Here’s Some Great News...
DISTRICT TAX RATE REDUCED!
Fort Bend Co. Municipal Utility District No. 25 has set its 1999 tax
rate at $1.08 per $100 of assessed value. The $1.08 tax rate represents
a decrease of $0.10 (9 percent) over the 1998 tax rate of $1.18.
This tax rate decrease is the largest in recent years. For comparison,
the tax rate decreased a total of $0.11 over the five year period from
1993 to 1998. The District is beginning to more substantially
realize the economic benefit of recent growth within our area.
To put the financial strength of the District in perspective, residents
should realize the tax rate was lowered just prior to the sale of District
bonds. In December, bonds in the amount of $7,300,000 were issued by the
District at a net effective interest rate of 6.1 percent.
In simpler terms, the District was able to reduce its tax rate and borrow
a significant amount of money at a very favorable interest rate. This is
a clear indication of independent lenders’ (bond purchasers) faith in the
financial condition of the District.
What does this mean to the homeowner?
First, most home-owners will not see a 9% decrease in overall tax
bills, because the Fort Bend Central Appraisal District assesses
the value of each home for property tax purposes. This assessed value,
or AV, is used by the County, school district, and the District as the
basis for setting taxes on individual property.
The increase or decrease in AV for each individual property plus the
reduction in tax rate affects the total tax bill.
The recent increase in home sales in the District results an overall
increase in home values. Home ownership is the most significant investment
most people make during their lifetime, and increases in this value can
be a significant benefit upon selling the home. A large portion of the
current new home demand in the Houston area results from homeowners using
their increase in home value to “step up” to a better home.
What does the future hold for Fort Bend County Municipal
Utility District No. 25?
The December 1999 bond sale provided funds for reimbursement of developers
of the Summerfield, Stratford Park, and Park Pointe subdivisions for water
and sewer infrastructure serving future homes. Home construction
will continue over the next three or more years on new but vacant lots
in these subdivisions. This continued growth will result in future increases
in the AV in the District, which should allow for continuing decreases
in the tax rate.
In addition to reimbursement of lot infrastructure, the bonds provide
funds for future capital projects to increase the reliability and function
of the District’s central facilities. These future projects include:
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Targeted improvements to increase circulation and reliability of water
distribution system.
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Addition of potable water ground storage, which will provide increased
water delivery reliability and will increase the working life of the District’s
water wells, which are quite costly to repair or replace.
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Conversion of the District’s wastewater plant to a sodium chloride bleach
system.
The District currently uses small amounts of chlorine gas to disinfect
discharge from the treatment plant. With the increase in demand associated
with growth, more chlorine must be stored onsite. The Board has elected
to convert to a liquid form of chlorine (bleach) to increase safety at
the plant. The District’s water plants have already been converted to bleach.
In addition to these future projects, landscaping of the area around
the treatment plant should begin in the next couple of months. While
the District engineer and operator may find beauty in the treatment plant,
the Board and residents don’t share this view. The landscaping project,
funded by the District and developers, will add some visual buffer to the
appearance of the plant site.
These projects are indicative of the Board’s goal of using the financial
opportunity provided by growth in the District to fund central facility
improvements. After land developers are gone, these improvements will continue
to provide superior system reliability at decreased cost of operation and
repair.
Beyond these planned improvements, the Board continues to plan for long
term capital improvements to the Ft. Bend County Municipal Utility District
No. 25 system, as well as planning for future development growth to facilitate
improvement of the District water/wastewater system and provide for continued
decreases in the District tax rate.
Alan B. McKee, P.E.
Pate Engineers, Inc.
Engineer for the District |
