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This bill seeks to create two municipal utility districts focusing on road construction, drainage, wastewater, and other fundamental needs and may issue bonds and levy ad valorem taxes.These districts may be split up if they don't have outstanding bond debt and are not imposing ad valorem taxes. The first 5 members of the board of directors are to be elected and be temporary. These districts would be located in Hunt County, comprised of 743.38 ACRES, are within the City of Josephine, Texas. The district may not exercise the power of eminent domain.
The municipality must vote favorably for these new districts.
SB 2057 would provide the legislative requirement necessary to establish fundamental services in the area described in the bill as Double R Municipal Utility Districts Nos. 1 and 2 of Hunt County. The taxing and bonding authority given to the Double R Municipal Utility Districts Nos. 1 and 2 of Hunt County 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.
It is important to note, however, that MUDs are a political subdivision of the State that can provide utilities, parks, pools, recreational facilities, and other services to new residential developments within the boundaries of the district. MUDs may levy taxes, collect fees, and issue bonds to provide these services. The proliferation of MUDs in Texas should concern all taxpayers, and the Legislature should be vigilant of the unintended consequences of creating more taxing units.
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