The District was created by legislation enacted by the 69th Texas State Legislature effective May 24, 1985, and by a confirmation election held within the District on January 20, 1990. The District operates as a municipal utility district pursuant to the provisions of Article XVI, Section 59 of the Texas Constitution and chapters 49 and 54 of the Texas Water Code and other general statutes of the State of Texas applicable to municipal utility districts. The District is subject to the continuing supervision of the Texas Commission on Environmental Quality (the “TCEQ”). The District currently encompasses 767 acres and is located wholly within the extraterritorial jurisdiction of the City of Houston, Texas (the “City”) and is located within Katy Independent School District.
The District owns and operates underground water distribution, wastewater collection and storm drainage lines to serve property within the District. These facilities were designed in conformance with the requirements of certain governmental agencies, including the Texas Commission on Environmental Quality, Fort Bend County, the Fort Bend County Drainage District, and the City of Houston. Operation of these facilities is subject to regulation by, among others, the United States Environmental Protection Agency and the Texas Commission on Environmental Quality.
The District purchases the drinking water it provides to its customers from Cinco Municipal Utility District No. 1 (the “Master District”). Sewage treatment services are also purchased from the Master District. All of the Cinco MUDs, including the District, have executed a Contract for Financing and Operation of Regional Waste Collection, Treatment and Disposal Facilities and Regional Water Supply and Delivery Facilities (the “Master District Contract”) with Cinco Municipal Utility District No. 1. The Master District Contract has been approved by the voters of all the Cinco MUDs. Among other facilities, the Master District owns and operates a trunk wastewater collection system, a trunk water distribution system, and sewage treatment and water well and production plants. Under the Master District Contract, the District is required to pay a pro-rata share of debt service on Master District bonds based upon certified assessed valuation. The District is obligated to pay its pro-rata share from the proceeds of ad valorem taxes (property taxes) levied for such purpose (the “Contract Tax”), from operating revenue, or from any other legally available funds.
The Master District operates and maintains the water and sewer plant facilities constructed pursuant to the Master District Contract, and under that contract, the District pays monthly charges to the Master District for water and sewer services. The District’s share of operation and maintenance expenses is based upon a “unit cost” of operation and maintenance expenses and is calculated by the Master District and expressed in terms of “cost per equivalent single family residential connection.” The monthly payment to the Master District for operation and maintenance expenses is calculated by multiplying the number of equivalent single family residential connections reserved to the District on the first day of the previous month by the unit cost per equivalent single family residential connection.
The service area of the Master District (and therefore of the District) is within the boundaries of the Fort Bend Subsidence District (the “Subsidence District”), which regulates groundwater withdrawal. The Master District’s authority to pump groundwater is subject to an annual permit issued by the Subsidence District, which has adopted regulations requiring reduction of groundwater withdrawals through conversion to alternate source water (for example, surface water). The North Fort Bend Water Authority (the “Authority”) was created by the Texas legislature to reduce groundwater usage in and provide surface water to the northern portion of Fort Bend County, including the District. The Authority currently charges the Master District $4.25 per 1,000 gallons based on the amount of groundwater pumped by the Master District and $4.60 per 1,000 gallons based on the amount of surface water provided to the Master District by the Authority. The District pays its share of these Authority fees to the Master District, which also imposes a surcharge. The District charges its customers for water and sewer service it provides in accordance with the District’s Rate Order. See District Documents.
You can visit the Cinco MUD No. 1 (Master District) website here and the North Fort Bend Water Authority website here for more detailed information.