Government
BY ANGELA BONILLA & NICHAELA SHAHEEN
Tax rates for the next fiscal year in Montgomery County, The Woodlands and Oak Ridge North are slated to decrease from the previous year, but will still exceed the no-new-revenue rates for FY 2025-26. Shenandoah will see an increase in FY 2025-26. The Montgomery County Commissioners Court adopted a balanced fiscal year 2025- 26 budget and set a property tax rate of $0.3770 per $100 valuation during a special meeting Sept. 5. The adopted tax rate is slightly below the previously proposed $0.3779 per $100 valuation rate, but is 2.09% higher than the no-new-revenue rate, which would raise the same amount of property tax revenue as the previous year. The adopted balanced budget totals $508.1 million with allocations for additional staffing across departments; law enforcement pay; expanded IT and cybersecurity funding; jail inmate medical and food services; and a contribution of nearly $5.4 million to the county’s capital improvement plan, Budget Officer Amanda Carter said. A last-minute adjustment added $850,000 in expected revenue that had been excluded in earlier drafts. The court opted to apply most of the money to lower the tax rate, with about $74,757 added to its contingency fund, Carter said. Tammy McRae, Montgomery County’s tax assessor-collector, said the county has several unique budget challenges, pointing to its 79% unincorporated population, which requires the county to provide more direct services than many urban counties. 3 local tax rates to decrease
The Woodlands
The Woodlands FY 2026 revenue Sales & use tax: $81.6M Property tax: $51.97M Other: $29.34M
The Woodlands Township board of directors also approved its fiscal year 2026 budget in a 6-1 vote at a Sept. 4 meeting. Board member Shelley Sekula-Gibbs cast the dissenting vote. What to know On Sept. 4, township President and CEO Monique Sharp outlined the preliminary budget for FY 2026 with a revenue of $175.1 million. The Woodlands’ fiscal year runs from January to December. In addition to increases in law enforcement costs, the budget also slates $13 million for capital projects in departments such as parks and recreation and the fire department. However, expenditures overall are $22.7 million lower than the previous year because of completed capital projects and other factors, she said.
Total: $175.11M
Hotel tax: $10.72M Mixed beverage tax: $1.49M
SOURCE: THE WOODLANDS TOWNSHIP/COMMUNITY IMPACT
The approved tax rate consists of a debt ser- vice rate of $0.0102 per $100 valuation and the maintenance and operations rate of $0.1612 per $100 valuation. The combined tax rate is $0.1714 per $100 of taxable value, the same rate as the previous year, which is above the no-new-revenue rate of $0.1603 per $100 valuation. Sharp said the majority of the township’s revenue comes from sales tax, and only 30% of its revenue comes from property tax.
Shenandoah
The city of Shenandoah approved its FY 2025-26 tax rate on Sept. 10 at $0.1821 per $100 valuation, which was below the $0.2021 per $100 valuation originally proposed at the meeting. Shenandoah Finance Director Lisa Wasner said on Sept. 10 the city is budgeting about $383,000 for police salaries in FY 2025-26, among other factors. “We’re going to have to ... look for any cost-sav- ing measures we can with some contracts and other things,” Wasner said. Several residents spoke out against the increase at the meeting.
Shenandoah tax rate per $100 valuation
No-new revenue rate: $0.1300 FY 2024-25: $0.1421 FY 2025-26: $0.1821 Voter-approval rate: $0.2036
SHENANDOAH/COMMUNITY IMPACT
“This proposed tax hike would wipe out many of the benefits that we should be getting with these new state laws that are aimed at reducing property tax,” Esther Lum said.
Oak Ridge North
Montgomery County tax impact
Tax rate per $100 valuation
“The rate is different, but we’re only collecting the same amount [and] we’re not increasing our level of revenue, [but] decreasing the tax rate to match the increase of property values, so that the overall revenue the city brings in will be effectively the same,” Neeley said. According to officials, the projected sales tax revenue for FY 2025-26 is $3.38 million, an increase based on trends from the previous two fiscal years.
The city of Oak Ridge North approved a tax rate of $0.4268 per $100 valuation on Aug. 25, a decrease from the FY 2024-25 rate of $0.4408 per $100 valuation. The rate is an increase from the previous preliminary tax rate of $0.3609 per $100 valuation, after receiving certified property values from Montgomery Central Appraisal District, which show increasing property value, City Manager Heather Neeley said. A public hearing is not needed for a no-new- revenue tax rate, officials said.
$0.3790
FY 2024-25
-0.53%
$0.3770
FY 2025-26
Average home value: $335,928
Average monthly county tax bill: $106 Average annual county tax bill: $1,266
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THE WOODLANDS EDITION
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