, he said.

"[The districts council helps] maximize the efficiencies of operations, water and wastewater management programs, disaster planning and response implementation plans, parks and trails networks and educational programs focused on local and regional issues of importance to the Katy area," LaCour said.

The population of each MUD is estimated through water utility connections, ranging from a few hundred to several thousand depending on the area, Lawler said. The districts council typically holds monthly meetings and an educational seminar every other month to discuss community improvement projects and attracting new businesses to the area, Lawler said.

Under financial regulations set by the state of Texas, Lawler said MUDs receive funding from property and MUD taxes collected in the district as well as sales tax revenue from retail and commercial businesses.

Some MUDs in the Katy area with tracts of commercial development are able to enter into a strategic partnership agreement to split 1 cent of sales tax revenue with the city of Houston and use the half-cent to fund local projects in the area, Lawler said. The agreement allows MUDs to continue operating in the city's extraterritorial jurisdiction without being annexed by Houston.

Improvement projects

Lawler said Interstate MUD—located between I-10 and Mason Creek—is one of the top entities in the area for commercial development and community projects.

Rick Ellis, board director for the Interstate MUD, said the $5 million, 7.4-acre Rick Rice Park has been under various stages of construction for nine years and will be completed between the borders of I-10, Mason Road, Westgreen and Kingsland boulevards by the end of 2015. The park will break ground on a new multiuse urban garden that will encompass water features, roses, an exhibition area and open space in spring 2015.

"We are continually working with Harris County on beautification projects in our MUD," Ellis said. "We have built sidewalks along perimeter roads to enable pedestrians to safely get around the area. We have also created roadway underpasses for jogging and walking trails along Mason Creek, and we have landscaped the banks of Mason Creek."

Richard Ward, board president for the Willow Fork Drainage District, said the district consists of about eight MUDs, including several in the Cinco Ranch area, that seek to establish flood control and carry out several green space projects. Voters in the district narrowly approved an estimated $29 million bond in November 2011 to construct several trails and recreational facilities.

The first phase of the bond included $5.9 million devoted to several improvement projects completed last year, including the $1.7 million Central Green Park at LaCenterra at Cinco Ranch, $1 million in outdoor classroom and playground improvements at 10 schools in Katy ISD and the construction of several trails.

The second phase of the bond consists of $9.8 million to fund a 32-acre park north of Cinco Ranch High School in conjunction with Katy ISD and Fort Bend County as well as the completion of Exploration Park, south of Creech Elementary School, and additional trail improvements to be completed in late summer 2015, Ward said.

"We feel very positive about [the park improvements]," Ward said. "We think it's going to enhance the property values out here for the residents of the area."

David Aitken, CEO of the Katy-based IT consulting firm Blue Umbrella and board director for the Cimarron MUD, said Cimarron—located near the corner of the Grand Parkway and I-10—is poised for significant development.

Accordingly, the MUD is planning for new improvement projects to begin this fall and be completed in 2015. These projects include improvements to two water plants and sewer lift stations as well as the completion of an estimated $200,000 landscaping beatification project and detention pond near the Grand Crossing shopping center.

With a Costco Wholesale location and developing retail centers, Aitken said the Cimarron MUD typically receives anywhere from $30,000 to $70,000 each month in sales tax revenue through an agreement with the city of Houston to help fund improvement projects.

Through Blue Umbrella, Aitken said he works with several MUDs in the area to increase transparency with residents by helping to create websites for the MUDs, direct mail pieces and email alerts for community notices.

"I think keeping the community, especially the taxpayers, informed of what's going on is kind of our responsibility," Aitken said. "I don't say that as a director—I say that as a resident. I have the fortunate vantage point of being on both sides of the table."

Future development

As for the future of the districts council, LaCour said he hopes to double membership levels in 2015 to include about 20 MUDs and continue coordinating the efforts of additional MUDs in the Katy area in the future. LaCour said it is important for residents living outside of the city limits to understand the function of MUDs since they play such a vital role in the development and growth of residential and commercial areas in the community.

"The future looks bright for the districts council," LaCour said. "It will serve as a place to foster cooperation, education and explore best practices for MUDs and districts for the improvement of quality of life and places in the Katy area."