Understanding the 2024 Tax Rate Changes for Harris County MUD 502

Dear Residents of Harris County Municipal District No. 502,

The Board of Directors of MUD 502 understands that some residents of MUD 502 have expressed concerns regarding the District’s tax rate and homestead exemption. We are also aware of concerns regarding rising property values in the District. The Harris County Appraisal District is responsible for setting property values for all property in Harris County. The District has no control over the appraisal process, or over the determination of individual home values in the District. The Board is solely responsible for setting the District’s tax rate in order to maintain a sound financial footing and for adopting any homestead exemptions.

The District’s total tax rate for 2024 is $1.02 per $100 in taxable value, which is down from a total tax rate of $1.50 per $100 in taxable value in 2019. The board intends to continue to reduce the tax rate to the extent possible, while ensuring that it is able to continue to make debt service payments on outstanding District bonds as well as continue to provide quality water, sewer and drainage service in the District.

MUD 502’s tax rate is made up of three components – debt service tax, contract tax, and maintenance and operations tax.

The debt service component is used to fund MUD 502’s annual debt service requirements. For 2024 that rate was set at $0.32 per $100 taxable assessed value and will generate funds necessary to pay for the 2024 debt service requirements of approximately $2,307,861. This debt was used to pay for the installation of water, sewer, road and drainage facilities within MUD 502.

The contract tax component is used to provide funds to pay for MUD 502’s portion of the annual contract tax debt service requirements for the master district (MUD 500). For 2024 the contract tax rate was set at $0.56 and will generate funds necessary to pay for the 2024 contract tax debt service requirements of approximately $4,732,016. This debt was used to pay for MUD 500’s water plants, wastewater treatment plant, regional roads, the detention facilities, regional parks and landscaping, and other related facilities. MUD 500 provides services to all of Towne Lake.

The operation and maintenance tax component is used to provide funds to pay for the ongoing operations and maintenance of MUD 502. For 2024 that rate was set at $0.14, which will supplement the revenue generated by the MUD 502 from its monthly utility bills to pay for the estimated expenditures of $2,135,410 in 2024.

When setting the tax rate, the Board must weigh the District’s fiscal responsibilities against the desires of all taxpayers in the District for lower taxes. It is important to note that all members of the District’s board of directors are also residents and taxpayers in the District.

In addition to consistently lowering the tax rate, the MUD 502 board approved a $5,000 over 65 or disabled tax exemption in 2019 and has continued to adopt such an exemption in subsequent years, which generates extra tax savings for property owners in MUD 502 who qualify for such exemption. The Board considers the effects of implementing a general homestead exemption on an annual basis. However, it is important to note that the Board must adopt the homestead exemption before receiving taxable values from HCAD and that historically the vast majority of all taxable value in the District has been homestead value. As a result the Board has elected to further reduce the tax rate in lieu of adopting a general homestead exemption. Additional statutory exemptions, including exemptions for disabled veterans, are determined by statute, apply to District taxes, and are not determined by the Board.

MUD 502’s board has lowered the tax rate substantially, while at the same time continuing to maintain sufficient financial reserves. With the assistance of its general counsel, its financial advisor and its tax assessor/collector, the MUD 502 board considers all of the relevant information and sets the rate accordingly. The Board will begin to discuss the District’s tax rate at its August or September meeting. The Board invites interested residents to attend the District’s meeting on the first Wednesday of the month at 11:00 a.m. at 9955 Barker Cypress Road, Suite 250 Houston, TX 77433.

Very truly yours,

  • The HCMUD 502 Board of Directors

Click here to view the letter in original PDF format.

Save the Date for the Spring 2024 Towne Lake Shred/e-Waste Event

The spring Towne Lake shred/e-waste event has been scheduled for Saturday, April 27, 2024, from 9 a.m. – 1 p.m. The event will be located at the Towne Lake Amphitheater, at the southwest corner of Tuckerton and Towne Lake Parkway behind Kroger. The HC MUD 501 Board has again partnered with the Towne Lake Community Association for the Towne Lake Foundation to host the event, opening it up to all Towne Lake residents. Please bring a current utility bill or other proof of residence to the event.

Shred Event Notice (PDF)

Important Information Regarding Your Trash Services

Dear Resident,

Effective August 1, 2019, Harris County MUD 502 will transition to Curbside Automated Side Load Collection for all waste and recycle collection. Waste Management will service all your waste and recycle in Waste Management provided 96-gallon carts at the curb with an automated side load service truck.

  • 96-gallon waste and recycle carts will be delivered during the week of July 29, 2019.
  • Your 18-gallon recycle bin will be removed Tuesday, July 30, 2019.
  • Your service carts must be placed at the curb to be serviced.
  • Keep area around the service cart clear for easy access by collection truck. Place carts four feet from obstructions (such as mailboxes and cars) and within 1 foot from the curb.
  • Your collection days will be Monday and Thursday for waste and Thursday for recycle.
  • Both collection days (Monday & Thursday) will be cart only. No items will be collected outside of the cart. Items that are oversized and will not fit into the cart will be collected on your Bulk Collection day or every fourth Thursday of the month. First Bulk Collection day will be August 22, 2019.

Bulk Item Description:

Acceptable Bulk Items include broken down and bundled moving boxes, old furniture, bagged grass clippings, leaves, branches and tree trimmings. Branches and tree trimmings that are tied and bundled should be no more than three inches (3”) in diameter and four- foot (4’) in length and weighing no more than forty to fifty (40-50) pounds.

Bulk Service will be served on the fourth Thursday of every month.

If you have any questions about the transition to curbside automated side load (ASL) collection, please call our Customer Service department at 800-800-5804 or you may email questions to cssatex@wm.com.

Thank you for entrusting our Waste Management team to serve the collection and disposal needs of you and your community.

Sincerely,
Waste Management of Texas, Inc.

Drought Stage 1 Rescinded

Dear Customer:

Harris County Municipal Utility District No. 502 (MUD 502) has rescinded Stage 1 (voluntary) water conservation measures for potable (drinking) water. The West Harris County Regional Water Authority, which provides potable water to Harris County MUD No. 500’s Service Area, including MUD 502, also has rescinded its Stage 1 (voluntary) water conservation measures for their potable water usage.

The Board of Directors appreciates your cooperation and perseverance during this Conservation Condition.

No Boil Water Notice for HCMUD 502

There is no boil water notice in effect for Harris County Municipal Utility District No. 500, which provides water service to Towne Lake residents. The City of Houston has issued a Boil Water Notice for their water system and other systems affected by the City’s issue. While local media (and social media) are reporting boil water notices for the City and those other Water Districts in our area, these notices do not pertain to Harris County MUD No. 502 receivers. Again, Harris County MUD No. 502 is not currently under a Boil Water Notice.

In the event a Boil Water Notice needs to be issued for our MUD, notification will be provided. For immediate and up-to-date 24/7 information, you can always reach EDP’s 24-hour Customer Service line at (832) 467-1599.

Notice of Public Hearing on Tax Rate

The HARRIS COUNTY M.U.D. #502 will hold a public hearing on a proposed tax rate for the tax year 2022 on October 5, 2022, at 11:00 a.m. at 9955 Barker Cypress Road, Suite 250, Cypress, TX 77433. Your individual taxes may increase at a greater or lesser rate, or even decrease, depending on the tax rate that is adopted and on the change in the taxable value of your property in relation to the change in taxable value of all other property. The change in the taxable value of your property in relation to the change in the taxable value of all other property determines the distribution of the tax burden among all property owners.

Visit Texas.gov/PropertyTaxes to find a link to your local property tax database on which you can easily access information regarding your property taxes, including information about proposed tax rates and scheduled public hearings of each entity that taxes your property.

Click here to read the notice.

Notice of Public Hearing on Tax Rate

The HARRIS COUNTY M.U.D. #502 will hold a public hearing on a proposed tax rate for the tax year 2021 on October 6, 2021 at 11:00 a.m. at 9955 Barker Cypress Road, Suite 250, Cypress, TX 77433. Your individual taxes may increase at a greater or lesser rate, or even decrease, depending on the tax rate that is adopted and on the change in the taxable value of your property in relation to the change in taxable value of all other property. The change in the taxable value of your property in relation to the change in the taxable value of all other property determines the distribution of the tax burden among all property owners.

Click here to read notice.