Bill Caption

Relating to the creation of the Montgomery County Municipal Utility District No. 148; granting a limited power of eminent domain; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes.

Fiscal Notes

Because the bill would not have statewide impact on units of local government of the same type or class, no comment from this office is required by the rules of the House/Senate as to its probable fiscal implication on units of local government.

Bill Analysis

This bill seeks to create a municipal utility district (MUD) focusing on road construction, drainage, wastewater, and other fundamental needs and may issue bonds and may hold an election to vote on issuing bonds from ad valorem taxes and operation and maintenance taxes. The first 5 members of the board of directors are appointed and temporary. The district may not exercise the power of eminent domain. 

Vote Recommendation Notes

SB 2056 would provide the legislative requirement necessary to establish fundamental services in the area described in the bill as Montgomery County Municipal Utility District No. 148. The taxing and bonding authority given to the  Montgomery County Municipal Utility District No. 148 only has local application. While this bill would create a new special purpose district, due to the local nature of this bill we are neutral on this legislation. 

MUDs allow for utility services to be provided to new residential developments without making the broader tax base subsidize the cost of installing utilities for the benefit of only the people living in the new development. In this way, the costs of MUDs are akin to user fees in which only those who use the system and benefit from the services pay the costs.