Austin Water Boil Water Notice Rescinded

Austin Water, along with Shady Hollow MUD, have lifted the boil water notice for all customers. You no longer need to boil water used for drinking, cooking, and making ice. Water quality testing submitted to the state has confirmed that tap water meets all regulatory standards and is safe for consumption. For more Information, visit AustinTexas.gov/Alerts

El Departamento de Agua de Austin, y Shady Hollow MUD, ha cancelado el aviso de hervir el agua para todos sus clientes. Ya no tienen que hervir el agua para tomar, cocinar y hacer hielo. Las pruebas de calidad del agua enviadas al estado confirmaron que el agua del grifo cumple con todos los estándares reguladores y es segura para consumir. Para más información visite, AustinTexas.gov/Alerts

Austin Water Boil Water Notice Rescinded2022-02-15T09:59:07-06:00

Incorrect Date on Water Bill

Customers in your October water bill from Shady Hollow MUD the penalty date is incorrect, the correct date is 11-2-2021. We apologize for the confusion and billing errors for this month’s billing cycle.

If you have questions please call 512-280-6622

Incorrect Date on Water Bill2022-03-03T12:31:47-06:00

Billing Error

Customers if you received an e-bill for shmud6 , please disregard bill with a late fee these were in error the corrected bill has been sent.
If you have questions please call 512-280-6622.

Billing Error2022-03-03T12:32:17-06:00

Winter Averaging

Shady Hollow MUD is considering changing the way customers are charged for their wastewater services from a flat rate method to a winter averaging method. No changes are planned for the immediate future, but the MUD will be collecting data this winter to use in deciding whether a change in the current billing method would benefit the MUD’s customers.

Currently the MUD’s customers are charged flat monthly rates for wastewater: $82.41 for customers in the District and $94.77 for customers outside the District. These rates are constant from month to month and are the same for every customer in the same rate class. Shady Hollow MUD has billed this way since it was created in 1980.

While Shady Hollow MUD is not the only utility to use this flat rate method, most utilities determine charges for wastewater service using a method commonly referred to as winter averaging. In this method, the average water use during the winter months is used to determine wastewater charges for the upcoming year. Usually, December, January and February are used because outdoor water use is minimal during those months so the water used gives the best estimate of how much is actually entering the sewer. It is thought that this billing is fairer to small households and encourages water conservation.

After the water use data from this winter is available, the MUD’s rate consultant will be asked to develop rates that will generate the revenue needed to provide wastewater service. The MUD Board will then consider making changes in the current method. This will likely happen in May – June of 2022.

Citizens are welcome to submit any comments or concerns regarding this on the MUD’s website at shmud.org/contact.

Winter Averaging2023-05-08T11:28:51-05:00

Rate Information

What has transpired for the past 8 years with the water and wastewater service in Shady Hollow Municipal Utility District (SHMUD)?

A Municipal Utility District (MUD) is a political subdivision of the State of Texas authorized by the Texas Commission of Environmental Quality (TCEQ) to provide water, sewage, drainage, and other services within the MUD boundaries.

Shady Hollow MUD is made up of in-district customers and out-of-district customers. In-district customers pay taxes, vote, and can hold office. Out-of- district customers do not pay taxes. To offset not paying taxes, the MUD is authorized to charge higher rates for out-of-district customers. The increased rates are about the same as the average in-district homeowner’s taxes.

In 2013, the City of Austin (COA) and SHMUD signed a Strategic Partnership Agreement (SPA) that authorized annexation of Shady Hollow MUD and the surrounding areas in December 2020. Pursuant to the SPA, the water and wastewater system was transferred to the COA in April 2018, at which time the COA began billing customers for those services. As a result of the pending full annexation in December 2020, SHMUD decided to spend down the reserves which had been accumulated since the MUD was created in December 1980. These reserves, upon annexation, would have been transferred to the COA.

In 2017, SHMUD sued the COA due to excessive wholesale water rates. The settlement included a one-time payment of $850,000 (which was returned to customers in the form of monthly bill credits) and required the COA, upon assumption of the District’s water and wastewater system in April 2018, to maintain the water and wastewater rates charged by SHMUD. The water rates remained the same from 2015- April 2021.

In 2019, the Shady Hollow HOA was successful in passing SB 1468, which effectively prevented full annexation of SHMUD by the COA. SHMUD then negotiated with the COA for the return of its water and wastewater system. The new wholesale water contract with the COA included increased wholesale water rates charged to SHMUD.

I hope this is helpful to understand the increased water bills.

Rate Information2021-06-18T07:05:57-05:00

Meter Readings and Billing

Shady Hollow MUD will be reading water meters May 3rd, 2021 and May 4th, 2021, the billing will go out as e-bills and paper bills on May 7th, 2021.

Online payment through the Payclix account will be permissible after you receive your first bill. You can complete the process as described on http://www.shmud.org/water/.

Shady Hollow MUD does not have a local office so bills will need to be mailed or paid online. Payments will not be accepted at the Shady Hollow HOA drop box or office.

Below is the Water and Sewer Application for download and/or print.

Meter Readings and Billing2021-09-20T17:25:38-05:00

Billing & Account Inquiries

Shady Hollow residents welcome back to the Municipal Utility District (MUD). There have been questions about billing and setting up accounts.

Shady Hollow MUD received your billing and contact information from the City of Austin during the transfer so you will not need to setup a new account. If you were a previous MUD customer, you will be issued your previous account number. If you moved into Shady Hollow after April 2018, a new account number will be issued.

Online payment through the Payclix account will be permissible after you receive your first bill. You can complete the process as described on http://www.shmud.org/water/.

Shady Hollow MUD does not have a local office so bills will need to be mailed or paid online. Payments will not be accepted at the Shady Hollow HOA drop box or office.

If any more questions, utilize the contact form at http://www.shmud.org/contact/. You can also reach out to us at

Billing & Account Inquiries2024-01-15T22:21:02-06:00

Operation & Maintenance Tax Election- May 1st, 2021

On May 1st, 2021, the Shady Hollow Municipal Utility District (SHMUD) will hold an election to allow for an increase of the cap on the Operation & Maintenance Tax (O&M).

An increase in the tax cap from 5 cents to 11 cents does not mean SHMUD will adopt a tax rate of 11 cents; it is simply the maximum tax rate that the Board could adopt, if needed. The Board of SHMUD reviews and adopts its tax rate each year in September after adopting a budget sufficient to meet the needs of SHMUD. The Board anticipates that if the tax rate does increase to sufficiently cover the District’s current O&M costs, as its coffers are replenished, the tax may be be lowered in later years.

As you are aware, the proposed annexation of Shady Hollow by the City of Austin was prevented. As a result, SHMUD has returned to providing water and wastewater service to the residents of SHMUD as of March 27, 2021.

SHMUD spent down its cash reserves so that the City of Austin would not receive a windfall from the capture of the accumulated reserves upon annexation. The SHMUD is presently cash poor because of this defensive action. SHMUD must now rebuild these cash reserves for repairs, emergencies and the everyday operation of its water and wastewater facilities.
Repairs to the water and wastewater system occur regularly yet unexpectedly. A break in a line to an individual home can cost more than $4,000 per incident. A lift station failure can cost between $25,000 and $100,000 and SHMUD operates 5 of these lift stations to move wastewater through the system.

Election Day is Saturday, May 1st. The polls will be open from 7 a.m. until 7 p.m. Early voting begins Monday, April 19th and ends on Tuesday, April 27th. Travis County’s Election Web Page provides times and locations for early voting. Travis County has authorized countywide voting on Election Day, which means that voters can vote at any election location provided by Travis County on Election Day. A link to Travis County’s Election Web Page can be found on the SHMUD website.

Operation & Maintenance Tax Election- May 1st, 20212021-05-03T10:57:19-05:00
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