History

Texas State law allows for cities to annex areas adjacent to their existing boundaries. State law does not allow for any residents within the area to be annexed to stop the process of annexation. Anderson Mill Municipal Utility District was created in 1973, this creation had to be approved by the City of Austin and the original intent of the developers of Anderson Mill and the City was that Anderson Mill would be annexed by the City of Austin at some point. Over the years, annexation has come up as possible and more than once annexation was considered imminent. For example, in 1983, annexation was thought to be so sure that some City of Austin department heads were visiting the district in preparation. Three public meetings were held. One of the meetings in the Westwood High School cafeteria had representatives of the city, the M.U.D., State Representative John Sharp, and about 300 angry residents. Finally the City decided against annexation because it was felt that they could not provide municipal services adequately. The issue came up again in 1987 and a couple of times in the nineties.

In 1995, the Texas State Legislature passed Senate Bill 1395, which allowed cities and municipal utility districts to enter into Strategic Partnership Agreements (SPA). These Strategic Partnership Agreements would formalize negotiations between the city and a M.U.D. that would set up a plan for the annexation of the M.U.D. by the city. This plan may include the limited annexation of portions of the MUD, a delay of full annexation of the MUD (up to 10 years), and would allow the conversion of the MUD to a limited district that would continue some of the functions of the MUD after annexation.

In 1996, the City of Austin Council and Anderson Mill Municipal Utility District Board of Directors each resolved to negotiate an SPA concerning the annexation of the district. In 1998, the Strategic Partnership Agreement was agreed to and signed by both parties. This document over 60 pages long and has many details but the main points were: full-purpose annexation of the district by the city could not occur before November 30, 2004; upon annexation, a limited district would be formed to own and maintain for the residents of the district the parks, swimming pools and all the facilities related to this maintenance; trash collection would continue to be a service provided by the limited district; enforcement of deed restrictions would continue to be a function of the limited district; the City of Austin would full purpose annex the district, and within the district provide all city services, including water, wastewater, fire protection, police protection, emergency medical services, street maintenance, library services, and all other services currently provide by the city, excluding those provided by the limited district; the City of Austin would levy ad valorum property taxes on all taxable property within the district at the same rate as the rest of the city; the City of Austin would charge for all services they provide at the same rate as the rest of the city; the residents of Anderson Mill limited district would ratify the creation of the limited district and authorize the limited district's authority to levy ad valorum property taxes by election according to the current election laws of the State of Texas; and Anderson Mill Municipal Utility District would be allowed to set aside funds that would be passed on to the limited district at the time of annexation. These funds would not be part of the MUD assets assumed by the City of Austin upon annexation.

The SPA has many details and the points mentioned above are not presented to represent the entire agreement, but instead, reflect the most frequently asked questions the district receives from residents. To fully understand the SPA, please take the time to read it at the links provided on this page - Strategic Partnership Agreement (1998).

In 2003, representatives of Anderson Mill M.U.D. and the City of Austin negotiated an Amendment to the Strategic Partnership, which was approved and signed in January of 2004. Again there are a number of details in this amendment but the main points are: the SPA was extended, meaning the City of Austin could not full purpose annex the Anderson Mill M.U.D. before December 31, 2008; the City of Austin could immediately full purpose annex some commercial property within the M.U.D., this was primarily located along Hwy. 183 and FM 620; provide for the City of Austin to confer with representatives of the district and develop a detailed service plan and present this plan nine months prior to actual annexation; within sixty (60) days of presenting the service plan the District would convey all water and wastewater facilities to the City of Austin, and after a thirty (30) day transition period the City would assume all responsibilities for providing water and wastewater service and operation of those facilities. The full text with all the details of this Amendment to the SPA is available on this web site.

What is happening now!

August of 2007, the City of Austin Planning Department sent a letter to all property owners in Anderson Mill Municipal Utility District which offers a general outline of the expected schedule of the annexation of Anderson Mill M.U.D. by the City of Austin. In early September, the Board of Directors of Anderson Mill M.U.D. held a public meeting to outline the history and options available, as well as to answer questions about the Limited District. At that meeting, the MUD staff presented a document showing the costs of property taxes, utility rates and assorted fees to Anderson Mill residents presently as a municipal utility district and comparisons to these costs after annexation by the City, both with the Limited District and as if a Limited District was not formed. This Cost Comparison is available on this web site. The M.U.D. Board of Directors and staff is in contact with the City of Austin and will continue to strive for the best outcome for the residents of the district.

December 19, 2007 - A postcard was sent out by the City of Austin to all residents of the Anderson Mill MUD with an update on the Strategic Partnership Agreement (SPA). The SPA calls for the city to prepare an annexation service plan, the card announces a Draft Service Plan has been prepared and is ready for comment. Comments can be submitted to the City by February 15, 2008, the comments can be made the city staff (see link). The Update also states that current plans are for the City Council to set a future date for the annexation of Anderson Mill M.U.D. on January 10, 2008. Following this council action, city staff will contact the Anderson Mill MUD and neighborhood association to schedule an informational meeting about annexation and the transition to city services.

January 10, 2008 Morning

At its meeting on Jan. 10, 2008, the Austin City Council took the following action as part of its consent agenda:

Approved a resolution setting Dec. 31, 2008, as the date for full purpose annexation of properties within the boundaries of Anderson Mill Municipal Utility District in accordance with the terms of the strategic partnership agreement between the City of Austin and the Anderson Mill MUD. Properties to be annexed include approximately 1,091 acres in Williamson and Travis counties generally bounded by RM 620 to the west, U.S. 183 to the north, and Anderson Mill Road to the south.

January 10, 2008 - Anderson Mill Board of Directors' Meeting at 7:30 PM

The Anderson Mill M.U.D. Board of Directors has called a Special Public Hearing for Tuesday January 29, 2008 at 7:00 PM on Annexation. City of Austin Department heads and other City staff have been invited to make statements regarding their services and/or answer questions from Board directors, and district residents

As information develops, the MUD will keep residents apprised of developments through the monthly Board Meetings, on the Community Notice Sign at Lake Creek and Schoolhouse Lane, and on this web page.

January 29, 2008 - Public Hearing with City of Austin Staff to Answer Questions Regarding Annexation

The questions asked by Anderson Mill citizens and the answer given by the City of Austin Staff is given in detail on the COA Service Plan Response Page.

February 27, 2008 - A modified Draft Service Plan is sent to the Anderson Mill M.U.D. Board of Directors for review and they have asked for and comments or concerns from the Board by March 7, 2008. The Board has called a Special Meeting for the discussion of the revised draft of the Service Plan to be held Wednesday March 5, 2008 at 7:30 PM at the MUD Administrative office building. This latest version of The Draft Annexation Service Plan dated 2/21/08 can be view at this link.

March 25, 2008 - The Anderson Mill M.U.D. Board accepts the time of transference of water and wastewater plant operation and service effective June 27, 2008 at 12:01 AM to the City of Austin. At that time the City of Austin will assume responsibility for all aspects of water and wastewater service to the residents of Anderson Mill. Letters detailing the timing of the changeover of billing from Anderson Mill M.U.D. and the City of Austin will be sent out to all residents before that date.

City of Austin Web Site Annexation Information Page