As many residents may already know, the Board of Directors (the "Board") of Galveston County Municipal Utility District No. 66 (the "District" or “GCMUD 66”) has called for a bond authorization proposition to be on the election ballot for Saturday, May 2, 2026. To ensure that residents and other constituents of the District have accurate information regarding the proposed authorization, we have put together answers to common questions. This page will be updated to address additional questions and provide additional information prior to the election.
What is Galveston County Municipal Utility District No. 66?
Galveston County Municipal Utility District No. 66 is a municipal utility district and political subdivision of the State of Texas. It is authorized to purchase and construct water, sanitary sewer, storm sewer, drainage, and park and recreational facilities to serve the land within its boundaries. The District currently contains approximately 527 single-family residences across 378 acres. This includes the Pearlbrook, Sunrise Cove, Mainland Medical, and Vida Costera subdivisions.
What is the election?
The language below will be on the ballot for residents of the District when they go to the polls or vote by mail for the May 2, 2026, election, asking voters to select one (1) option of either FOR or AGAINST on the following propositions:
PROPOSITION A –
THIS IS A TAX INCREASE. The issuance of $24,900,000 bonds for water, sanitary sewer, and drainage and storm sewer systems, and for refunding water, sanitary sewer, and drainage and storm sewer systems bonds of the district, and the levy of taxes, without limit as to rate or amount, sufficient to pay the principal of and interest on the bonds
PROPOSITION B –
THIS IS A TAX INCREASE. The issuance of $9,700,000 bonds for recreational facilities and for refunding recreational facilities bonds of the district, and the levy of taxes, without limit as to rate or amount, sufficient to pay the principal of and interest on the bonds
These propositions are related to the bond authorization amounts the District is seeking to complete water, sanitary sewer, storm sewer, and drainage infrastructure (Proposition A) and park and recreational facilities (Proposition B).
How will bond authorization affect my taxes?
Because future bonds may not be issued without Board approval, bond authorization alone will have NO EFFECT on your taxes. Only once bond authorization is utilized and bonds are sold, may there be a potential tax impact.
Why does the bond proposition state “THIS IS A TAX INCREASE”?
The statement “THIS IS A TAX INCREASE” is in compliance with SB 1025 as interpreted by the Texas Office of the Attorney General. As previously stated, bond authorization alone will have no effect on your taxes.
What is a bond authorization?
A bond authorization is an authorization to sell bonds to fund district projects. It is similar to a line of credit that a business might use to fund its operations. An authorization is not immediate funding, nor is it a “blank check” to fund the entire amount of the authorization without meeting strict regulatory requirements. While an authorization may be for a large amount, bonds may only be sold to reimburse projects that are complete, and the taxable value of those improvements is equal to or greater than ten times the amount being requested.
The District currently has $25,595,000 in remaining bonding authority for water, sanitary sewer, storm sewer, and drainage infrastructure, and no remaining bonding authority for park and recreational facilities. The most recent voter authorization occurred in 2019, when District voters approved a total of $30,000,000 in bonds, including $27,000,000 designated for water, sanitary sewer, storm sewer, and drainage facilities and $3,000,000 for parks and recreational facilities. Since that time, bonds have been issued periodically, as needed, to finance critical infrastructure improvements and park and recreation projects serving development within the District.
While bonding authority remains available, the District’s current authorization is largely committed to ongoing development and anticipated developer reimbursement obligations associated with previously approved infrastructure projects. These funds are allocated to support existing growth and reimburse developers for eligible costs incurred in constructing water, wastewater, drainage, and related facilities that ultimately become Texas City assets.
As a result, the remaining $25,595,000 in bonding authority is not sufficient to support future infrastructure demands associated with continued growth, planned development phases, or potential annexations into the District. The existing authorization does not account for infrastructure necessary to serve undeveloped areas or properties that may be incorporated into the District in the future. Additional bonding authority will therefore be necessary to ensure the District can continue to finance and construct the water, sanitary sewer, drainage, and related public infrastructure required to support long-term development, which is subsequently conveyed to the City of Texas City for ongoing operation and maintenance.
What will the WS&D bond authorization be used for?
The Bond Election Report submitted by the District engineer identifies the projects the Board anticipates will be necessary over the next 10 years to expand or grow the District's water, sanitary sewer, and drainage infrastructure, which will eventually be owned and operated by Texas City, as well as parks and recreational facilities, which will be owned by the District. As a proactive measure, the Bond Election Report outlines the potential cost for those projects (and required bond issuance costs), considering all information available today.
What will the Park’s bond authorization be used for?
The park bond authorization can only be used for the acquisition, design, and construction of parks and recreational facilities, which generally can include greenbelts, open spaces, and native habitats; certain sidewalks, trails, paths, boardwalks, and fitness trail equipment; certain pedestrian bridges and underpasses; outdoor ball fields, parks, amenity lakes and associated water features (subject to certain restrictions); certain amenity/recreational centers, outdoor tennis courts, and outdoor basketball courts; landscaping and parking related to the above items; and certain fencing.
Why is it necessary to do these projects?
The District was created in 2006 and initially contained 309 acres. Between 2006 and the present, the district has continued to annex land into its boundaries, and now contains approximately 378 acres. As the District has grown, the infrastructure has been expanded to meet the needs of the residents.
The District intends to issue bonds only as necessary over the next 10 years pursuant to the Bond Election Report in order to proactively, and if necessary, implement facilities. This will enable the District to purchase, construct, acquire, own, maintain, operate, repair, improve, extend, and pay for the water, sanitary sewer, and drainage facilities, as well as parks and recreational facilities to serve the District.
Can’t the District just fund projects without issuing bonds?
No. The majority of the bonding authority the District is requesting would be used for future growth. The proposed bonds would reimburse developers for constructing essential infrastructure—such as water, sewer, drainage, and roadways—in new subdivisions. Developers fund these improvements upfront; once homes are built and added to the tax rolls, generating new property tax revenue, the District issues bonds to repay them. This approach allows new growth to help fund its own infrastructure, distributing costs across both current and future residents. If the authorization is not approved, new subdivision development would likely stall or be significantly delayed, as developers depend on bond reimbursement to make these projects financially viable. The District would remain responsible for servicing existing bond debt from prior projects, and with limited new taxable value from stalled growth, the repayment burden would fall primarily on current taxpayers. As an in-city MUD tied to Texas City, the District does not collect water or sewer fees (Texas City does this), so the only other option available to the District would be to increase the operations and maintenance (O&M) tax rate in an effort to accumulate the needed funds, but state law limits significant O&M tax increases without voter approval. Utilizing bonds enables sustainable, self-supporting growth; without approval, development slows, and existing residents bear a greater share of the cost for past infrastructure investments.
How are my taxes determined?
The District levies a total tax rate each year that has two components:
The debt service tax rate, the proceeds of which can only be used to make payments on the District’s outstanding bonds; and
The operations and maintenance tax rate (often referred to as O&M), the proceeds of which are deposited to the District’s General Fund and used to pay operating and maintenance expenses of the District.
These two components of the tax rate have changed over the years as the District’s debt service and operating expenses have changed.
How does the District manage taxpayer dollars?
| TAXES | |||||
|---|---|---|---|---|---|
| Year | Debt Service | Maintenance | Total Tax Rate | Exemptions | Total Tax Rate |
| 2018 | $0.67 | $0.33 | $1.00 | None | None |
| 2019 | $0.62 | $0.37 | $0.98 | None | None |
| 2020 | 2020 | $0.69 | $0.28 | $10,000 | Over 65/Disabled |
| 2021 | $0.60 | $0.35 | $0.95 | $10,000 | Over 65/Disabled |
| 2022 | $0.77 | $0.17 | $0.94 | $10,000 | Over 65/Disabled |
| 2023 | $0.76 | $0.16 | $0.92 | $10,000 | Over 65/Disabled |
| 2024 | $0.68 | $0.22 | $0.90 | $10,000 | Over 65/Disabled |
| 2025 | $0.70 | $0.18 | $0.88 | $10,000 | Over 65/Disabled |
At this time, with all the information on hand, given the plan outlined in the Bond Election Report, the Board of Directors for the District does not anticipate an increase to the total District tax rate as a result of bond issuance for water, sewer, & drainage, or park & recreational projects.
I have more questions…
Good! The goal is for the residents to have all the information at their disposal when voting approaches. Additional questions can be fielded through the Contact Us form on the District’s website.