New Braunfels-area MUD proposals grow

MUDs are special-purpose districts created by the state and used by developers to fund the upfront costs of building new communities in unincorporated areas—land outside city limits that isn’t governed by a municipal government—such as infrastructure for water, sewer, drainage, and roads, according to the Texas Municipal League.

Unlike city residents, MUD residents typically do not receive municipal trash pickup, parks access or police services, and instead rely on county resources or private services.

MUDs are governed by locally elected boards, often chosen in low-turnout elections where only a few residents qualify to vote because the land is typically undeveloped at the time, Comal County Elections Coordinator Cynthia Jaqua said.

Developers also use other forms of special purpose districts, such as water improvement districts, or WIDs depending on the type of infrastructure available. In Comal County, where population growth has outpaced the reach of incorporated cities like New Braunfels, Jaqua said MUDs have become a go-to development tool, particularly after state legislation implemented in 2023 gave landowners the ability to opt out of a city’s ETJ.

The impact

Since 2020, at least 17 MUDs and WIDs have been formed in Comal County, with 12 approved or proposed since 2023.

Residents in MUDs often face higher tax rates than those within city limits. In 2024, New Braunfels had a tax rate of $0.4089 per $100 of property valuation, compared to $0.95 in nearby MUDs like Meyer Ranch and Kyndwood, according to the Comal County Tax Office.

Meyer Ranch MUD resident David Beaudin said the higher costs and lack of transparency have been a source of confusion.

“When you move in, there’s not really clarity,” Beaudin said. “I lived in a city prior to this...and it was simple.”

Beaudin said it’s difficult for MUD residents to know what jurisdiction to go to with issues, such as their HOA, the city or the MUD board.

Current situation

The land for Comal County MUD No. 5—owned by David Burch of 306 Properties LP—was previously within New Braunfels’ ETJ. In 2022, Burch proposed a development agreement, but did not move forward despite council’s approval due to an impasse over who would handle permitting and inspections, according to council agenda documents from May 2022.

In January 2024, Burch petitioned the city to release the property from its ETJ, according to David Ferguson, communications manager for the city of New Braunfels.

Regal Land Development Owner Clint Jones said he and Burch are planning a 788-home development, with lots ranging from 60 to 120 feet wide, and approximately 200 acres designated as greenbelt space.

“When [Senate Bill 2038] passed... it freed up developments to where we could form the taxing district, which is necessary to be able to offset some of the increased cost of these developments,” Jones said.

Comal County Commissioner Precinct 4 Jen Crownover said the new legislation has created a “helpless situation” for county residents.

Jones said they are currently finalizing permits for a wastewater treatment plant capable of processing 200,000 gallons per day to serve MUD No. 5. If the district is approved, they plan to start the development in 2026. If approved, MUD No. 5 would fall under TCEQ oversight, which reviews financial reports and utility bond proposals.

Diving deeper

The site for Comal County MUD No. 5 sits on the Edwards Aquifer recharge zone and partially within the Federal Emergency Management Agency-designated 100-year flood plain.

Annalisa Peace, executive director of the Greater Edwards Aquifer Alliance, said the organization is concerned about both the impact of wastewater on groundwater supplies and if the infrastructure is safe enough for the flooding and proper wastewater disposal.

Jones said they have planned multiple water quality ponds to capture and treat the stormwater and have spoken with nearby residents and neighborhood associations to go over their plans.

What residents need to know

Jaqua said to vote in a MUD election, eligible voters must have lived within the proposed district for at least the past 30 days.

“I know that some people have been upset because they should have been able to vote for a certain MUD, but they didn’t live in the MUD in the district that’s being created,” Jaqua said.

MUDs also on the ballot on May 3 are the Canyon Ranch MUD and Simmons Valley MUD. Voters for the Comal County MUD No. 5 will be asked to decide:

• Directors: Elect the proposed five board directors to govern the MUD
• Proposition A: Confirm the creation of Comal County MUD No. 5.
• Proposition B: Authorize a maintenance and operations tax up to $1.20 per $100 valuation.
• Propositions C–F: Approve up to $1.277 billion in bonds over 40 years for water and road related infrastructure and future bond refinancing