Author: HCMUD 502

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Harris County Municipal Utility District No. 502 (MUD 502) has rescinded Stage 1 (voluntary) water conservation measures for potable (drinking) water.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Water Authority, which provides potable water to Harris County MUD No. 500’s Service Area, including MUD 502, also has rescinded its Stage 1 (voluntary) water conservation measures for their potable water usage.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 as we recover from the effects of Hurricane Beryl.

Stage 1 Voluntary Water Conservation (PDF)

Dear Customer:

Harris County Municipal Utility District No. 502 (MUD 502) has initiated Stage 1 (voluntary) water conservation measures for potable (drinking) water and is requesting that all potable water users reduce their usage immediately. 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 initiated its Stage 1 (voluntary) water conservation measures due to the impact of Hurricane Beryl and disruption to the Authority’s water supply from the City of Houston and is requesting that all water users voluntarily reduce their potable water usage.

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

Customers are requested to reduce non-essential water use as follows voluntarily:

1.  District residents and other water users within the District are requested that non-essential water use, including, but not limited to, landscape irrigation use, be limited to three (3) days per week, and run times be reduced by 5%.
2. Potable water used outdoors for irrigation or other uses be avoided between the hours of 6:00 am and 9:00 am and 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 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. The MUD 502 Board of Directors appreciates your cooperation and perseverance during this challenging time.

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.

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.