Property Tax Information
Big Oaks MUD ad valorem tax rates are based on property values established by the Fort Bend Central Appraisal District. The MUD-assessed annual tax rate combines two parts: a portion for Debt Service and a portion for Maintenance/Operations.
The MUD District’s Bond related debt is payable from the proceeds of an ad valorem tax levied upon all property subject to taxation within the District. The Board will levy and assess (for each year that all or any part of the Bond related debt remains outstanding and unpaid) a tax adequate to provide funds to pay the principal of and interest of the debt. For the 2020 tax year, Big Oaks MUD levied a debt service tax in the amount of $0.43 per $100 of assessed valuation.
The Board has the statutory authority to levy and collect an annual ad valorem tax for maintenance and operations of the District’s improvements. For the 2020 tax year, the Board levied a maintenance tax in the amount of $0.32 per $100 assessed valuation.
Tax Rate Distribution
The following tax rates are per $100 of assessed value as determined by the Fort Bend Central Appraisal District:
|Tax Year||Debt Service||Maintenance and Operations||Total Tax Rate|
|2021||$ 0.40||$ 0.339||$ 0.7390|
|2020||$ 0.430||$ 0.320||$ 0.750|
|2019||$ 0.450||$ 0.320||$ 0.770|
|2018||$ 0.480||$ 0.330||$ 0.810|
|2017||$ 0.460||$ 0.290||$ 0.750|
|2016||$ 0.550||$ 0.200||$ 0.750|
Bonds represent a two-step process for financing MUD projects. Both of these steps are heavily regulated.
Step One: From time to time, as financing is needed, a MUD will submit to the District’s Voters a proposal for the approval of Bonds. Voter approval for Bonds is the first step. Until Voter approval is received, Step Two may not begin.
Step Two: The second step requires the subsequent selling of all or part of those Voter-approved bonds. The amount approved by the Voters in Step One is an absolute “not to be exceeded” cap on the amount that can potentially be sold and financed. Once sold, Bonds become a type of “loan” to the MUD that will be paid back to the buyers of the Bonds according to terms agreed upon at the time of the sale.
Voter-approved Bonds may be sold piecemeal over time as needed for phased projects. For example, $12 million in Voter-approved Bonds might be sold in $4 million increments as each increment is needed. That is, Bonds may be sold as smaller portions of the full amount approved; after several years, the full amount approved might have all been used.
Across Texas, sometimes the full amount of Bonds approved by the Voters in Step One may go unused and unsold for various reasons. In these instances and after a specific number of years, the unsold amount of those Voter-approved Bonds in Step One cannot be sold.
The total amount of Bonds sold can never exceed the total amount approved by the voters. Bonds that are sold will be subsequently paid off over a period of years, similar to paying off a home mortgage. Outstanding Bond amounts may be refinanced if Market conditions are favorable.
Bonds approved and sold for water, sewer, and drainage (WS&D) infrastructure and capital improvement purposes cannot be used for any other projects or for normal maintenance. For instance, WS&D Bonds can never be used for Park facilities.
Park Bonds are kept fully separate from WS&D bonds. Park Bonds can only be used for Park facilities; they can never be used for WS&D projects. Park Bonds provide for Park amenities (as defined by regulation) intended to improve the quality of life for residents as well as add to the value and stature of the neighborhood.
The State of Texas sets limits for the financing and sale of all MUD Bonds. Bonds approved by the Voters cannot be sold if such sale will cause those limits to be exceeded. This provides the taxpayers of the District guarantees related to the District’s indebtedness and tax rate.