How MUD 12 Went from Bond Failure to $30 Rate Increase 


Quoted from the Minutes of Galveston County MUD 12 Board Meetings


  NO mention of immediate need or emergency situation and NO discussion on the affect the increase would have on ratepayers.   


 1)  May 6, 2017—Bond for $17.5 M Failed -- 419 Against   94 For


 2)  Regular Meeting – June 19, 2017 

 “Mr. Alcorn explained it was too late to consider having a bond election in  November.  After the budget is set, the Board will decide if the District will ask  for Bond approval in May.” 


3)  Regular Meeting – July 17, 2017 

 “Mr. Alcorn had met with Lydia Cook (district accountant) to discuss the finances  of the District.  Lydia indicated it would be in the best interest of the District to  plan a November 2017 Bond election.”

 

4)   Special Meeting – August 7, 2017 

 “Mr. Alcorn noted the wastewater treatment plant is the #1 Priority.  Tom Matkin  (AEI engineering) indicated his suggestion to the Board to try and  get ahead of  things, which would be more cost effective. By this he meant routine  maintenance and upgrades being implemented.”  “Mr. Bacon (district attorney) noted the Board needs to sign the Election Contract  With Galveston County with the Board ratifying it at the August 21st meeting to   make sure the Bond election is on the November ballot.” 


5)  Regular Meeting –August 21, 2017 

 “The bond election will be on the November Ballot for $4.4 M.  If the bond election passes, it would be approximately six months before the bonds could be  sold.” 


6)   Regular Meeting – September 18, 2017 

 “The Board authorized the engineer to replace the fine screen as this needs to be replaced regardless of the election results.  There are monies available to cover this project.”

 

7)  Regular Meeting -- October 16, 2017

 Mr. Matkin with AEI Engineering noted “they will engage consultants and surveyors.   The engineering has been done for this project as part of the bond  proposal.” 


8)  Regular Meeting – November 20, 2017  

“Mr. Alcorn requested roll call of each director indicating their support or non-support of the $30.00 increase.  All of the directors indicated they were in favor of the increase as this would enable the District to move forward on projects.”


 NO mention of immediate need or emergency situation and NO discussion on the affect the increase would have on ratepayers.  


The Rate Order was approved effective IMMEDIATELY without further notification to ratepayers. Ratepayers received their bills on November 22, 2017 with the additional $15.00 charge on both water and sewage.