What happened: The Midland County Utility District (MCUD) board met Saturday, Sept. 12, for a strategic planning session along with its regular board meeting. The board adopted its annual operating budget, formally set its property tax rate, and advanced its public outreach ahead of the Nov. 3 bond election. The board also authorized the general manager to continue acquisition discussions with Park Water.

Editor’s note: MCUD is not part of the Midland County government. It is a voter-created, taxpayer-supported public utility district.

Key points:

  • Bond election outreach: General Manager Norman Ashton told the board the $299 million bond outreach to begin building part of a public water system for Greenwood and rural Midland County is on schedule. Four town hall-style meetings are being scheduled for mid- to late September. Dates were still being finalized as of the Sept. 12 meeting.

If approved, the $299 million bond would build water infrastructure in the Greenwood area first, the chromium-contaminated area south of Midland second, and the areas in between third. The district estimates that finishing the rest of the water infrastructure buildout across the district would cost another $890.6 million in today’s dollars.

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Ashton previously said the district’s strategy is to use this $299 million bond to reach the areas with the greatest need and begin collecting water bills from new customers, Greenwood ISD, and the county jail. That new water revenue could then help the district borrow money for later expansions, rather than asking property owners to pay for the entire system through property taxes.

Ashton also said the $299 million bond would help MCUD qualify for other financing sources, including lower-interest state and federal loans and potential grants. If the bond passes, MCUD has estimated the average household’s combined tax-and-water cost will run about $131 a month.

  • Tax rate: The board voted unanimously to adopt a property tax rate that is unchanged from the prior year, resulting in about a $4 annual increase to the average homeowner’s MCUD tax bill due to higher property appraisals. The district’s total taxable value is roughly $6.8 billion.
  • Budget: The board adopted the fiscal year 2026-27 operating budget. The new budget projects $2.5 million in operating expenses and an operating surplus of about $44,000. Ashton said the district expects to close the current fiscal year with a fund balance of about $7.1 million.
  • Park Water acquisition: The board authorized Ashton to respond to a proposal from Park Water and continue negotiations over a potential acquisition. MCUD signed a letter of intent to acquire Park Water in July as part of the settlement that ended litigation between the two entities.
  • WIFIA federal loan: Ashton said the district has started developing a letter of interest for the federal Water Infrastructure Finance and Innovation Act (WIFIA) program, the first step toward seeking long-term, low-cost federal financing for water infrastructure. The board agreed to wait until after the November election to submit it.

Ashton said the district expects to pursue a bond rating as part of the financing process and that it makes more sense to do so after voters have acted on the $299 million bond. He said MCUD plans to submit the WIFIA letter in November regardless of the election outcome.

  • Customer application update: Staff is revising the district’s customer service application to add an online option and replace dense text with checkboxes for information Ashton said customers routinely miss. He said the changes will become more important in January, when MCUD plans to move its offices to the treatment plant and expects more walk-in traffic.

MCUD opened applications for residents along County Road 110 not served by Park Water. New customers owe a $2,000 connection fee, which the board agreed residents can finance at $125 per month for 16 months on their water bills.