If a preliminary financial model is accepted by The Woodlands Township's Board of Directors, township residents can expect to see their property taxes increase by nearly 80 percent should The Woodlands incorporate in 2014.
As part of its ongoing governance study, the township board last month received a preliminary financial model conducted by Economic & Planning Systems, Inc. The report showed that should The Woodlands incorporate in 2014, the current tax rate of 32.5 cents per $100 of property valuation would need to increase by 25.64 cents to 58.14 cents in order to provide the same level of service that residents currently receive. That represents a potential property tax increase of 78.9 percent.
The report has yet to be adopted by the board and presented to the public as the township's accepted projection of finances under incorporation. EPS and Partners for Strategic Action, the firm hired by the township to conduct the governance study, will review additional components of the financial model.
"The township's consultants from PSA and EPS have received additional information regarding road construction and maintenance costs and recommend that additional time be taken to review and validate these estimated roadway costs before completion of Working Paper No. 2," said Nick Wolda, spokesperson for the township.
The board will vote on a potentially revised financial model on Feb. 23.
"Rather than having the board consider acceptance of the report pending changes, it was recommended that the board defer action to the February meeting," Wolda said.
Despite the potential changes, Chief Executive Officer of PSA Curt Dunham said that whatever additional information is gathered and presented, the proposed tax rate likely will not dramatically change.
"We don't see anything major affecting the bottom line, we're just doing our due diligence," Dunham said.
The reason for the increase in the proposed tax rate is that, by incorporating, The Woodlands would need to hire nearly 200 additional full-time employees, as well as buy land for and construct its own municipal facilities, such as a police department and public works facility.
The Woodlands residents will have their first opportunity to vote on governance in 2014. It has yet to be determined if, in fact, there will be a governance election. The Woodlands has until 2057 to hold such a vote.
"If [the proposed tax rate] is as eye-opening to residents and businesses as it appears to be, they may not want to have an election," township director Nelda Blair said.
