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Council approves MUD operations agreement and amends Carmel development pact in ETJ
Summary
Council extended operations services to Lakeside MUD No. 5 and approved a fourth amendment to the Carmel Development Agreement to add roughly 14.6 acres to MUD No. 24 (ETJ), including funding toward local bridge work and future annexation options; staff emphasized the city isn’t subsidizing out-of-city residents.
The Pflugerville City Council approved two related items on Dec. 9: a professional operations-and-maintenance services agreement with Lakeside Municipal Utility District No. 5 and a fourth amendment to the Carmel Development Agreement that would add about 14.629 acres into Municipal Utility District No. 24 (ETJ), bringing about 60 additional homes under that MUD’s plan.
Assistant utility director Jeff Dunsworth explained the Lakeside MUD proposal, saying the city currently provides operations for one out-of-city district and is compensated under a per-meter/rate arrangement. He said Lakeside MUD No. 5 currently has about 305 connections and projects roughly 105 additional connections per year with a max buildout estimate of approximately 3,300; staff told council the arrangement is expected to be breakeven and not a taxpayer subsidy. "This is not something that our taxpayers are subsidizing people outside of the city," a council member said; staff confirmed that the agreement is intended to be cost-neutral to city general fund taxpayers.
On the Carmel amendment (item 4l), development engineering director Robin Miga detailed the history (original agreement from 2015), the specific 14-acre inclusion into MUD 24 (an ETJ MUD), and a strategic-partnership agreement that includes a roughly $1.5 million contribution for bridge construction in the area. Representatives for the developer confirmed the newly added parcels are in the ETJ and will be part of a single HOA; the amendment allows future annexation steps under specified terms and includes a 15-year restriction tied to the initial bond issuance schedule.
Both items passed after discussion; staff said they will provide additional revenue and audit information about past contract compensation for similar arrangements as a follow-up.
