Relating to the creation of the Fort Bend County Municipal Utility District No. 263; granting a limited power of eminent domain; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes.

Contracts

• Real Estate Sales Contracts: You must immediately append the statutory "Notice to Purchaser" (Texas Water Code § 49.452) to all sales contracts within the District. Failure to do so allows buyers to terminate contracts and sue for damages.
• Reimbursement Agreements: Developers must draft and execute agreements with the District to define how infrastructure costs will be repaid via future bond proceeds.
• Construction Contracts: Infrastructure work intended for MUD reimbursement must now adhere to public bidding statutes (Texas Water Code Ch. 49) and potentially prevailing wage requirements mandated by the consenting municipality.

Hiring/Training

• Board Appointments: You must identify and vet five (5) qualified individuals to serve as temporary directors and file a petition with the TCEQ for their appointment.
• Professional Services: Retain specialized legal counsel and a bond engineer immediately to navigate the TCEQ creation audit and municipal consent negotiation.
• Sales Staff Training: Sales teams must be trained to explain the new tax overlay and MUD structure to potential buyers to ensure transparency and compliance.

Reporting & Record-Keeping

• TCEQ Filings: File the "Petition for Appointment of Temporary Directors" immediately.
• Election Orders: The Board must adopt and record orders calling for a confirmation election (to approve the District, directors, and bond authorization).
• Meeting Minutes: The District is a public entity; all Board meetings must comply with the Texas Open Meetings Act, requiring posted agendas and recorded minutes.

Fees & Costs

• Election Costs: The developer must front the cost of the confirmation election (approx. $15k-$30k), reimbursable later via bond proceeds.
• Bond Issuance Costs: Budget for legal, engineering, and financial advisory fees associated with future bond applications (usually 2-3% of bond par value).
• New Tax Liability: Prepare for a new ad valorem tax levy (Operations & Maintenance + Debt Service) likely commencing in the 2026 tax year, subject to voter approval.