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Council discusses MUDs, annexation and infrastructure liability after legislative changes
Summary
Council members discussed municipal utility districts (MUDs) — their debts, maintenance liabilities, and how recent regulatory changes may prevent acceptance of roads from new MUDs — and weighed when annexation would benefit the city. Staff recommended cost-benefit analysis before any annexation.
Liberty Hill council members and staff spent a portion of their April 9 workshop reviewing municipal utility districts (MUDs), including who pays for construction and maintenance, how MUDs interact with city utility service areas and the implications of recent regulatory changes.
The city attorney said MUDs are separate governmental entities that commonly issue debt and are regulated by state agencies; because the city holds a Certificate of Convenience and…
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