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San Leon Municipal Utility District

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San Leon Municipal Utility District


443 24th Street 

San Leon, Texas 77539

Office (281) 339-1586 

Fax (281) 339-1587 

Emergency: 281-779-4043 

Email: slmud1@slmud.org

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443 24th Street 

San Leon, Texas 77539

Office (281) 339-1586 

Fax (281) 339-1587 

Emergency: 281-779-4043 

Email: slmud1@slmud.org

Office Hours: 

Monday - Thursday 7:30 am to 5:00 pm

Friday 7:30 am to 11:30 am 


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Frequently Asked Questions

 What is the San Leon MUD?

The San Leon MUD is a political subdivision of the State of Texas.  It is a government authorized to provide water, sewage and other services within the MUD boundaries (or “District”).  The District is responsible for constructing, maintaining and operating the physical plants, systems and procedures that provide these services.  The standards for these services are set and supervised by the Texas Commission on Environmental Quality (TCEQ).  Texas laws and statutes, including the Texas Water Code, Texas Government Code and others are the authorities by which the MUD is empowered and by which it operates.

How does the District work?

A Board of Directors elected by the voters in the District manages and controls all of the affairs of the District under the guidance and supervision of the Texas Commission of Environment Quality (TCEQ).  The Board establishes policies and lawfully enforceable ordinances in the interest of its residents and utility customers.  A district may adopt, enforce and collect all necessary charges, fees and taxes in order to provide and maintain district facilities and services.

Can I have a say in how the Board manages the MUD or in the decisions it makes?

The Board holds regularly scheduled monthly meetings, special and workshop meetings when necessary.  Board meetings are conducted under the Texas Open Meetings act and Robert’s Rules of Order.  Residents of the District are welcome to attend the meetings.  If a resident has an issue or matter to present to the Board, he or she must contact the District office prior to a meeting to be placed on the agenda.

What about MUD taxes?

As a government, the MUD is authorized to raise taxes.  MUD tax rates, like all property tax rates, vary according to property values and debt requirements.   Initial construction of District facilities and replacement of obsolete or exhausted facilities is paid for through municipal bonds (a form of borrowing).  The District collects taxes from property owners who are served by those facilities to settle or “pay off” the bonds.  In general, the day to day cost of operating the facilities, i.e. providing the water, sewer and related services is paid for from the fees the MUD collects for permits, inspections and the revenues from the sale of water and sewer services.

Can the District provide for parks, pools and recreation facilities?

In addition to their common functions of water and wastewater service, districts are legally empowered to engage in conservation, irrigation, electrical generation, firefighting, solid waste collection and disposal, and recreational activities (such as parks, swimming pools, and sports courts).  The District can even commission a police department.

Does the MUD make a profit by selling water and sewer services?

No.  The MUD is not a business.  Like any other government agency that collects revenues, it is only permitted to collect what it needs to operate.

There are only 2 people in my home but my bill is always the same amount. Why is that?

There is a minimum charge for water and sewer for each meter in the District.   The minimum is based on two thousand gallons (2,000).  If you use less, you still must pay the minimum amount.  If you use more than the minimum, your bill will increase.

What if my water meter fails?

If the water meter were to fail, it might restrict or block the water from getting to your building.  But it CAN NOT register more water than passes through it.  In other words, if the measuring mechanism fails, it will just stop measuring, it will not count more water than you receive.

Where does the water I purchase from the MUD come from?

The San Leon MUD purchases the water it delivers to you from the Gulf Coast Water Authority.  It is surface water (not well water) and is processed and treated under strict supervision of the Texas Commission on Environmental Quality (TCEQ) and the U.S. Environmental Protection Agency (EPA).  Our planet is 90% water which is constantly being recycled.   

What is a municipal bond?

Municipal bonds are a long-term funding mechanism that allow municipalities to develop various types of infrastructure, such as roads, utilities, and facilities.

How do municipal bonds work?

Municipalities receive a credit rating from a third-party agency who reviews their financial history and publish an opinion detailing various aspects of the municipality so investors can make an educated decision on purchasing bonds from that particular municipality. (Moody’s recently upheld their rating for San Leon as a mid-level, long-term investment.) When a municipality wants to sell bonds, they are advertised on the open market for a period of time and different investors or investing groups supply bids for those bonds. After the financial adviser has reviewed the bids, a recommendation is given for the best deal that grants the municipality the funds requested without being burdensome on repayment schedule or interest rates. Once sold, the bond funds are placed in a special account that can only be utilized for work detailed in the bond. The bonds are then repaid over time through tax revenues. Bonds also include a period of capitalized interest in the total amount to delay the impact on taxes, allowing for development to increase the tax base and additionally decrease the impact of the additional debt obligation.