THE WOODLANDS, TX – After months of review, The Woodlands MUD 1 and Montgomery County MUD 6 Boards have announced a proposal to consolidate the two MUDs into a new utility district called The Woodlands Municipal District 3 (MUD 3).
In accordance with the requirements of the Texas Water Code, the two MUDs agreed to submit the proposed consolidation to the ballot on November 2, 2021 for voters in each MUD district to decide. A majority of those voting in each MUD is needed for consolidation to become effective, possibly in early 2022.
The proposed consolidation reflects that both MUDs have no debt, strong balance sheets and no known deferred maintenance. Consolidation will reduce audit, legal and other administrative costs. It will also reduce the number of MUD Directors and Trustees who oversee the Woodlands Water Agency (WWA), by 5 and 1 respectively.
The proposed consolidation builds on the successful precedent of consolidating the old MUD 2 and MUD 40 to form MUD 1 in 2016. It could also encourage future voluntary and orderly consolidations, as The Woodlands MUDs pay down their bond debt and reduce the tax burden on residents.