MCUD to propose tax rate ahead of $299M bond vote
What to watch: The Midland County Utility District (MCUD) board will meet on Monday, Aug. 17, and propose its 2026 property tax rate as the district prepares for its $299 million bond election in November.
The board will also hear about the election planning and engineering report behind the bond, along with a settlement that could end MCUD’s long-running legal disputes with the private Park Water utilities and allow the district to acquire their systems.
Editor’s note: MCUD is not associated with Midland County government. It is a voter-created, taxpayer-supported public utility district.
Key points:
- Proposed tax rate: The board will consider its proposed 2026 property tax rate. The district’s property tax rate includes a debt-service portion that would be used to repay the bond if voters approve it. When MCUD adopted its first water rates in July, General Manager Norman Ashton estimated that a typical household could eventually pay about $131 per month in combined water bills and bond-related property taxes.
- $299M November bond: The board will hear updates on election planning and take up the engineering report behind the bond. The report outlined out what the $299 million bond would build in three phases: water infrastructure in the Greenwood area first, the chromium-contaminated area south of Midland second, and the areas in between third.
- Park Water endgame: The district’s attorney will update the board on its legal disputes with PBWR, Park Water, Greenwood Water, and Park Sewer, and the board may act on settlements that could include MCUD buying the private systems outright. The board moved toward a settlement in July.
- $21M water grant: The board will hear an update on MCUD’s application to the Texas Water Development Board for about $21 million to build a water line. Ashton said in July that Sen. Kevin Sparks submitted a letter supporting the application and the district expects one from Rep. Tom Craddick’s office.
MCUD is also seeking support from the Texas Commission on Environmental Quality, which Ashton said has spent about $32 million since 2008 addressing groundwater contamination in the chromium plume area through filters and other work.
- New district customers: The board will consider applications for water service as MCUD prepares to begin billing its first retail customers.