How Does a MUD Operate?


A Municipal Utility District is governed by a board of five Directors. All Directors are elected by the residents of the District for 4-year, staggered terms.

The District Board must elect a president, vice-president, secretary, and other officers it considers necessary.

The Board of Directors manages and controls the District affairs, including financial management, employment and purchasing. The Board establishes policies in the interests of the District’s residents and customers to aid in this process. It establishes service charges and fees and has the authority to levy property taxes and issue bonds for maintenance and operations, infrastructure improvements (such as new water plants and sewage treatment plants), and recreational amenities.

These broad responsibilities are in the hands of the Board of Directors and cannot be delegated to employees, contractors and consultants.

The Board of Directors generally meets once per month. These meetings are always open to the public, per Texas law.

Most Districts have no employees and only some large districts have a General Manager. In lieu of a full time staff, a MUD will typically contract with a variety of consultants. Each consultant has technical expertise in one or more facets of a District’s operations. Most consultants have contractual relationships with several districts.

Meeting

Primary consultants hired by a MUD district include the following: