HCMUD 370: 2023 Ad Valorem Tax Rate

November 16, 2023

HCMUD 370 provides services for residents of LOEN, VOL and Nanaksar Colony for residential water, sewer, trash & recycling services. In addition, it maintains the communities’ storm sewers, fire hydrants, detention pond bulkheads and maintenance of Turkey Creek.

Sources of Funding:

  • Residential Water – Billed monthly. Top line on your monthly utility bill.

  • Trash/Recycling and Sewer Services. Second Line on your bill

  • Operating & Maintenance Costs (O&M) – Primarily annual Ad Valorem Tax

  • Debt/Bond Repayment – Annual Ad Valorem Tax

  • Build/Maintain strong Capital/Operating Reserve - Annual Ad Valorem Tax

HCMUD 370 has approved the 2023 tax rate of $.30 per hundred dollars of assessed value. This compares very favorably with other districts

HCMUD 370 Historical Tax Rates:

  • Late ‘90’s – Early 2000’s >$.40/$100

  • 2017 – 2021 - $.34/$100

  • 2022 - $.32/$100

  • 2023 - $.30/$100

Primary reasons for reduced tax rates

  • Increased District assessed taxable value driven by recovery of housing values and recent annexation of commercial property on West Little York.

  • Debt Service – Over the past several years during historic low interest rates HCMUD 370 resold its debt/bonds at extremely favorable rates.

  • Capital/Operating Reserve – Built to a very strong level – HCMUD 370 is in a Maintain vs. Build rate. Increased interest rates on Reserve funds are very favorable.

District debt is decreasing as bonds mature while O&M cost increase as the district assets mature requiring repair/replacement. To accommodate this, the Ad Valorem rate is being reallocated from Debt Service to O&M.

HCMUD 370 analyzes its financial position on an ongoing basis and takes into consideration its current and anticipated/projected expenditures when establishing its annual Ad Valorem rate. This may result in tax rate increasing, decreasing or remaining constant.

HCMUD 370 Tax Information

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