The MUD just found a $5M credit card under the couch. It's burning a hole in their pocket.
MUDs were created by the TX legislature to relieve cities of the financial risks of rapid growth. Our MUD, Williamson-Travis Counties Municipal Utility District #1 (WTCMUD1) was formed and approved to issue $25.8M bonds in 1985. Building the infrastructure to develop the MUD cost $19.9M. All debt was retired years ago. However, the remaining authorization ($5.8M) is still legally available to be spent without any additional approval. That's more than two years worth of annual tax collections.
They want to spend it.
Why shouldn't we spend it? Nice things cost money.
This MUD's track record on buying nice things is terrible.
In 2023, the Board built a beautiful playground that no children ever got to use because it didn't meet safety standards. But this wasn't an isolated bad decision.
It's worse. The chickens are coming home to roost.
The MUD Board made a catastrophic decision to pursue litigation against their own constituents. They spent $180k to pursue claims which were dismissed for being a flagrant violation of the defendants' civil rights, which led to an order to pay the defendants' costs and fees of $120k. That's $300k total. The Board added a few claims that have survived preliminary scrutiny. These remaining claims do not advance any of the Board's stated objectives for commencing the suit. It's all personal now, but with your money.*
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*Quite literally. No claims for the Board in their "official capacity" survived, but they voted to use public money to proceed with claims in their "personal capacity". One huundre-ed biiillion dollaars! (Not.) (Yet.)
The Board is handing out catnip so you won't notice.
The lawsuit has already cost more than 10% of the MUD's annual tax revenue. It will lead to a fiscal shortfall unless other spending is cut. Tightening the belt is painful, and voters will notice. So the Board has dug out the 40-year-old credit card and dusted off ideas for capital improvements that they think the voters will like. But don't be fooled: They are diverting your tax money into the lawsuit and filling the cuts with debt. Our property taxes will go up to pay for any new debt. Unless maybe, just maybe, the Board will finally win big on the lawsuit and make it all back.
A Parable
A​​​​A man had a friend who said, "I would like to buy a better car so I can impress my employer. Will you help me by co-signing a loan?" The man asked, "How did you end up short on money?" His friend replied, "Oh, I had the money, but I lost it in Las Vegas. That’s why I need the car, so my boss won’t suspect anything."
Bonds are needed for projects that generate real economic growth. The proposed improvements are incremental and won't generate revenue or increase property values. The MUD Board has squandered our money and shows no sign of repenting. They need an intervention, not a loan.
Response to Board Comments
There was a healthy citizen turnout at the February 18, 2026 board meeting. Board members accused this site of providing misinformation. To respond:
Bond projects have been recommended by the District's engineer for the long-term reliability of the District's infrastructure. The engineer admitted that initially $4.6M in capital projects were recommended, but additional projects were found to use up the full remaining authority when it was discovered. (NB: This effect is known as "money burning in a hole in a pocket.")
Is all of this actually necessary for the long-term reliability of the District's assets? It’s technical, but that does not disqualify the public from having an opinion. The Board promised to allow the public to ask the professionals directly at the next meeting. Let's hold them to it. But in any event, the bond could have been $300k less if the Board had skipped the lawsuit. And it could still be less if they skip the splash pad.
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Finally, we have been outed: Yes, this website was created by people who want to politically influence the district. And we'd do it again.