Frequently Asked Questions (FAQs)
The Board of Directors of Williamson-Travis Counties Municipal Utility District No. 1 (WTCMUD-1) has recently issued $5.8 million in previously authorized bonds to address important capital projects.
1. Why does WTCMUD-1 need bonds right now?
The current board, in partnership with the district’s engineer, has identified several pressing projects needed to maintain and improve and the district’s 41-year-old infrastructure, as follows:
rehabilitating the district’s two lift stations
completing the purchase and installation of digital water meters within the district
addressing necessary wastewater line repairs identified through the recent CCTV inspection
inspecting and replacing water lines within the district
addressing other capital needs
Additionally, the district’s water accountability rate is currently under 90%, which indicates leaks in the water line system. This needed repair is expected to be very costly, according to engineering estimates.
2. How did the board arrive at the $5.8 million figure?
- In 1985, when WTCMUD-1 was established and the neighborhood was being developed, $25.7 million in bond authorization was approved to install the initial water and wastewater infrastructure, under the direction of the district’s board.
- Approximately $19.9 million of the bonding authority was issued to complete this work, and this amount has been fully retired by the district.
- The remaining balance of $5.8 million in legally authorized, unissued bonds has remained dormant for years because the district has not needed to issue bonds.
- The board recently activated this remaining balance via Bond Application Report No. 9. Under this effort, a $5.8 million Unlimited Tax & Revenue Bond (Series 2026) issue has been brought to market.
3. When will residents vote on this bond proposal?
- The $5.81 million in bond funding being issued at this time is the unused remainder of the initial $25.7 million bond election in 1985, not a “new ask.”
- Additional bond approval from residents today is not required, as the authorization from the original bond vote is still in force.
4. Why not use the operating/general fund cash currently on hand to pay for needed repairs?
- The Board of Directors consulted with the district’s engineer to review the capital improvement plan and discuss future projects. The board determined that some of the projects could be paid for by issuing bonds as opposed to the “pay as you go” approach that the district had been taking. Additionally, if the district were to pay for all the projects out of its operating account, the district would have very little operating reserve for emergencies.
5. How will this new bond issue affect my annual MUD taxes?
- The goal of the current WTCMUD-1 Board of Directors is to levy a consistent annual tax rate. For tax year 2026, the district is considering levying a total tax rate of .2734 per $100K appraised value, which is the same rate the district levied for tax year 2025. Accordingly, individual property taxes will rise or fall based on the home’s taxable value assessed annually by the Travis or Williamson County appraisal district (based on the home’s location).