THE WOODLANDS, TEXAS (August 22, 2024) – Below is a summary of the Woodlands Township’s 2025 Budget Workshops, which were held on 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 they align with the Township’s strategic priorities. A key outcome of the workshops was the establishment of the proposed 2024 property tax rate.

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Accepted Report – Montgomery County Tax Assessor Certified Tax Rate Report
President and CEO Monique Sharp presented The Woodlands Township Board with the 2024 tax rate report for no new revenue and the voter-approved tax rate 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 new revenue tax rate of $0.1615 per $100, and the voter-approved tax rate of $0.1929 per $100.

The tax rate is made up of two components: the debt service rate and the maintenance and operations (M&O) rate. At the current tax rate of $0.1714, the debt service portion is $0.0111 while the M&O portion is $0.1603.

The Board unanimously adopted the report on certified tax rates submitted by the Montgomery County Tax Collector’s Office.

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Accepted – Provisional Baseline Budget Report 2025

The Woodlands Township Board of Directors, led by President and CEO Monique Sharp, conducted a thorough review of the preliminary 2025 baseline budget. Sharp provided an in-depth analysis of the Township’s financial landscape, covering key areas such as revenue sources, personnel and operating expenses, the transportation fund, Visit The Woodlands, capital projects, debt profile, reserves and fund balances, and the Township’s five-year plan.

The proposed base budget, based on the current property tax rate of $0.1714, aims to maintain existing levels of service, meet contractual and legal obligations, accommodate community growth, and address changing economic factors while continuing the capital improvement plan.

Sharp emphasized that The Woodlands Township remains financially strong, with robust and diverse revenue streams, positive cash flows and reserves that are viewed favorably by rating agencies. The township’s long-term debt management is particularly strong, showing an “AA+” rating from Standard & Poor’s and an “AA” rating from Moody’s, reflecting low and declining debt levels, solid reserves and the absence of unfunded pension costs.

During the revenue discussions, it was revealed that property tax accounts for 29% of total revenue, while sales and use tax, the largest source of revenue, contributes 47%. Sharp presented a conservative sales and use tax growth forecast of 3% in 2025, noting a 60.5% increase in this tax since 2020, driven primarily by retail. Other revenue sources such as hotel occupancy tax and mixed beverage tax are also expected to increase in 2025.

Existing property tax exemptions will remain in place, including a $50,000 property tax exemption for seniors and the disabled, and an additional 3% property tax exemption for qualified property owners. Sharp also emphasized that the projected property tax revenues of $48.3 million in 2025 are equivalent to property tax revenues in 2020, even with significant inflationary pressures and improvements in services and amenities over the five-year period.

On the spending side, the 2025 base budget calls for total spending of $171,677,168, which includes parks and recreation, enhanced law enforcement, fire, transportation, municipal services, tourism, economic development, capital improvements and debt service. Sharp reviewed each spending category in detail, addressing expected increases and changes, including personnel costs such as general wage increases and benefits.

Discussion of capital projects revealed that most community improvement projects will be funded from capital reserves, which distinguishes the community from similar communities that typically issue bonds for a large portion of their capital programs. Upcoming projects include expansion of the Parks and Recreation and Environmental Services campus, improvements to City Hall, reconstruction of Fire Station No. 5, renovation of the Fire Department Training Center, and numerous park and trail facilities.

Sharp concluded with a review of the five-year plan and confirmed that current revenues are expected to cover current expenses throughout the life of the plan, ensuring the continued financial stability and growth of The Woodlands Township.

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Accepted – Budget initiatives 2025

The Woodlands Township Board of Directors has reviewed 28 proposed 2025 budget initiatives presented by President and CEO Monique Sharp. These initiatives represent additional services, programs and capital projects not included in the base budget but identified as priorities by the directors, Township staff and the community. Budget initiatives will be funded from both unallocated funds and specific reserves.

Each initiative was discussed in detail, with staff available to provide additional insight as needed. The Board agreed to fund several key initiatives in the 2025 budget, including:

• Implementing permit fees for contract management: The Board approved implementing permit fees only for certain home improvements, such as pool installations and patio extensions, that require more time and resources to process than basic services. Small and frequently requested items, such as 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 $1,021,310 in additional revenue for the municipality.
• Improving Park Services: The budget includes funding for additional park staff and equipment to improve the current level of service for maintaining parks, sidewalks and streets.
• Waterway Square Fountain Repairs: Necessary repairs to the Waterway Square Fountain have been approved to correct structural issues and restore its functionality.
• Waterway Bridge Tower Restoration: The Board has agreed to fund the restoration of this iconic structure.
• Bear Branch Sports Fields Parking Lot Expansion: Bear Branch Sports Fields parking lots will be expanded to accommodate increased usage.
• Installation of shade structures for spray sites: Funds were approved for structures to provide additional shade near spray sites in Bear Branch Park and Creekside Park Village Green.
• Bay Mills Drive Trail Connector: Funding was approved for a new trail connector on Bay Mills Drive to improve connectivity.
• Implementing a Funding Source for South Gosling Park: The Board has initiated a process to begin providing funding for the future development of South Gosling Park.
• Full City Hall Generator: A full generator will be installed at City Hall to ensure continuity of operations in the event of power outages.
• Emergency Mass Notification System: The budget includes funding for an emergency mass notification system to improve communication with the population in times of crisis.
• Improving Services Provided by the Montgomery County Sheriff’s Office: In addition to a $20,000 budget adjustment, the Board reallocated funds within its Contracted Law Enforcement Services Agreement with the Sheriff’s Office to implement a “Drone First Responders” program.
• Additional Funding for Meals on Wheels: The Board has agreed to increase support for the Meals on Wheels program to ensure more residents have access to this important service.
• Improved Park and Ride Rodeo Services: Funds have been provided to expand park and ride services during rodeo season.
• Safe Haven Baby Box Installation: A Safe Haven Baby Box will be installed at a township fire station, providing a safe option for people in crisis situations.

These initiatives reflect the Board’s commitment to responding to community needs and improving the quality of life in The Woodlands.

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APPROVED – Proposed debt service tax rate and maintenance and operations tax rate for 2024

The Board approved a proposed 2024 property tax rate of $0.1714 per $100 of taxable value, broken down into two components: the debt service rate and the maintenance and operations (M&O) rate. The debt service rate, set at $0.0111, was approved unanimously. The M&O rate, set at $0.1603, was approved by a vote of 6 to 1, with Director Dr. Shelley Sekula-Gibbs voting against. The approved proposed 2024 rate maintains the current 2023 property tax rate.

PLANNED – Public hearing on the property tax rate for 2024

Following the adoption of the proposed property tax rate, the Board has scheduled a public hearing to allow the public to provide feedback on the proposed rate. The public hearing will be held on Thursday, September 5, 2024, at 5 p.m. at City Hall, 2801 Technology Forest Blvd. Following the public hearing, the Board will vote on whether to adopt the 2024 property tax rate.

Agendas, videos and more are available online at www.thewoodlandstownship-tx.gov.

Source: The Woodlands Township

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