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

Private vs Government Enterprise

The Woodlands has been moving in a dangerous direction. Government enterprise! There seems to be a trend these days, started by participation in the financing of the expansion of the pavilion. Collection of taxes was the rationale for the Pavilion; the facility was disabled by hurricane Ike, and there was a shortage on financial support. As a contractual agreement with the Pavilion for financing part of the renovation of the Pavilion, the township gained the right to have a rink on its property. The Township is now taking bids on building an ice rink.

Will this reduce our taxes? It seems to be piling on! An ice rink has limited usefulness. Normally, such facilities are financed and operated by private enterprise. Why should we be engaged in government enterprise? Is this part of the new era of taxation? Are we watching our finances carefully? I am uncertain that the payback on the Pavilion will be as advertised. Will we get a bond for this and then have to pay out of our pocketbooks? Remember the tax relief we were going to get with the Township? Perhaps this is a way to reduce our taxes or not.

Decison-making in The Woodlands - part 2

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The seven phases of a project are:

1. Proposal: overview of a proposed budget item, defining the problem, a solution, estimated cost and expected benefit. On large projects, this consists of substantial analysis and networking with people.
2. Defining the alternatives and selecting the preferred alternative. Refine cost estimate. Produce general plan. Select contractors for contracts needed in detailed planning.
3. Detailed Planning: define schedules, resources, contracts, execution plan with tasks, milestones, cash flow and other resource consumption. Refine cost estimate. Bidding and selection for execution contracts. Financing.
4. Execution: construction or development phase. Monitor cost and resources, manage contracts. Report progress and issues routinely. This is where the highest costs occur and what many people believe is project management.
5. Implementation: bringing the deliverables into their useful state to realize anticipated benefits. This is where success is usually defined, so that the next step can be executed at the appropriate time or times in the future. Measuring tools are put into place to monitor expected benefits. Project documentation for operation is generated. What went right, what went wrong, abstractly develop learning experience. This is where the project team learns from each other.
6. Operation: Start-up processes are executed, staff trained, operational budget is monitored. Benefits delivered to stakeholders.
7. Look-back: measuring success. This is where promises meet reality. It is where project manager and stakeholders can learn how to do the job better. It usually occurs months or even a year or two later, depending on the nature of the project.

A project can be effectively managed amidst other projects by a management team by using a gated approach. Between each phase of the project, stop at the gate to discuss progress and decide to proceed to the next phase or if more preparation is required first. The execution phase can be divided up into two separate sub-phases or even more, if the project is very expensive. All this sounds like excess overhead and it is sometimes, but it saves a lot of money and time in large capital projects. In small projects, one must decide what is appropriate for the value to be derived, not necessarily on the cost alone.

So why go through all this trouble in a government? Because the process allows stakeholders to participate and guide the results. It is a logical process where the stakeholders know where the project stands and where it is going at what speed. Even in a small community, the process should not the allowed to be lax. The community has few dollars and wants the results of their selected projects to have highest value, just like a large corporation. Due process does not to have to be terribly constraining so that nothing gets done. It just needs to be logical and able to be replicated.

This will be continued in part three.

Let's Talk Incorporation

Sometime or another we need to start talking about this subject. Might as well be now. I have leaned toward incorporation for our community from the time I came here. That inclination has never been abandoned. However, the cost of doing that will probably drive my final vote, if it ever comes to that. In the meantime, you as well as I need to understand where we are and where we are going, relative to any futuristic vision that includes incorporation of our community.

The Woodlands Texas is engaged in a two-pronged transition. One prong got off the ground a couple of years ago when the community voted to form The Woodlands Township. This prong was intended to develop an interim government until we can decide on a permanent one. The township could be a permanent form of government, but many doubt it will serve us very well in the long term. For now, we are changing from an association-centric community to a special-district governed community. The primary difference between the two is that the special district acquires revenue via taxation, whereas the association acquires revenue through a fee. Another notable difference is the much smaller number of township representatives from the community engaged in major decision making. And similar to municipalities, this difference also affects the number of residents who are involved in the decision making processes of the community. From a tax perspective, the new government won't be much different in that our fees have always been based on property assessments, basically the same as our new government, starting in 2010. The primary difference is in tax exceptions. Abatement to corporations will be part of our tax structure if we get legislation this Spring, but abatement to homeowners will not, except for veterans and perhaps the elderly and disabled (I do not like to use that word).

The other prong is our long term solution. This subject is discussed in many circles but action is dormant for now until the first prong is settled. What will the government look like after 2014, the year in which we can first apply for incorporation?

That is the sixty-four thousand dollar question and the reason I have written this article. Will we look like Oak Ridge (inc 1979) or Shenandoah (inc 1974 by de-annexing The Woodlands) or Conroe (inc 1904) or Tomball (since 1800's)? Those are our closest neighbors who incorporated decades ago.

If we are to shape our community into one that we want, we must participate in the spirit of a hometown, something similar to Tomball's vision approach for their downtown district. Those stakeholders, those who live there, are openly invited to participate in determining the future of their downtown area.

So what governing components do we have today versus those of a municipality? That is a starter to consider. So I have generated a comparison table as a basis to begin this consideration.

Special District	Function	Municipality
Board	Tax representation	City council or equivalent 1
Manager	Business management	Mayor and comptroller, or city manager
Contract	Garbage and Waste	Garbage division of city services, contract optional
None, deferred to County & State	Legislative	City council 2, county commissioners and state legislators
None, deferred to County and State	Judicial	City, county and state courts 3
MUD district	Water & Sewage	City department
District fire services	Fire & EMS	City fire & EMS services (same)
Contract	Law enforcement	Police department, contract optional 4
Contract	Parks and recreation	Parks and  recreation department, contract optional
???	Charter	Home-rule or General Charter 5
None, Deferred to County	Health	Health Department
None, deferred to County	Regulatory Domain	Zoning, buildings, signs, nuisances, and subdivision development
Ad valorem tax & district sales tax  & borrowing (bond sales)	Revenue sources	Municipal sales tax, property taxes, occupation taxes, fines collected by the municipal court, fees imposed for utilities such as water, solid waste pickup, waste water, etc., state and federal revenues, and borrowing (bond sales)
Only through state legislation	Annexation Powers	Unlimited within 5 miles of city limits, assuming the "home-rule" model 6

 

Table notes

^1,2An alternative is a City Commission where city administrators manage legislative duties as well as direct reports (employees).
³Required to enforce city ordinances. There may be some room to contract this function to a county court.
⁴This service is considered by many to be necessary to us by the Township employing policemen, but we should also be able to contract the service out to county law enforcement agencies, if the contract includes enforcement of city ordinances.
⁵Texas has a default charter for small cities that is sometimes utilized in the absence of a city charter. "Home rule" implies that a written city charter exists.

Some thoughts about the variables and what might occur in the community as we debate a new government:

• Policing our community would likely be a hot topic when considering a new government. Some folks want our own police force. That means a payroll, asset management, local enforcement techniques, control processes, ethical guidelines, etc etc. I have a story to tell about city police forces, but it will wait until another article.
• Ordinance making would also probably be a very hot topic. Right now the "shoe" is made to fit the county. Our community is vastly different than the rest of the county. It seems only right that we would have our own ordinances so the "foot would fit our customized shoe" properly. But when this is debated, we are almost sure to discover things that we have not thought about before.
• Manager or Mayor? It is not clear what path we would take on this. There will be varying opinions and reasons to have one over the other. I expect this to also be a political mine field.
• Council or Commission? This will not likely be a hot topic but it could. Most people envision and assume a mayor/council type of municipal government purely because they are accustomed to it.
• Home-rule or default charter? I think the home-rule will dominate but who knows? Most cities in Texas defer to the default state-defined city charter.
• Representation - by the people (at large) or by the village or both?
• Service Company - continue to contract or build allegiance through full time employees? This will certainly be a hot topic. Many will want to continue as before, but costs and allegiance issues may drive the model to an employment one.
• City Hall - a process is underway now to study this and come up with a recommendation and decision. This is being driven by the timing of land development and availability of resources. We could be forced to have the cart before the horse.
• Water - here is another $64,000 question. We are in the midst of change. The area has grown so fast that it is steadily depleting the underground water reservoirs. We must transition to surface water. That will be another large capital expenditure which may prevent us from having a city water system, or it may have the opposite effect. This is an issue I would like to pursue further. In addition, typically, a city manages to acquire additional funds through service fees which are "hidden" in the water bill (last I saw, the bill is high in Houston with just fees.) This is the type of thing one must watch out for when choosing a municipality model for a government. Residents often pay additional fees on top of taxes.
• Mass transportation and traffic management - it is inevitable that we must move to improve transportation within the boundaries of The Woodlands, but how will we do it? We face many issues, and it is unclear how we will solve them.

Finally, for now, we need to examine ourselves to see if we have an open mind. The Woodlands continues to be very unique in Texas. Modeling our town after Tomball or Conroe or any other small town does not see to me to be a good idea. We need to take it from the top. That requires careful thinking about what we want our service and jurisdiction table to look like in order to best serve this community. Again we need innovative thinking, not necessarily creative, not emotional, but logical and fact driven. If we go for incorporation, we may face significant political resistance in Texas by those who feel threatened by full incorporation.
References
1. City of Sweeny - Government defined

Woodlands Payment to Houston - Where is that money going anyway?

These are the projects that we are helping to fund with the capital provided by the recent bond sale and probably with this year's sales tax payment to Houston. I have wondered about these projects ever since we signed the agreement with Houston, so I have done some research to share with you. Chime in if you have additional information to share. I ask myself the question, how will we and the region benefit as a whole from our investments?

You know, there is no guarantee that residents of The Woodlands will benefit in any way from these payments, but to be fair about it, Houston is willing to put our money exclusively into projects that benefit the region's shared use of facilities. You can see the rationale when you peruse the projects below. These are included as part of the infrastructure improvement program of the City of Houston. They are considered to have regional benefit, including Houston proper. In simple terms, for now, our money is targeted to benefit the users of the medical center and major parks. These projects were included in the original agreement between The Woodlands and Houston and have been programmed into Houston's 2009-2014 Capital Improvement Program (CIP). All the project names below are in the Houston Capital Improvement Plan and were included in an attachment to their agreement with us. In 2008, Houston asked the township to approve them in a separate memo, according to the process of the agreement, which we did.

The Agreement with Houston; these are the exact project names in the agreement

1. Herman Park - $200,000
2. Memorial Park Pedestrian Bridge - $500,000
3. Lake Houston Park improvements - $4,500,000
4. Holcolme Reconstruction ² - $3,723,000
5. N McGregor Way Reconstruction - $2,600,000
6. Cambridge Paving - $400,000
7. Bayou Drive - $3,800,000 (apparently a new road)

In addition, there is another project not listed but already underway.

• Hardy Toll Road Extension - $300,000,000 (We expected to contribute $5,000,000 during the project execution. This is a multi-year project, and was targeted for completion in 2011, but more likely in 2012. There is a lot to it, including the permanent closing of streets.⁴

What I have been able to discern from research:

Herman Park
There are several projects underway for this park according to the City of Houston's website.¹ Our money is designated for one particular planned project. Supporting the park is worthwhile to us. Our residents do visit the zoo and other facilities in and around Herman Park and many of their projects do affect our residents, although I would think in a small way. The park's capital improvements over the 2009-2013 plan amount to $2.5 million, with The Woodlands contributing some $700,000 to that plan for 2009-2014 through our initial payments.
Memorial Park
Memorial Park is used extensively in the region, but not likely by most residents of The Woodlands. It is shared regionally. We are not a very big part of the benefactors of this large park. Memorial Park Pedistrian Bridge is found in the Houston capital budget for $4,158,000. We fund $500,000 of that. Ground breaking occurred just recently. The scenic bridge will be covered in greenery and is intended for safe pedestrian passage.
Lake Houston Park
Lake Houston Park Improvements - $4,703,000. Some of us could be users of this 5000 acre park over time. It is the closest to us of all Houston's major parks. It has no frontage to Lake Houston, so there are no boating ramps to or on the lake. There is access to Peach Creek and Caney Creek, both of which empty into Lake Houston just north of Kingwood. It is close enough for a pleasant day trip from here, offering fishing, canoeing, horseback, biking and a nature center. George Mitchell funded the nature center. "The first phase of our development of Lake Houston Park will be an entry gate, roads, visitor center, parking, cabins and more campsites" to be completed in late 2010. This is one of the more interesting projects to me. Lake Houston Wilderness Park is part of Houston's Capital Improvement Project program supporting the Kingwood area. Now you see the story. Kingwood annexation by the City Of Houston was the primary reason we organized to fight annexation. So our payment to not be annexed is in a large part going to help the Kingwood area. How do you like "them apples"? This park became part of the Houston parks system in 2006.^7,8
Holcombe Reconstruction
This medical center project will provide better drainage and traffic flow on Holcombe Avenue. At the beginning of 2009, the project was in phase 3 of 4. At the end of this, the street will be repaved with a better mobility configuration. The last stage will be to improve water transmission to the medical center. 57 trees of 283 will need to be removed, but the project will plant 80 seven-foot trees in their place. ⁵
N MacGregor Way Reconstruction
There is no project by this name in the Houston capital improvement plan. However, there is one named N MacGregor Way Realignment, which is safely assumed to be the one referenced. The Houston Zoo web page shows the two names synonymous. This project was budgeted for 2008 but continues to be a work in progress. It realigns the roadbed with S MacGregor Way to make 10 acres of valuable unused parkland available to the public and also makes the roadbed available for a wide path or riding trail. It has a beautiful archway of trees along both sides of the roadway. This $2.6 million investment is tagged as a mobility project to improve traffic flow to the medical center and Hermann Park.⁶
Cambridge Paving
The capital improvement plan has this as "Cambridge Paving: Holly Hall to IH 610", a $2.1 million dollar project, $400,000 of which is budgeted in 2009 (our payment), to be completed in 2011. Scope is approximately 1,600 feet of Cambridge Street to a four-lane concrete roadway with curbs, sidewalks, street lighting, and necessary underground utilities. This is also a mobility project, to provide less congested access from Loop 610 to Herman Park and the Medical Center. It widens the narrow Cambridge road to four lanes.
Bayou Drive
Tagged as "Bayou Drive: From South Street at Myrtle to Quitman" in the capital improvement plan, this 5.9 million dollar project begins in 2009 and ends in 2010. I was drawing blanks on defining this project until I found myself physically at the Medical Center, where I noticed a sign advertising the project. I will update this article when I find out more. It was a 3.8 million dollar black hole of Woodlands money until I discovered the sign where the road will connect. I could not find this project on Houston's website or any other source. It has to be out in internet-land somewhere.

Hardy Toll Extension
This $300,000,000 project is four miles of railyard, residential area and integration with Elyssian. It is being designed in 2009 and construction should begin in 2009-2010. Houston has tagged $5,000,000 of our dollars for this project, but it is not listed in the regional project list they sent us. This one has high relevance to resident commuters traveling into the Houston downtown area. I may be out of date on this one. Funding seems to be as a toll road, not as a public sector financed road. I am seeking clarification of this as well.

I noted a lack of recognition that The Woodlands is funding some of these projects. I am not sure why, perhaps political.

References:
¹ 2009-2013 Capital Improvement Plan City of Houston, Parks and Recreation, form "E"
² 2002 study "Transportation Master Plan for The Greater Texas Medical Center Area"
³ City of Houston Mobility Capital Projects ⁴ Houston: Hardy toll road extension gets final approval
⁵ Holcombe Blvd with drainage map
⁶ 2007 City Council Notes, p 11-12.
⁷ Kingwood The Observer "CIP meeting in Kingwood discusses future projects", Feb 2009
⁸Lake Houston Wilderness Park - official site