Municipal Utility District No. 144, which serves two subdivisions on the south side of Rosenberg, is taking on additional debt.

But residents don’t need to worry about their MUD tax rate increasing for at least another year.

At the last regular Rosenberg City Council meeting, council members granted consent to the MUD for the sale and issuance of $4,827,000 in bonds.

MUD representative John Eichelberger explained that after this meeting, the MUD will come back one last time to sell its final bond issue.

“What we’re asking for are two bond anticipation notes to be approved,” Eichelberger told council. “Really, you’re looking at a little less than $5 million.

“I know that amount gave you a little bit of heartburn. This is the last time we’ll be asking for a bond anticipation approval.”

Eichelberger said the district’s proposed use of the bond proceeds is for water, sewer, drainage, parks and one section of utilities.

The initial price tag on the bond issue was $8,220,000, but the MUD doesn’t need that much money to be approved.

Council member Tim Anders expressed his discomfort when it came to approving such a hefty bond.

“It’s always hard to swallow a whole lot of debt, but I understand on these MUDs,” Mayor Bill Benton said.

Eichelberger explained that these are voter-authorized bonds. “We’re reimbursing things that we’re contractually obligated to do. It’s an in-city district. This is our last bond issue. There’s no reason to raise taxes off this,” he assured council.

The neighborhood straddles Reading Road between U.S. 59 and Benton Road.

Since the MUD’s creation in 2003, nine tax bond sales have been approved by council.

Council member Isaac Davila made a motion to issue the bond sale.

The motion was seconded by council member Richard Olson and passed unanimously.

“We hope one day to see no continued MUD debts, but we understand that’s the process,” Benton said.

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