Fort Bend County MUD 47 Voters Pass Bond Authorization in November 2019 Election

Missouri City, TX, January 5th, 2020 – On November 5th, 2019, resident voters living within the boundaries of Fort Bend County MUD 47 voted in favor of a bond authorization in the amount of $27,000,000.

This authorization will give the District, as needed and periodically, the ability to sell bonds to fund water and sewer projects within the district. These projects would include servicing existing infrastructure that may be aged and in need of rehabilitation.

Having followed all requirements outlined by Texas Election Code to inform the residents about the bond authorization proposition, the District was encouraged by the higher-than-normal turnout throughout early voting and election day. On November 5th, there was a total of 219 votes cast on this proposition by Fort Bend County MUD 47 residents. The proposition passed 72% to 28% in favor of authorizing the amount requested by the District.

The confidence in voters supporting this proposal is attributed to the ongoing good stewardship and diligent financial management of Fort Bend County MUD 47’s current board of resident directors. Prior to early voting, the District set a new tax rate of $0.854 per $100 valuation (down from $0.923 per $100 valuation in 2018); this decrease was a direct result of the District retiring older debt, and the District’s increase in assessed property value.

About Fort Bend County MUD 47: Fort Bend County MUD 47 is a special purpose district in northeast Fort Bend County. Founded in 1983, Fort Bend County MUD 47 covers 363 acres and roughly 674 connections. Fort Bend County MUD 47 is governed by an elected board of resident directors and engages professional consulting agencies to provide services and counsel on day-to-day operations. Like all MUDs in Texas, the District is regulated by the Texas Commission of Environmental Quality (TCEQ). 

Early Voting Ends Today

Attention Fort Bend Municipal Utility District 47 Residents!

Early voting ends today, November 1, 2019. If you have not had a chance to vote, this is your last chance to do so prior to November 5, 2019. Follow the link to www.fortbendvotes.com to view all the official county voting locations.

Did you get a chance to review the Resident Awareness Open House recap article, complete with exhibits for download, viewing, and printing? Follow the link: Open House Recap and watch the video and review the exhibits. If you have any questions, don’t hesitate to ask! Your MUD Board of Directors and their consultants would like the chance to answer any questions you have before and after you vote.

The key points of the open house are:

  • This is to rehabilitate aging infrastructure (lift stations, wastewater management, and stormwater management)
  • Updates and expansion as part of the joint wastewater plant contract
  • This is an authorization to sell bonds to fund these projects
  • Given all the information provided, forecasted project funding and management should not result in a significant tax implication

Whether you have voted or not, be sure to check out the District website, http://www.fbmud47.org/ for more information regarding the bond authorization election. Share the information out to social media and to your neighbors.


¡Atención, residentes del Distrito de Servicios Públicos Municipales 47 de Fort Bend!

La votación anticipada finaliza hoy, 1 de noviembre de 2019. Si no ha tenido la oportunidad de votar, esta es su última oportunidad antes del 5 de noviembre de 2019. Siga el enlace a www.fortbendvotes.com para ver todo el condado oficial. lugares de votación.

¿Tuvo la oportunidad de repasar el artículo de recapitulación de la Casa Abierta de Información para los Residentes, completo con anexos para descargar, ver e imprimir? Siga el enlace: Open House Recap y mire el video y revise las exhibiciones. Si tiene alguna pregunta, ¡no dude en consultar! La Junta Directiva de su MUD y sus consultores desean tener la oportunidad de responder a las preguntas que usted tenga antes de que vote.

Los puntos clave de la jornada de puertas abiertas son:

  • Esto es para rehabilitar la infraestructura antigua (estaciones elevadoras, gestión de aguas residuales y gestión de aguas pluviales)
  • Actualizaciones y expansión como parte del contrato conjunto de la planta de aguas residuales.
  • Esta es una autorización para vender bonos para financiar estos proyectos.
  • Dada toda la información provista, el financiamiento y la gestión de proyectos previstos no deberían dar lugar a una implicación fiscal significativa

Ya sea que haya votado o no, asegúrese de comprobar el sitio web del Distrito, http://www.fbmud47.org/ para obtener más información sobre la elección de autorización de bonos. Comparta la información en sus redes sociales y con sus vecinos.

Funding District Rehabilitation: Selling Bonds vs. Direct Billing

Fort Bend Municipal Utility District No. 47 (FBMUD 47) has been responsible for providing water and sanitary sewer infrastructure for nearly 37 years. During that time, the community the District serves has grown to include over 674 homes within the District’s roughly 363 acres.

On November 5, residents of the District will be asked to vote in an election to determine whether the MUD will be authorized to issue bonds in several increments, over time, to fund the maintenance, rehabilitation and upgrade of portions of the MUD’s Water, Sewer, and Drainage (WS&D) infrastructure as it ages.

Aging WS&D Infrastructure

As the MUD’s WS&D infrastructure ages, it requires maintenance, rehabilitation, and sometimes, replacement as part of its lifecycle. In order to serve the community properly, the MUD needs to maintain, repair, and replace infrastructure.

The MUD plans to rehabilitate and repair our lift stations and force mains and implement rehabilitation and expansion at our wastewater plant. The District also needs to repair and upgrade the community’s sanitary sewer system as well as several smaller maintenance projects over the next 10 years.

Bond Financing vs. “Pay as You Go” with Cash

Before an engineering project can be bid (long before it is started), the funding has to be “in the bank”, i.e. pre-funded for each stage of the project. The two primary options available to the MUD for funding are:

  1. to spread the costs of the projects out over time through the issuance of bonds; or
  2. to pay for the projects with cash using a “pay as you go” approach requiring substantial increases in water and sewer bills.

The projects outlined above must be completed in order to keep the District’s infrastructure operational, so the choice before voters in a bond authorization election is how projects are paid for, not if the projects will move forward. These projects are necessary to provide wastewater and storm water management to residents, and without bonds they can only be paid with increased water rates.

Authorizing bonds is much like a line of credit; you only pay for what you use, and you only use it when you need it. Authorizing bonding capacity for a District helps them fund long-term, higher-cost projects without repeatedly raising water rates or holding rollback elections to raise the maintenance and operations (M&O) tax rate.

Example

Funding approximately $3M through bonds could result in an increase of up to $290 annually on the ad valorem (property) taxes (or less than $25 monthly on escrowed payments), based on an average home value in the district. The FBMUD 47 Board of Directors have historically been good stewards of taxpayer revenue through efficient management of the debt service and maintenance and operations (M&O) tax rates that make up the property taxes each resident pays.

The same amount (approximately $3M), if paid through water rates, means increases of almost $371 per month to your water bill, and would need to be collected in full before the project can be bid.

Impact on the MUD’s Total Tax Rate

Over the last 10 years, FBMUD 47 has lowered its total property tax rate by more than 18 percent (and more than 27 percent from its peak in 2012), going from $1.04 per $100 in home value in 2010 to $0.854 per $100 in value for the 2019 tax year.

If the requested WS&D bonds are authorized, the Board does not anticipate any increase in the MUD’s total tax rate, based on the information available at this time and the overall project goals of the District. This projection is based on the following factors:

  • The projected debt service requirements of the bonds to be issued to finance the improvement projects mentioned above over time
  • The scheduled need to issue bonds over an extended 10-year period rather than issuing all of the bonds in one lump sum
  • The reallocation of the tax rate from maintenance tax rate to debt service tax rate, maintaining the same total tax rate of $0.854 per $100 valuation
  • Increases in District certified value and property values

For more information on the tax and water rate implications, residents are encouraged to attend the open house event scheduled on October 14th.

As residents inform themselves regarding the bond election, they are encouraged to reach out to the District for any clarifications they might need by using the Contact Us form on the District’s website.

Did you find this article informative? Help keep your neighbors in the know by sharing this article and the FAQ article to social media.