State law authorizes Municipal Utility Districts (MUDs) to enter into contracts to provide fire protection services for property located within the MUD. Pursuant to a written fire plan approved by the Texas Commission on Environmental Quality and the voters of Fort Bend County MUD No. 146 (FBCMUD146), FBCMUD 146 has entered into a Fire Protection Agreement with the City of Richmond (the “City”) for the City to provide fire protection services to property located within FBCMUD146. FBCMUD146 generally receives fire protection services from the fire station on Mason Road approximately one mile south of the District. Under the Fire Protection Agreement, FBCMUD 146 collects from its customers and then pays to the City a mandatory monthly fee for fire protection services based upon the number of residential homes and apartment units and the square footage of non-residential property located within the District.
The terms of the Fire Protection Agreement provide for an annual inflation adjustment of the monthly fire protection fee, which is calculated based upon the change in the published Consumer Price Index for All Urban Consumers, known as the CPI-U, and occurs each year on October 1 st.
Based on this calculation, beginning on October 1, 2016, the monthly fire protection fee paid to the City by the District will be increased from $11.22/month per connection to $11.35/month per connection.
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