As many residents may already know, the Board of Directors (the "Board") of Weston Municipal Utility District (the "District" or "Weston MUD ") has called for a bond authorization proposition to be on the election ballot for Saturday, May 2, 2026. To ensure that residents and other constituents of the District have accurate information regarding the proposed authorization, we have put together answers to common questions. This page will be updated to address additional questions and provide additional information prior to the election.
What is Weston Municipal Utility District?
Weston Municipal Utility District is a municipal utility district and political subdivision of the State of Texas. It is authorized to purchase and construct and maintain water, sanitary sewer, storm sewer, drainage, and park and recreational facilities to serve the land contained within its boundaries. The District currently contains approximately 811 single-family connections 1,669 multi-family connections across 717.10 acres.
What is the election?
The language below will be on the ballot for residents of the District when they go to the polls or vote by mail for the May 2, 2026 election, asking voters to select one (1) option of either FOR or AGAINST on the following proposition:
PROPOSITION A –
THIS IS A TAX INCREASE
THE ISSUANCE OF UP TO $43,500,000 IN TOTAL PRINCIPAL AMOUNT OF BONDS FOR WATER, SANITARY SEWER, AND DRAINAGE AND STORM SEWER SYSTEM FACILITIES AND THE IMPOSITION OF TAXES, WITHOUT LIMIT AS TO RATE OR AMOUNT, SUFFICIENT TO PAY THE PRINCIPAL OF AND INTEREST ON THE BONDS
* Starting with the November 4, 2025 election, local government entities (including the District) that call a bond authorization election must, by law, include the phrase “THIS IS A TAX INCREASE” on all ballot measures.*
How will bond authorization affect my taxes?
Because future bonds may not be issued without Board approval, bond authorization alone will have NO EFFECT on your taxes. Only once bond authorization is utilized and bonds are sold may there be a potential tax impact.
Why does the bond proposition state “THIS IS A TAX INCREASE”?
The statement “THIS IS A TAX INCREASE” is in compliance with SB 1025 as interpreted by the Texas Office of the Attorney General.
What is a bond authorization?
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 and financial feasibility requirements. While an authorization may be for a large amount, bonds may only be sold once necessary projects are ready to begin or as needed for replacement or other capital improvements.
The District currently has $0 in remaining bonding authority. The most recent bond authorization was in 1982, and the amount of bonds authorized by the District's voters in the 1982 election totaled $40,000,000 for the purpose of water, sanitary sewer, storm sewer, and drainage facilities. Bonds issued out of that prior voted authorization were sold for funding necessary improvements to the District's water, sewer, and drainage facilities.
What will the WS&D bond authorization be used for?
The Bond Election Report submitted by the District engineer identifies the projects the Board anticipates will be necessary over the next 12 years to rehabilitate the water, sanitary sewer, and drainage and stormwater infrastructure owned and operated by the District. As a proactive measure, the Bond Election Report outlines the potential cost for those projects (and required bond issuance costs), considering all information available today.
Specific projects include but are not limited to
- Rehabilitation of Water Plant Nos. 2 & 3
- Rehabilitation of Water Well Nos. 2, 3, 4
- Rehabilitation of the Wastewater Treatment Plant
- Rehabilitation of 3 of the 4 Lift Station’s
- Rehabilitation of the Districts sanitary sewer collection system
Why is it necessary to do these projects?
The District was created in 1975. The average useful life of water, sewer, and drainage facilities is 20 to 30 years. Accordingly, much of the District's existing facilities will require major rehabilitation or replacement within the next 10 years.
The District intends to issue bonds only as necessary over the next 12 years as generally described in the Bond Election Report in order to proactively, and if necessary, rehabilitate, improve, or replace facilities. This will enable the District to purchase, construct, acquire, own, maintain, operate, repair, improve, extend, and pay for the water, sanitary sewer, storm sewer, and drainage facilities.
Can’t the District just pay for projects without issuing bonds?
The primary alternative to authorizing the bonds is to fund all necessary projects on a "pay as you go" basis. This could result in increases in the District’s maintenance tax rate in order to collect the required funds, or significant increases to the District's water and sewer rates. If the District is forced to raise the necessary money on an as-you-go basis, it could create significant delays in the completion of projects. Much like a home equity loan for a major roof repair, when the District issues bonds, it spreads the costs of the necessary projects over several years with the goal of avoiding increases to the tax rate typically required by an as-you-go approach. Moreover, the interest rates for the District on the re-payments of its municipal bonds can be lower than the comparable rates for traditional construction loans; tax-exempt bonds are an efficient use of funding for District projects. Financing infrastructure through the issuance of bonds enables the District to complete projects timely should the need arise.
How are my taxes determined?
The District levies a total tax rate each year composed of two separate tax rates:
- The debt service tax rate, the proceeds of which can only be used to make payments on the District’s outstanding bonds; and
- The operations and maintenance tax rate (often referred to as O&M), the proceeds of which are used to pay operating and maintenance expenses of the District.
These two components of the total tax rate have changed over the years as the District’s debt service and operating expenses have changed.
| TAXES | |||
|---|---|---|---|
| Year | Debt Service | Maintenance | Total Tax Rate |
| 2016 | 0.280 | 0.180 | 0.460 |
| 2017 | 0.250 | 0.160 | 0.410 |
| 2018 | 0.220 | 0.150 | 0.370 |
| 2019 | 0.210 | 0.140 | 0.350 |
| 2020 | 0.200 | 0.140 | 0.340 |
| 2021 | 0.200 | 0.120 | 0.300 |
| 2022 | 0.180 | 0.120 | 0.300 |
| 2023 | 0.185 | 0.115 | 0.300 |
| 2024 | 0.188 | 0.112 | 0.300 |
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.