Woodlands tax rate may jump 78% under incorporation

With The Woodlands Township facing a potential vote in 2014 regarding possible incorporation, results of on ongoing evaluation should the township transition to a city continue to be disclosed.

During a township board of trustees meeting Jan. 19, Curt Dunham, chief executive officer of Partners for Strategic Action, the urban planning firm hired by the township to conduct the incorporation studies, said The Woodlands may need to increase its property tax rate by more than 25 cents in order to accommodate the additional staff and resources needed should the community become a city.

Dunham said a tax rate of 58.14 cents per $100 of property valuation, up from the current 32.50 cents, would need to be adopted so that The Woodlands, should it become a city, can fund the nearly 200 additional full time jobs and new facilities that would be required to provide the same level of service the township currently provides. In addition, the revenue would also help offset taking in debt from local municipal utility districts The Woodlands would take over under incorporation.

"We've looked at gap analysis and we are currently in research mode to find out financial implications [should The Woodlands become a city]," Dunham said.

The proposal follows an October 2011 report conducted by PSA and Economic Planning Systems Inc., that detailed the differences in staffing between The Woodlands as a township versus incorporating as a city. The report stated the township would need to create and fund many services currently provided by county entities, primarily law enforcement and public works services.

The township board will vote at their business meeting on Jan. 25 whether to approve the report by PSA and utilize the financial numbers in its governance study process, which is focusing this year on business and resident input.