As many residents may already know, the Board of Directors (the "Board") of Harris County Municipal Utility District 304 (the "District" or “Harris County MUD 304”) has called for a bond authorization proposition to be on the election ballot for Tuesday, November 4, 2025. To ensure residents and other constituents of the District have accurate information regarding the proposed authorization and the Board’s goals for the District, we have put together answers for common questions. This page will be updated to address additional questions and provide additional information prior to the election.
What is the District?
The District is responsible for providing water, wastewater, stormwater, and detention to over 5,500 residents across 691.748 acres, servicing the following neighborhoods:
- Silverglen North
- Silverglen Estates
- Silverglen West
- Shadow Ridge Apartments
- Silverglen Townhomes
- Silver Leaf
- Echo Leaf
Services also include commercial and public properties such as Claughton Middle School, Thompson Elementary School, Lone Star College and Fallbrook Church.
Harris County MUD 304 currently operates and maintains infrastructure that includes a water plant facility with onsite water wells and an onsite surface water meter, three sanitary sewer lift stations, and a 450,000 gallon wastewater treatment plant. This infrastructure is connected by approximately 15 miles of water lines and approximately 14 miles of sanitary sewer lines. Additionally, MUD 304 has five detention basins and channels and operates Silverchase Park and Wellington Park at the HCMUD 304 building.
What is the election?
The language below will be on the ballot for residents of the District when they go to the polls or vote by mail for the November 4, 2025 election, asking voters to select either FOR or AGAINST on the following proposition:
PROPOSITION A –
THIS IS A TAX INCREASE
THE ISSUANCE OF BONDS IN THE MAXIMUM AMOUNT OF THIRTY MILLION DOLLARS ($30,000,000) FOR WATER, SEWER AND DRAINAGE SYSTEM IMPROVEMENTS AND THE LEVY OF AD VALOREM TAXES SUFFICIENT TO PAY THE PRINCIPAL OF AND INTEREST ON SAID BONDS
This proposition is related to the bond authorization amount the District is seeking to complete water infrastructure projects in the District.
What is a bond authorization?
A bond authorization is an authorization to sell bonds to fund district projects. It is similar to a line of credit that a business might use to fund its operations. A bond authorization is not immediate funding, nor is it a “blank check” to fund the entire amount of the authorization without meeting strict regulatory requirements. While a bond authorization may be for a large amount, bonds may only be sold in smaller lump sum amounts, or “series”, once necessary projects are identified, approved by the TCEQ, and ready to begin, or as needed for rehabilitation of existing facilities.
The District does not currently have any remaining bonding authority. The most recent bond authorization was nearly 30 years ago in 1996, and the amount of bonds authorized by the District's voters in the 1996 election totaled $13,100,000. The authorized bond amounts were issued periodically over the last 29 years, as needed, to fund necessary projects for the water, sanitary sewer and drainage infrastructure in the District.
What will bond authorization be used for?
The Bond Election Report submitted by the District engineer and on file with the District identifies the projects the Board anticipates will be necessary over the next 10-15 years to rehabilitate, maintain, replace, and expand the aging water, sanitary sewer and drainage infrastructure owned and operated by the District. As a proactive measure, the Bond Election Report outlines the potential costs for those projects (and required bond issuance costs), considering all information available today.
Why is it necessary to do these projects?
The District was originally created in 1985. As the infrastructure ages, it requires maintenance, rehabilitation, and sometimes waterline replacement as part of its lifecycle. On average, infrastructure lasts about 30 years with optimal maintenance and operations. The District Engineer has prepared a Capital Improvement Plan (CIP) detailing projects slated for the next 10 years. Key planned expenditures include:
- Admin Building Plumbing Upgrades
- Wastewater Treatment Plant Expansion and Generator Improvements
- Sanitary Sewer and Lift Station Rehabilitations throughout the District
The District intends to issue bonds only as necessary over the next 10-15 years pursuant to the Bond Election Report to proactively maintain, and, where necessary, implement repairs or replacement to its facilities. This will enable the District to ensure reliable and continuous service by maximizing the life of its water, wastewater and drainage and detention infrastructure.
The District was initially created with the expectation it would eventually be annexed and lie within the City of Houston, after which the City would payoff all outstanding bond debt and assume paying for the future costs of operating, maintaining, and repairing all District utility facilities. Under current circumstances, annexation of the District by the City in the near future is unlikely, so the District must prepare to fund all necessary costs of maintenance for the water, sanitary sewer, and drainage facilities required to serve its residents.
Can’t the District just pay for projects without issuing bonds?
The primary alternative to authorizing the bonds is to fund all necessary projects on a "pay as you go" basis. Accordingly, utilizing this approach would likely require large increases in the District’s maintenance tax rates and/or water and sanitary sewer rates in order to collect the required funds. Further, the law requires the District to have the necessary funds in hand before it can proceed with a required project. If the District is forced to raise the necessary money on an as-you-go basis, it could create significant delays in the completion of large projects. Much like a home mortgage, when the District issues bonds it spreads the costs of the necessary projects over several years and avoids the increases in tax rates and/or water and sanitary sewer rates typically required by a "pay as you go" approach. Moreover, the interest rates for the District on the repayments of its municipal bonds can be substantially lower than the comparable rates for traditional construction loans; tax-exempt bonds are an efficient method of funding for District capital improvements. Finally, issuing these bonds on an as-needed basis enables the District to complete necessary projects quickly when the need arises.
How are my taxes determined?
The District levies a total tax rate each year that has two components:
- The debt service tax rate, the proceeds of which can only be used to make payments on the District’s outstanding bonds; and
- The operations and maintenance tax rate (often referred to an O&M tax ), the proceeds of which are deposited to the District’s General Fund and used, together with water and sewer revenue, to pay operating and maintenance expenses of the District.
These two components of the tax rate typically fluctuate and have changed over the years as the District’s debt service and operating expenses have changed.
How does the District manage taxpayer dollars?
For details regarding tax rates, click here. As a result of prudent financial management, the District has earned an underlying rating of A- from Standard & Poor’s Financial Service.
Due to the historical development of the District and careful supervision of expenses and planning for maintenance, the District has established strong operating reserves, which exceed the common benchmarks for municipal utility districts. Reserve funds earn interest and are available for emergencies. However, these reserves would not be sufficient for large-scale rehabilitation, repair, or replacement, such as those projects that are included in the engineer’s Bond Election Report.
Will this raise my property taxes?
Approval of the requested bond authorization will not immediately change your property taxes. At this time, with all the information on hand, given the plan outlined in the Bond Election Report, the Board of Directors for the District does not anticipate a debt service tax increase as a result of bond issuance for water, sewer, and drainage projects in the foreseeable future.
I have more questions…
Good! The goal is for the residents to have all the information at their disposal when voting approaches. Additional questions can be fielded through the Contact Us form on the District’s website.