[00:00:07] >> WELCOME TO THE WOODLANDS TOWNSHIP PUBLIC HEARING ON OUR PROPOSED TAX RATE. [1. Invocation / Pledge of Allegiance;] WE WILL SKIP THE INVOCATION FOR THIS MEETING. WE HAVE A SPECIAL INVOCATION FOR THE MEETING AT 6:00 AND WE WILL DO THE PLEDGES TO OUR FLAGS. >> I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA. AND TO THE REPUBLIC FOR WHICH IT STANDS, ONE NATION UNDER GOD, INDIVISIBLE WITH LIBERTY AND JUSTICE FOR ALL. WE HONOR THE TEXAS FLAG. I PLEDGE ALLEGIANCE TO THE, TEXAS, ONE STATE UNDERGONE, ONE INDIVISIBLE. I DECLARE THIS TICE OF THE [2. Call meeting to order;] MEETING WAS POSTED 24 HOURS IN IN ADVANCE. STATE LAW REQUIRES AT LEAST FOUR DIRECTORS BE IN ATTENDANCE AND I WILL TAKE THE ROLE OF THE VISIBLY PRESENT. WE DO KNOW TWO OF THEM WILL NOT BE AVAILABLE TODAY. AND WE ARE WAITING. [3. Receive, consider and act upon adoption of the meeting agenda;] WE WILL CONTINUE TO MOVE ON WITH THIS AGENDA AND WE NEED A MOTION TO ADOPT. >> SO MOVED. >> SECOND >> ALL IN FAVOR SAY AYE. WE DON'T HAVE ANYBODY TO SIGN UP ON THE PUBLIC OFFICIALS LIST AND WE ALSO DID NOT HAVE ANYBODY THAT SIGNED UP FOR PUBLIC COMMENT. WE HAVE A PUBLIC HEARING ROSTER. SO WE HAVE A PUBLIC HEARING ROSTER WHICH IS FOR 5:00, PUBLIC HEARING, AND WE HAVE PUBLIC COMMENT. WE HAVE TWO DIFFERENT COMMENT. DURING THIS PUBLIC COMMENT. AND THERE'S ANOTHER ONE FOR 6:00. [6. Receive a presentation on the Proposed 2021 Property Tax Rate;] SO WITHOUT ANYBODY ON REGULAR PUBLIC COMMENT WE WILL GO TO THE REGULAR AGENDA. WE RECEIVE A PRESENTATION OF THE 20/21 PROPOSED TAX RATE. ONIQUE SHARP. >> GOOD AFTERNOON, EVERYONE. THIS IS THE PUBLIC HEARING FOR THE 20/21 TAX RATE WHICH FUNDS THE TOWNSHIP'S 20/22 FISCAL YEAR BUDGET. THERE IS -- THIS IS GOING TO BE MORE HIGH-LEVEL THAN WHAT WE DID DURING THE BUDGET WORKSHOPS FOR THE MEMBERS OF THE AUDIENCE OR ANY VIEWERS THAT ARE INTERESTED, WE HAD A MEETING ON JULY 28 WHERE WE WENT OVER THIS AND QUITE A BIT OF DETAIL, AND THEN WE HAD BUDGET WORKSHOP MEETINGS. THE BOARD HAD THREE BUDGET WORKSHOP MEETINGS THAT STARTED ON AUGUST 16, 17TH, AND 18TH, WHERE AGAIN, THERE WAS A LOT OF DETAIL A DISCUSSION ABOUT THE INDIVIDUAL COMPONENTS. BUT TONIGHT, I WILL GO AHEAD AND AT LEAST GIVE A FAIRLY HIGH- LEVEL OVERVIEW AND BE GLAD TO ANSWER QUESTIONS. SINCE THIS IS THE PUBLIC HEARING, THIS IS PRIMARILY ABOUT THE TAX RATE ITSELF AND NOT ALL OF THE UNDERLYING BUDGET. OF COURSE THE TWO ARE RELATED TO WE WILL TALK ABOUT THEM TOGETHER, BUT I'M GOING TO START OFF WITH THE CERTIFIED TAX RATES. OUR CURRENT TAX RATE FOR THIS YEAR, THAT'S FUNDING THE 20/21 BUDGET IS 22.31 CENTS PER $100 OF TAXABLE VALUE. THE CERTIFIED RATE FOR THIS YEAR, FOR THEY 20/21 TAX YEAR, 20/22 BUDGET IS 21.69 PER $100 IN TAXABLE VALUE AND THEN THE PVOTER APPROVAL RATE IS 23.14. THE PROPOSED RATE FROM THE BOARD OF DIRECTORS AT THE CONCLUSION OF YOUR BUDGET WORKSHOPS WAS MAINTAINING THE CURRENT RATE AT 22.31. AND THEN YOU CAN SEE AT THE BOTTOM THERE THAT THOSE ARE THE COMPONENTS, THE MAINTENANCE AND OPERATIONS, FUNDS GENERAL OPERATIONS, AND ANY DEBT SERVICE TAX RATE IS SPECIFICALLY FOR THE SERVICE ON OUR GENERAL OBLIGATION BONDS. TO PUT THE REVENUE RATE IN PERSPECTIVE FROM WHERE WE ARE TODAY AND WHAT WAS PROPOSED AT THE CURRENT TAX RATE OF 1 TO 231 AND THE DIFFERENCE IS YOU CAN SEE THERE LESS THAN ONE [00:05:04] PENNY, ABOUT .62 OF A PENNY. AND SO WHAT THAT WOULD MEAN WOULD BE AN ANIMAL REDUCTION ON AN AVERAGE VALUE HOME ABOUT $28.46 AND A MONTHLY REDUCTION OF 237. SO HERE'S A LOOK AT OUR PROPERTY TAX RATE STARTING AT THE COMMUNITY ASSOCIATIONS BEFORE WE BECAME A TOWNSHIP. WE HAD A COMPOSITE RATE OF $0.42, AND THEN YOU CAN SEE THERE OVER TIME WITH THE DECREASES HAVE BEEN.OVERALL DECREASE OF 47 PERCENT SINCE THE INCEPTION OF THE TOWNSHIP. THE DEBT. OF TIME WHEN THERE WAS RAPID DECLINE IN THE TAX RATE, THERE WAS CORRESPONDING SIGNIFICANT INCREASES IN SALES TAX REVENUE. THIS IS WHEN THE DEVELOPMENT OF MARKET STREET -- TOWNCENTER, HE IS LANDING, THE VILLAGE OF CREEKSIDE PARK, FINISHING OUT THE STERLING RIDGE AREA, ALL OF THAT WAS GOING ON AT THE SAME TIME AND GENERATING A BUNCH OF ADDITIONAL NON-PROPERTY TAX REVENUE THAT WE COULD USE TO OFFSET THE PROPERTY TAX RATE, AND THAT'S WHAT YOU SEE REFLECTED HERE IN THE PAST FIVE OR SIX YEARS, WE ARE REACHING CLOSER TO BUILDOUT, AND WE DON'T HAVE THAT MASSIVE GROWTH. WE DO STILL HAVE COMMERCIAL AND RESIDENTIAL RATES BUT NOTHING LIKE WHAT WE SAW AT THE BEGINNING OF THIS TIME PERIOD. SO OUR TAXABLE PROPERTY VALUES FOR 20/22 WORD $21.7 BILLION SO THAT WAS AN INCREASE FROM 2021 OF 21.1 BILLION. IN TOTAL, INCREASED 3.4 PERCENT, THE VALUES ABOUT 2.3 OF THAT WAS DUE TO THE REVALUATION OF EXISTING PROPERTIES AND THAT ABOUT 1.1 PERCENT OF THAT WAS DUE TO NEW PROPERTIES ADDED TO THE ROLE. WHAT THAT TRANSLATES TO WHEN YOU APPLY THE 22.31 RATE TO THE TAXABLE VALUES IS A 2022 BUDGET -- PROPERTY TAX REVENUES OF $48.6 MILLION. SO NOW I'M GOING TO MOVE INTO THE CONSOLIDATED BUDGET. AND JUST AS A REMINDER, THE NUMBERS WE WILL LOOK AT HERE INCLUDE ALL OF OUR DIFFERENT FUNDS, THE GENERAL FUND BEING THE PRIMARY ONE. BUT THESE NUMBERS INCLUDE OUR PCAPITAL PROJECTS FUNDS, THE DEBT SERVICE, OUR SPECIAL REVENUE FUND, WHICH IS OUR ECONOMIC DEVELOPMENT ZONE, VISIT THE WOODLANDS AND OUR TRANSPORTATION FUND. WHAT WE HAVE BUDGETED PROJECTED FOR OUR 2022 BUDGET IS $132.8 MILLION IN REVENUES AND THEN ON THE RIGHT-HAND SIDE OF THE CHART, YOU CAN SEE HOW BACK 132 MILLION WOULD BE DISTRIBUTED AMONGST OUR USES OF FUNDS, WHICH IS OUR OPERATING EXPENSES, OUR RESERVES, OUR DEBT PAYMENTS, OUR CAPITAL EXPENDITURES, AND THEN OUR UNDESIGNATED FUND OF 884, THE UNDESIGNATED FUND IS WHAT IS REMAINING AFTER ALL OF OUR OTHER CASH REQUIREMENTS HAVE BEEN MET. WE WILL TALK A LITTLE BIT ABOUT THAT HERE IN A SECOND. SO FIRST, I'M GOING TO LOOK AT OUR REVENUE SOURCES. IN TOTAL, 132.8 MILLION AND THAT'S A 5.4 MILLION OR 4.3 PERCENT INCREASE FROM THE PREVIOUS YEAR. THIS IS A LOOK OF OUR REVENUE SOURCES, SALES, AND USE TAX AND HOTEL TAX. TOGETHER, THEY MAKE UP ALMOST 50 PERCENT OF OUR BUDGET, AND THEN THOSE PROPERTY TAX -- I'M NOT GOING TO READ ALL OF THE DIFFERENT THINGS, BUT OBVIOUSLY, SALES TAX AND PROPERTY TAX MAKE UP THE MAJORITY OF OUR BUDGET. SO YOU CAN SEE THEIR SALES TAX AND HOTEL TAX MAKES UP ABOUT 50 PERCENT OF OUR BUDGET AND PROPERTY TAX MAKES UP ABOUT 37 PERCENT AND THAT'S UNIQUE FOR A COMMUNITY OUR SIZE AND AS YOU CAN SEE THE NOTE AT THE BOTTOM ACCORDING TO THE STATE COMPTROLLER RECORDS LOCAL GOVERNMENTS RAISE ABOUT ONE DOLLAR IN SALES TAX REVENUE FOR EVERY SEVEN DOLLARS IN PROPERTY TAX REVENUE, AND WE ARE OBVIOUSLY SIGNIFICANTLY DIFFERENT THAN THAT STATISTIC. HERE'S A LOOK AT OUR SALES AND USE TAX REVENUES PICK WE ARE PROJECTING $57.9 MILLION FOR 2022. YOU CAN SEE IN 2020, WE HAD THE IMPACT OF THE PANDEMIC AFFECTING US THEY ARE, BUT WE HAVE COME BACK VERY STRONG IN 2021. WE ARE EXCEEDING OUR BUDGET FOR 2021, AND I ACTUALLY BELIEVE BASED ON THE CURRENT NUMBERS THAT WE HAVE THAT WE WILL EXCEED WHAT IS SHOWING UP THERE FOR OUR 2021 FORECAST. WE HAVE FACTORED IN A THREE PERCENT GROWTH FACTOR BETWEEN 2021 AND 2022. AGAIN, THAT WILL BE ON THE CONSERVATIVE SIDE, I BELIEVE, BASED ON THE NUMBERS WE ARE SEEING AND THE TRENDS WE'RE SEEING. IN TERMS OF OUR HOTEL TAX REVENUES, WE ARE BUDGETING $7.3 MILLION FOR 2022. THAT IS AN INCREASE OVER THE 2021 FORECAST OF $5.8 MILLION. WE HAD HOTEL TAX NOT JUST FOR THE TOWNSHIP BUT NATIONWIDE, IS [00:10:04] BOUNCING BACK AT A SLOWER PACE THAN SALES TAX REVENUES, BUT OUR HOTE TAX IS SUFFICIENT ENOUGH TO FUND ALL OF OUR DEBT SERVICE ON OUR REVENUE BONDS AND ALL OF THE OPERATING EXPENSES OF VISIT THE WOODLANDS PEERED SO ANYTHING THAT WE DON'T HAVE THERE THAT DOES NOT MEET BUDGET OR ISN'T AS HIGH AS PREVIOUS YEARS JUST FLOWS INTO A RESERVE AT THIS POINT. SO IT'S NOT AFFECTING OUR OPERATIONS OR OUR CASH FLOW. I WILL MOVE TO EXPENDITURES. IN TOTAL, EXPENDITURES ARE $132.3 MILLION. THAT'S A $1.6 MILLION OR A 1.2 PERCENT DECREASE FROM THE PREVIOUS YEAR. THAT 1.6 NUMBER IS MADE UP OF SEVERAL DIFFERENT COMPONENTS. WE DID HAVE ABOUT $82.7 MILLION DECREASE IN CAPITAL EXPENDITURES, WHICH WAS PARTIALLY OFFSET BY ABOUT 81.1 MILLION INCREASE IN OPERATING EXPENSES. IN TOTAL, OUR OPERATING EXPENSES ONLY INCREASED BY .8 PERCENT.SO LESS THAN ONE PERCENT. HERE IS A LOOK BY DEPARTMENT OF OUR OPERATING EXPENSE -- TOTAL EXPENDITURES OF $132 MILLION. FIRE DEPARTMENT, PARKS AND RECREATION, COMMUNITY SERVICES AND LAW ENFORCEMENT ARE THE LARGEST COMPONENT. TOGETHER, THOSE FOUR MAKE UP ALMOST 75 PERCENT OF THE BUDGET. JUSTIN COMMUNITY SERVICES, JUST FOR THOSE THAT ARE NOT AWARE, THAT INCLUDES OUR MAJOR CONTRACTS, SO SCOTT STREETSCAPE MAINTENANCE, STREET LIGHTING, SOLID WASTE CONTRACT ADMINISTRATION IS IN THERE. THAT WHY THAT PIECE OF THE PIE IS SO BIG PEERED THERE'S A LOT OF MAJOR CONTRACTS IN THERE. THIS IS A LOOK OF THE $1.6 MILLION DECREASE IN A REFERENCED WHAT IS MAKING UP COMPONENTS. THE BIGGEST INCREASE AS LAW ENFORCEMENT AND THAT IS FOR OUR CONTRACTED STAFF AND EQUIPMENT. IN VEHICLES ARE MAKING UP THAT PART OF IT. PARKS AND RECREATION -- I'M GOING TO READ ALL OF THESE BUT PARKS AND RECREATION, WE WENT OVER THIS IN GREAT DETAIL DURING OUR BUDGET WORKSHOPS, BUT A LOT OF FAT INCREASES WE HAVE BROUGHT ON NEW STAFF, BUT YOU SEE THERE IS A DECREASE AND YOU CAN SEE IN THE COMMUNITY SERVICES DECREASE, THAT IS BECAUSE WE HAVE LOWERED THE STREETSCAPE MAINTENANCE CONTRACT, WHAT WE HAVE DONE IS BROUGHT SOME STUFF IN HOUSE WHERE IT MADE SENSE TO DO SO INSTEAD OF CONTRACTING IT. AND BY DOING THAT, WE HAVE ENHANCED SERVICE LEVELS WHILE DECREASING THE OVERALL COST OF THAT CONTRACT BY ABOUT $470,000. FOR OUR CAPITAL PROJECTS, THEY TOTAL $12.2 MILLION, AND YOU CAN SEE THE DIFFERENT COMPONENTS BY DEPARTMENT OF WHAT'S MAKING THAT UP. WHAT'S IMPORTANT TO KNOW ABOUT THE CAPITAL PROJECTS IS THAT BECAUSE OF THE RESERVES THAT ARE ESTABLISHED BY THE BOARD AND THE POLICY OF FUNDING THE CAPITAL REPLACEMENT RESERVE ON AN ANNUAL BASIS, ALMOST ALL OF OUR CAPITAL PURCHASES ARE FUNDED FROM THAT RESERVE INSTEAD OF WITH CURRENT YEAR TAX DOLLARS. AND THE REASON THAT'S IMPORTANT IS BECAUSE -- FOR SEVERAL DIFFERENT REASONS PEERED ONE, IT MEANS WE ALWAYS HAVE A FUNDING SOURCE AVAILABLE TO MAKE SURE THAT THE CAPITAL REPLACEMENTS AND REPAIRS OF THE MANY ASSETS THIS COMMUNITY HAS OVER $350 MILLION IN ASSETS -- CAN BE REPAIRED OR REPLACED ON A TIMELY BASIS. THIS RESERVE IS ALSO VERY SIGNIFICANT IN TERMS OF THEIR CREDIT RATING. THE CREDIT AGENCIES -- THIS IS ONE OF OUR RESERVES ALONG WITH THE OPERATING RESERVE -- THAT THEY ANALYZE AND THEY MONITOR CLOSELY. AGAIN, THIS IS UNIQUE TO COMMUNITIES OF OUR SIZE TO BE ABLE TO HAVE A RESERVE THAT FUNDS CAPITAL. IN TERMS OF OUR DEBT PROFILE, I JUST MENTIONED OUR CREDIT RATING AGENCIES THE TOWNSHIP DID RECEIVE AN UPGRADE TO AA PLUS BOOK BOND RATING FROM STANDARD & POOR'S, THAT'S ONE LEVEL LESS THAN A AAA RATING AND A AA PLUS IS ACTUALLY THE HIGHEST RATING IN SPECIAL-PURPOSE DISTRICT, WHICH THE TOWNSHIP IS, AND THE STATE OF TEXAS HAS RECEIVED. THERE'S NO OTHER NON-INCORPORATED COMMUNITIES THAT HAVE A AAA RATING. SO WE HAVE ACHIEVED THE HIGHEST. AND WE MAINTAIN A AA BOND RATING FROM MACY'S AND YOU CAN SEE WHAT THE RATING AGENCIES COMMENT ON IS THE TOWNSHIP STRONG FISCAL MANAGEMENT, OUR HELPING FUND BALANCES AND LIQUIDITY AND LARGE AND DIVERSE TAX BASE AND LOW DEBT BURDENS. IN TOTAL, OUR ANNUAL -- [00:15:16] OUTSTANDING DEBT IS $39.8 MILLION, MADE UP OF THOSE TWO ISSUANCES RIGHT THERE. ONE FOR THE CONVENTION CENTER AND THEN OTHERS WERE PARKS AND RECOMMEND FIRE DEPARTMENT. BOTH OF THESE HAVE BEEN REFINANCED BY THE BOARD OF DIRECTORS OVER THE PAST FOUR OR FIVE YEARS AND HAVE SAVED ANNUAL DEBT SERVICE PAYMENTS OF ABOUT $1.3 MILLION TOTAL BY DOING THAT, BY DOING THOSE REFUNDINGS. HERE IS A LOOK AT OUR OUTSTANDING DEBT OVER TIME SO YOU CAN SEE FROM 2013 THROUGH PRESENT, WE HAVE HAD A $73 MILLION OR 65 PERCENT REDUCTION IN DEBT. THIS IS A LOOK AT OUR FUND BALANCES PEERED SO FUND BALANCES ARE AFTER WE TAKE INTO ACCOUNT EVERYTHING WE JUST TALKED ABOUT. SO AFTER WE TAKE OUR REVENUES AND WE FUND OUR OPERATING EXPENSES AND OUR CAPITAL AND OUR DEBT SERVICE PAYMENTS, WHAT WE ARE LEFT WITH OUR FUND BALANCES: WE DO MAKE ANNUAL ALLOCATIONS TO TWO OF THOSE. WHICH ARE THE CAPITAL REPLACEMENT RESERVE AND THE OPERATING RESERVE. AS I MENTIONED, THOSE OF THE TWO PRIMARY RESERVES THAT ARE LOOKED AT AND AREFULLY MONITORED BY THE CREDIT AGENCIES AND SO THE TOWNSHIP HAS THE DATE THE BOARD HAS ESTABLISHED SPECIFIC PARAMETERS AROUND THOSE THE CAPITAL REPLACEMENT RESERVE IS MAINTAINED AT A MINIMUM OF THE RECOMMENDED BALANCE FROM THE RESERVE STUDY THAT WAS CONDUCTE BY A THIRD PARTY AND THEN THEY OPERATING RESERVE IS MAINTAINED BETWEEN 20 AND 25 PERCENT OF GENERAL FUND OPERATING EXPENDITURES. SO THAT IS THE STANDARD THAT IS EXPECTED BY THE COMMUNITY LIKE OURS. THE INCORPORATION RESERVE DOES HAVE A $20 MILLION BALANCE AND IT. I WANT TO POINT OUT THIS RESERVE WAS NOT FUNDED BY ANNUAL TAX ALLOCATIONS. THIS RESERVE WAS FUNDED SPECIFICALLY BY SAVINGS THAT WE HAD IN THE BUDGET. SO WE HAD FAVORABLE BUDGET VARIANCES OVER A NUMBER OF YEARS AND THE BOARD ALLOCATED -- WHEN YOU HAVE THOSE FAVORABLE VARIANCES, WHAT YOU CAN USE THEM FOR IS ONE-TIME EXPENSES, BECAUSE THEY ARE NOT ONGOING REVENUES. IT'S A SAVINGS THAT HAPPENED IN ONE YEAR. AND ANY TYPE OF ONGOING OPERATING EXPENSES, THIS COURT HAS A POLICY BECAUSE IT BEST PRACTICE, AND AGAIN, IT'S WHAT THE CREDIT AGENCIES WANT -- AS YOU WOULD HAVE ONGOING REVENUE SOURCES TO SUPPORT THOSE EXPENSES. SO ONE OF THE GOOD USES OF FAVORABLE VARIANCES OTHER THAN TO PAY DOWN DEBT, WHICH THIS BOARD HAS PAY DOWN DEBT WHEN THE OPPORTUNITIES HAVE PRESENTED THEMSELVES AND YOU JUST SAW THAT ON A PREVIOUS SLIDE, BUT ANOTHER ONE IS TO MAKE ALLOCATIONS TO RESERVES. HERE ARE OUR OTHER RESERVES. THESE ARE LITTLE BIT LESS IN TERMS OF THE AMOUNTS OF MONEY ON THEM, BUT STILL IMPORTANT TO THE TOWNSHIP. SO WE HAVE SOME THAT ARE LEGALLY OR ACTUARIALLY REQUIRED. SOME OF THESE ARE RESTRICTED FOR SPECIAL PURPOSES LIKE OUR CULTURAL EDUCATION RESERVE IS FUNDED BY THE 10 PERCENT OF A SUBMISSION TAX THAT THE TOWNSHIP RETAINS. OUR DEBT SERVICE FUNDS ARE REQUIRED BY BOND COVENANTS ON OUR OUTSTANDING BONDS. OUR HOTEL TAX RESERVE IS WHEN I MENTIONED A SECOND AGO TO THE EXTENT THAT WE DO NOT NEED FUNDS IN ORDER TO PAY FOR DEBT SERVICE OR TO FUND VISIT THE WOODLANDS EXPENSES. THOSE FUNDS ARE RESERVED. HISTORICALLY, THE BOARD HAS AT TIMES TAKEN THE FUNDS IN THERE AND ALLOCATED THEM TO, FOR INSTANCE, THE OPERATING RESERVE AND THE CAPITAL REPLACEMENT RESERVE. THEY DON'T ALWAYS SIT IN THERE THEY DON'T HAVE A PURPOSE. THE BOARD IS PURPOSELY MONITORING THOSE FUND BALANCES AND DISTRIBUTED THEM TO OTHER FUNDS AS THEY BELIEVE BEST. AND THEN OUR CAPITAL CONTINGENCY RESERVE DURING THE BUDGET WORKSHOPS, THE BOARD DID MAKE THE DECISION TO ALLOCATE THAT TO THE TRANSPORTATION FUND IN 2022 IN ORDER TO HAVE FUNDING AVAILABLE TO PARTICIPATE IN THE COST OF THE SPRING GREENWAY TRAILS. AND YOU SORT OF SEE THAT REFLECTED RIGHT THERE IN TERMS OF AVAILABLE BALANCES. THAT'S $5 MILLION. THE ESTIMATE OF THE TOWNSHIP'S PARTICIPATION IN THAT PROJECT, SO WE DO HAVE THOSE FUNDS AVAILABLE. AND WITH THAT, I WILL CONCLUDE MY PRESENTATION AND BE GLAD TO ANSWER ANY QUESTIONS.> ANY QUESTIONS FROM THE BOARD? >> MONIQUE, IF I MAY, THE 65 PERCENT REDUCTION IN DEBT, [00:20:05] 112.5 TO 39.8, TELL ME THE YEAR THAT THE 112 -- WAS IT 2010? >> SORRY. CAN YOU REPEAT THAT? >> THE 65 PERCENT -- OH. MY COLLEAGUE HERE -- THE DEBT. IT WAS 2013. THANK YOU. >> YOU'RE WELCOME. >> ALL RIGHT. IF THERE IS NO OTHER QUESTIONS FROM THE BOARD -- >> SO IF THERE ARE NO OTHER QUESTIONS FOR MONIQUE, WE WILL TAKE A MOTION AND A SECOND TO ACCEPT THE PRESENTATION. >> MOVED TO ACCEPT >> ALL RIGHT. I HAVE A MOTION AND A SECOND. [7. PUBLIC HEARING on the Proposed 2021 Property Tax Rate;] THE REGULAR BOARD OF DIRECTORS MEETING, AND WE ARE GOING TO CONVENE A PUBLIC HEARING ON THE PROPOSED DUE 21 PROPERTY TAX RATE, AND WE DO HAVE A PUBLIC COMMENT ROSTER, AND WE WILL START WITH CLAUDE HUNTER. >> I APOLOGIZE FOR NOT UNDERSTANDING. I AM CLAUDE HUNTER, AND FIRST, ANY OF THE REMARKS I MAKE ARE NOT IN ANY WAY AGAINST THE STAFF. WE HAVE A FABULOUS STAFF. AND THEY'VE ALWAYS BEEN A REAL ASSET. I DO WANT TO REMIND YOU, THOUGH, THAT THE DIFFERENCE IS REAL BECAUSE YOUR PREDECESSORS AND IN THE COMMUNITY ASSOCIATIONS, WE DIDN'T STRIVE TO MAINTAIN A SIMILAR OR A CLOSE TO WHAT IT WAS BEFORE. WE WORKED TO TRY TO LOWER RATES. AND THE BIG THING THAT HAS AFFECTED IT IS REGARDLESS OF HOW YOU TAKE IT AND HOW YOU PUT IT, WHETHER IT'S EXCESS MONEY OR WHATEVER, SOME ROUGHLY -- I HOPE I'M NOT WRONG -- BUT TO DO SOMETHING THAT THE VOTERS HAVE NOT ASKED FOR AND NOT REQUESTED IS NOT IN THE INFORMATION THAT IS GIVEN IN THE SURVEYS THAT WE PAY FOR, AND THINGS ARE BEING MISSED. AND AS A SPECIFIC EXAMPLE, PUBLIC SAFETY, ONE OF THE THINGS THE INCAS ON THE PATHWAY AND STOP SIGNS AND MILDEW, THE RESIDENTS HAVE TO KEEP THE FRONT OF THEIR HOUSE AND ALL OF THEIR PROPERTY CLEAR OF MILDEW AND YOU CAN HARDLY READ SOME OF THESE STOP SIGNS ON OUR PATHWAY BECAUSE OF MILDEW AND HEAVY MILDEW.ND THE BOTTOM LINE IS YOU CANNOT BREATHE -- READ ANY OF THE PAVEMENT SIGNS WE FORMERLY HAD BEFORE THIS BOARD CHAIR AND THE BOARD WAS REPLACED PREVIOUS. AND I THINK THE KEY THING IS THIS: I AM ALL FOR KEEPING A LOW BUDGET, BUT I EXPECT THAT INSTEAD OF FINDING A PLACE TO THROW AWAY $14 MILLION, YOU MAKE A REDUCTION AND KEEP IT LOWER BECAUSE GUESS WHAT? WE HAVE A NUMBER -- WE HAVE TWO VILLAGES THAT HAVE NO STORE. HOW HARD ARE YOU WORKING TO GET THOSE ANCHOR STORES FILLED? WE HAVE AN UPPER FLOOR OF OUR MALL THAT IS NOT GATHERING ANY SALES TAX REVENUE. IT'S A PRIVATE MATTER FOR A MEMBER OF OUR BOARD. THIS MAKES NO SENSE TO TRYING TO MAKE US A BEST PLACE FOR A LONG TIME. AND IN MY PRIVATE INDUSTRY, I CLEARLY LEARNED SOME JAPANESE PHILOSOPHIES THAT SAYS IF YOU ARE NOT CONTINUING TO IMPROVE, YOU WILL GET BEHIND BECAUSE SIMPLY BEING NUMBER ONE IS ONLY TEMPORARY. YOU HAVE TO CONTINUE TO IMPROVE. AND IF YOU WANT TO SEE SOME EXAMPLES OF ROTTEN STOP SIGN POSTS, I'LL BE GLAD TO GIVE YOU A TOUR OF THEM. THOSE ARE JUST SOME EXAMPLES. THIS INCORPORATION STUDY IS SO FLAWED. LET'S SEE A SHOW OF HANDS. HOW MANY OF YOU HAVE EVER BEEN TO TML. >> I'M SORRY. SIR, THIS IS NOT A DIALOGUE. PIT'S A PUBLIC HEARING. IT'S A PUBLIC HEARING AS OPPOSED TO PUBLIC COMMENT SO IS SPECIFICALLY ON THE TAX RATE. LEX OKAY. I AM ON TAX RATE. I AM ON THE TAX RATE. IN THE BOTTOM LINE IS, IN MY OPINION, WHEN YOU HIRE A CONSULTANT, THE FIRST THING YOU DO IS YOU LOOK FOR WHAT YOU HAVE WITHIN THE COMMUNITY BECAUSE THAT'S YOUR CHEAPEST AND THE BEST BECAUSE YOU LOOK AT A CONSULTANT AND SEE WHAT THEIR TAX RATE IS, SEE WHAT THEIR CRIME RATE IS AND I WILL GUARANTEE YOU THAT OURS IS [00:25:13] BETTER THAN CINCINNATI, OHIO. THAT'S WHAT YOU NEED TO LOOK AT BEFORE YOU CHOOSE A CONSULTANT. THANK YOU. >> THANK YOU, MR. HUNTER. NEXT UP IS KENT MAGGART. >> IT LOOKS LIKE WE HAVE A SHORT CROWD TONIGHT, BUT I'VE BEEN HERE ABOUT SIX OR SEVEN MEETINGS IN A ROW WE TALKED ABOUT INCORPORATION IN THE TAX RATE, AND I CALL IT THE FRIDAY NIGHT MIRACLE ABOUT THREE WEEKS AGO WHEN THEY DISCOVERED A SPARE $13 MILLION, AND ORIGINALLY, OUR CONSULTANT SAID WE WERE GOING TO HAVE TO RAISE OUR TAX RATE 6.22 CENTS. IN ADDITION ABOVE THE CURRENT TAX RATE TO FUND THE INCORPORATION. AND THREE WEEKS AGO, THEY FOUND $13 MILLION, AND IT JUST HAPPENED TO BE EQUAL TO 6.22 CENTS. SO THE TAX RATE THAT THEY CAME OPERA WITH IS THE SAME AS LAST YEAR. WE HAVE $13 MILLION IN NEW REVENUE. I ASKED MR. NELSON, WHO I SEE ISN'T HEAR THE LAST MEETING. I SAID, WOULDN'T THE LOGICAL EXTENSION OF THAT BE IF WE DON'T INCORPORATE, WHICH IS ON HERE, WOULDN'T WE BE ABLE TO TAKE A 6.22 CENT REDUCTION IN OUR TAX RATE? BIOLOGICAL? BUT ON THIS PROPAGANDA PIECE, WHICH I REALLY LIKED BECAUSE I'M GOING TO FILL IT UP WITH NUMBERS EVENTUALLY, THEY'VE GOT THE TAX RATE STATUS QUO. NO INCORPORATION, THE SAME 22.31 CENTS. SO I ASKED MR. NELSON, AND MAYBE I WILL ASK MR. MILNER, YOU'VE HAD SIX DAYS TO FORMULATE AN ANSWER. CAN YOU TELL ME IF WE DON'T INCORPORATE, WILL WE BE ABLE TO REDUCE THE TAX RATE 6.22 CENTS? NOT ONLY NEXT YEAR, BUT THE NEXT YEAR AND THE NEXT YEAR. NOW, UNDERSTAND AUTHORITY GOING TO BE IN THE TAX BASE BUT MAYBE YOU CAN SEND EVERYBODY A CHECK. I WILL SEE YOU AT 6:00. >> THANK YOU, MR. MAGGART. IS THERE ANYONE ELSE WHO WOULD LIKE TO SPEAK THAT MISSED THE SIGN-UP SHEET? OKAY. IF THERE IS NOT, THEN WE WILL CLOSE THE PUBLIC HEARING -- PUBLIC COMMENT PERIOD AND RECONVENE THE REGULAR BOARD PUBLIC HEARING AGENDA. [8. Recess to Executive Session to discuss matters relating to real property pursuant to §551.072, Texas Government Code; deliberation of economic development negotiations pursuant to §551.087, Texas Government Code; discuss personnel matters pursuant to §551.074, Texas Government Code; discuss IT network or critical infrastructure security pursuant to §551.089, Texas Government Code; and to consult with The Woodlands Township’s attorney pursuant to §551.071, Texas Government Code;] AND WE CAN RECESS TO EXECUTIVE SESSION TO DISCUSS MATTERS RELATED TO REAL PROPERTY TAXES GOVERNMENT CODE THE LIBERATION OF ECONOMIC DEVELOPMENT GO SO ASIANS PURSUANT TO 551.01 TO DISCUSS PERSONAL MATTERS OR CRITICAL INFRASTRUCTURE PURSUANT TO FIVE BY 551.071. WE ARE [9. Reconvene in public session;] >> OKAY. WE ARE RECONVENING FROM EXECUTIVE SESSION. THERE IS NO ACTION TAKEN FROM THE EXECUTIVE SESSION. WE HAVE ONE ANNOUNCEMENT THAT WE WANT TO HAVE MADE PRIOR TO CLOSING OUT THIS MEETING, DIRECTOR SCHNEIDER. >> THANK YOU, BUTCH. MR. HUNTER, IF YOU WOULD PLEASE STAND. CLAUDE? WE WANT TO RECOGNIZE YOU. MR. HUNTER, YOU HAVE BEEN INTEGRAL IN THE SUCCESS OF THE ALLMAN BRIDGE RDRC. AFTER SERVING 24 YEARS WITH THE ALDEN BRIDGE RDRC, IT IS OUR UNDERSTANDING THAT YOU ARE RETIRING. WE THANK YOU FOR YOUR COMMITMENT AND DEDICATION AND APPLAUD YOU FOR YOUR LONG TIME SERVICE TO THIS WONDERFUL COMMUNITY. WE THANK YOU. [00:30:11] >> IF YOU DON'T KNOW, IT IS ONE OF THOSE JOBS THAT IS VERY DIFFICULT AND HARD TO GET PEOPLE TO VOLUNTEER FOR SO CLAUDE, THANK YOU FOR YOUR MULTIPLE DECADES OF SERVICE TO OUR COMMUNITY. WITH THAT, WE'LL TAKE A MOTION TO ADJOURN. >> SO MOVED. >> SECOND. >> ALL IN FAVOR SAY AYE. >> AYE. * This transcript was compiled from uncorrected Closed Captioning.