Missouri City City Council is considering consolidating or annexing its 34 municipal utility districts, a move that could save the city about $80 million over 30 years. Council members heard possible opportunities that included the city annexing MUDs to create a regional network, working together with MUD operators to create a wholesale and retail utility option and privatization.
A MUD feasibility analysis was completed by members of city staff and its partners, Greenberg Traurig LLP, NewGen Strategies & Solutions and Enprotec, Hibbs and Todd in July and updated for City Council on Aug. 19.
The analysis outlined opportunities for the city’s MUD utility service, including financial, operational, cost of service, level of service and future capital improvements.
David Yanke, president of NewGen’s environmental practice, said Missouri City was unique in that it has a lot of MUDs—34 areas, as well as 11 wastewater treatment plants and 26 water treatment plants.
“Looking at this from a regional standpoint, if the city can consolidate, the potential savings could be $80 million,” Yanke said. “However, the city will also assume some of the MUD liabilities and debt service. That makes it not as attractive.”
If the city maintains its existing infrastructure, it may pay out over $100 million in capital improvement projects to keep aging infrastructure online, he said.
The analysis team will continue to meet with MUD operators about the potential scenarios, and council will determine its options in early 2020.