The District was created by order of the Texas Natural Resource Conservation Commission, predecessor of the Texas Commission on Environmental Quality (the“TCEQ”), dated June 26, 1996. The District contains approximately 717 acres of land located in the northwest portion of Harris County, approximately 22 miles from downtown Houston, Texas. The District is bounded on the north by Spring-Cypress Road and is located west of Telge Road and north of U.S. Highway 290. The District lies entirely within the extraterritorial jurisdiction of the City of Houston.

The District is a portion of the Coles Crossing community, a development of JDC/Greenleaf, Ltd., a Texas limited partnership, and The Park at Arbordale community, a development of Beazer Homes. The Coles Crossing and The Park at Arbordale developments encompass 1,261 acres, including single-family, multi-family and commercial usages. Such acreage is located within the boundaries of the District and Harris County Municipal Utility District No. 364 (“MUD 364”). Development of Coles Crossing began in 1997. As of April 18, 2014, there are a total of 2,989 water connections in Coles Crossing and The Park at Arbordale, of which 1,173 are located in the District and 1,816 are located in MUD 364.

What is a Municipal Utility District?

A Municipal Utility District (“MUD”) is a local governmental entity organized for the purposes of providing safe drinking water and sanitary sewer service to the areas within its boundaries.

Additionally, MUDs can exercise other typical governmental powers, including drainage relief within its boundaries, the levy and collection of ad valorem taxes, issuing bonds with voter authorization, charge for authorized services, adopt and enforce rules and regulations to accomplish the purposes for which the MUD was created, develop and maintain certain public improvements such as parks and jogging trails, provide solid waste management services, and provide police protection services.

While the powers of MUDs may seem very broad, MUDs are one of the most highly regulated and controlled governmental entities in the State of Texas. The powers of MUDs are limited to those expressly provided for in the Texas Water Code and the Texas Constitution and there is significant oversight provided by the Texas Commission on Environmental Quality (the “TCEQ”).