Following the challenges of a full year of the coronavirus pandemic, revenues in the cities of Shenandoah and Oak Ridge North as well as in The Woodlands Township were expected to be higher in fiscal year 2021-22 than in FY 2020-21.
However, none of the three governing entities adopted a no-new-revenue tax rate, although sales tax revenue grew overall.
No-new-revenue rates would have brought in the same amount of property tax revenue as the previous year. The budgets include some needed infrastructure improvements and equipment.
The Woodlands
Annual budget workshops for FY 2022 resulted in an unchanged tax rate of $0.2231 per $100 assessment following a public hearing and vote Aug. 25.
This is higher than the no-new-revenue tax rate of $0.2169.
The fiscal year runs from January to December in The Woodlands.
Under the approved budget, revenues in the township in 2022 will be $132.8 million, and expenditures will be $132.34 million, according to Monique Sharp, the township’s assistant general manager for finance and administration.
Among the items added to the base budget this year were more than $200,000 for license plate readers, a $200,000 parks and recreation department needs assessment, $405,000 for pickleball courts and about $601,000 toward a Spring Creek Greenway trail project.
The budget includes a 3% raise for township employees, which required moving $300,000 from the fund balance into the budget, officials said at a previous meting.
Sharp said if the incorporation election Nov. 2 results in The Woodlands becoming a city, budget amendments would adjust FY 2022 revenues and expenditures in line with the initiatives in the incorporation financial model. This would not affect the tax rate, she said.
Shenandoah
The city of Shenandoah on Aug. 25 voted to continue to keep its tax rate the same as it has been since 2018 at $0.1799 per $100 valuation for its upcoming FY 2021-22.
The agreed-upon rate is higher than the city’s no-new-revenue rate of $0.1737. According to Shenandoah Finance Director Lisa Wasner, keeping the tax rate the same as previous years will generate around an additional $73,000 in revenue for the city.
The rate is around 3.57% higher than the no-new-revenue rate.
“We worked really hard, and we have a minimal number of capital projects this year,” Council Member Mike McCleod said.
Those improvements include parking at the police station, street lights for David Memorial Drive, water mapping and addressing a backup generator, all of which will cost an estimated $195,000.
The City Council adopted the budget Sept. 8.
Oak Ridge North
Oak Ridge North’s FY 2021-22 tax rate and city budget were unanimously approved by City Council during its Aug. 23 regular meeting.
Following public hearings on both items, council members voted 5-0 for a property tax rate of $0.4723 per $100 valuation and a budget of $4.41 million in spending and $4.51 million in revenue. An approximate $98,500 surplus will be transferred to capital reserves to be used to fund capital improv•ement projects.
The new tax rate is $0.0011 higher than the city’s current rate of $0.4712 per $100 valuation and includes a $0.3063 maintenance and operations rate and a $0.166 debt service rate.
Spending and revenue set in the FY 2021-22 budget were both higher than the city’s amended FY 2020-21 budget.
According to the budget, sales tax revenue will increase 13.7% from the FY 2020-21 amended budget. City Manager Heather Neely attributes the increase in revenue to businesses reopening and additional businesses coming to the Oak Ridge N•orth community.
“Overall, we’re still looking really good as far as total revenue and expenditures,” Neely said at the Aug. 23 regular meeting. “Sales tax is still looking good.”
The Oak Ridge North City Council is in the process of considering a variety of public works projects to implement in the next few years. The list of potential projects, which the council referred to as a “wishlist,” total roughly $213 million. Those include a park renovation and a new public works building. The City Council is discussing potential future funding sources as the projects were not outlined in the FY 2021-22 budget.
