The issue was part of the board’s discussion regarding a number of proposed budget initiatives for 2017, which are items taken separately from the township’s base budget. The new budget, which will include any initiatives, will be up for final approval in mid-September.
The motion passed after the board initially considered a motion by township Director Gordy Bunch to transfer $4.62 million to an incorporation reserve fund.
“This is taking money that we reserved in the past that used to be called a transportation fund and is reallocating it to an incorporation fund, which will still include transportation items for a future road and bridge reserve and incorporation transition expenses,” Bunch said. “[It] could also supplement future operating reserve and capital shortfalls that we will get more details on throughout the year as staff reevaluates the true cost of incorporation, because right now we all agree we don’t know exactly what that is. It’s a down payment on the future.”
After the motion did not receive a majority approval by the board, township Director Jeff Long proposed the $2.5 million amount instead.
Township directors John McMullan, Laura Fillault, Long and Bunch voted in favor of putting away the $2.5 million, while township Director Ann Snyder voted against the motion. Township Directors Mike Bass and Ed Robb abstained.
There is no concrete timeline for incorporation, but The Woodlands has until 2057 to do so before it risks becoming annexed by the cities of Houston or Conroe. The idea of the reserve fund is to help mitigate some of the sticker shock, or immediate expenses, if residents vote to incorporate in the future.
Employee wage increase
The board of directors also approved a 3.5 percent pool for employee wage increases during the budget workshop, which will be brought back to the board this fall.
Township staff initially recommended a 2.75 percent general wage increase for all employees amounting to approximately $1.5 million after surveying salaries of comparable governmental agencies and municipalities. However, directors raised several questions with the percentage, resulting in the increase to 3.5 percent with the caveat that a portion of it may be determined by employee performance.
“We would create a pool of 3.5 percent and staff would come back in October and make a recommendation to the board as to how they want to allocate that pool across to the employees,” Bass said. “Some could be based on merit, which means they might get more than 3.5 and some might get less.”
For example, the board could decide to give all employees a 2 percent increase and in addition to that some employees could also receive an additional merit increase, Bass said.
Bunch said he is in favor of the idea of a merit-based increase.
“I used to work for the government and I hated it because everybody was treated the same and the people who work the hardest didn’t get a nickel more than the people who don’t work as hard,” he said. “This arbitrary blanket increase can create some disenchanted stellar employees who deserve a higher level increase for putting in the extra effort.”
Additionally, not all township employees have been eligible to receive the general wage increases in previous years.
“We have general employees in the township who have been at the maximum of their pay grade and have not gotten pay increases in many years because … they are at the maximum [of their pay band],” said Susan Welbes, director of human resources. “If the pay band goes up, then they’re eligible if they are not at the maximum.”
Township staff will return in October to the board with a recommendation of how to allocate the 3.5 percent wage increase pool. The increase to 3.5 percent represents an additional $266,000 from the original $1.5 million allocated for salary increases. The decision to set the pay structure will ultimately be left up to the board of directors.
Budget workshops reconvene at 8:30 a.m. on Wednesday. For a comprehensive look at the township’s 2017 budget, see the Sept. 8 edition of Community Impact Newspaper.
