Information Regarding the 7 November 2023 Bond Election

The purpose of a water district, such as Grand Mission Municipal Utility District No. 2 (the “District”), is to provide water supply and distribution system, sanitary sewer collection and treatment, drainage, parks, and road facilities to serve the land inside its boundaries. The District was created by the Texas Commission On Environmental Quality (“TCEQ”) on September 9, 2005, and the District operates pursuant to Chapters 49 and 54 of the Texas Water Code as political subdivision of the State of Texas and a governmental entity. The creation of the District was initiated by the developer as a means of financing the construction of waterworks, sanitary sewer, drainage, parks and road facilities to serve the land within the District.

Since the early 2000’s, the District has been developed primarily as residential subdivisions known as Grand Mission Estates. The District currently consists of approximately 1,639 single-family lots, approximately 37.60-acres for commercial usage, and a middle school that results in a 2023 total taxable value of approximately $655,007,769. Development within the District is still on going and expected to be completed by the end of 2024.

In 2006, the voters of the District authorized $52,650,000 in bonds to be issued for water, sanitary sewer, and drainage improvements in the District and $8,030,000 in bonds to be issued for parks and recreation purposes. From that authorization, the District sold 10 bond issues over the years, totaling $48,435,000. However, additional water, sewer, drainage, and park infrastructure has been and is being constructed that has yet been reimbursed or will need to be paid for by the District in the future.

In August 2023, the District’s Engineer recommend that the District ask its voters for $11,100,000 in bond authorization to reimburse, rehabilitate or replace water supply and distribution facilities, wastewater treatment and collection facilities, and future improvements that may be necessary, and $7,900,00 in bond authorization to reimburse, rehabilitate, or replace parks and recreation facilities. Without additional bond authorization, necessary infrastructure projects will have to be paid from the District’s available funds, which would cause the tax rate and/or water and sewer rates to increase dramatically.

These bonds will not be issued if any such bond issuance will cause the District to raise its tax rate. The developer will not be reimbursed for facilities installed if such reimbursement would require the District to increase the tax rate. Therefore, the bonds authorized would not be issued unless doing so would not raise the District’s tax rate.

Stage 1 Drought Contingency Plan: Your Role in Water Conservation

Dear Grand Mission Municipal Utility District No. 2 Customer,

The City of Houston and the North Fort Bend Water Authority (NFBWA) have both implemented Stage 1 of their respective Drought Contingency Plans (“DCP”). Given that Grand Mission Municipal Utility District No. 2 (the “District”) is located within the boundaries of the NFBWA, the District is also required to implement Stage 1 of its DCP immediately. Stage 1 requirements include:

  • Water customers are asked to voluntarily reduce water use.
  • Water customers are asked to practice water conservation and to minimize or disconnect water use for non-essential purposes.
  • Water customers are requested to voluntary limit the irrigation of landscaped areas to Sundays and Thursdays for customers with street addresses ending in an even number (0, 2, 4, 6 or 8) and Saturdays and Wednesdays for water customers with street addresses ending in an odd number (1, 3, 5, 7 or 9), and to irrigate landscape only between the hours of midnight and 6:00 a.m. on designated watering days.

The District appreciates your water conservation efforts and will provide further information in the future once the DCP requirements are further updated.

Board of Directors
Grand Mission Municipal Utility District No.2