More MUD Stuff!

The first item on the legislative agenda at tonight's city council meeting is the formation of another in-city Municipal Utility District (MUD). (Agenda)

SUBJECT: Consideration and possible action to approve a Resolution of the City of Georgetown, Texas consenting to Williamson County Municipal Utility District No. 34(Shadow Canyon Development) consisting of 278.21 Acres (+/-) in the Isaac Donagan and Joseph Thompson Surveys, located at 2951 HWY 29 -- Sofia Nelson, CNU-A, Planning Director

ITEM SUMMARY: Background: 278 Georgetown, Inc. is the owner of approximately 278.21 acres of property located adjacent to the Wolf Ranch Development and situated entirely within the City of Georgetown. The property is proposed to be developed as approximately 591 single family homes with an average home and lot price of $385,000. In conjunction with the MUD request this application has a corresponding PUD Zoning Request that outlines the development standards this development will be subject to should the MUD be approved. Financial Summary The developer is proposing the following financial In-City MUD terms: Estimated Bonded Indebtedness: $19,925,000 MUD Tax Rate: $0.6660 per $100.00 (Based on an average home and lot price of $385,000 the average home owner in this subdivision will pay approximately $2,541.00 annually in MUD taxes) Combined Tax Rate: Williamson County $ 0.442 GISD $ 1.398 City of Georgetown $ 0.434 Wm Cnty FM/RD $ 0.040 MUD $ 0.660 Combined Total $ 2.974 At a tax rate of $2.974 per $100 valuation, the average home costing $385,000 in the proposed development will pay over $11,000 per year in property taxes, almost $1,000 per month for the privilege of "owning" the property! Over the life of the MUD bonds, assuming no additional bonds are issued, the home owner will pay an additional $63,525 in taxes. Draw your own conclusions about whether or not the creation of MUDs by developers and the city is appropriate! Again, it seems like future generations are being taxed to satisfy today's consumer.