Page 28 - ABHR MUD BOOK 2022

• Cities generally require that all MUD facilities are designed and constructed to city
standards. Cities may require that the plans and specifications for MUD facilities are
approved by the city prior to construction.
• During and after construction, cities may inspect facilities to ensure compliance with
their standards.
• Cities may impose conditions on the issuance of MUD bonds. These conditions may
limit the total amount of bonds that may be issued and the types of projects that may
be financed with MUD bonds. Cities may establish parameters for the sale of bonds or
require city approval of each bond issuance.

Transparency
• MUD information is available on many Internet websites and databases, much of
which is a result of numerous pieces of MUD-supported legislation over recent
decades.
• The TCEQ “Water District Database” (https://www14.tceq.texas.gov/iwud/)
referenced above includes information about the MUD’s activity status, contact
information for board members and consultants, creation information, acreage,
amount of bonds approved by TCEQ, status of applications, service area map, certain
financial information from the annual audit, and a list of filings.
• The Comptroller’s online Special Purpose District Public Information Database
(https://spdpid.comptroller.texas.gov/) includes information about board members,
contact information for the MUD and its consultants, amounts of authorized and
issued bonds, the most recent tax rate, and a description of process for voters to
request designation of in-district meeting places.
• As a result of “The Texas Property Tax Reform and Transparency Act of 2019,” MUDs
are required to post or cause to be posted on a website the name and contact
information for board members, the current and prior two years’ budgets and
comparison calculations, budgeted tax revenues, the current and prior two years’ tax
rates, and the most recent financial audit. Additional MUD tax-related information
and calculations may be found on the property tax database maintained by the county
appraisal district and on the county tax assessor/collector website.
• The Municipal Securities Rulemaking Board Electronic Municipal Market Access
Website (https://emma.msrb.org/) includes certain financial and operating data,
including MUD bond issuances, offering documents, and annual financial audits.
• MUD water bills are required to include message language regarding Internet
websites to find information about the MUD board and meetings.
• The Comptroller’s online Eminent Domain Database
(https://coedd.comptroller.texas.gov/) includes MUD contact information,
information about eminent domain authority, and whether or not such authority was
exercised during the prior year.
• MUDs are also subject to many election-related requirements aimed at providing
additional information to voters in advance of the election.

Association of Water Board Directors – Texas