History of MUD 501

Harris County Municipal Utility District No. 501 was created effective August 15, 2007, by an Order of the Texas Commission on Environmental Quality. Pursuant to the provisions of Chapters 49 and 54 of the Texas Water Code, Harris County MUD 501 is empowered to purchase, operate and maintain all facilities, plants and improvements necessary to provide water, sanitary sewer service, drainage, solid waste collection and disposal, including recycling, and to construct parks, recreational facilities and roads for the residents of Harris County MUD 501. Harris County MUD 501 is located within the extraterritorial jurisdiction of the City of Houston, Texas. The Board of Directors held its first meeting on August 24, 2007.

History of MUD 500 – The Master District

Harris County Municipal Utility District No. 500 (Harris County MUD 500) was created effective June 25, 2007, by an Order of the Texas Commission on Environmental Quality. Pursuant to the provisions of Chapters 49 and 54 of the Texas Water Code, Harris County MUD 500 is empowered to purchase, operate and maintain all facilities, plants and improvements necessary to provide water, sanitary sewer service, drainage, solid waste collection and disposal, including recycling, and to construct roads, parks and recreational facilities for the residents of Harris County MUD 500. Harris County MUD 500 is located within the extraterritorial jurisdiction of the City of Houston, Texas. The Board of Directors held its first meeting on August 27, 2007.

Relationship of Harris County MUD 501 to the Master District

Harris County MUD 501 is one of four municipal utility districts (namely Harris County Municipal Utility District Nos. 500, 501, 502, and 503) collectively comprising approximately 2,112 acres referred to as the Master District’s Service Area. Each of these municipal utility districts have executed a contract with the Master District as participants (the Master District Contract) and each has obtained the approval of the Master District Contract from its voters at an election held within its boundaries. The Master District Contract provides that all four municipal utility districts pay a pro rata share of the debt service on the Master District’s Contract Revenue Bonds, based upon each district’s pro rata share of assessed value for tax purposes, calculated annually.

Harris County Municipal Utility District No. 500 (in its capacity as the Master District) is the provider of regional water, sanitary sewer, storm sewer, park, road and other facilities necessary to serve the Service Area and has contracted with each of the four municipal utility districts, including Harris County MUD 501, to construct and provide service from these regional facilities. The four municipal utility districts are responsible for providing the internal water distribution, wastewater collection and storm drainage utilities within their boundaries.