The breakdown
Directors were informed in the special workshop meeting of possible challenges ahead in the FY 2025 budget process, including limited sales tax growth. The fiscal year runs from January to December in The Woodlands.
“Right now we're seeing a flattening of that sales tax growth,” President and CEO Monique Sharp said. “In fact, we have been projecting the sales tax growth flattening—not being totally flat but not increasing.”
Based on preliminary numbers from the Montgomery Central Appraisal District, taxable property value is projected to grow by 9%. However, pursuing a no-new-revenue tax rate would not take advantage of that tax base growth to provide additional property tax revenue for the township, Sharp said.
Another factor in developing the base budget for the year would be whether the township agrees to increase homestead and over-age-65 tax exemptions, which reduce the burden for homeowners and senior populations, Sharp said.
According to the presentation provided by Sharp, a 1% increase in property tax exemptions from the township would translate to a loss of $267,000 in revenue for the township.
However, expected revenue from the newly implemented mixed-beverage tax has remained over budget along with revenue from the hotel occupancy tax, she said.The other side
Sharp also outlined a number of needs expressed by staff and board members throughout the year, including moving forward on developing a performing arts center, increasing amenities and park offerings, and requests for additional law enforcement.
Director Kyle Watson said he also would like to have discussions regarding funding reforestation around developments.
“I feel like over the last year we have gotten a lot of residents who are looking for some kind of help with some kind of buffer, be it from a development or road,” Watson said.
Quotes of note
“It's going to take some time to really kind of dial in on how all this works,” board of directors member Brad Bailey said. “So if you have an oil company here that has a massive pipeline network, you know, does it have a cash register going, ... and if they're headquartered here, does that cash register ring here no matter where the pipeline is?”
“In order to keep that [sales tax] trend line going, you've got to bring in economic development opportunities, corporate relocations, those types of things to keep that sales tax going in that direction,” Sharp said. “That's difficult to do over a long sustained period of time.”
What’s next?
Budget workshops are scheduled to run from Aug. 19-23, and Sharp said the newly formed budget task force will work with her team to better understand and help with budgeting issues that may arise.
