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Tomball ISD explains water/wastewater agreement amendments with MUD 572; district reports connection-fee revenue
Summary
Trustees reviewed an amendment to the district’s water and wastewater service agreement with Municipal Utility District No. 572; staff said connection fees collected to date have repaid bond costs and monthly usage fees offset operations.
Tomball ISD staff briefed the board Jan. 13 on proposed amendments to a water and wastewater service agreement with Municipal Utility District (MUD) No. 572 that use the district’s Beckendorf water/wastewater treatment capacity to serve nearby development.
Zach Bowles, chief financial officer, told trustees the district built treatment facilities with capacity to serve the Beckendorf complex and nearby connections. He said the district has already received about $2.4 million in connection fees that went to repay the related bond and continues to receive monthly usage fees that offset the plant’s operating costs (estimated $30,000–$40,000 monthly depending on usage).
Why it matters: the district’s system provides an enterprise revenue stream that pays for treatment-plant operations and helps reimburse capital costs. Trustees asked staff to confirm that district priorities for water and wastewater service remain intact and that the district retains control over service prioritization.
Details: staff explained the original 2019 agreement allowed the district to collect connection fees and ongoing usage fees. The proposed amendment clarifies operating relationships and continues to allow connection revenue to be applied to bond repayment and plant operations.
Next steps: staff presented the amendment as a business item for board consideration at the Jan. 14 meeting; no final action was taken during the Jan. 13 report.
Ending: trustees welcomed the enterprise revenue and asked staff to continue monitoring operations, capacity and the marketability or repurposing options for existing district-owned facilities if campus moves occur.
