The Board of Directors for The Woodlands convened on July 23, 2025, to discuss the financial performance for June 2025, highlighting a favorable budget variance and ongoing revenue trends.

During the meeting, financial officer Kellen presented the year-to-date budgeted revenues, which totaled $95.3 million, against actual collections of $98.9 million, resulting in a favorable variance of $3.6 million. This positive outcome was primarily attributed to a $2.7 million increase in sales tax revenue, alongside unbudgeted grants and contributions.

Operating expenditures also showed a favorable trend, with actual spending at $62.3 million against a budget of $68.6 million, yielding a variance of $6.3 million. Notably, the customer engagement sector, which includes law enforcement, contributed significantly to this variance due to timing in contracted services.

Sales tax revenue through July was reported at $47.8 million, exceeding the budget by $2.2 million, largely driven by the manufacturing sector related to oil and gas. However, hotel occupancy tax revenue remained flat, with a slight unfavorable variance of $15,000 compared to the budget.

The discussion also touched on mixed beverage tax revenue, which showed a modest increase but raised concerns about a potential trend of decreased consumption. Board members noted that attendance at local events, particularly concerts at the pavilion, has been lower than in previous years, impacting related revenues.

In addition to financial discussions, the board addressed the role of taxpayer-funded lobbyists, emphasizing their importance in securing funds previously lost to the state. The board highlighted successful lobbying efforts that resulted in recovering $1.76 million annually for local businesses.

Overall, the meeting underscored the board's commitment to fiscal responsibility and proactive measures to enhance revenue streams, while also navigating challenges in local consumption patterns and event attendance. The board plans to continue monitoring these trends closely as they move forward.