The cities of Conroe and Montgomery anticipate future residential and commercial growth, and both cities have proposed increased budgets for fiscal year 2017-18 to fund mobility and infrastructure improvements.

Planned Conroe projects include mobility improvements and construction of a new wastewater treatment plant to prepare for expected population growth. Similarly, the city of Montgomery proposed major water and sewer projects, including construction of a new water plant.

While Conroe and Montgomery officials proposed to maintain last year’s property tax rates for each respective city, budget revenues are expected to increase because of growth in property values and an uptick in sales tax revenue, officials said.

“We haven’t raised our [property] tax rate in over six years, so a lot of the increased [tax revenue] is coming from new construction,” Montgomery Mayor Kirk Jones said.

Conroe capital improvements

The city of Conroe is funding major transportation improvements, a new wastewater treatment plant and staffing for a new fire station in its FY 2017-18 budget.

Conroe officials have proposed a $181.8 million total operating budget for FY 2017-18, a 10.1 percent budget increase from its $161 million budget for FY 2016-17. In addition, the city proposed a $53.5 million Capital Improvement Program budget and a $49 million water and sewer CIP budget.

CIP funds are earmarked for several major road projects, including about $15 million to widen Longmire Road between FM 3083 and League Line Road, and $4.5 million for the widening of Wilson Road between I-45 and Hailey Street. The projects widen each road from two to four lanes to accommodate population growth, said Tom Woolley, Conroe assistant director of projects and transportation.

“It is being done not only for The Woodlands Hills but for Water Crest [on Lake Conroe] and other developments along Longmire [Road],” Woolley said. “I think this is an important corridor to help alleviate traffic.”

In spring 2018, construction of the Longmire Road expansion will break ground, and the Wilson Road expansion will be sent out for bids, Woolley said.

The city will also spend $3.2 million to potentially relocate Conroe Aquatic Center water park, said Mike Riggens, parks and recreation department director. Movement in fault lines under Conroe have caused the park to rise in elevation and affect water circulation.

Although the park is safe to use, the city hired a consultant to analyze options for the water park, including a possible relocation to another portion of Candy Cane Park, Riggens said.

The city also plans to allocate $5.6 million in water and sewer funds for construction of a new wastewater treatment plant at the intersection of Foster and Ed Kharbat drives to serve residents in south Conroe. Construction on the $61.4 million plant will begin in early 2018 and take 36-40 months to complete, Director of Engineering Scott Taylor said.

“We have reached a level of flow that required us to start planning for a second plant,” Taylor said. “We are the fastest-growing city in the U.S., so that makes it necessary to prepare not only water supply but wastewater facilities for future growth.”

The city’s $70.9 million general fund budget includes nine police patrol vehicle upgrades and equipment packages as well as $756,000 in funding for the salaries of 12 new firefighters hired to operate its new Conroe Fire Station No. 7, which will open late 2017.

Conroe City Council is scheduled to vote on the 2017-18 budget and tax rate during its regular meeting Aug. 24.

Montgomery improvement projects

The city of Montgomery is focusing on mobility improvements and water system projects for FY 2017-18. The city proposed a $10.2 million budget for FY 2017-18 with a tax rate of 41.55 cents per $100 valuation, Montgomery City Administrator Jack Yates said.

The budget includes $4.9 million in capital improvements—a significant increase from the city’s $2.34 million capital improvement allotment in FY 2016-17, Yates said.

The city proposed $1.8 million in CIP funding to repair the Buffalo Springs Drive bridge, located between Waterstone and Buffalo Crossing drives, which was severely damaged by flooding in spring 2016. The city has rerouted traffic to Plez Morgan Drive until the bridge is repaired.

“Buffalo Springs Drive is a major corridor, especially for people coming from FM 1097,” City Engineer Chris Roznovsky said. “It will help a lot to have the bridge open because people will not have to use Plez Morgan Drive or FM 149 to travel anymore.” 

City engineers are working with the Federal Emergency Management Agency to obtain a $1.4 million reimbursement for the cost of repairs on the Buffalo Springs Drive bridge and the cost of repaving Plez Morgan Drive. City officials said the remaining $464,000 could be funded by grants from the Community Development Block Grant disaster relief program or the Texas General Land Office.

The city also allocated $700,000 to a water and sewer project to exchange 6-inch water lines in the downtown and Hwy. 105 areas for 12-inch lines. The project will increase water pressure and volume for residents living west of Cedar Brake Park, Yates said. Construction will begin in January and end in April, Yates said.

Additionally, Water Plant No. 3—the main source of Montgomery’s water—will receive $884,000 in upgrades in November to increase production capacity for the water well by 25 percent, Roznovsky said.

Montgomery City Council is set to vote on the proposed budget Aug. 22 and the proposed tax rate Sept. 12.

Growing sales tax bases

Both Conroe and Montgomery officials said they expect increases in sales tax revenue for FY 2017-18.

Conroe’s proposed property tax rate of 41.75 cents per $100 valuation is the same as the 2016 tax year rate, Conroe Mayor Toby Powell said.

The city did not offer a property tax rate decrease this year, partly because the city’s projected sales tax revenue is not high enough to offset property tax reductions, Powell said.

“I’m pleased with the budget, but I wish we could do more,” Powell said. “I wish we could cut [property] taxes.”

Still, Conroe officials anticipate a $626,000 increase in sales tax revenue for FY 2017-18, supported by an upward trend in the sale of construction materials, and growth in the manufacturing and wholesale industries, Chief Financial Officer Steve Williams said.

The projection is based on signs of a rebound from the effects of a decline in the oil and gas industry, which contributed to a 2.29 percent decrease in sales tax revenue between FY 2014-15 and FY 2015-16, Williams said.

Montgomery officials also expect an increase in sales tax revenue from new businesses. Officials said the city has added about $38 million in assessed property value in the past year, primarily because of construction of Kroger Marketplace and other businesses like McCoy’s Building Supply on Hwy. 105.

City officials expect to receive about $1.8 million in sales tax revenue this year, an increase from about $1.48 million in sales tax revenue in FY 2016-17.

“The city has always been very dependent on sales tax, and [the new businesses are] really going to help our city,” Jones said.