MUD & PID Districts
What is the difference between a Municipal Utility District (MUD) and a Public Improvement District (PID)?
Municipal Utility District (MUD)
A Municipal Utility District (MUD) is a political entity that can levy taxes. A MUD is an alternative financing method that creates an independent, limited government authorized to issue bonds and levy taxes for utility infrastructure. The Fate MUDs currently serve approximately 5,000 existing and entitled homes.
- Created under the authority of the Texas Commission of Environmental Quality (TCEQ).
- Generally found in new communities where there is a lack of basic infrastructure or utility services.
- Provides vital infrastructure to the community such as water, sewer, drainage, roadwork, landscaping, and related services.
- Regulated by the state, require a local election to issue bonds, and exist separately and out of the control of a city or county government.
- A MUD tax is based on the value of the home.
Public Improvement District (PID)
A Public Improvement District (PID) is a special district created by a city under the authority of Chapter 372 of the Texas Local Code. This law allows a city to charge an assessment against properties within the designated area, or district, to pay for improvements.
PIDs can be used to finance the same infrastructure as a MUD would finance but are more commonly used to fund additional infrastructure items such as enhanced landscape, open space, lakes and fountains, parks, entries, and various recreational and pedestrian improvements.
- PID debt service comes from an initial assessment that does not change over time.
- Assessments once paid in full are never charged to that property again.
- Assessment can be prepaid at any time or over a period of several years.
- The PID assessment amount varies by lot size.
Fate - Municipal Utility Districts (MUD)
Municipal Utility Districts assist communities to develop where city services are not available.
In the 1970s, Fate was a very small rural town. With the construction of Lake Ray Hubbard in 1971, expansion from Dallas began to grow east. Centex home builders purchased 1,700 acres of raw land (now known as Woodcreek and the Reserve at Chamberlain). The developer initiated Municipal Utility Districts to finance large capital expenses like utilities and roads where previously there were none. The Rockwall County Consolidated Municipal Utility District No. 1 was originally created by the Texas Water Rights Commission (TWRC) (presently known as the Texas Commission on Environmental Quality (TCEQ)) on February 29, 1972. The MUD district remained inactive until October 25, 2002, when the Commission confirmed the appointment of five directors. The District sold its first bonds on March 23, 2006. Today, five districts exist within the city limits.
The Municipal Utility Districts are financed through the sale of revenue bonds, which are paid off by taxes that are levied on residential properties located in the district. The MUD taxes are included in the annual property tax bill received by homeowners. This tax is not part of the taxes that are paid to the City, County, or School District. The MUD tax pays for the costs of the installed infrastructure within the district.
How much is my payment?
|MUD District||MUD Property Taxes (per $100 valuation)|
|Woodcreek - MUD 1||.27000|
|Woodcreek - MUD 6,8,9||.75000|
|The Reserve at Chamberlain - MUD 7||.75000|
Where do I make my MUD payment?
MUD taxes are listed on the property tax statements and paid along with local taxes at the Rockwall County Appraisal District.
When will these payments end?
In theory, a MUD tax will go down over time because the initial infrastructure costs are eventually repaid. When the bonds are paid off, this tax will be removed. ach MUD tax was initiated at different times and no specific dates are set.
Who represents the MUD?
Winstead PC - Dallas is the administrator for the Municipal Utility Districts. Questions can be directed to 214-745-5353 or on the Winstead PC website.
Fate - Public Improvement Districts (PID)
Public Improvement Districts are created by the City to fund public improvements such as roads, curbs, sidewalks, utilities, parks, landscaping, etc. The owner of the property is responsible for the annual PID assessments. Assessment’s installments are billed annually with your property tax. This assessment is not part of the taxes that are paid to the City, County, or School District.
There are five different districts that exist within the City limits.
|Williamsburg PID No. 1||2006|
|Williamsburg PID No. 2||2012|
|Williamsburg East PID - Edgewater||2020|
|Monterra PID - Residential||Not Active Yet|
|Montarra PID - Industrial||Not Active Yet|
Where do I make my PID payment?
Annual PID assessments are listed on the property tax statements and paid along with local taxes at the Rockwall County Appraisal District.
How do I find out the outstanding assessment on a property?
P3WORKS is the Special District Administrator. Visit their website and complete an individual property search for the outstanding assessment.
- You can view the outstanding assessment as last reported by the Rockwall County Appraisal District.
- A property will have a lien release if the property owner has prepaid their outstanding assessment in full. All lien releases will be recorded with the County and reflected in the following annual service plan update.
- Owners may contact P3Works, LLC at (817) 393-0353 for a payoff quote.