The Woodlands Township in Retrospect

I was elected to the Woodlands Township Board of Directors in May 2012. It really does not seem that long ago. Prior to this experience, which has been very rewarding, I served for ten years in my previous city as an elected official. So I took the Township position with my eyes open. But one thing I have learned over the last 1½ years is that the Township governance responsibilities are different than most municipalities- The Township Board must insure that we preserve all the attributes of our master planned community that have attracted families and businesses to locate here.   

Now that I have passed my “first year anniversary” I felt it was time to step back to reflect on what has been accomplished. My governance experience over the last 13 years has taught me that there is no room in government for egos or the “I” word. Governing requires leadership, seeking to understand the viewpoints of others, consensus building and sometimes compromise. But one must also recognize that compromise does not mean one has to sacrifice one’s principles and values. Our Board members do not always agree on everything. But most often we are able to talk through the issues and reach a compromise that is best for all.  

I believe The Township Board and Staff have worked well together to accomplish a lot in the last 1 ½ years. For example our team effort has resulted in the following:

•We have continued to preserve all the attributes of our master planned community which we inherited. This responsibility requires an unwavering commitment to: 

--Public safety

--Enforcement of our Covenants and Standards which have served our community well for many years and are critical to protecting property values

--Maintenance and enhancement of all of our family oriented amenities- parks, pools, pathways and sports fields

--Sponsorship of community events to support our Village Associations and to reinforce a sense of community 

These are critical attributes of our master planned community, attributes that attract people to live, work and play in the Woodlands. In turn, these same strengths have attracted many companies to locate in The Woodlands. We are no longer solely a “bedroom community” for Houston. 

•In 2012 and 2013, we spent a significant amount of time to evaluate the impact incorporation might have on our community, governance structure and costs. This included a very aggressive outreach effort to our community. The end result was that our community saw no overriding reason or urgency to incorporate anytime soon. We have until 2057 to make such a decision and there was no compelling reason to take such a step now or in the foreseeable future. In fact, if the power of Home Rule cities to arbitrary annex adjoining communities was eliminated, there may never be a need for the Township to incorporate. I believe the Township governance model provides a very effective alternative to the traditional municipal form of government. 

•We have kept down the growth in our operating expenses, continuing to focus on what we think are our core functions.  The Township continually looks for ways to reduce our costs. A recent example is our insurance program. We spent a good part of 2013 reevaluating the coverage needed to reduce our risk of a major loss. This work cumulated in the recent selection of the Texas Municipal League (TML) as our new insurance carrier. TML provided much broader coverage with over a $1 million savings- more coverage at less cost. Not a bad deal!  

•As a result of keeping our cost down and our economic growth, we have reduced property taxes by 10.4% over the last four years. For the first time, our property tax revenue in 2014 will be less than 50% of our total revenue. We expect Sales and Hotel Taxes to constitute about 52% of our total revenue. This is exactly the opposite of what most cities are experiencing today. A 2012 TML survey shows that municipal government revenue across Texas was derived 58% from property tax and 42% from sales tax revenue. 

•We have made effective use of debt, using debt only where it was required and made financial sense. When the Township was formed, it had no surpluses or reserves.  In fact, it had to assume debt incurred by the TCID and the HOAs. In addition, the Township had to take on $17 million of debt to pay Houston and Conroe not to annex us before 2057. In 2014, the Township will pay off the remaining $14 million of this debt. The Township does not over rely on debt. In addition, it has accumulated a 20% “rainy day” contingency fund. In so doing we have achieved an AAA credit rating. 

•The Township is one of the few government entities that values and executes long range planning. We have a Five Year Plan which is continually updated and revised based on our best knowledge at the time. This planning allows us to make effective operating and financing decisions. It gives us the confidence that when we decide to lower taxes, the reduction will stick. 

•In 2013, we finalized a plan to provide annual funding for a new Capital Replacement Fund. This fund is intended to provide for the replacement of existing Township capital assets when they reach the end of their useful lives. Over the next 20 years, The Township will need to replace or refurbish the $230 of community amenities and other assets we have today. This funding approach will allow us to “pay as we go” and avoid future debt to fund the replacement and major refurbishment of our many amenities and other assets. 

•Although the Township has no statutory responsibility over its roads, we recognized in 2012 the negative impact growth was going to have on our mobility and congestion. We have become much more proactive in collaborating with the County and the Woodlands Road Utility District to address these issues. Our efforts started with the recognition that the County and The Township must be much more proactive at the regional level in securing our share of matching federal and state transportation funds. This recognition has led to the current mobility studies for South County. No one will receive matching funds if they do not have a plan in place and that plan is integrated into the regional transportation plans. 

In addition, we are now responsible for transit in our area.  In undertaking our new role, we have dealt with the growing service and funding issues we inherited with the Woodlands Express, a service we became responsible for in October 2013. Through our recent initiatives, we have reversed the declining financial performance of the Express to insure that it will not require local taxpayer dollars in the future. The Express is a critical service for many of our South County residents but it must pay for itself.

•Lastly, The Township was accused in the recent 2013 election of “undisciplined spending and the automatic renewal of contracts.”  I can say that all of us on the Board would strongly disagree with such assertions. To deal with this unwarranted assertion, the Board recently asked our staff to review all of our procurement decisions over the last year. I believe this analysis supports the view that 1) the Township has a very competitive, fair procurement process in place and 2) The Board selects the best and highest quality solution at the most reasonable cost. For the most part these decisions translate into the lowest cost supplier. But in a few cases quality is more important than cost and the Board have selected someone that has higher cost but the difference has been very minor.  

The Township Board should be proud of what it has accomplished. I hope all of you voters agree, which is really what counts.