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FAQs

What is a MUD?

A Municipal Utility District, or MUD, is a political subdivision authorized by the Texas Commission on Environmental Quality (TCEQ) to provide water, sewage, drainage and other services within the MUD’s boundaries; the Lakeway Municipal Utility District focuses only on supplying water and treating wastewater.

How many MUDs are in Texas?

Our state has more than 800 active MUDs.

What is the history of MUDs in Texas?

The Texas Constitution was amended to allow establishment of water districts in the early part of the 20th century. Modern-day MUDs were permitted in 1971 through passage of Chapter 49 and Chapter 54 of the Texas Water Code.

What are the advantages of a MUD?

MUDs enjoy more flexibility than city-run utilities because residents have a better sense of who is running a MUD—their friends, neighbors and colleagues—and have more input regarding the cost and expansion of services.

What is the history of Lakeway MUD?

The nonprofit Lakeway MUD, established in 1972, provides water, wastewater and reuse services to the majority of homes and businesses that primarily are within the boundaries of the City of Lakeway and within a portion of the Village of the Hills.

How big is Lakeway MUD?

Lakeway MUD’s geographic area covers nearly 1,900 acres—about one-third of the size of the City of Lakeway.

What is Lakeway MUD’s annual budget?

$6.3 million.

What is the tax rate for Lakeway MUD?

20.52 cents per $100 of assessed valuation for 2010.

What are the utility rates for Lakeway MUD customers?

For the first 15,000 gallons of usage, a customer pays $2.50 per thousand gallons. The cost per thousand gallons gradually rises based on usage. At the upper end, if a customer uses more than 100,000 gallons of water, the cost increases to $5 per thousand gallons.

How do Lakeway MUD’s rates compare with other service providers in the Lakeway area?

Lakeway MUD’s rate for water and wastewater, plus property taxes, is one of the lowest rates in the area. Steiner Ranch, Senna Hills, Brushy Creek, Flintrock, Hurst Creek, Horseshoe Bay, Bee Cave, Briarcliff and River Place all have higher rates.

What is Lakeway MUD’s bond rating?

“Aa2” from Moody's and "AA-" from Standard & Poor's. We have the highest rating of the 730 MUDs in Texas.

How many customers does Lakeway MUD have?

Lakeway MUD serves more than 4,000 water customers and nearly 3,000 wastewater customers.

What is Lakeway MUD’s average daily water consumption?

Nearly 1.6 million gallons.

What is the source of Lakeway MUD’s water?

The water comes from Lake Travis through a contract with the Lower Colorado River Authority.

Who oversees Lakeway MUD?

A five-member, unpaid, elected Board of Directors sets policies, establishes service rates, approves major operating expenditures and authorizes all capital expenditures.

How are Lakeway MUD board members chosen?

The volunteer directors are elected to four-year terms in May of each even-numbered year. Terms are staggered so that, at most, three director positions are filled in a given year.

Who runs day-to-day operations of Lakeway MUD?

A 21-member staff, led by General Manager Earl Foster since 2010.

How much control do real estate developers have over Lakeway MUD?

Unless they are voting residents within a MUD, real estate developers have no authority or control over the Board of Directors of a MUD in Texas. If they are voting members of the district, developers have the same power to vote and attend board meetings as any other resident. Unlike some newer MUDs, Lakeway MUD has no developers on its Board of Directors.

When does the Lakeway MUD Board of Directors meet?

9:30 a.m. on the second Wednesday of each month.

Where are board meetings held?

Lakeway MUD’s offices at 1097 Lohmans Crossing in Lakeway.

Who can attend Lakeway MUD board meetings?

Every regular meeting allots time for public comments; everyone is welcome to attend.

Does a government agency regulate Lakeway MUD?

Yes. As with all other MUDs in Texas, Lakeway MUD is regulated by the Texas Commission on Environmental Quality (TCEQ).

What is TCEQ?

TCEQ essentially is our state’s version of the federal Environmental Protection Agency. TCEQ strives to protect our state’s human and natural resources consistent with sustainable economic development. The state agency’s goal is clean air, clean water and safe management of waste. For more information, visit www.tceq.state.tx.us.

Is Lakeway MUD’s water safe?

Yes. Lakeway MUD has earned a “superior” water system rating from TCEQ.

How can I get more information about Lakeway MUD?

Call 512-261-6222 or visit www.lakewaymud.org. Lakeway MUD’s business hours are 8:30 a.m.-noon and 1-5 p.m. Monday through Friday.