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.

Harris County MUD 502 Water Conservation Update: Transition from Stage 2 to Voluntary Stage 1 Restrictions

Dear Customer:

Harris County Municipal Utility District No. 502 (MUD 502) has rescinded Stage 2 (mandatory) and re-initiated Stage 1 (voluntary) water conservation measures for potable (drinking) water.

Stage 1 (Voluntary) water use restrictions now in place:

  1. Water Customers are requested to limit all outdoor water usage, including, but not limited to, lawn and garden watering, car washing, and window washing to evennumbered days for Customers with even-numbered addresses and odd-numbered days for water Customers with -odd-numbered addresses, and only between the hours of 10:00 am to 6:00 pm, and 12:00 midnight to 6:00 am. In the event no street address exists, Customers living on the north and west side of a street should use water outdoors only on even-numbered days and Customers living on the south and east side of a street should use water outdoors only on odd-numbered days.

Please check the settings on the controller for your irrigation system to make adjustments to the dates and times the system runs to implement these requested changes. Please note that the Towne Lake Community Association uses non-potable water from the lakes for irrigation of certain common areas throughout the Towne Lake community, which helps to reduce demand on the potable water system and preserve the availability of potable water for other uses.

MUD 502 will continue to monitor potable water use and will provide another notice if the drought stage changes or if Stage 1 drought conditions have been lifted. Please keep in mind that, despite the recent cooler, wetter conditions, the Houston metropolitan area remains in drought conditions. As a result, the MUD 502 Board continues to strongly encourage all residents to carefully monitor their water usage and continue to voluntarily conserve potable water. The MUD 502 Board of Directors appreciates your cooperation and perseverance during this challenging time.

Stage 2 Water Conservation Measures

Dear Customer:

Due to ongoing drought conditions, Harris County Municipal Utility District No. 502 has initiated Stage 2 water conservation measures. We may require more water use restrictions if conditions worsen.

Water use restrictions now in place:

  1. Water Customers are required to limit all outdoor water usage, including, but not limited to, lawn and garden watering, car washing, and window washing to even-numbered days for Customers with even-numbered addresses and odd-numbered days for water Customers with odd-numbered addresses, and only between the hours of 10:00 am to 6:00 pm, and 12:00 midnight to 6:00 am. In the event no street address exists, Customers living on the north and west side of a street should use water outdoors only on even-numbered days and Customers living on the south and east side of a street should use water outdoors only on odd-numbered days.
  2. All outdoor water use, including but not limited to lawn and garden watering, car washing, and window washing, must be conducted with a hand-held hose with a manual on-off nozzle.
  3. The District shall recommend that the following public water uses not essential for public health and safety be curtailed:
    • Street washing;
    • Fire hydrant flushin; and
    • Filling of swimming pools

Please note that the Towne Lake Community Association uses non-potable water from the lakes for irrigation of certain common areas throughout the Towne Lake community, which helps to reduce demand on the potable water system and preserve the availability of potable water for other uses. Such non-potable water usage is not covered by these restrictions.

The following penalties shall apply to anyone violating the terms of this Plan or the Drought Response Measures or Emergency Response Measures adopted pursuant hereto:

A. First Violation. Any person or entity who violates this Plan shall receive written notification of such violation, which notice shall set forth (i) the date of the violation, (ii) the nature of the violation, (iii) the Drought Response Measures then in effect, and (iv) the penalties applicable for any further violations of this Plan; provided, however, that if such person or entity has ever previously violated this Plan, the penalties set forth in Section B below, may, in the discretion of the Board, be imposed.

B. Subsequent Violations.

  1. Disconnection for Noncompliance. If any person or entity violates any provision of this Plan more than one time (which violation shall constitute an unauthorized use of District services and/or facilities), then in addition to any other remedies,penalties, sanctions and enforcement procedures provided for herein, the District shall have the right to terminate water service to such person or entity after notice and any other procedural requirements in the District’s rate order are satisfied.
  2. Monetary Penalties for Noncompliance. If any person or entity violates any provision of this Plan more than one time (which violation shall constitute an unauthorized use of District services and/or facilities), then, in addition to disconnection as provided in Subsection B1 of this Section, the Board of the District, after providing required notice, may impose a penalty of up to the jurisdictional limit of a justice court, for each violation of this Plan. Each day that a breach of any provision of this Plan continues shall be considered a separate violation. This penalty shall be in addition to any other legal rights and remedies of the District as may be allowed by law.

The Board of Directors appreciates your cooperation and perseverance during this Conservation Condition. Once the Conservation Condition ends, we will notify you, and you may then return to normal usage. If conditions should worsen, it may be necessary to proceed to Stage 3, at which time you will be notified of the more stringent restrictions to ensure the availability of water in your community.

Notice of Stage 1 Drought Conditions

Please be advised that the Master District has triggered Stage 1 (voluntary reductions) of its Drought Contingency Plan due to the ongoing drought conditions and is requesting that all potable water users reduce their usage immediately.

Potable water usage is increasing rapidly in the Master District’s Service Area (consisting of Harris County MUD Nos. 500, 501, 502, and 503), and under the Master District’s Drought Contingency Plan, we may be required to implement mandatory water use restrictions if conditions continue to worsen. The Master District encourages each Participant to implement one or more drought response measures in your Drought Contingency Plan, as applicable. We will continue to monitor potable water use and will provide another notice if the drought stage changes or if Stage 1 drought conditions have been lifted.

We appreciate your cooperation during this challenging time. A copy of correspondence sent to customers within Harris County MUD No. 500, as a Participant District, is attached.


Dear Customer:

Due to ongoing drought conditions, Harris County Municipal Utility District No. 500 (MUD 500) has initiated Stage 1 (voluntary) water conservation measures for potable (drinking) water and is requesting that all potable water users reduce their usage immediately. Potable water usage is increasing rapidly and under MUD 500’s Drought Contingency Plan, we may be required to implement mandatory water use restrictions if conditions continue to worsen. Last summer, when we requested voluntary conservation, you answered the call and were able to ensure a continued sufficient water supply for the Towne Lake community. Now that drought conditions have returned, we need your help again to reduce potable water usage and avoid the need for mandatory restrictions!

Stage 1 (Voluntary) water use restrictions now in place:

Customers are requested to voluntarily limit all outdoor potable water usage, including, but not limited to, lawn and garden watering, car washing, and window washing, as follows:

  1. District residents and other users of water within the District with even-numbered addresses should use potable water outdoors only on even-numbered days, and District residents and other users of water within the District with odd-numbered addresses should use potable water outdoors only on odd-numbered days. In the event no street address exists, District residents and other users of water within the District lining on the north and west side of the street should use potable water outdoors only on even-numbered days, and District residents and other users of water within the District on the south and east side of the street should use potable water outdoors only on odd-numbered days. District residents and other users of water within the District with irrigation controllers that do not have an even-odd option should use potable water outdoors no more than every other day.
  2. Potable water should not be used outdoors for irrigation or other uses in the morning between the hours of 6:00 am and 10:00 am, and in the evening between the hours of 6:00 pm and 12:00 am (midnight).

Please check the settings on the controller for your irrigation system to make adjustments to the dates and times the system runs to implement these requested changes. Please note that the Towne Lake Community Association uses non-potable water from the lakes for irrigation of certain common areas throughout the Towne Lake community, which helps to reduce demand on the potable water system and preserve the availability of potable water for other uses.

MUD 500 will continue to monitor potable water use and will provide another notice if the drought stage changes or if Stage 1 drought conditions have been lifted. The MUD 500 Board of Directors appreciates your cooperation and perseverance during this challenging time.

WHCRWA Not Receiving Water from City at This Time – Please Conserve Water

At the City of Houston’s request, the WHCRWA has turned off the valve connecting it to the City’s water system and is not receiving water from the City at this time.

WHCRWA’s water supplies will be limited and most retail water suppliers will utilize groundwater wells to meet demands. Please make every effort to reduce water consumption at this time.

WHCRWA will continue to keep you updated as this situation evolves.