1. GOVT 2306, Module 11
Special Districts

2. Special districts are NOT general purpose units of local government.
A special district is a unit of local government created to perform specific functions.
Special districts are NOT general purpose units of local government.
Definition

3. A utility district is a special district that provides utilities, such as water and sewer service, to residents living in unincorporated urban areas. Most utility districts are Municipal Utility Districts (MUDs).
Utility Districts

4. A hospital district is a special district that provides emergency medical services, indigent healthcare, and community health services.
Hospital Districts

5. Community/junior college districts enroll more students in higher education than do the state's public universities.
College Districts

6. Metro Metro is an example of a transit authority.
Metro is governed by a nine-member board. Five members are appointed by the mayor of Houston, two members are chosen by county commissioners court, and two by the mayors of other cities in the service area.
Metro

7. Other districts Mosquito control districts
Coastal subsidence districts
Soil and water conservation districts
River authorities
Fire protection districts
Port authorities
Sports authorities
Irrigation districts
Other districts

8. Reasons for Special Districts

9. Special districts allow other units of government to overcome state property tax limits.
Overcome Tax Limits

10. Sometimes special districts are an advantageous solution to an area or regional problem.
Problem solving

11. Utility districts enable developers to build subdivisions in rural areas, outside of the coverage of municipal water and sewer services. The utility district borrows money to build water and sewer systems for the development. Homeowners pay off the debt over time through service charges and property taxes.
Assist Developers

12. Tax Rates Compared Taxing Entity Tax Rate per $100 Valuation
City of Houston $
Harris Co. MUD 71
$1.10
Harris Co. MUD 381
$0.78
Harris Co. MUD 82
$0.83
Harris Co. MUD 399
$1.34
Harris Co. MUD 280
$0.705
NE Harris Co. MUD 001
$1.48
Tax Rates Compared

13. When cities annex, they typically annex entire utility districts.
Annexation

14. Creation, Organization, and Operation

15. Hospital districts require the adoption of a state constitutional amendment.
The legislature, the Texas Commission on Environmental Quality (TCEQ), or a county commissioners court can establish utility districts.
The Texas legislature authorizes community/junior college districts, transit authorities, port authorities, and sports authorities.
Creation

16. Voters must usually approve the creation of a special district
Voters must usually approve the creation of a special district. They also approve sale of bonds and adopt a property tax to pay it off.
Voter approval

17. A board of directors, usually consisting of five members, is the governing body for most special districts. The board may be either appointed or elected.
Governing body

18. HCC Elections Remember Dave Wilson?
HCC Elections

19. Funding

20. Community colleges are funded by local property taxes, state funding, and tuition and fees. Community colleges may also receive federal grant money.
Community Colleges

21. Municipal utility districts assess property taxes and collect user chargers for water, sewer, and, perhaps, garbage pickup.
MUDs

22. Transit authorities levy sales taxes, collect fares, and apply for federal grant money.

23. The funding for sports authorities may come from sales taxes, hotel/motel occupancy taxes, property taxes, or taxes on rental cars.
Sports Authorities

24. Advantages
Disadvantages
They provide services that might not otherwise be available.
They often operate with little state supervision and even less public participation.
They are often inefficient.
Multiplicity of special districts complicates urban government.
Evaluation

25. Which of the following special districts is funded by a sales tax?
MUD
Transit authority
Hospital district
Port authority
The answer is B.
Quiz

26. What You Have Learned How are special districts created?
How are they organized?
How are they operated?
How are they funded?
What are their advantages and disadvantages?
What You Have Learned