The budget includes a tax rate of $0.2231 per $100 valuation, which is the no-new-revenue tax rate, or one which will generate the same amount of property tax revenue as in the previous year. The FY 2019-20 tax rate is $0.2240 per $100 valuation. Although the tax rate is decreasing, increasing property values will yield the same amount of property tax revenue.
Monique Sharp, assistant general manager for finance and administration, said the taxable property value in the township for FY 2020-21 will be $21.1 billion, up from $20.8 billion in the current fiscal year. Fiscal years in The Woodlands run from January to December.
The $30,000 reduction in expected property tax revenue will be reflected in the township’s undesignated fund balance, which will help to build the township’s sales tax reserve in 2021.
Among other decisions, during the August budget workshops, the board decided to move some funds from its bond redemption fund to the sales tax reserve in light of economic challenges this year. The sales tax reserve was $2.5 million in 2020, and it will be $4.36 million in 2021.
“The board directed during the budget workshops that, to the extent that we have undesignated fund balance at the end of this year, would also be directed to the sales tax reserve,” Sharp said.
The six board members present at the video meeting voted 6-0 to approve the budget and tax rate.
Directors also said they would discuss safety measures that have been taken in the township building on Technology Forest Boulevard and when meetings in the board room will be able to resume. The next township meeting by videoconference will take place Sept. 23 at 6 p.m.
