What you need to know
Board directors received an updated report from township President and CEO Monique Sharp during the Aug. 20 budget workshop, recommending the township maintain the tax rate of $0.1714 per $100 of home valuation for a second year.
This would be needed to fund various improvements in the township due to the loss of over $600,000 in total sales tax revenue, which was the result of a company relocation in 2024. The result was a 14% decrease in projected revenues from sales tax, which is the largest source of revenue in the township.
“It really is a function of ‘we over budgeted’,” Sharp said. “Based on what we knew at the time, we thought we were being conservative, but we were not.”
Board members agreed to maintain the tax rate to provide a number of additional improvements to the Town Center area such as rehabilitating the Waterway Square fountain and laser removal of scaling on archways and other stone structures in The Woodlands.
“The Woodlands is showing its age ... as we recruit new residents and home values and new businesses and sales tax ... we've got to up our game,” township board director Brad Bailey said.
What it means
By maintaining the same tax rate in fiscal year 2024, which runs from January to December, the township will bring in an additional $7.4 million in property tax revenue in 2025. However, the move will translate to an increase in property taxes for homeowners in The Woodlands because the adopted rate is higher than the no-new-revenue rate.
The board also agreed to change the township’s policy on covenant administration by instituting fees for homeowners who wish to make major improvements to their home or property. Historically, the township has used a refundable deposit for homeowners to ensure all improvements were inspected and within design standards, Sharp said. The switch will now charge fees depending on the type of improvement being made, which are nonrefundable.
The new fee structure would only apply to major improvements such as:
- Pool installations
- Home remodels
- Outdoor kitchens
- Painting
- Tree removal
- Exterior lighting
- General landscaping
Preliminary projections presented by Sharp showed the move would produce an estimated $1.02 million in revenue for the township in 2025.
What else?
The township will meet for the final day of budget workshops on Aug. 21 at 8:45 a.m. in order to receive a final estimate of the FY 2025 budget, as well as ensuring all requested projects such as the fountain renewal will have room to be funded. The meeting will be live streamed on the township's website.
