Information and Questions you may have about Municipal Development Districts (M.D.D.)
1. What is a Municipal Development District (M.D.D.)? A Municipal Development District is a special purpose district created for the purpose of generating economic growth and development oppertunities within the boundaries of the district, ie the city limits of Bertam.
2. Who will pay for the M.D.D.? Anyone making a purchase of taxable items within the City limits of Bertram, will pay the sales tax including purchases made by individuals who live outside the City limits of Bertram.
3. Will the tax increase my utility bill? The sales tax is not collected on electric, natural gas, or water. Sales tax is collected on the garbage portion of the City's bill.
4. Will the sales tax rate in Bertram be higher than other cities, because of the tax levied by the M.D.D.?
No. The sales tax rate in surrounding cities are already at 8.25% (including the 6.25% State sales tax rate) no matter where you shop or dine.
5. What is the proceeds from the sales tax being used for? State law authorizes expenditures of M.D.D. activities including certain infrastructure improvements projects, certain recreational or community facilities, projects related to business enterprises that creates or retains primary jobs, projects that promote new or expanded business development, or convention center facilities and related improvements. In addition proceeds may be used to hire necessary staff.
6. Who over sees the M.D.D.? The district is governed by a board of at least four directors. The Board will be appointed by the Bertram City Council. In addition the City Councils intends to adopt policies and guidelines that will govern the actions of the M.D.D. board, including requiring that all actions of the board be subject to review b the City Council.
7. Who determines how the funds are spent? The M.D.D. Board must establish a budget for each year. Prior to adopting the budget, the Board must hold a public hearing on the proposed budget. (Bertram M.D.D. public hearing for the budget is held during the regular Council meetings and posted on City Council Agendas.) The City Council requires that the budget once adopted, must be approved or rejected by the Bertram City Council.
8. How are M.D.D. funds kept separate from other City funds? Sales tax collected for the M.D.D. are reported separately by the State Comptroller and the information is available to the public. State law requires that all M.D.D. funds be deposited in a special account that is separate from all city accounts and funds.
9. Can the M.D.D. sales tax be repealed? The sales tax can be repealed if a majority of the registered voters in the district vote at an election to repeal the sales tax use.
10. How do we know the funds were spent for their budgeted purposes? State law requires the district have an annual audit by an independent auditor. The audit and other District records are open to public inspection during normal business hours.
11. Can a M.D.D. levy a property tax? No. State law prohibits an M.D.D. from levying a property tax.
12. How can I get more information about the M.D.D.? The legislation governing M.D.D.'s can be found in Chapter 377 of the Local Government Code. Chapter 377 is available on line at