[6. Receive, consider and act upon adoption of the 2026 Consolidated Budget for The Woodlands Township (see attached Exhibit A for the Taxpayer Impact Statement);]

HE DID PUT HIS PHONE ON SILENT, SO WE APPRECIATE THAT. MOVING ON REGULAR AGENDA , RECEIVE AND CONSIDER AND ACT UPON THE ADOPTION OF THE 2076 CONSOLIDATE THE BUDGET FOR THE WOODLAND TOWNSHIP. EXHIBIT A OF THE TAXPAYER IMPACT STATEMENT FOR THE PAGES FOUR THROUGH 21 OF OUR, OF YOUR PACKET. AS REQUIRED BY HB 15 22 -- ON THIS? AS REQUIRED BY HB 1522, THE TAXPAYER IMPACT STATEMENT WAS PROVIDED AS EXHIBIT A AND ATTACHED TO THE AGENDA. PROPOSE THAT THE 2026 CONSOLIDATED BUDGET TO REVIEW THE DISCUSSED BY THE BOARD OF DIRECTORS DURING THE AUGUST 18TH TO 20TH AND 21ST 2025 BOARD BUDGET WORKSHOP MEETINGS. THE ATTACHED BUDGET SUMMARY INCLUDES THE BUDGET INITIATIVE IS APPROVED BY THE BOARD DURING THIS WORKSHOP AND I CALL ON MONIQUE SHARP TO PRESENT. MONIQUE?

>> THANK YOU. THANK YOU. OKAY. GOOD AFTERNOON, BOARD. WE ARE HERE TONIGHT. THIS IS, WE HAVE REACHED THE FINAL STAGES OF THE ADOPTION OF THE BUDGET AND THE TAX RATE. THIS FIRST MEETING WILL BE TO ADOPT THE BUDGET. IT IS REQUIRED BY LAW TO ADOPT THE BUDGET IN ADVANCE OF THE ADOPTING THE TAX RATE. SO WE WILL START WITH THAT. I HAVE JUST A VERY, VERY HIGH-LEVEL OVERVIEW OF THE BUDGET AND WHERE WE ENDED UP AFTER ALL THE DISCUSSIONS. IT HAS BEEN A VERY THOROUGH PROCESS BY THE BOARD OF DIRECTORS. REALLY, JUST AS A REMINDER FOR EVERYONE STARTING BACK IN MAY AT THE STRATEGIC PLANNING SESSIONS, THEN IN JUNE, THE BOARD REVIEWED OPERATING EXPENSES, AND THEN IN JULY, THE BOARD REVIEWED BUDGET INITIATIVES, AND THEN IN AUGUST, WE HAD A SERIES OF THREE MEETINGS WHERE WE WENT IN DETAIL OVER THE BUDGET. SO AGAIN, THIS IS JUST A HIGH-LEVEL OVERVIEW, BUT HAPPY TO ANSWER ANY QUESTIONS. THE DIFFERENT COMPONENTS THAT WERE CONSIDERED BY THE BOARD WITH THE DEVELOPMENT OF THE BUDGET, THESE ARE OUR KEY FACTORS, OUR REVENUE SOURCES, OUR SERVICES AND AMENITIES THAT WE PROVIDE, BOTH OPERATING AND CAPITAL. OUR DEBT POSITION, AND THEN THE TYPES OF RESERVES THAT WE CARRY. ALL OF THOSE HAVE TO BALANCE OUT IN

[00:05:01]

ORDER TO HAVE A COMPLETE BUDGET. HERE'S SOME OF THE BUDGET HIGHLIGHTS AND THE THINGS THAT THE BOARD WAS FOCUSED ON AS WE WENT THROUGH THIS PROCESS. FIRST PRIORITY IS TO MAKE SURE THE BOARD ALWAYS WANTS TO MAKE SURE THAT WE ARE IN A POSITION OF FINANCIAL STRENGTH, AND TO THAT END, THE 2026 BUDGET PROVIDES THE RESOURCES TO MAINTAIN HIGH LEVELS OF SERVICES AND AMENITIES THAT ARE DESIRED BY OUR CITIZENS. BENEFITS FROM STRONG AND DIVERSE REVENUE SOURCES. IT PROVIDES BUDGET FLEXIBILITY, REFLECTS LOW-END DECREASING DEBT BALANCE, AND IMPORTANTLY, MAINTAINS THE POSITIVE CASH FLOWS AND RESERVE BALANCES THAT ARE EVALUATED FAVORABLY BY OUR CREDIT RATING AGENCIES.

REGARDING OUR CREDIT RATING AGENCIES, THE TOWNSHIP HOLDS A BOND RATING OF AA PLUS, WHICH IS THE HIGHEST BOND RATING HELD BY A SPECIAL-PURPOSE DISTRICT IN THE STATE OF TEXAS, AND SOME OF THE COMMENTS THAT OUR AGENCIES MADE IN THE MOST RECENT REPORT, THEY COMMENTED ON THE TOWNSHIP'S STRONG FISCAL MANAGEMENT, OUR HISTORY OF SOUND RESERVES, OUR CONSERVATIVE BUDGETING PRINCIPLES, OUR LARGE AND DIVERSE TAX BASE, AND OUR LOW DEBT AND POSTEMPLOYMENT BENEFITS. SO AGAIN, THESE ARE ALL THE RESULTS OF POLICY DECISIONS THAT HAVE BEEN MADE BY THIS BOARD. JUST AS A REMINDER, FIRST I'M GOING TO START OFF WITH REVENUES, AND IN TERMS OF OUR TOTAL REVENUES, 30% OF THOSE COME FROM PROPERTY TAX, AND THE REMAINING 70% COME FROM NON-PROPERTY TAX RESOURCES. AS WE DISCUSSED IN THE BUDGET, THIS IS VERY UNIQUE TO THE TOWNSHIP. MOST OTHER PUBLIC ENTITIES, LOCAL GOVERNMENTS ACTUALLY HAVE THE COMPLETE OPPOSITE OF THAT, AND YOU CAN SEE THE NOTE DOWN AT THE BOTTOM FOR THE STATE COMPTROLLER LOCAL GOVERNMENT AND TEXAS RAISED ABOUT ONE DOLLAR IN SALES TAX REVENUE FOR EVERY SEVEN DOLLARS AND PROPERTY TAX REVENUE. AND HERE WE ARE GENERATING ALMOST 50% OF OUR REVENUE SOURCES THROUGH SALES TAX INCOME, AND AGAIN, TESTAMENT TO THE BOARD, THE POLICIES THAT YOU HAVE PUT IN PLACE, THE ECONOMIC DEVELOPMENT INITIATIVES THAT YOU PURSUE. ALL OF THAT IS CONTRIBUTING TO THAT SALES TAX BEING AS HIGH AS IT IS. IN TERMS OF OUR REVENUES, THE 2026 BUDGET TOTALS $175 MILLION, AND THERE ARE THE DIFFERENT COMPONENTS TO IT. AGAIN, SALES TAX, PROPERTY TAX, AND HOTEL TAX ARE THE THREE LARGEST COMPONENTS, AND THEN YOU CAN READ ACROSS THE PIE CHART THERE, THE OTHER REVENUE SOURCES. IN TERMS OF EXPENDITURES, THE BUDGET HAS A TOTAL OF $180.4 MILLION. THAT IS A $22.7 MILLION DECREASE IN CONSOLIDATED EXPENDITURES FROM THE PREVIOUS YEAR, AND YOU CAN SEE THE COMPONENTS THERE. ONE OF THE LARGEST REASONS FOR THE DECREASE IS DUE TO A DECREASE IN CAPITAL EXPENDITURES. AGAIN, JUST TO REMIND EVERYBODY, THAT DOESN'T MEAN WE'RE NOT KEEPING UP WITH CAPITAL EXPENDITURES. IT JUST MEANS THAT WE HAD HEAVIER LOAD IN THE PREVIOUS YEAR THAT WE DO LOOKING FORWARD TO '26 OR IN THE CURRENT YEAR COMPARED TO '26. IN TERMS OF OPERATING EXPENSES THAT SHONE DOWN AT THE BOTTOM, A $4.1 MILLION INCREASE, OR 3 1/2%. HERE'S A LOOK AT OUR, OF HOW THAT $180 MILLION IS ALLOCATED AMONGST OUR VARIOUS DEPARTMENTS. WITH PARKS AND REC AND PUBLIC SAFETY BEING THE LARGEST COMPONENT OF OUR EXPENDITURES. AND AGAIN, THAT IS RIGHT IN LINE WITH WHAT WE SEE ON OUR COMMUNITY SURVEYS IN TERMS OF WHAT OUR RESIDENTS REPORT ARE THE MOST IMPORTANT SERVICES FOR THEM. IN 2026, WE DID SPEND A LOT OF TIME FIGURING OUT HOW TO ALLOCATE ADDITIONAL RESOURCES FOR LAW ENFORCEMENT. AND THIS BUDGET DOES MAINTAIN A HIGH LEVEL OF SERVICE FOR LAW ENFORCEMENT BY ENSURING PAY PARITY, WHICH IS NEEDED TO HELP ATTRACT AND RETAIN SKILLED OFFICERS, AND IT ALSO INVESTED IN ADVANCED TECHNOLOGY, SUCH AS BODY CAMERAS, RADAR SYSTEMS, YOU'LL RECALL THAT WE TALKED ABOUT ALL THAT IN ORDER TO ENHANCE THE ACCOUNTABILITY AND EFFICIENCY OF OUR PUBLIC SAFETY PARTNERS. WE ALSO, IN THIS BUDGET, ENHANCED BY TWO DEPUTIES THE LAW ENFORCEMENT PRESENCE IN THE VILLAGE OF CREEKSIDE PARK. THIS IS A LOOK, AGAIN, A REMINDER, WHERE A LOT OF OUR THAT INCREASE THAT WE TALKED ABOUT A SECOND AGO IS GOING TO -- THE LARGEST INCREASE IN OUR BUDGET THIS YEAR WAS RELATED TO LAW ENFORCEMENT AT $2.7 MILLION, OR ABOUT A 15% INCREASE. HERE'S A LOOK AT OUR CAPITAL PROJECT FUNDS. NOT GOING TO GO OVER ALL , OBVIOUSLY ALL OF OUR CAPITAL.

THE IMPORTANT THING TO TAKE AWAY FROM HERE IS THOSE RESERVES WE WERE TALKING ABOUT EARLIER ARE VERY IMPORTANT. IT'S JUST A WONDERFUL THING THAT WE HAVE, AND HARDLY ANY OTHER COMMUNITIES

[00:10:06]

HAVE THAT. BUT BECAUSE OF THE BOARD'S POLICIES REGARDING THE CAPITAL RESERVE, WE WERE ABLE TO FUND 97% OF OUR CAPITAL PROJECTS OUT OF THAT RESERVE. THAT'S IMPORTANT, BECAUSE WE'RE NOT USING CURRENT TAX DOLLARS, AND ALSO IT ALLOWS US TO MAINTAIN ALL OF OUR CAPITAL ASSETS, FIRE DEPARTMENT, PARKS AND REC, OUR TECHNOLOGY INFRASTRUCTURE ON A TIMELY BASIS. AND MOST IMPORTANT, WE DON'T HAVE TO ISSUE BONDS IN ORDER TO BE ABLE TO REPLACE THOSE AND INCUR THE INTEREST EXPENSE THAT'S RELATED TO ISSUING BONDS. HERE'S A LOOK AT OUR OUTSTANDING DEBT BALANCES , GOING ALL THE WAY BACK TO 2016, WE HAVE HAD A $62.4 MILLION, OR AN 80% REDUCTION IN DEBT, AND OUR CURRENT, OR IN 26, OUR DEBT BALANCE WILL BE DOWN TO $15.5 MILLION. AND THEN FINALLY, THE LAST COMPONENT OF THE BUDGET IS OUR RESERVES AND FUND BALANCES, AS I MENTIONED AT THE BEGINNING OF THIS PRESENTATION.

THE CREDIT AGENCIES REALLY FOCUS ON THE RESERVES AND THE AMOUNTS THAT WE'RE CARRYING. WE DON'T HAVE TO WANT TO HAVE EXCESS RESERVES, BUT WE DO WANT TO HAVE ADEQUATE RESERVES IN ORDER TO FUND THE COMMUNITY SO THAT WE DON'T HAVE AN INTERRUPTION IN SERVICES SHOULD SOMETHING OCCUR. THAT'S, AND YOU SEE IT THERE, THE OPERATING RESERVE IS OUR HIGHEST AT $33.8 MILLION, AND OUR CAPITAL REPLACEMENT RESERVE IS NEXT AT $28.7 MILLION. AND WHERE WE END THIS BUDGET, THEN, IS WHERE THE, WHAT YOU CAN SEE DOWN AT THE VERY BOTTOM, WHICH IS OUR UNDESIGNATED FUND BALANCES. GIVEN EVERYTHING THAT THE BOARD DISCUSSED AND DECIDED DURING THE BUDGET PROCESS, WE DID END UP WITH A BALANCED BUDGET. IN TERMS OF ONGOING OPERATIONS, WE HAVE $200,000 LEFT REMAINING UNALLOCATED, AND WE HAVE $2.1 MILLION FOR ONE-TIME PURCHASES SUCH AS CAPITAL OR ANYTHING ELSE LET ME COME UP DURING THE YEAR. SO, AGAIN, THIS REFLECTS A BALANCED BUDGET WHILE STILL BEING ABLE TO PROVIDE THE VERY HIGH LEVEL OF SERVICES AND AMENITIES, AND THE SIGNIFICANT INVESTMENT IN LAW ENFORCEMENT THIS YEAR. SO WITH THAT, I'LL BE GLAD TO ANSWER

ANY QUESTIONS. >> ANY QUESTIONS?

>> DIRECTOR GIBBS IS HERE NOW, SO JUST WANT TO MAKE SURE THE RECORD, WE HAVE A QUORUM. OH, A FULL, A FULL SLATE. ANY

QUESTIONS, COMMENTS, FEEDBACK? >> WELL DONE.

>> THANK YOU. >> YEAH, I SECOND THAT. THANK

YOU. >> THANK YOU VERY MUCH.

>> ALL RIGHT. IF NOT, ANY QUESTIONS OR COMMENTS, I CALL A MOTION OF THE SECOND TO ADOPT THE 2026 CONSOLIDATED BUDGET AS SUMMARIZED IN THE ATTACHED DOCUMENT.

>> SO MOVED. >> MOVED BY DIRECTOR SNYDER.

>> SECOND. >> SECOND BY VICE CHAIRMAN EISSLER. ALL THOSE IN FAVOR, RESPOND BY SAYING

>> AYE.. >> ROLL CALL.

>> ROLL CALLS NOT REQUIRED, IT'S NOT REQUIRED FOR THE BUDGET APPROVAL. IT IS FOR THE TAX REAPPROVAL. IT'S UP TO Y'ALL IF YOU WANT TO, BUT I'M JUST TELLING YOU IT'S NOT

REQUIRED. >> I JUST WANT TO GO AHEAD -- ALL THOSE IN FAVOR, RESPOND BY SAYING

>> AYE. -- >> ALTHOUGH SUPPOSE?

>> NO. >> MOTION CARRIES. WE DO NOT HAVE CLOSED SESSION. AGENDA ITEM 7. AND WE DO NOT NEED TO RECONVENE IN THE PUBLIC SESSION. FUTURE AGENDAS AND ANNOUNCEMENTS. AGENDA ITEM 10. ANY BOARD ANNOUNCEMENTS? IF NOT, I CALL ON A MOTION AND A SECOND TO ADJOURN THE MEETING. IT IS

* This transcript was compiled from uncorrected Closed Captioning.

STANDARD ITEMS

2. REGULAR AGENDA

STANDARD ITEMS

2. REGULAR AGENDA

Sep 04, 2025 Board of Directors Special Meeting to Adopt 2026 Budget

STANDARD ITEMS

2. REGULAR AGENDA

STANDARD ITEMS

2. REGULAR AGENDA

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