Oak Ridge North homeowners face a higher no-new-revenue property tax rate for 2026 and significantly more headroom for the city to raise taxes without triggering an election, according to the city's 2026 tax rate notice certified Tuesday, July 28.

The small city bordering The Woodlands along I-45 posted its proposed Fiscal Year 2026-2027 budget and tax rate information on its official website Sunday, August 2, opening a public review period before the city council sets a final rate. Tammy McRae, Montgomery County Tax Assessor-Collector, certified the rate calculations.

What the rates mean

The no-new-revenue rate for 2026 is $0.4292 per $100 of assessed property value, up from $0.4268 last year. That rate would generate the same total tax revenue as the prior year when applied to properties taxed in both years. For a home assessed at $300,000, the difference works out to roughly $7 more per year.

The voter-approval rate jumped to $0.5327 per $100, up from $0.4501 in 2025. Under Texas law, that is the highest rate the city can adopt without holding a public election. The $0.0826 increase gives Oak Ridge North considerably more room to raise revenue compared to last year.

Debt service climbing

The city's total debt service obligation for 2026 is $706,173, up $155,503 from $550,670 in 2025. A $136,433 Tax Increment Reinvestment Zone payment that did not appear in last year's debt schedule drives most of the increase.

The debt breaks down as:

  • Certificates of Obligation, Series 2012: $258,550 (principal $250,000, interest $8,000, fees $550)
  • General Obligation Refunding, Series 2019: $311,190 (principal $260,000, interest $50,640, fees $550)
  • TIRZ payment: $136,433

After subtracting $143,045 in excess collections from last year, the total debt levy to be raised from 2026 property taxes is $563,128.

Current-year budget as baseline

The city's current FY 2025-26 operating budget projects $6,976,733 in total revenues and $6,296,765 in total expenses. Sales and use tax is the largest revenue source at $3,375,000, while property tax revenue accounts for $1,235,635. The police department is the single largest expense at $2,583,554, or 41% of total spending.

Specific revenue and expense totals for the proposed FY 2026-27 budget were not available in the posted documents as of Tuesday, August 4.

How to weigh in

Public hearing dates for the proposed budget and tax rate adoption have not yet been posted. Under Texas law, the city must hold public hearings before adopting a rate above the no-new-revenue rate.

Residents can request the full Tax Rate Calculation Worksheet from McRae's office at 400 N. San Jacinto St., Conroe, TX 77301, by phone at 936-539-7897, or by email at [email protected]. They can also track proposed rates and register for notifications at Texas.gov/PropertyTaxes or the Montgomery County Truth-in-Taxation portal.