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Relating to the creation of the Burns Branch Municipal Utility
District No. 1 of Denton County; granting a limited power of eminent
domain; providing authority to issue bonds; providing authority to
impose assessments, fees, and taxes.
No significant fiscal implication to the State is anticipated.
HB 4720 would provide the legislative requirement necessary to establish fundamental services in the area described in the bill as Burns Branch Municipal Utility District No. 1. The taxing and bonding authority given to this new district would only have a local application. While this bill would create a new special purpose district, due to the limited 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.