The Board of Directors (the "Board") of Harris County Utility District No. 16 (the "District") has called a bond authorization election for Tuesday, November 4, 2025. There will be two propositions to be voted on. Proposition A will authorize the District to issue up to $48,500,000 in bonds for water, sewer, and drainage ("WS&D") facilities, and Proposition B will authorize the District to issue up to $5,000,000 in bonds for recreational ("Park") facilities. The Board of Directors of the District has prepared this FAQ to educate District voters about the upcoming election. This page may be updated prior to the election to address additional questions and provide supplemental information.
What is the District?
The District is the local governmental entity responsible for providing water, sanitary sewer, and stormwater detention and drainage services to over 4,200 residents and businesses across 644 acres in the following neighborhoods:
- Imperial Plaza
- American Plaza
- Pine Trace
- Imperial Green
- Meadowview Farms
- Remington Creek Ranch
The District owns, operates, and maintains a system of WS&D facilities, including 15 miles of water lines, fire hydrants, 2,055 water meters, 14 miles of sanitary sewer lines, five (5) detention ponds, a drainage channel, four (4) sanitary sewer lift stations, a water plant and a wastewater treatment plant.
What are the items to be voted on in the election?
The language below will be on the ballot for voters of the District when they go to the polls or vote by mail in the upcoming November 4, 2025, Bond and Park Bond Election, asking voters to vote FOR or AGAINST the following propositions:
PROPOSITION A
THIS IS A TAX INCREASE*
The issuance of $48,500,000 bonds for water, sanitary sewer, and drainage and storm sewer systems and the levy of taxes, without limit as to rate or amount, sufficient to pay the principal of and interest on the bondsPROPOSITION B
THIS IS A TAX INCREASE*
The issuance of $5,000,000 bonds for recreational facilities and the levy of taxes, without limit as to rate or amount, sufficient to pay the principal of and interest on the bonds
* Texas law requires that bond propositions use certain words in order to make them legally effective. The Texas Legislature just passed a law requiring each bond proposition to include language stating “THIS IS A TAX INCREASE”. This required statement does not necessarily mean there will be any tax increases if the bond proposition passes, since the bonds will be issued in increments over 20-30 years.
What is a bond authorization?
A “bond authorization” is NOT the same thing as a bond issuance. In other words, voting "for" the Propositions does not mean the District will issue $48,500,000 in bonds as soon as the proposition is approved. Rather, approval of the propositions simply means that the District has the authority to issue this amount in increments over a span of 20-30 years (or longer) to borrow money to fund district projects, if and when necessary. 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 authorization may be for a large amount, bonds may only be sold once necessary projects are ready to begin.
The District currently has $1,235,000 in remaining voted bond authority from its previous bond authorization election. In November 2002, voters of the District authorized a total of $33,500,000 for water, sanitary sewer and drainage facilities. Between 2006 to 2025, the District has issued a total of eight (8) separate bond issues from such election authorization to fund various water, sanitary sewer and drainage improvements. The issuance of bonds in increments has allowed the District to decrease its overall tax rate over the years.
What will the WS&D bond authorization be used for?
The Bond Election Report prepared by the District engineer identifies the capital improvement projects that will be necessary over the next 20-30 years to rehabilitate, replace, and expand the aging WS&D facilities owned and operated by the District. WS&D bonds are needed to maintain the function of the District infrastructure, provide safe drinking water, clean and treat sewage, and ensure continued compliance with regulatory requirements. Some examples of anticipated projects include replacement of water lines, rehabilitation and replacement of sanitary sewers and manholes, replacement of pressure tanks, construction of a second water plant, and improvements to drainage and detention systems. The District engineer developed a Capital Improvement Plan (CIP) for the District with the primary goal of identifying needed improvements and the funding required to complete necessary projects over the next 20-30 years. As a proactive measure, the Bond Election Report estimates the projected costs for these projects (and required issuance costs), based on information available today.
What are the immediate goals regarding parks in the District?
The immediate goal is to build upon the green spaces within the District and construct a park in Imperial Green (which will be available to all District residents). A conceptual park plan has been prepared by the District's landscape architect that will build upon existing recreation facilities and develop new recreational facilities in various locations in the District.
What will the Park Bond authorization be used for?
The funds will be used for the design and construction of park and recreation facilities within the district including but not limited to those outlined in the Parks Masterplan adopted in 2023. The park bond authorization can only be used for the acquisition, design, and construction of recreational facilities, such as park equipment, playgrounds, and trails in the District.
Can’t the District just pay for projects without issuing bonds?
The primary alternative to authorizing the bonds is to fund all necessary projects on a "pay as you go" basis. This approach would require large increases in the District’s maintenance tax and/or water and sanitary sewer rates in order to collect the required funds. If the District is forced to raise the necessary money through water bill or maintenance tax increases, it could create significant delays in the completion of large projects, thus subjecting the District’s infrastructure to unnecessary risks.
Much like a home equity loan for a major roof repair, when the District issues bonds it spreads the costs of the necessary projects over many years and avoids large spikes in tax rates and/or water and sanitary sewer rates typically required by a "pay as you go" approach. Moreover, the interest rates for the District on the repayments of its municipal bonds can be substantially lower than the comparable rates for traditional construction loans which might be necessary if bonds cannot be issued. Finally, issuing these bonds on an as-needed basis enables the District to complete necessary projects quickly when the needs arise.
How are my taxes determined?
The District levies a total tax rate each year that has two components:
- Debt Service Tax: these proceeds may only be used to make payments on the District’s outstanding bonds.
- Operations and Maintenance Tax: these proceeds, together with water and sewer revenues of the District are used to fund the day-to-day 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. For details regarding the District’s historical tax rates, click here.
How does the District manage taxpayer dollars?
Through careful supervision of expenses and planning for maintenance, the District has funds on reserve totaling more than one year of operating expenses. Reserve funds earn interest and are available for emergencies. However, these reserves would not be sufficient for large-scale rehabilitations, repairs, or replacements.
I have more questions…
Good! The goal is for the residents to have all the information at their disposal to make an informed decision at the polls. Additional questions can be fielded through the Contact Us form on the District’s website.