As many residents may already know, the Board of Directors (the "Board") of Brazoria County Municipal Utility District No. 31 (the "District" or "BCMUD 31") has called for a Water, Sewer, and Drainage and Road Bond Election to be held on May 2, 2026. To ensure residents of the District have accurate information regarding the proposed bond authorization and the Board’s goals, the District has prepared the following answers to common questions. This page may be updated prior to the election to address additional questions and provide supplemental information.
What is the District?
Brazoria County Municipal Utility District No. 31 is a local governmental entity created in 2013 to finance, construct, and maintain public infrastructure serving the Sterling Lakes and Cantera Creek community in Brazoria County.
Historically, the District was responsible for financing and construction of water, wastewater, drainage, and certain recreational facilities. Under a Development Agreement executed at the creation of the District, the District agreed to convey ownership and operation of water supply and wastewater treatment facilities to the City upon notice. The City exercised that right in October 2021 and assumed ownership and operation of those facilities in March 2024. District residents are now customers of the City for water and sewer service.
Today, BCMUD 31 continues to:
Own, inspect, maintain, and repair detention ponds, drainage channels, and stormwater facilities
Coordinate with the City to finance and construct additional water and wastewater capacity needed to serve current and future homes, which facilities are conveyed to the City upon completion
Levy and collect ad valorem taxes to service outstanding bonded debt and operate detention and drainage facilities.
Manage District operating and debt service funds
Participate in financing and improving parks and recreational facilities within the District
What is the election?
Voters within BCMUD 31 will be asked to vote FOR or AGAINST a proposition authorizing the District to issue additional bonds for water, sewer, and drainage and road facilities. The bond authorization would allow the District to issue bonds in the future, as needed and in phases, up to a maximum amount approved by voters.
The authorization itself does not result in the immediate issuance of bonds and does not require that the full authorized amount ever be issued.
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 May 2, 2026 election, asking voters to select one (1) option of either FOR or AGAINST on the following propositions:
PROPOSITION A
THIS IS A TAX INCREASE. The issuance of $41,300,000 bonds for water, sanitary sewer, and drainage and storm sewer systems and for refunding water, sanitary sewer, and drainage and storm sewer systems bonds of the district, and the levy of taxes, without limit as to rate or amount, sufficient to pay the principal of and interest on the bondsPROPOSITION B
THIS IS A TAX INCREASE. The issuance of $34,700,000 bonds for roads and for refunding road bonds of the district, and the levy of taxes, without limit as to rate or amount, sufficient to pay the principal of and interest on the bonds
What is a bond authorization?
A bond authorization is permission from voters for the District to issue bonds in the future to fund infrastructure projects. It functions similarly to a line of credit: the authorization establishes a maximum amount, but bonds may only be issued in smaller series when projects are identified, approved, and ready to proceed and certain economic feasibility tests have been met.
Before any bonds can be issued, the District must comply with Texas Commission on Environmental Quality (TCEQ) rules and demonstrate that the bonds can be repaid at or below a projected maximum tax rate using conservative assumptions regarding property values and development.
Why does the bond proposition state “THIS IS A TAX INCREASE”?
The statement “THIS IS A TAX INCREASE” is in compliance with SB 1025 as interpreted by the Texas Office of the Attorney General.
How much debt does BCMUD 31 currently have?
As of February 2026, the District has approximately $46,215,000 in outstanding bonds payable from ad valorem tax revenue. The final maturity of the District’s existing bond debt is projected to be 2051.
What will the bond authorization be used for?
If approved, the bond additional authorization may be used over time, as needed, to:
- Maintain, repair, and operate District-owned detention and drainage facilities
- Fund the District’s contractual share of permanent wastewater treatment plant expansions designed and constructed by the City
- Reimburse developers for water, wastewater, drainage, and road facilities previously constructed on behalf of the District
- Manage debt service and operating fund balances to maintain healthy reserves and support future bond issuance
Some water and wastewater facilities financed by the District will be conveyed to the City upon completion, while drainage and stormwater facilities will continue to be owned and maintained by BCMUD 31.
Why are these projects necessary?
Although the District no longer operates water and wastewater systems, BCMUD 31 has long-term contractual obligations to fund its proportionate share of replacement wastewater treatment capacity as initial facilities reach the end of their useful lives. Initial steel wastewater treatment plants typically have an expected useful life of approximately 25 years; therefore, replacement of existing facilities is anticipated between 2030 and 2047.
BCMUD 31 has already begun financing participation in a replacement concrete wastewater treatment plant currently under design by the City, with an estimated contribution of approximately $4.975 million due in 2026. Additional future contributions, currently estimated between $10 million and $12 million, are anticipated for future expansions.
In addition, the District must continue to maintain drainage infrastructure to manage stormwater, prevent flooding, and protect homes within the District.
Can’t the District pay for projects without issuing bonds?
The primary alternative to bond financing is to fund all obligations on a pay-as-you-go basis using annual tax revenues. This approach would likely require a significant increase in the District’s tax rate in order to accumulate sufficient funds before projects could proceed.
Bond financing allows the District to spread the cost of long-term infrastructure over time, aligning repayment with the useful life of the facilities and avoiding large, immediate tax increases. Municipal bonds also typically carry lower interest rates than traditional construction financing, making them a more efficient funding tool.
How are my taxes determined?
The District’s annual tax rate consists of two components:
- Debt Service Tax Rate – used exclusively to pay principal and interest on outstanding bonds.
- Operations and Maintenance (O&M) Tax Rate – used to pay the District’s operating and maintenance expenses.
Each component is reviewed annually and may fluctuate based on the District’s financial obligations, with the goal of keeping the total tax rate steady.
The Board also considers the City’s overlapping tax rate (approximately $0.52 in 2025), expected City rebates, and the combined City and District tax burden when setting the District’s tax rate each year.
Will approval of the bond authorization raise my property taxes?
Approval of the bond authorization will not immediately change property taxes. Bonds may only be issued in the future as needed, subject to TCEQ approval and financial feasibility requirements.
Based on current projections and available information, the Board anticipates that the combined City and District tax rate is likely to remain generally within the range of approximately $1.30–$1.35, implying a District tax rate of approximately $0.78–$0.83, subject to annual review and changing conditions.
How does the District manage taxpayer dollars?
The District manages taxpayer funds through annual budgeting, financial audits, and compliance with state law and bond covenants. Funds are allocated to ensure timely debt service payments, adequate operating reserves, and long-term financial stability.
Financial information, including budgets, tax rates, and audits, is made available through public Board meetings and District disclosures.
How can residents participate and learn more?
All Board meetings are open to the public and include a public comment period. The Board meets on the fourth Thursday of each month at 10:00 a.m., with telephone participation available. The Board also plans to hold one or more open house or town hall-style meetings in connection with the bond election.
Residents are encouraged to visit www.bcmud31.org, attend meetings, and submit questions through the District’s website. Resident participation is welcomed and encouraged as the election approaches.