The Pecan Grove Municipal Utility District (PGMUD) was created in 1975 to provide water, sewer and drainage services to Pecan Grove. Over the years through the annexation process, Plantation Place and Pecan Lakes became a part of the District.
PGMUD is the largest MUD in Fort Bend County and one of the largest MUDs in the entire state of Texas. It’s population and tax base make it larger than the City of Richmond. The District contains five different homeowner associations and is split between two school districts. The District is so large that its residents are divided between two different County Commissioner precincts and four different county voting precincts.
While municipal utility districts (MUDs) function much like a business, they are actually a “political subdivision.” Political subdivisions are government entities created under the Texas statutes. MUD directors are elected by registered voters who live within the district boundaries. The District’s status as a government body allows it to levy property taxes to build and maintain water, sewer and drainage services. Residents also pay a monthly fee for the services provided by the District.
State law currently allows MUDs to only use their operating revenue to own and operate recreational facilities. State law also allows MUDs to enforce deed restrictions, provide security service, and, with voter approval, operate a fire protection plan.
As a government entity, MUDs must follow Open Meeting and Open Record Act requirements.
Further, they are only allowed to hold elections for the purpose of electing directors or for bond issues. Unlike city governments, MUDs currently are not allowed to hold general referendum elections. MUDs also have to follow competitive bidding requirements, as do other government entities.
More information on MUDs can be found at the website for the Texas Commission on Environmental Quality (TCEQ) www.tceq.state.tx.us. This agency was formerly known as the Texas Natural Resource Conservation Commission (TNRCC).