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The following is a recap of The Woodlands Township's 2025 Budget Workshops held August 19, 20 and 21, 2024. During these special meetings, the Board reviewed the proposed base budget and examined various budget initiatives identified by staff, directors and community members to ensure alignment with the Township's strategic priorities. A key outcome of the workshops was the setting of the Proposed 2024 Property Tax Rate. |
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VIEW POSTED AGENDAS
Accepted – Certified Tax Rate Report provided by the Montgomery County Tax Assessor
President and CEO Monique Sharp presented the 2024 No-New-Revenue Tax Rate and Voter-Approval Tax Rate report to The Woodlands Township Board of Directors, which was calculated and provided by the Montgomery County Tax Assessor. The report detailed the current tax rate of $0.1714 per $100 of taxable value, the No-New-Revenue Tax Rate of $0.1615 per $100, and the Voter-Approval Rate of $0.1929 per $100.
The tax rate is composed of two components: the Debt Service Rate and the Maintenance and Operations (M&O) Rate. Under the current tax rate of $0.1714, the Debt Service portion is $0.0111, while the M&O portion is $0.1603.
The Board of Directors unanimously accepted the Certified Tax Rates report as provided by the Montgomery County Tax Assessor.
Accepted - 2025 Preliminary Base Budget Report
The Woodlands Township Board of Directors engaged in a thorough review of the Preliminary Base Budget for 2025, led by President and CEO Monique Sharp. Sharp provided an in-depth analysis of the Township’s financial landscape, covering key areas such as revenue sources, personnel and operating expenditures, the Transportation Fund, Visit The Woodlands, capital projects, the debt profile, reserves and fund balances, and the Township's Five-Year Plan.
The proposed base budget, set at the current property tax rate of $0.1714, aims to maintain existing service levels, meet contractual and statutory obligations, accommodate community growth, and address changing economic factors while continuing the capital improvement plan.
Sharp emphasized that The Woodlands Township remains in a position of financial strength, with robust and diverse revenue streams, positive cash flows, and reserve balances that are favorably viewed by credit rating agencies. The Township’s long-term debt management is particularly strong, maintaining an "AA+" bond rating from Standard & Poor’s and an "AA" rating from Moody’s, reflecting low and decreasing debt levels, sound reserves, and the absence of unfunded pension costs.
Revenue discussions highlighted that property tax constitutes 29% of total revenue, while sales and use tax, the largest source, contributes 47%. Sharp presented a conservative forecast for sales and use tax growth at 3% in 2025, noting a 60.5% increase in this tax since 2020, driven primarily by retail trade. Other revenue sources, such as hotel occupancy tax and mixed beverage tax, are also expected to rise in 2025.
The existing property tax exemptions remain in place, including a $50,000 homestead exemption for seniors and disabled individuals and an additional 3% homestead exemption for qualified property owners. Sharp also highlighted that proposed budgeted property tax revenues of $48.3 million in 2025 are equal to property tax collections in 2020 even with significant inflationary pressures and enhancement of services and amenities occurring over the five-year period.
On the expenditure side, the base budget anticipates total expenditures of $171,677,168 for 2025, encompassing parks and recreation, enhanced law enforcement, fire services, transportation, community services, tourism, economic development, capital improvements, and debt service. Sharp reviewed each expenditure category in detail, addressing anticipated increases and changes, including personnel costs such as general wage increases and benefits.
The discussion on capital projects revealed that most community improvement projects are funded using capital reserves, setting the Township apart from similar communities that typically issue bonds for a large portion of their capital programs. Upcoming projects include the expansion of the Parks and Recreation and Environmental Services campus, Town Hall improvements, the rebuild of Fire Station Number 5, the renovation of the Fire Emergency Training Center, and numerous park and pathway amenities.
Sharp concluded by reviewing the Five-Year Plan, affirming that ongoing revenues are projected to cover ongoing expenses throughout the plan’s duration, ensuring the continued financial stability and growth of The Woodlands Township.
Accepted - 2025 Budget Initiatives
The Woodlands Township Board of Directors reviewed 28 proposed Budget Initiatives for 2025, presented by President and CEO Monique Sharp. These initiatives represent additional services, programs, and capital projects that are not included in the base budget but have been identified as priorities by Directors, Township staff, and the community. Budget Initiatives are funded with both undesignated fund balances and specific reserves.
Each initiative was discussed in detail, with staff available to provide further insights as needed. The Board agreed to fund several key initiatives in the 2025 budget, including:
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Introduction of Covenant Administration Permit Fees: The Board approved implementing permit fees only for certain home improvements, such as pool installations and patio additions, which require more significant time and resources to process than base levels of service. Small and frequently requested items like fence replacements and roof repairs will remain exempt from fees. The proposed permit fees will replace the current compliance deposit program. This initiative is expected to generate an additional $1,021,310 in revenue for the Township.
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Enhancement of Parks Services: The budget will include funding for additional parks personnel and equipment to enhance current service levels for park, pathway, and streetscape maintenance.
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Waterway Square Fountain Repairs: Necessary repairs for the Waterway Square Fountain were approved to address structural issues and restore its functionality.
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Restoration of the Waterway Bridge Tower: The Board agreed to fund the restoration of this iconic structure.
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Bear Branch Sports Fields Parking Lot Expansion: Parking spaces to serve Bear Branch Sports Fields will be expanded to accommodate increased usage.
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Installation of Sprayground Shade Structures: Funding was approved for structures to provide additional shade near spraygrounds located in Bear Branch Park and Creekside Park Village Green.
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Pathway Connector at Bay Mills Drive: Funding was approved for a new pathway connector at Bay Mills Drive to enhance connectivity.
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Implement a funding source for “South Gosling” Park: The Board initiated a process to begin reserving funds for the future development of “South Gosling” Park.
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Town Hall Full-Facility Generator: A full-facility generator will be installed at Town Hall to ensure operational continuity during power outages.
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Emergency Mass Notification System: The budget includes funding for an emergency mass notification system to improve communication to residents during crises.
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Enhancement of services provided by the Montgomery County Sheriff's Office: In addition to a budget adjustment of $20,000, the Board reallocated funding within its contracted law enforcement services agreement with the Sheriff’s Office to implement a “Drone as First Responder” program.
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Additional Funding for Meals on Wheels: The Board agreed to increase support for the Meals on Wheels program, ensuring more residents have access to this vital service.
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Enhanced Park and Ride Rodeo Services: Funding was provided to expand Park and Ride services during the rodeo season.
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Installation of a Safe Haven Baby Box: A Safe Haven Baby Box will be installed at a Township Fire Station, providing a safe option for those in crisis situations.
These initiatives reflect the Board's commitment to addressing community needs and enhancing the quality of life in The Woodlands.
APPROVED – Proposed 2024 Debt Service Tax Rate and M&O Tax Rate
The Board approved a 2024 Proposed Property Tax Rate of $0.1714 per $100 of taxable value, which is divided into two components: the Debt Service Rate and the Maintenance and Operations (M&O) Rate. The Debt Service Rate, set at $0.0111, was unanimously approved. The M&O Rate, set at $0.1603, was approved by a six-to-one vote, with Director Dr. Shelley Sekula-Gibbs voting against it. The approved 2024 proposed rate maintains the current 2023 property tax rate.
SCHEDULED – 2024 Property Tax Rate Public Hearing
After adopting the proposed property tax rate, the Board scheduled a public hearing to allow the community to provide feedback on the proposed rate. The public hearing will take place on Thursday, September 5, 2024, at 5 p.m. at Town Hall, located at 2801 Technology Forest Blvd. Following the public hearing, the Board will vote to adopt the 2024 Property Tax Rate.
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This Boardroom Briefing is NOT the official minutes of the meeting. Official minutes are posted online upon review and approval by the Board of Directors. The Township holds regular meetings twice per month. Unless otherwise posted, meetings will occur on the third Thursday followed by the fourth Wednesday each month.
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