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Expert Analysis: Incorporation Would Cost $26.8 Million More Than Advertised

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Expert Analysis: Incorporation Would Cost $26.8 Million More Than Advertised

An independent, expert analysis of The Woodlands Township Board’s Incorporation Financial Model reveals major miscalculations, debunking promises that The Woodlands could somehow pay no new taxes to maintain our high level of services, even after undertaking new city obligations such as road and bridge maintenance, a new public works department, and the creation of a new police department.

According to 25-year CPA and past-President of the Houston CPA Society, Bill Frazer, the Board understates the total funds needed for incorporation by $26.8 MILLION.

The report also finds:

  • The Board overspends the unapproved, pre-taxed $21 million “incorporation reserve fund” by $10.7 million.
  • A $9.4 million understatement of a new city’s annual operating expenses.
  • A $3 million understatement of one-time start-up capital expenses for a new police department, according to the Board’s own Incorporation Financial Model.
  • A $4.7 million annual public works understatement when compared to the budgets of peer cities.
  • The $7.6 million in franchise fees projected by the Board represents $6.6 million in entirely new fees –– the equivalent of a 3.62-cent property tax rate increase per $100 valuation.

This report confirms that incorporation would require significant tax hikes and new fees on residents and businesses.

The entire report can be downloaded HERE.

Incorporating as a city would result in higher taxes and fees, bigger government, and a lower quality of life.