As many residents may be aware, Pecan Grove MUD (the District) and its infrastructure for water delivery and wastewater removal is reaching the end of its lifespan. This aging infrastructure will require improvements and rehabilitation to continue to serve the needs of the District.
To accomplish this goal, the Pecan Grove MUD Board of Directors has worked with their consultants to put together a capital improvement plan that attempts to anticipate all the projects needed to rehabilitate the district facilities, and make provisions for any unforeseen complications along the capital improvement plan.
As the District has not sought bond authorization in over 10 years and all previously authorized bonds have been sold, utilized, and are in the process of repayment, the Board has decided to move forward with a new bond authorization election to help fund these capital improvements. Additionally, the District has historically operated with a minimal maintenance and operations (M&O) rate compared to neighbors and similarly-sized districts. This rate is currently capped out, and may not be able to sustain the ongoing needs of the District moving forward. Pecan Grove MUD would like the flexibility to raise the M&O rate instead of solely increasing monthly water usage rates to cover operation and maintenance costs; thus, they have included the request for authorization to do so on the ballot.
The District’s engineer, Odyssey, with the assistance of the District’s legal team and financial advisor, has prepared a Bond Authorization Election Report with the financial details and historical data that helped the Board reach this decision. It is hosted on the website for your review and download.
Please note: this election would be to authorize the sale of bonds and authorize the ability to raise the M&O rate. It is the intention and goal of the Board to only sell bonds to or raise M&O when needed to accomplish the capital improvement plan, and try to be as efficient and conservative with any possible increases to resident taxes as possible.
Just like a classic car that needs repairs to run and maintain value, the district will need to make these improvements and rehabilitation regardless of the result of the election process. By taking the bond authorization and M&O rate route, the Board is trying to prevent an impact to the low water rates Pecan Grove residents benefit from by the District owning and operating its own facilities and water plant.
Over the course of the next few weeks, Pecan Grove MUD will be posting additional information regarding the district needs and its goals for the infrastructure rehabilitation, utilizing a number of digital and physical avenues to reach residents and keep them up to date and fully informed. There will also be portions of the engineer’s report that we will highlight and detail. Further, the District plans on hosting at least one open house event in April, prior to early voting, to make sure resident questions are heard and answered prior to the election.
If you have any questions regarding the election announcement or the capital improvement plan, please do not hesitate to contact Pecan Grove MUD via the website contact form.
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