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Thread: Anyone have experience in local government with this....

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    Anyone have experience in local government with this....

    Natchitoches Parish is considering accepting a private sewer system, with a grant that comes with it for $750K, then creating a board from local residents in that area and "washing its hands" of it all. I suspect unless everything goes exactly right the parish, i.e. taxpayers, will be saddled with an on-going mess having to bail out the created sewer district. In theory the created board will place fees on the property owners collecting monthly revenue that will service the system going forward. In theory... reality will probably be something else. Not to mention no one has assured the $750K is enough to rebuild the broken system.

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    Re: Anyone have experience in local government with this....

    Sounds like our M.U.D.s here in Texas. It seems like those taxes never go away, and those of us that live in MUDs pay way higher tax rates than those that do not. I don’t have direct experience with the administration of them or the mechanics of how they service their debt obligations, but as a property owner, I wish I were not in a MUD. Don’t really know how it would compare to a special tax. As a practical matter, a MUD is probably the easiest way to pay for the water utility for new subdivisions because the cost is borne by the new occupants of the subdivision rather than folks that live elsewhere in the county/Parish.

    Not sure who to point you to specifically, but it sounds like it is pretty similar to what we have in parts of Harris county.

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    Re: Anyone have experience in local government with this....

    Goosey...how much power, authority do the boards have in these MUDs? In Texas' case I see the boards are publically elected, while in Louisiana such boards are appointed/approved by publically elected bodies, such as a city council or police jury. Can these boards increase payments (taxes) to the property owners unilaterally, or does the State have to approve such increases?

    Also, according to my research, the authorizing body (a city council) is not immune from lawsuits or orders/fines levied by third parties or the EPA. The established board, the Sewer District Board, will be first in line to settle grievences. They will carry liability insurance to cover any suits but if a judgement exceeds their limits than the governing body that established that sewer board could be on the hook. I suspect this is true in Texas, and the MUDs, as well.

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