The Texas Commission on Environmental Quality (the TCEQ) has stated that there is no authority for the MUD to declare itself inactive. It is active and responsible for its actions.
The prerequisite short history: MUD #1 was formed 20 + years ago to administrate bonds that were used to put in some of the infrastructure in the Fairview area of Corinth. The MUD was allowed to levy a property tax to pay for those bonds, and the operations and maintenance of the MUD. Since all the MUD did was to make two payments a year on the bonds, that (the Operations and Maintenance or O&M) should have been pretty low.
The bonds were paid off in September 2010; thus, the reason for the MUD to exist ended. We felt the MUD should have ended then too. When it had not ended by November, and we (the Council for the the City of Corinth) could not get the MUD board to present a plan with a time line to end the MUD, we did it for them with an ordinance, #10-11-23-46. Then the MUD board circulated a petition to call for an election so that people could vote on the ordinance.
Then on March 25, 2011 the MUD board held a meeting where they declared themselves inactive, and resigned en mass from the board. At the time the city and one or more citizens had open record requests pending to obtain documents concerning contracts, spending and budgetary matters. One resident of the district had an appointment the following week to visit the district's accountant's office to review the spending records. That evening (the 25th) the MUD board collected their documents and carried them to Austin to the TCEQ office by Monday March 28th, effectively delaying or even stymieing the existing open records requests, particularly of the resident who had the appointment to review the financial records.
On April 14, 2011 the TCEQ sent a letter to the board members of the MUD (copying the city among others) stating that the TCEQ is not aware of any authority for the MUD board to declare itself inactive. It goes further stating that the district is still active and responsible for all district matters.
There is an election May 14, 2011 (Early voting starts May 2, 2011). In addition to the two council positions, Place 2 and Place 5 (I am running for re-election in Place 5), and the Mayor's seat, there is a vote on the Ordinance which if approved by the voters dissolves the MUD permanently. Be sure and make your voice heard!
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