TEXAS MUD REFORM

A Call for Representation, Transparency, Accountability, and Fair Tax Treatment

TO: The Speaker of the Texas House of Representatives and Members of the Texas Legislature

WE, THE UNDERSIGNED TEXAS RESIDENTS AND TAXPAYERS, CALL FOR COMPREHENSIVE REFORM OF MUNICIPAL UTILITY DISTRICTS (MUDs) THROUGHOUT TEXAS.

Municipal Utility Districts play an important role in financing and managing the infrastructure that supports Texas communities. However, residents who live within these districts and pay MUD property taxes deserve meaningful representation, reasonable access to public meetings, transparent financial information, and fair treatment under Texas property tax law.

We respectfully ask the Texas Legislature to advance legislation addressing the following four priorities:

1. RESIDENT REPRESENTATION ON MUD BOARDS

Require at least two seats on each MUD board to be held by eligible residents who live within the district.

Establish a clear, legally defined process through which residents can initiate an election for resident representation upon obtaining signatures from a specified percentage of eligible district voters.

Taxpayers who live in a district should have a meaningful opportunity to serve in the governance of the district whose decisions affect their homes, taxes, and community.

2. ACCESSIBLE PUBLIC MEETINGS AND ELECTRONIC PARTICIPATION

Require MUD boards to provide reasonable geographic access to public meetings and live electronic access so residents can observe proceedings without traveling substantial distances.

Establish appropriate opportunities for remote public comment, consistent with applicable law.

Public participation should not be unnecessarily restricted by meeting locations far outside the communities being served or by meeting schedules that make attendance impractical for working residents.

3. FAIR AND CONSISTENT PROPERTY TAX EXEMPTIONS

Establish clear, consistent requirements for MUDs to provide applicable property tax exemptions to eligible homeowners, including:

Homestead exemptions.
Age-65-or-older exemptions.
Disability-related exemptions.
Eligible homeowners should receive the tax relief provided under applicable Texas law without unnecessary uncertainty or inconsistent treatment among districts.

4. TRANSPARENCY AND FINANCIAL ACCOUNTABILITY

Require MUDs to maintain a publicly accessible online resource containing essential district information, including:

Board meeting agendas and minutes.
Adopted budgets and financial reports.
Current property tax rates and relevant tax information.
Bond authorizations and outstanding debt information.
Board member information and election procedures.
Applicable district policies and other essential public records.
Taxpayers should be able to understand how their district operates, how public funds are managed, and how decisions affecting their financial obligations are made.

5. Representation and Accountability: Require Master MUD boards to provide fair representation for residents of all underlying MUDs that fund shared infrastructure and operations, ensuring taxpayers have a meaningful voice in board decisions affecting their taxes, debt, and service rates.

WHY REFORM IS NEEDED: FULSHEAR LAKES, FORT BEND COUNTY

In Fulshear Lakes, within Fort Bend County Municipal Utility District No. 216, residents have raised concerns about public meeting accessibility and meaningful participation in district governance.

The community has approximately 448 households. Ninety-one residents have signed a petition requesting that MUD meetings be held within the district. The current meeting location is approximately 32 miles away at noon, creating a substantial obstacle for taxpayer residents who wish to attend meetings scheduled during the workday.

This local example illustrates the need for consistent statewide standards that protect public access and provide taxpayers with meaningful opportunities to participate in decisions affecting their communities.

We believe these concerns warrant legislative attention beyond any single district.

OUR REQUEST TO THE TEXAS LEGISLATURE

We respectfully request that the Speaker of the Texas House of Representatives, Representative Gary Gates, and other appropriate legislative leaders consider and advance comprehensive MUD reform addressing resident representation, accessible public meetings, property tax exemptions, and transparency.

We ask the Legislature to establish clear, enforceable standards that strengthen accountability, protect taxpayers, and promote public confidence in MUD governance throughout Texas.

Our message is simple: If Texans are required to pay MUD taxes, they deserve a meaningful voice, access to public proceedings, transparent financial information, and fair treatment under the law.

We support comprehensive Texas MUD reform and respectfully urge legislative action.

SIGNED: TEXAS RESIDENTS AND MUD TAXPAYERS