Water - political hotspot

Here in The Woodlands, we are considering a systematic lawn-watering schedule, similar to what we have now in this drought, but not activated by drought conditions. We do need good water management. Who is the target of this possible new action and why? I see responsible people every day acquiescing to the current regulations for good reason – the drought, to conserve water by observing the current restrictions to water only two times a week (one inch). But let's get to some form of reality. Personally, I have been considering this from the moment it was instituted this year. Right now, I have to use more water for the lawn than I did before, to technically comply with the restriction. I have made it known to some of the authorities that this situation exists and why. Although there is no official accommodation in these restrictions for temperature, for soil conditions, nor for work schedules or home direction orientation, there is a means to get an exception. An example of need: Most of my lawn can go six days without water if I give it one inch and supplement the watering in a couple of small places. There are a few places facing west that cannot survive a week without water. Now it would seem that I have to water twice a week to comply with the drought restrictions. Technically yes, but actually no. There is good news, the Joint Powers Authority can and will accommodate case-by-case situations. It is recommended by the same authority to water once a week with a one-inch application. That is possible in my yard at a 95-degree maximum ambient temperature. It is impossible at 101. Our current restrictions are not inflexible. All that the Joint Powers Agency (JPA) actually asks us to do is to not waste water and help them keep the pressure up for fire safety. The current restrictions are good to help us to do that, but they need to be regarded as somewhat flexible. Try to follow them if practical. Neighbor-to-neighbor, no one wants to be seen breaking the rules. If there is an issue and you can minimize waste in some other way, tell the authority and get an exception. Then tell your neighbors why it is better for you, if watering in a different manner than prescribed embarrasses you. It might even help neighborly relations by being outside talking to your neighbor on watering days.

To accommodate my situation, I have to call the JPA and seek an exception. That I have not yet done, but when it is in place, I may be watering some days that are not mandated for my address. I seek to minimize my water usage on my lawn. That is my objective and that is the authority’s objective. The authority understands that goal and certainly supports it.

So look at the possibility of a “permanent” schedule. A schedule is not a permanent restriction; it is a model of usage. It should be thought of as a predictive model where everyone falls into a pattern of use, under a guideline of watering a maximum of twice a week, in all seasons. Then the water district should not face huge aberrations in consumption or water availability. The JPA should be able to manage the water and sewage systems much more efficiently and effectively. This does make sense!

The proposal is to establish a pattern of usage that distributes consumption as it does right now in this drought. That will probably require a model, similar to what we have now, but not necessarily confine us to that model. All that is needed is that we are consistent and water our lawns judiciously and to do it evenly across the community. Lifestyles may be different among households and homes a bit different, so a household is essentially asked to establish a predictive routine and stay with it. Don’t deviate from the model unless there is good reason to however. Exceptions cost administrative overhead.

There is more to this. 40% of our water in the summer is wasted, according to studies. It flows into gutters and into the sewage system. 80% of our consumption right now is estimated to be in irrigating our yards. A huge amount of our precious resource is wasted every day. Unfortunately, there are just a few residents who waste it in large amounts. There is waste in every household, but the bottom line volume consumption rests with a fairly small percentage of homeowners. I know I have some waste. I would say that perhaps 1% of the water applied goes down the street. If we were truly required to save every gallon, I would need to have my automatic system redesigned or just abandon using the system. I trigger it manually when my day comes around, so I can have two back-2-back cycles and get maximum penetration from the application. Managing the edges to zero runoff would be a serious challenge but may be a next step down the road, should water become so scarce that we have to regulate it by the gallon instead of by the tens of gallons.

Managing a drought is different than managing annual consumption, but what we learn in a drought can be applied to the management of the area resources in all seasons.

Isn't part of the problem the St Augustine grass that we use throughout the state? Where is A&M's solution to this problem? I do not support having a program at the spigot if we don’t have a long-range plan to deal with the root of the problem. There are two roots to the problem - people and landscape material or devices.

People are wasteful. Those who significantly overuse water should be interviewed and ways found to lessen their use of water. How do we know they are out of line in usage? There is a way to measure it. Abnormalities could be identified through an index method, which I will describe later. Maybe there is also a technology gap. I don’t assume that rain controllers, mulch and St Augustine are the solutions, and perhaps the technology used is not what is available now for the problems we have. For example, is there a better way to water the edges of the lawn to deliver water but not waste any water? Or can we use native or native-modified grasses, instead of St Augustine? For some families’ style of life, such an index may not be seem practical, but everyone can treat the limited water resource in a judicious manner. Where there is serious concern, there is always a practical solution. It is well known that misuse of water by some residents is the probable cause of our current issue, but must everyone suffer on their behalf? If it is true that 40% of our water is wasted, then why not find that 40% and find workable remedies to that problem? To me, this is a different issue than distributing the use of the water over days of the week.

St Augustine grass has always demanded considerable water to survive, although it will take a beating and usually grow back when the water is more available. Nonetheless it is susceptible to disease and drought. Is it time we change? This is a problem for Texas A&M. It is an issue all along the Gulf Coast. Grass helps to control flooding and is very useful, not just an aesthetic component of landscape. As water becomes more and more precious by short supply, shouldn't we begin to abandon our love for St Augustine and replace our grass with something requiring less water? . I am told “no’ by the GM of JPA. ¹Maybe Texas A&M could research a better St Augustine that survives drought better. Drought is a Texas normality. St Augustine is not a water-inefficient grass. As I stated in another article, there are issues with the other grasses but at the same time, there are alternatives and opportunities.

Our wells are not producing what they once did. We have to drill deeper into the reservoirs sometimes to make them produce at the required rates. I have never heard of any water wells in this general area that have maintained production without intervention. Population growth here has been tremendous, but we have not had an apparent water pressure issue, mostly because of drought interventions in the summer. I have witnessed serious urban water pressure issues elsewhere and that was not pretty! It was downright annoying, frustrating and dangerous. If we have to regulate the water, then let's regulate the volume of water used. That is the real issue here, not whether we are watering on given days of the week, but nonetheless, it is good to have a systematic scheduled watering schedule just to eliminate or reduce the threat of lowered water pressure.

So is it such a bad thing to ask residents to have the same water schedule we currently have throughout the year? That seems a bit of an over-kill to me. Austin² has a set schedule every year from May 1st through September 30th. Maybe we should have it from June 1st to October 30th. I am concerned about watering at night during October however. That will cause fungus. Maybe we can end at the end of September also. Face it any time outside of that window has no watering issues, at least from my meandering around The Woodlands.

Why not regulate growth? This would certainly be a politically explosive strategy. New housing could take on more of the issue, instead of existing residents. If we don’t have enough water, why do we grow? But the point is, we have enough. It is just being wasted.

Personally, I like using educational means to get people to judiciously consume water and when that doesn’t work, slap those who are causing the problem on the wrist. So here is a suggestion – since we know the volume of water used in every household and business, and we know the appraised square feet of each home and the lot size, would it be better to start using a meaningful measure to identify those misusing our resources? If I use 1000 gallons and a huge multi-million home uses 100,000 gallons, which one is over using water? Both have to maintain their homes and their landscape. You use a normalization technique. Say my home site is 3000 sq feet and the big home is on 20000 sq feet. Now who is using more than their share of water? Then I use 3000/8000 or .35 gallons per sq foot per month while the other homeowner is using 5 gallons per square foot. So is the large home wasting water? Not necessarily. However, what is reasonable and not reasonable can be determined from looking at the population of homes in the community and this usage index. I would say that anyone having more than twice the median index of the total population might be overusing water (just a shot in the dark). This may not be very close to an answer, but something like this is what we need to be doing.

Performance indices are one of my favorite subjects. The JPA has not publicized any yet and probably do not have one in the works. It would be worthwhile to contract an effort to assess a better way to manage this precious resource in our community. I know this can be done and it should not cost us an arm and a leg. Then metaphorically we could slap those who abuse the resource on the wrist and even break an arm if it comes to that.

This article was rewritten and published on July 22nd.

Resources
¹ Joint Powers Agency - Mr. James Stintson, P.E., General Manager
² Austin water regulations

County Bonds - Not going to happen. What a dilemma!

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Earlier this week, the Montgomery County commissioners drew up a bond proposal to consider for the coming budget process. $300+ million is needed to finance a fairly long slate of needed county road major projects. Here in The Woodlands, it would involve the replacement or resurfacing of Grogan’s Mill, West Panther Creek, Woodlands Parkway, and possibly others. Although we need some work on all of these, and with the extent of traffic volume on Woodlands Parkway, the price is just too high to issue such a bond right now. The county judge says, “it isn’t going to happen.”

We do have some advantage of doing this now. Construction bids are coming in about 30% down from last year. However, now is simply not a good time to do it. It is a risky proposal, given the state of our economy and the related voter apprehension. We cannot afford a failed bond issue at the polls. Increasing taxes by 7-9 cents (or 17%) would be exceptional, especially in this soft economy, which has not yet recovered from a near disaster. “There is at least one respected financial analyst predicting that the economy will almost totally fail, that the disaster has not been averted, and that that we are still headed for a depression.” noted County Judge Alan Sadler.¹. He went on to say “This bond will not happen”, meaning that the county will not go forward with such a bond. The judge is concerned that there is just too much risk of the bond failing. We need to find alternatives and find some means to fix our roads. “For example, the asphalt-constructed Walden Rd is having significant problems and needs to be replaced with a concrete construction. Yet when we first built this road according to state specifications, the state funded 80% of it. Now, we have to pay for the entire replacement road without that subsidy. This is a big dilemma for all of us.”

We are between a rock and a hard place. What happened in Austin in this legislature has hurt our county. How is it that we had federal bailout money injected into expansion projects and we are now sitting in this position to maintain our existing roads?

Today, there is no pass-through money available from the State of Texas for our bonds. TxDOT has absolutely nothing for us this time. That means we will have to finance all of it ourselves without any subsidies. We get no help. When we originally constructed Walden Road, we got 80% of it financed by the state. If existing residents have to pay for the county’s growth, something is wrong. Just imagine. A resident moves here and is asked to fund road maintenance at a high tax rate. The payments should be spread out over 20 or more years of tax base. Interest rates are low. High routine maintenance costs also drive taxes up, so we have to invest in quality projects. We need durable quiet roads. Contractors and their equipment burden some of the roads, causing wear and tear that residents eventually must pay. Roads decline because of subsurface material and they simply fail because we use them so heavily. Who rightfully pays? The county would construct a class “B” concrete road to replace the asphalt Walden Rd, which lies on top of clay. That would have one layer of iron rods, not two as in Class “A”, but strong enough to hold together on top of a clay roadbed.

What to do? Go to the hard place or go to the rock; either way it seems to me that we are in the middle and squashed.

Maybe we could get the commissioners out together on each proposed road with a budget cap of $160mm and come up with a “now” proposal with a limited budget? That would probably be well worth the effort. I think that might fly. Face it, the current proposal will not fly and the commissioner's court sees that. Maybe there are even alternatives to repairing some roads. Then after all the economic issues subside in three years, try again. Keep the property tax below $.049! Isn’t it a good idea to have very stringent criteria for inclusion of projects and a budget cap for the bonds. It isn’t so much that we have some repair to do, but it is the extent of it. We have people here on fixed incomes. We have people here worried about keeping their jobs. It is definitely a time to be conservative! Maybe not everyone is equal. Some people can afford it and some cannot. Homes continue to increase in value. Each taxpayer is paying more to the county even without an increase in the tax rate. Tough choices are coming in the county budget meetings.

Yep, truly a dilemma! We all are in this together. Hopefully, there will be some middle-of-the-road compromise. And yes, pun intended!

¹ Judge Alan B Sadler’s profile

Financing Woodlands Township Capital 2010-2014 Bonds

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The Woodlands Township Executive Committee voted today to send a bond proposal strategy for a long-term debt management plan to the Woodlands Township Board, for consideration at the July 22nd meeting.

The Township five-year plan will include a number of projects requiring long-term financing. The proposed construction of a new office facility for The Woodlands Township operations is purposely not included in this list, but does not indicate that the project will be neglected in the plan. The project planning and review of facility options and alternatives is still underway and financing options will be considered at a later date.The plan is to reduce the cost of financing Township projects in this time of low cost money, and does not address the 21 million debt of the Economic Development Zones (EDZ) 1-3, which funded the construction of Town Green Park and partially funded the construction of Market Street, among others. These debts are addressed in separate funding programs.

Construction projects in the plan and the refinancing of existing debt include:

Bond Proposal for financing major capital projects in five year plan	Amount $mm
Total estimated Capital Budget 2010-2014	47.6
Refinance TWA and WFD debts	8.0
Refinance WFD Station #6 and Fire Training Facility debts	11.6
Construct Creekside Fire Station	3.4
Construct Indian Springs Fire Station	3.7
Reconstruct Grogans Mill Central Fire Station	6.4
Purchase fire trucks and equipment for new stations	2.5
Construct new parks and pathways in five year plan (Creekside and Town Center)	12.0

The most viable financing option requiring long-term financing, with voter approval, is the issuance of General Obligation bonds (“GO bonds”). GO bonds are backed by the issuing party and carry an irrevocable commitment - the authorizing body (Township) will levy a property tax sufficient to fund the annual debt service requirements for the life of the issued bonds. This enables large projects to be carried for many years, committing but reducing the immediate tax impact of the projects.

GO bonds are typically tax-exempt bonds issued for a period of 20 years or less. They are rated by national rating agencies and are eligible for municipal bond insurance. Considering the Township’s large property tax base and the relatively low outstanding debt, The Woodlands Township should receive a favorable rating and qualify for municipal bond insurance.

Projects and refinancing will be discussed as part of the 2010 budget and five year plan. The first 2010 Budget Workshop is scheduled for 9 a.m. Wednesday, July 29, 2009, and the plan will be presented at the Town Hall Meeting on July 29, 2009. The final decision on the debt management plan will be considered by the Board in late August.

Woodlands Township Townhall Meeting July 29, 2009

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Today, the township announced a township meeting at The Woodlands Waterway Marriott Hotel and Convention Center in Town Center. The meeting will be open to the public. Residents and businesses are encouraged to attend. Of particular interest will be the budget. A Presentation of the 2010 Budget will allow residents and businesses of The Woodlands Township the opportunity to hear a presentation of the proposed 2010 Operating Budget and provide feedback to The Woodlands Township Board of Directors.

“The transition into one government called The Woodlands Township is well underway,” said Chairman of the Board Nelda Blair. “The process is complicated and intricate, and involves uncharted territory in Texas history. This is the first budget in this process that provides a significant opportunity for our 90,000 residents and 2,000 employers to determine their future form of governance.”

Residents have been patiently (and some nervously) anticipating this for some time. Although the economy here has been flourishing even in the depressed national economy, a number of residents remain in a more cost conscious state than in the past. It is the time to step to the plate to make opinions and needs known, if residents want to be heard by the Board of Directors. This will be an evening meeting, especially timed for daytime working residents interested in contributing to their future here, starting at 7PM.

Parking is available at the Town Center Garage at The Cynthia Woods Mitchell Pavilion. The fourth floor of the garage is connected via skywalk to The Woodlands Waterway Marriott Hotel and Convention Center. The meeting will begin promptly at 7 p.m. and will conclude by 9 p.m.

Related articles
1. Woodlands Budget Considerations
2. Newly developed Strategic Plan

Woodlands Taxes and Budget 2010 - thoughts

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After reviewing the "alphabet soup" budgets of 2009, as a resident, I concluded that we needed some sort of consolidated view of them. So I generated one. Now I am sharing the experience with you and maybe you will have an easier time getting acquainted with this subject also. It is my hope that I can get more residents interested in this year's budget process. Later this month, the township will be providing us with information, but it may not provide an easy-to-assimilate view. So embedded in this article are several tools to help - a summary, several spreadsheets and some text of what I have learned. Also is a simple "what if" scenario on taxation. In late August, the township must complete its budget and establish a tax rate. Tom Campbell issued this communique just recently: "There are so many things to work on to complete the establishment of our new government that The Township will have six meetings on each Wednesday at 9 AM from July 22 through August. July 22 will be a regular business meeting. July 29 through August 19 will be budget work. August 26 will be a regular business meeting and the setting of the first property tax rate. Of Course, there will be public hearings announced on the proposed property tax before it is approved. However, you will have your chance to influence the development of this budget at the July 29 Town Hall Meeting."

Summary - Budget 101
This year, the budget process is earlier because of the taxing process. In past years, we operated independently and could schedule everything on a calendar year. Now we must account for the county's process and fit into their schedule. The township has to develop a budget now to set an assessment rate for 2010, in order for the county to administer the assessment process and collect taxes. Remember, we will receive a tax bill this year from the county, not from The Woodlands Association. That bill will contain the normal county and school taxes plus our assessment taxes.

The Woodlands Township will conduct a town hall meeting at the end of this month to present the budget and strategic plan. This will give residents an opportunity to give our feedback. I expect the township to link strategies to budget line items in order to place financial value on the strategic plan or value on the strategic plan, which is composed of community values. How that will be accomplished is unclear to me now. My guess it will be presented in a broad view of the plan. I am positioned to attempt doing the same and may do it in a separate article, just as a exercise to understand the fit and personally share with others.

For now, all I want to do is get the information to my readers and enable you to start formulating your own opinions on what needs to be done, on what tax rates are acceptable and what questions you want answered. I will share some of my own opinions as we go along.

According to my calculations, the consolidated 2009 budget totaled $63.9 million. The consolidated 2009 revenue from all sources was predicted to be $58.4 million. The deficit was made up with reserves as the associations began to execute their plans to dissolve themselves. The TWA had a budget carryover from 2008 and that was not included.

As most of you probably know, an expense budget is composed of two parts - (1) Capital - that which is an asset investment, adding value to the asset, and (2) Operations - that which is required to finance the operation of the asset. To levy a tax for required expenses, a taxing authority must establish what is needed to operate and what can be deferred. In our case, the revenue will be generated by a state sales tax and by an assessed value property tax. Other revenue is generated, just like it is for a resident, including fee collections, bank interest, and other sources. The business of running a municipal government is, in a single breath, to provide value to residents and businesses, to control expenses through leveraged service contracts & process management, and to provide services for safety and to preserve property value. It exists to provide a safe, economical and prosperous haven to live, play and work.

This last year of transition to a new government will bring four operations together under one umbrella operation. Today, the associations have a service company, The Woodlands Operating Company, which they share together, under contract. Service costs are proportionately allocated for the service company to recover its costs to administer the service programs under its contract umbrella. This accounts for the majority of expenditures in each association, but there are also direct costs. I will not go into this aspect of the budget at this time. You can look at the published budget sheets to review what is direct and what is not.

Budget for 2010
Currently, the township is preparing a budget for review by residents and businesses. Village associations are being queried for needed improvements in the villages, so that capital requirements can be determined and projects prioritized. This is the same procedure that has been followed for years. It is also preparing operational scenarios to determine tax rates. I want to be able to correlate the old to the new. As a reminder, we will go back to the original proposal in 2006 to form a township and remind ourselves what tax structure was "promised". Most of us knew at the time that there were some unknowns, and all we had were some rough estimates. Nevertheless, we developed expectations of how we could survive financially with a taxing authority. Many people were nervous about that. Nothing has changed as of this particular moment, but details are being collected and readied for presentation. We should expect government entity consolidation to create a number of opportunities for operational efficiencies within the next two years. I will refer to my original article which supported the formation of the township as the premise for bringing this up now.⁶ There is a need to hold our leaders to a responsible position on their promises. Our leaders include our precinct commissioner, our state representative, our state senator, our county tax assessor and others who helped to formulate the financial view of the proposed township and means to fund its operation. We wrote based on statements made, that we would realize a 31% direct + indirect reduction of assessments through this new organization. Right now, I doubt that we will realize this, based on what I have seen and heard, but from the numbers produced below, that realization seems feasible to me. We will be able to claim our assessment taxes to the IRS, but if you have already been doing that, you obviously will not realize any additional saving from that change in collection. I expect a 32% taxation rate, but hope for less. That will be about the same as before the township was formed. Now to present the spreadsheet.

Consolidated Budgets	WCA	TWA	WCOA	Town	Totals
	$mm	$mm	$mm	$mm	$mm
Operating Budget 2009	12.72	14.78	2.00	26.00	53.04
Parks Care and Administration	3.605	4.214	0.458	0.994	9.271
Solid Waste pickup/disposal	2.520	2.493	0.044		5.056
Streetscape Maintenance	1.070	0.918	0.289		2.277
Public Safety	1.069	1.415	0.247	4.675	7.406
Covenant administration	1.016	1.150	0.190		2.357
Firefighting and rescue	0.475	0.721	0.138	14.725	16.059
Streetlights Power/Maintenance	0.473	0.500	0.077		1.050
Other allocated	0.442	0.617	0.111		1.171
Neighborhood services	0.258	0.332	0.058		0.648
Community relations	0.201	0.258	0.043		0.502
Other expenses	0.053	0.056	0.001	0.045	0.155
Payments to Conroe, Houston				0.959	0.959
Transition to new govt				0.600	0.600
Marketing &economic development				0.933	0.933
Community&Environmental Svcs	0.218	0.284	0.050
General Administration	0.893	1.122	0.199	2.383	4.597
Other associations (Carlton)		0.186
Transportation (trolleys_etc)					0.00
Other_Operations&staff	0.429	0.517	0.094	0.685
Capital_Budget_2009	1.80	2.10	1.90	2.54	8.34
Park projects	0.702	0.808	1.891		3.400
Pathway Projects	0.750	0.578			1.328
Pathway improvements	0.000	0.335	0.008		0.343
Landscape improvements		0.080			0.080
Aquatics Facility Improvements	0.226	0.097			0.323
Signs/StoneWalls/Landscape	0.078	0.123			0.201
Athletic Facility Improvements	0.038	0.073			0.110
Other	0.003	0.003	0.004		0.010
Transfers and Capital				2.540	2.540
Total Budget 2009	14.52	16.88	3.90	31.08	63.92

Discussion

There are several assumptions made to produce this table. It is only created to put together the numbers from the published 2009 budgets^1,2,3,4 and provide a means to assimilate all of them in one concise view. I encourage all interested parties to review those documents as well, but this should be the quickest way to get your feet wet. Different account models are used in the association and the township. The association uses an older self-developed model, while the township uses a method known as the GASB method.⁵. In doing so, the township does not present the information in the same way, so I have chosen to do that as close as I practically could without losing information. The Chart of Accounts of all merging entities are being merged into one Chart of Accounts as part of the transition, so I hope to see this same information in a more readable format from the accounting system in the near future.

There are one time and ongoing expenses which are expected once again to be in the township budget. In 2009, we had a line item for $600,000 in the township budget as a one time expense. I did not back that out in my 2010 "guestimate". I did back out interest accumulated by the WCA financial reserves, since they no longer will exist. WCA had a low assessment rate for 2008 and 2009 because of their strategy to spend down the reserves before dissolving as a governing body. Therefore, to obtain an idea of what the income would be under normal circumstances, I normalized the income to an assessment rate of 32 cents per $100 assessment. I did that for WCA and WCOA. I also added in a guess for property value increases into the equation, as well as a guess for sales tax revenue growth.

Scenario I	WCA	TWA	WCOA	Town	Totals
...............................................	$mm	$mm	$mm	$mm	$mm
Normalization for 2010
Normalize WCA @ 0.032/100	13.62
Normalize WCOA @ 0.032/100			2.83
Reduce incomes from banks	(0.24)
Added  assessments guess	0.68	2.47	0.21		3.36
Added sales taxes guess (5%)				13.08
Guestimate income change	0.45	2.47	0.21	13.08	16.21
2010 guestimate Operating Budget					58.35
2010 guestimate Income					71.01
2010 guestimate reserve build					3.00
2010 guestimate available for capital					9.66

The scenario presented here has a large increase in operating budget for the first year of operation. That is, the consolidated budget is increased by 10% in the spreadsheet, yielding a generous $58.35 million operating budget, increased by more than $5 million. The scenario assumes a 10% increase over the 2009 normalized budget in revenue. There are certain complications in the changes that are to take place, so here we are just showing that income should be increasing by more than just sales taxes, but it is unclear how much, therefore the scenario assumption. An assumption is made that $3 million is sufficient for establishing a first year operational reserve. That will supplement the existing reserve. Then a capital budget exceeding 2009 is placed into the budget. If cuts are to be made at this time, it would likely be in the capital budget. As you will notice, I have not included a municipal office building for the government and will likely be part of the budget proposal. Another significant expected increase in service that will be costly will be the additional police protection likely to be proposed. I do assume we can become more efficient by this merger, so in 2010, I would expect to see contracts leveraged better and township operating costs reduced per household to begin the process of becoming more efficient.

So this is my current take on the budget, just to get my and hopefully your feet on the ground, to have a reference point for the coming discussions. I have not run additional scenarios but may do so soon. To expedite this information into the hands of residents, I will go ahead and publish this as it is.

Resources

¹WCA 2009 Budget
²TWA 2009 Budget
³WCOA 2009 Budget
⁴WoodlandsTownship 2009 Budget
⁵GASB Model of accounting
⁶Commentary Article on expectations of a new government - Tuesday Elections 2007
⁷My Decision and what I considered in reaching it

Let me know if you want more or have feedback on this subject. Most of you know how to reach me and if not, it is in my profile. If you want to post notes in Facebook, you are welcome to do so in The Woodlands Commentary. Just look it up in Facebook.

Draft of The Woodlands Strategic Plan

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This document is an early draft of the strategic directions being formulated by the township. It is being prepared for the coming town hall meeting on the budget. When I have a link to the publication, I will provide that here. This document will drive the decision making for the budget, so it is considered very important to the process, that is, taxes and spending strategies and decisions will come from this directional document.

Introduction

Based on the results of the historic governance process, the Board of Directors of The Woodlands Township implemented a strategic planning process. The Woodlands is in a period of dynamic change relating to how it is governed, funds itself, and provides services and amenities. The purpose of the Strategic Plan is to keep The Woodlands Township on course during this time of change and beyond.

Vision for the Future

The first step in developing a strategic plan is to determine what is desired to be accomplished. For a company, this might be reaching a sales level or industry position. For an organization like The Woodlands Township, which is responsible for making decisions on behalf of an entire community, this process starts with a Vision for the Future.

The Vision for the Future is the ideal desired condition of the community at some future point in time – typically decades away. The Vision is a dream rooted in reality that may contain some existing conditions to be preserved along with future ambitions to be strived for.

The Woodlands Vision should be referred to regularly to ensure decisions being made are consistent with its contents.

The Woodlands Vision

The Woodlands, our dynamic hometown within a natural forest, is known for its balance between man and nature. We are a thriving business community and a premier destination for visitors – a place where generations live, work, learn and play.

The Woodlands…
…is a place where we feel safe and secure
…achieves prosperity by promoting economic development and quality of life
…cultivates the relationship between urban needs and environmental sustainability
…provides premier services and activities, superior educational opportunities, a diversity of jobs, and vibrant public spaces, events and entertainment for all
…is a place that welcomes everyone from everywhere to grow and thrive

Organizational Mission

To pursue The Woodlands’ Vision for the Future, organizations, agencies, businesses, and citizens will need to work collaboratively with a focus on the future. Leading the way will be the community’s local government, The Woodlands Township. To carry out the business and myriad of tasks necessary, it is important that the Township has a clear mission.

The Woodlands Township Vision for the Future and Mission together provide the foundation for the Strategic Plan.

The Woodlands Township Mission

We fulfill The Woodlands vision by:
· Protecting the well-being and safety of our residents, visitors and businesses
· Achieving the highest standards in service delivery
· Partnering with others to sustain the vitality of our region
· Communicating with our constituents and partners
· Attracting and retaining a talented and innovative staff
· Serving as the community’s political voice
· Powering economic growth through community investment
· Promoting continued vitality of neighborhoods and commercial areas
· Maintaining transparent governance
· Serving as financial stewards of the community’s resources
· Evolving a governance structure to meet our goals
· Promoting sound environmental policy

Focus Areas, Goals, and Key Initiatives

Focus Areas, Goals, and Key Initiatives provide the structure for the Strategic Plan. Focus Areas are broad “containers” into which the vast majority of The Township’s activities and responsibilities will fall. These Focus Areas, in no prioritized order, are:

1. Service Delivery
2. Communications
3. Organizational Support
4. Governmental Representation
5. Economic Development
6. Governance Structure
7. Environmental Sustainability
8. Fiscal Policy

Within the Focus Areas are bolded Goals which establish what is desired to be accomplished. The Goals are long-term pursuits that encourage new and more effective ways of operating.

Accompanying the Goals will be Key Initiatives that provide broad, action-oriented direction. Through the Focus Areas, Goals, and Key Initiatives, the Board of Directors has clearly stated what it desires to be accomplished. The professional staff of The Township uses this direction to formulate specific programs, projects, and actions it will take to pursue the Goals and implement the Key Initiatives along with identifying necessary resources.

Focus Area 1: Service Delivery
The Woodlands community operates through a multitude of service providers and The Township plays a critical role in directly providing several basic services along with supporting and coordinating many others. The Township often serves as the first point of contact for residents and businesses even though it may not be the service provider.

Maintaining a high level of service has been indicated as a priority in resident surveys and as the role of The Township evolves and changes, it must be in position to continue to provide superior services.
1.1. Protect the well-being and safety of constituents
1.1.1. Maintain and continue to explore options to provide a high level of proactive law enforcement visibility, effectiveness, availability and awareness
1.1.2. Support law enforcement public safety efforts with other kinds of security support in public areas
1.1.3. Explore, develop, and implement options that improve safety and educate residents on the role they can play in making their community safer
1.1.4. Maintain lighting to meet performance and safety standards
1.1.5. Maintain safe public facilities and amenities
1.1.6. Take appropriate steps to minimize the impact of various emergencies and disasters that occur and prepare the community in the management of response and recovery options for large scale emergencies
1.1.7. Work toward Fire Department ISO 1rating
1.1.8. Maintain and continue to provide a high level of fire prevention and emergency medical services
1.2. Provide superior parks and recreation amenities, facilities, programs and services
1.2.1. Ensure high quality programs and services remain affordable and cost effective while facilities are still effectively used and maintained
1.2.2. Provide a parks system with amenities that reflect the diversity of our population, provide accessibility features and preserve The Woodlands environment, quality and excellence
1.2.3. Provide a pathway system that promotes healthy lifestyles, reflects the commitment to preservation of The Woodlands environment, and adequately connects the entire community for transportation, health and wellness
1.2.4. Provide for quality, diverse, life span recreational programming and opportunities
1.2.5. Provide special event opportunities that foster community spirit, family values, and healthy lifestyles
1.3. Provide and promote efficient, cost effective and environmentally responsible waste disposal and recycling community wide
1.4. Enforce covenants and standards to maintain neighborhood and commercial area vitality
1.4.1. Develop and maintain the structure to enforce covenants and standards
1.4.2. Update standards as technology advances
1.4.3. Research and provide programming and policy options to maintain vitality as the community ages
1.4.4. Promote clean, well-maintained properties and preserve architectural integrity
1.4.5. Maintain and improve community, village, and neighborhood signage, medians, and entry ways to promote village and neighborhood identity
1.5. Improve local partnerships to provide effective services
1.5.1. Serve as a resource for our constituents in dealing with issues that impact quality of life
1.5.2. As needs arise, identify and establish alliances with organizations that will help us achieve our vision and carry out our mission
1.6. Maintain appropriate levels of support services, infrastructure and other resources to carry out the functions of the Township

Focus Area 2: Communications
Providing effective two-way communications with The Woodlands’ constituents is essential as the community’s leadership and operating structures evolve. As the long-term governance structure is solidified in the coming years, it will be important to develop an atmosphere of trust and transparency within the community.
2.1. Ensure effective communications with the community and partners
2.1.1. Expand public service announcements and information outlets
2.1.2. Improve and maintain emergency operations communications plans
2.1.3. Effectively utilize other entities and programs to disseminate and collect information
2.1.4. Provide feedback opportunities such as surveys and opinion polling
2.1.5. Provide ability for the public to communicate to the board
2.1.6. Communicate accurate and timely information on the activities of the Township to the media and the public
2.2. Provide an inclusive atmosphere to enhance transparency and trust
2.2.1. Hold town hall meetings
2.2.2. Maintain relationships with Village Associations
2.2.3. Effectively communicate financial information to the public
2.2.4. Compile and make available Board meeting records
2.2.5. Encourage awareness of public meetings
2.2.6. Promote and recognize volunteer and community accomplishments

Focus Area 3: Organizational Support
The Township’s ambitious vision and mission cannot be implemented without highly skilled, trained, and motivated people. Ensuring the highest degree of effectiveness and customer service at all levels is a high priority. In addition to providing facilities and resources to ensure a productive work environment, a culture of innovation and creative problem-solving must be maintained.

3.1. Provide education and training opportunities and a supportive working environment for Township staff
3.1.1. Provide a working environment that promotes productivity and high morale
3.1.2. Encourage education and training opportunities and continuing professional development
3.1.3. Educate employees on the Township vision, mission, and services provided
3.2. Position the Township to attract and retain high quality employees
3.2.1. Develop a progressive succession program that encourages internal promotion
3.2.2. Maintain a formal staff evaluation program
3.2.3. Provide competitive benefit and compensation packages
3.2.4. Provide employee recognition events to recognize accomplishments and tenure

Focus Area 4: Government Representation
As the recognized local government entity representing The Woodlands, The Township and its leadership need to be active participants in addressing regional issues and planning efforts. The Township also needs to be represented and visible at all legislative levels.
4.1. Participate in local and regional planning and advocacy efforts
4.1.1. Identify participation opportunities
4.1.2. Prioritize and assign board and staff representation
4.2. Ensure that The Woodlands is represented and visible at governmental and legislative bodies
4.2.1. Identify participation opportunities
4.2.2. Prioritize and assign board and staff representation
4.3. Maintain and expand local, regional, state, and federal partnerships with other governmental entities and stakeholders
4.3.1. Assign staff to specific entities to build relationships
4.3.2. Coordinate representation to ensure maximum participation

Focus Area 5: Economic Development
The Woodlands’ viability as a community and ability to pay for services and amenities is based on a strong local economy. The Township supports efforts to attract and retain employers and quality businesses to create jobs and also to position The Woodlands as a premier destination for visitors and travelers to expand the local tax base.
5.1. Attract, retain and promote high quality businesses
5.1.1. Proactively maintain contact with local and regional employers' issues and concerns
5.1.2. Maintain active involvement with other organizations, entities, and stakeholders to promote the local economy and secure economic development incentives (i.e., Chambers of Commerce, Economic Development Partnership, etc.)
5.2. Encourage expansion of employment and education opportunities in The Woodlands
5.2.1. Support strategic infrastructure improvements
5.2.2. Explore and develop viable incentives to attract employment and education opportunities to The Woodlands
5.2.3. Act as a liaison between private organizations and local governmental entities to facilitate development incentives
5.3. Support events, venues and programs to bring visitors to The Woodlands
5.3.1. Support convention and visitors bureau
5.3.2. Support public/private partnerships to increase visitors
5.3.3. Expand, support and create new cultural, sporting and entertainment venues
5.3.4. Expand collaborative efforts with other regional visitor attraction entities
5.3.5. Expand Hotel and Occupancy Tax revenues and tax base
5.3.6. Produce and sponsor high quality community events
5.4. Develop an integrated mobility system that is seamless within and surrounding the Township
5.4.1. Explore funding sources and partnerships to maintain affordable transportation and transit options
5.4.2. Examine options to provide transportation to village and employment centers
5.4.3. Work with transportation agencies to identify potential road system improvements
5.4.4. Continue to enhance bicycle and pedestrian transportation
5.4.5. Expand accessibility within the Township

Focus Area 6 Governance Structure
As The Woodlands’ journey toward effective self-governance continues, viable options including their impacts must be explored and evaluated with the results communicated to the residents and business community for feedback.
6.1. Continue to explore governance alternatives and clearly quantify and communicate potential impacts
6.1.1. Continue with research to identify the best alternatives for the governance structure
6.1.2. Perform a comprehensive impact analysis of viable options
6.1.3. Develop and implement a comprehensive communication, public input and education process to ensure understanding of governance issues, alternatives, and implications
6.2. Consider changes in the existing governance structure
6.2.1. Identify options to streamline covenant administration review processes
6.2.2. Identify improvements to the Township’s regulation making authority
6.3. Develop appropriate legislative strategies to deal with future governance structure issues

Focus Area 7: Environmental Sustainability
The community is committed to the stewardship of the environment as a critical element of its quality of life. The Township plays a key role in supporting and in some cases leading local and regional environmental preservation efforts.
7.1. Proactively address environmental and conservation issues
7.1.1. Support efforts of the municipal utility districts, San Jacinto River Authority, and others to achieve superior water quality, conservation and reuse
7.1.2. Expand environmental education
7.1.3. Support conservation initiatives
7.1.4. Encourage and communicate the value of the creation and retention of natural forested areas on private property
7.2. Adopt policies and standards to encourage energy efficiency and use of renewable resources
7.2.1. Investigate opportunities and communicate with homeowners and business
7.2.2. Identify grant opportunities
7.2.3. Improve energy efficiency of the Township fleet and facilities
7.2.4. Explore options for development standards that promote conservation and environmental sustainability
7.3. Preserve and protect the natural forested areas of the community
7.3.1. Maintain policies to protect native vegetation and wildlife habitats
7.3.2. Support reforestation and forest management planning
7.3.3. Enforce Covenants to ensure the proper maintenance and retention of green space and reserve areas

Focus Area 8: Fiscal Policy
The Township must maintain a financial position to allow it to meet current and new needs in a cost effective and accountable manner while ensuring the maintenance of existing assets as the community ages.
8.1. Maintain sound fiscal policies and budgets that allow the Township to address evolving service needs and maintain community quality
8.1.1. Plan for and identify funding for services and long term maintenance of public facilities and assets
8.1.2. Establish reserves for appropriate working capital, replacement of capital assets, and economic development opportunities
8.1.3. Explore budget philosophies that prioritize and align resource allocation to the Strategic Plan
8.1.4. Explore funding sources and opportunities
8.1.5. Maintain policies and programs regarding the collection of fees and taxes
8.1.6. Maintain a fiscally responsible management system to address funding requests from outside organizations and individuals
8.1.7. Maintain an effective long term debt management strategy
8.1.8. Conduct an annual audit of financial statements
8.1.9 Plan for future funding requirements as Developer phase-out occurs

Plan Implementation

The success of an organization is measured by the results of its decisions. An important tool for effective decision-making is the Strategic Plan. The Strategic Plan must remain current and relevant through regular review and updates. Based on the challenges and changes on the horizon for The Woodlands Township, using the Strategic Plan to remain on course and keeping the plan up-to-date are critical.

The Strategic Plan is integrated into the day-to-day organizational operations of the Township. The Board of Directors uses the plan to provide strategic direction, prioritize expenditures, and evaluate proposals. Township staff used the document to develop action plans and budget proposals.

Staff is also responsible for conducting an annual Strategic Plan Audit. This activity and subsequent document consists of identifying accomplishments and progress made as well as implementation challenges faced throughout the year. Plan Audits also include any new information or changes that should be considered by the Board of Directors during their Strategic Plan update process.

Prior to the annual budget process, the Board of Directors will update and adopt the Strategic Plan.

In addition to annually updating the Strategic Plan, the Vision and Mission that serve as the foundations need to be periodically assessed. As The Woodlands grows and matures and as new people enter the community, it is important to periodically check-in with the residents so that the governing body can be confident they are leading in the desired direction.

Through systematic and diligent implementation of the Strategic Plan, The Woodlands Township can help ensure that The Woodlands continues to be a highly desirable place for generations to live, work, learn, and play.

Developing role of the village associations in The Woodlands

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Here we are in the middle of the last year of our alphabet soup associations. The primary resident associations, homeowner associations, the TWA and WCA, will no longer be available for residents as a means of action on issues. Additionally, they will no longer manage deed restrictions. These associations have in the past managed the budgeting process and monies collected as association fees. They also, on the most part, have managed the service company, the corporation formed to provide us daily services such as garbage pickup, green area and park maintenance, area improvement projects, service contracts, area-wide events such as fun runs, nature lectures, deed enforcement, maintained a database of issues and parsed them to appropriate service entities, provided a community website, and other services. Our associations have listened to major resident issues and been the owners of community property. Deed restrictions have been and will continue to be governed and managed by a cooperative and structured group of people elected by residents. Residential and deed restriction enforcement services will be provided by the Township starting in January. The service company provides monitoring and analysis services for those elected officials in the community. The service company employees will be transferred to our governing body, The Woodlands Township in January.

Our village associations, on the other hand, have helped residents on minor issues and have functioned as social organizations to bring the neighborly and hometown spirit to neighborhoods. Village associations have directors and representatives elected just like the Residential Design Review Committee's (RDRC/DSC) with one major and significant difference. RDRC's and their umbrella DSC are official government entities and must conform to the Texas Open Meetings Act whereas the village associations are not. Some of our association presidents have stated their position is that they do not want to have to conform to the act. Their position is based on the fact that the village associations do not carry any decisions on taxpayer money. They have a budget appropriated by the association and in the future, the township to spend for social activities, including scholarships, school projects or other events for the good of the community. Therefore, the more relaxed informal atmosphere of a village process must be considered in the context of a governmental function as we explore the role of the village in the future of The Woodlands governing processes as a whole. A summary of the act is presented in this link.

A couple of months or so ago, a team was commissioned by the township chairperson, Mrs Blair, to come up with a workable proposal to provide a communication link between the Township and residents of the community. With the loss of the Woodlands Association (WCA,TWA,...) and the imminent transition to a new governing body, the need to define how this should work became more urgent. A business interface had already been established through the Chamber of Commerce, but there would no longer be an organized government channel for the residents. How would the residents get to the board of the Township with significant issues? The township board has many significant issues and cannot handle day-to-day issues at their board meetings. These folks are volunteers, elected to govern the community, and many of them have full time day jobs also. However, it is essential that they understand residents' issues in order to make sound decisions for budgeting and for approving expenses. So this committee was commissioned to solve the issue. On this committee are a number of people who have influence in the community, especially in the village associations, and have an interest in setting a path for linking residents to the township board of directors. There is representation from every village on the committee to make sure the diversity of The Woodlands has some voice in the outcome. There are two areas not actively represented - the exclusive gated areas such as Carlton Woods who generally take care of themselves, and the elderly section, off of SH 242. Steve Lackey is the project leader.

After a review of the draft proposal by some of the members of the township board, the project moves forward this week, as members of the committee begin taking the near finalized proposal to their respective villages for comments. The proposal is presented below and a survey for your input is included after that.

Proposal

“The Parties acknowledge and agree that the Village Associations of The Woodlands have played an integral and significant role in providing for grass-roots resident input and representation related to the operations of the Associations…” The Woodlands Township Transition Agreement dated February 1, 2008.

Objective
To develop a framework to facilitate effective communication and meaningful interaction between The Woodlands Township Board of Directors and the Boards of Directors of The Woodlands Village Associations.

Background
Presently the interface between the village associations and the governing residential boards, The Woodlands Association (TWA) and The Woodlands Community Association (WCA), is based upon TWA and WCA board members participation generally as non-voting members of the board of directors of the village association from which they are elected. In addition, the village association presidents give an informal verbal report during the monthly meeting of their appropriate governing board. Individual residents are entitled to address all boards during the “public comments” agenda period.

The Woodlands Township was approved by the voters as the eventual governing entity for our community. The major responsibilities of TWA and WCA are being transitioned to the Township in phases defined by a written transition agreement between the boards.

Once this transition is complete, and TWA and WCA cease to function as major governing boards (and in fact may dissolve entirely), the present linkage between the village associations and their parent boards will concurrently disappear.

Therefore, to ensure/improve the present village association role, a formal communication and interaction linkage must be established between the Township Board and the village association boards of directors. It is the purpose of this project to develop, in partnership with appropriate stakeholders, this new linkage.

Project Team
A project team comprised of twenty-two elected directors/officers representing the seven present village associations has met five times to formulate this communication linkage. Ideas have been solicited from all village association directors and many other Woodlands leaders. Senior Woodlands leadership has served as project team advisers. Following is the proposed board linkage structure as of June 5, 2009. It is important to note that this is a work in process and that future changes/revisions may be made.

Village Associations
A Village Association Township Representative will be assigned by each village association, at its discretion, to interface with the Woodlands Township Board. Candidates should have a high interest in community involvement, have good communication skills, and be available to attend most Township Board posted meetings. Duties will include reporting to the Township Board on significant village news, critical issues, major events, etc.; and Township Board news to their respective village association. The representatives may meet on an occasional, as-needed basis, but will not constitute a formal group with any responsibilities.

The currently successful Parks and Recreation Advisory Council (which is assumed will continue) should be used as a model to devise appropriate Woodlands Township Advisory Councils, both “permanent” and ad hoc in nature. Each village association may assign a board member to a council at its discretion. Council leadership will have authority over the final composition of a given council. Councils should be devised to provide informal support to senior Woodlands Township personnel and will have no authority. It is anticipated that they will be few in number. Potential areas that may be appropriate for consideration include transportation, public safety and finance.

Village association board members could serve, at village association board discretion, as non-voting members on appropriate Township Board committees and/or Township staff teams. Candidates should have relevant expertise and/or interest in the particular area of focus and be able to make the time commitment required. It is understood that committees may or may not be necessary when the transition to a seven member Township Board is complete. But working with appropriate Township staff, teams would still be of value to our community. The Township budget process could be a target area.

Woodlands Township
The role of the Village Association Liaison persons currently representing the Woodlands Community Associations should be revised to include Woodlands Township news and information. It may also be appropriate to expand the liaison role to include problem solving functions currently provided by community association directors that will discontinue upon transition January 1, 2010.

Woodlands Township Board Directors and/or senior staff members will attend, and report at, village association meetings. While it is envisioned that this would occur on a regular monthly basis, a particular village association may elect to do so less frequently. Furthermore, senior Township staff members may also attend village association meetings on an as needed basis for a particular subject of interest.

Woodlands Township Board should host periodic evening Town Hall Meetings similar to the session held in November, 2008.

A “Receive and consider reports from Village Association Township Representatives” agenda item should replace the current “Receive and consider a report from the Community Associations of The Woodlands” agenda item at all posted, regular Township Board meetings. Village association reports will be given only on an as-needed basis so not all village associations may report at any given meeting.

Next Steps
This proposed plan will be presented to each village association during June, 2009 for consideration and approval. Following the village reviews, the project team will meet to review and make appropriate adjustments. The plan will then be presented to the Township Board for consideration and eventual action. Implementation of the final linkage structure will occur January 1, 2010.

Your input
You may provide your input to the "experimental" poll below anytime throughout this month. I will freeze input on July 15th and report the results to the committee.

Poll at SurveyMonkey.com: Click Here to take survey