About Us
District Profile
Fort Bend County MUD #81 (the “District”) was created by an order of the Texas Water Rights Commission (now the Texas Commission on Environmental Quality) effective March 19, 1985, and operates in accordance with Texas Water Code Chapters 49 and 54. The District is a political subdivision of the State of Texas, governed by an elected five member Board of Directors. The Board of Directors held its first meeting on April 8, 1985 and the first bonds were sold on September 7, 1988. The District is subject to the continuing supervision of the Texas Commission on Environmental Quality.
District History
In 1985, Fort Bend County Municipal Utility District 81 (District or FBCMUD 81) was created and authorized to issue up to $39,500,000 in unlimited tax bonds for water, wastewater, and drainage purposes via a bond authorization election. Since then, FBCMUD 81 has incrementally sold bonds to fund the construction, expansion, and rehabilitation of water and wastewater facilities to support residential development within the District over the past 40 years. FBCMUD 81 is governed by an elected Board of Directors (Board).
To ensure residents of the District have accurate information on the current use of authorized bonds, future bond authorization elections, and the Board’s goals for the District, we have put together answers to common questions. This page may be updated to provide additional information as needed.
What is a Municipal Utility District (MUD) and what is the FBCMUD 81’s Responsibility?
A MUD is a political subdivision of the State of Texas authorized by the Texas Commission of Environmental Quality (TCEQ) to provide water, sewage, drainage, and other services within the MUD boundaries.
FBCMUD 81 is responsible for providing water and sanitary sewer service to approximately 4,200 residents in more than 1,330 homes in Weston Lakes, as well as other non-residential customers within the approximate 1,100 acres of the District. FBCMUD 81 also maintains some drainage infrastructure within Weston Lakes.
FBCMUD 81 currently operates and maintains three (3) water plants (including four (4) water wells), a wastewater treatment plant, six (6) lift stations, approximately 23 miles of water lines, and approximately 18 miles of sanitary sewer lines. FBCMUD 81 is responsible for maintaining the existing infrastructure and funding projects such as facility expansions, rehabilitations, and replacements.
Why is it necessary to do maintenance and improvements projects?
The District was created in 1985 and much of the District’s water, sewer, and drainage infrastructure has been in place for decades. As infrastructure ages, it requires maintenance, rehabilitation, and sometimes, replacement as part of its lifecycle. Since the majority of FBCMUD 81’s infrastructure was constructed nearly 40 years ago, the District is appropriately spending more on maintenance and repairs. On average, infrastructure lasts about 30-40 years with optimal maintenance and operations.
What is a Capital Improvements Plan (“CIP”) and how are the projects determined?
A CIP is a multi-year plan that identifies projects to improve infrastructure or plan for growth. The CIP identifies projects the Board anticipates will be necessary over the next 10 years relating to all infrastructure owned and operated by the District.
Various factors are considered in preparation of the CIP. FBCMUD 81 performs annual inspections of the Water Plant facilities (as required by TCEQ), and inspections of the WWTP approximately every 3-5 years (or as needed). FBCMUD 81’s engineer reviews the condition of the facilities through the inspections, receives input from the District’s operator who operates the facilities daily, and uses industry standards for useful life of the facilities/equipment to estimate when a project (repair, recoat, maintenance, or replacement) may be needed. The CIP is not a set schedule for maintenance and is updated annually. Projects included on the CIP are evaluated and may start sooner or later depending on the assessment and condition of the infrastructure.
District Financing and Revenue Sources:
There are three ways for a MUD to generate project funds: MUD tax, water/wastewater rates, and bond sales.
MUD Tax:
The District levies a total tax rate each year that has two components:
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- Debt Service: the proceeds of which, by law, can only be used to make payments on the District’s outstanding bonds.
- Maintenance & Operations: the proceeds of which are deposited into the District’s General Operating Fund and are used in combination with water and wastewater revenues to pay the operating and maintenance expenses of the District.
The MUD taxes are paid by property owners within the District.
Water and Wastewater Rates:
Water and wastewater rates help cover the District’s costs to provide water and wastewater service to customers. The water and wastewater rates are evaluated regularly as average water usage, expected tax revenue, and maintenance costs change and are budgeted going forward. The water and wastewater rates are paid by residents and non-residential users that receive water and wastewater service.
Bonds:
A bond is a public and/or private financial instrument that represents a loan to a MUD. A bond authorization is an authorization to sell bonds to fund district projects. It is similar to a line of credit that a business might use to fund its operations. An authorization is not immediate funding, nor is it a “blank check” to fund the entire amount of the authorization without meeting strict regulatory requirements. While an authorization may be for a larger amount, bonds may only be sold once projects are ready to begin or as needed for repairs, maintenance, or replacement. Bonds are repaid over 10-25 years through the debt service portion of the MUD tax.
Can the District pay for projects without issuing bonds?
The primary alternative to issuing bonds is to fund all necessary projects through the General Operating Fund, potentially requiring increases in maintenance tax rates and/or water and wastewater rates. The District must allocate funds, cash available, prior to design and/or construction of a project. Funding projects with maintenance taxes and/or water and wastewater rates could require an increase in rates in the short term if the District does not have suficient funds in reserve. This optional funding mechanism is preferred for smaller projects or when the District has a healthy reserve fund.
Authorizing the District to issue bonds allows the Board to spread project costs over several years and helps to avoid significant increases in rates required by a cash funding approach or having high reserve fund balances. Established MUDs typically maintain 18-24 months of reserve funds. The reserve funds are based on historical operating expenses. While there is no legal requirement for reserve funds they are reviewed by insurance and rating companies when a MUD has sold bonds or are going to sell bonds and for potential emergency repairs.
More Information
Thank you for reviewing this information. If you would like more information on Texas Water Districts or have any questions, please visit the following links:
TCEQ:
- Texas Water Districts: A General Guide, https://www.tceq.texas.gov/downloads/waterdistricts/guidance/gi-043.pdf
- Top Subject of Interest: Municipal Utility Districts – Texas Commission on Environmental Quality – www.tceq.texas.gov, https://www.tceq.texas.gov/agency/subjects-ofinterest/utilities/municipal-utility-districts
FBCMUD 81:
- Fort Bend County Municipal Utility District No. 81, https://www.fbmud81.com/contact/
District Map
Board Members
The District is governed by a Board of Directors consisting of five (5) Board members elected by the registered voters of the District, who manage and supervise all affairs of the District. Board members must either own property within the District or be a registered voter within the District. Each Board member is elected to serve a staggered four (4) year term. The District’s current Board members are as follows:
- L.A. Meyers, President, Term Expires: May 2026
- Steve Utterback, Vice-President & Treasurer, Term Expires: May 2026
- Allison DeWees, Secretary, Term Expires: May 2028
- Jay Silverman, Asst. Secretary, Term Expires: May 2028
- Ida Wall, Director, Term Expires: May 2028