The Board of Directors (the "Board") of Montgomery County Municipal Utility District No. 42 (the "District" or “MCMUD 42”) has called for a park bond authorization proposition to be on the election ballot for Saturday, May 6, 2023. To ensure that residents and other constituents of the District have accurate information regarding the proposed authorization and the Board’s proposed plans for park amenities for the District, the board has put together answers to common questions.
What is the District?
MCMUD 42 is a municipal utility district created in 1978 by order of the Texas Commission on Environmental Quality (TCEQ) for the purpose of providing water and sanitary sewer services to its residents. The District also has park and recreational authority, which was granted by the State of Texas and may sell park bonds after they have been approved and authorized by the voters. The District contains approximately 393 acres of land and is located in Montgomery County along La Salle Ave.
What park amenities does the District plan to provide?
MCMUD 42 will acquire parcels of land and or easement rights for the purpose of preserving green space and creating additional amenities for the community. The Board has proposed a Bond proposition to finance the development of trails, overlooks, and related amenities through, over and across these parcels, as well as the related acquisition costs for the parcels.
What is the Master Park Plan?
The District, with the assistance of its consultants, has developed a plan for trail features such as covered benches, trail security (lights and cameras), and trail resurfacing. Additionally, trailheads would feature parking. Near the lake, there would be an overlook of the lake area. Lastly, there would be pedestrian bridges over natural features. All proposed improvements will be constructed without impacting the lakeside, features, or local fauna.
The park plan was presented at Board meetings of the Hills of Westlake and Westlake HOAs. The District has received feedback from residents.
How does the District plan to fund the park project?
To fund the park project, MCMUD 42 has called a park bond election for May 6, 2023, seeking voter approval of $6,000,000 for the proposed park and recreational facilities.
What is a bond authorization?
A bond authorization is an approval from voters to sell bonds to fund district projects. An authorization is not immediate funding, nor is it a “blank check” to fund projects without meeting strict regulatory requirements. While the authorization sought is in the amount of $6,000,000, MCMUD 42 will issue the bonds in increments in lessor amounts, over time, when and as necessary to fund the park facilities.
How will the propositions appear on the ballot?
The language below will be on the ballot for the registered voters of MCMUD 42 when they go to the Polls or vote by mail for the May 6, 2023 election, asking voters to select one (1) option of either for or against:
PROPOSITON A:
THE ISSUANCE OF $6,000,000 IN PARKS AND RECREATIONAL FACILITIES BONDS AND THE LEVY OF AD VALOREM TAXES SUFFICIENT TO PAY THE PRINCIPAL OF AND INTEREST ON THE PARKS AND RECREATIONAL FACILITIES BONDS
What will the Parks Bond authorization be used for?
The parks bond authorization can only be used for acquisition, design, and construction of recreational facilities, such as parks, playgrounds, and trails.
Does any other State Agency review MCMUD 42’s issuance of park bonds?
Prior to issuing any bonds, MCMUD 42 must obtain approval from the Texas Commission on Environmental Quality (“TCEQ”), which is the State agency that exercises supervisory jurisdiction over MCMUD 42. The TCEQ must make a finding that the proposed bond issuance is feasible before MCMUD 42 may issue the bonds. Then, MCMUD 42 must obtain approval from the Texas Attorney General.
How would the proposed Park Bonds impact my taxes?
Your tax bill is made up of two components: (1) a debt service tax used to pay the principal and interest on outstanding district bonds, and (2) a maintenance and operations tax used to pay for the operational costs of the district. If the bonds are authorized by the voters at the May 6, 2023 election and issued, based upon financial projections and given the available information at this time, the Board does not anticipate an increase in the overall District tax rate.
I have more questions…
Good! The goal is for the residents to have all the information at their disposal when voting approaches. Additional questions can be fielded through the Contact Us form on the District’s website.