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The Valwood Improvement Authority announced a significant tax rate reduction for residents during a presentation to city council on Tuesday, July 15, reporting the district is now debt-free after completing all major flood control projects.
Executive Director Pat Canuteson told councilmembers the district's tax rate will drop from six cents per $100 of property valuation to approximately four cents this year, following the March payoff of all outstanding bonds. The reduction comes as the district maintains $5 million in reserves for equipment replacement and emergency repairs.
"Our tax rate last year was six cents per hundred dollars of value. This year, if you look at... our taxable value will probably be over five billion dollars this next year, and our tax rate will go down to about four four cents per $100," Canuteson said.
The authority protects approximately 1,200 acres in Farmers Branch and 1,200 acres in Carrollton, enabling major developments like Mercer Crossing to proceed where flooding previously prevented construction. The district's comprehensive approach differs significantly from other regional flood control efforts.
"We have a system of levies and two pump stations and two lakes that provides flood control to the area," Canuteson explained, noting the district's facilities are designed for ultimate watershed development, unlike some flood control systems in other parts of the region.
The centerpiece of the system is Mercer Lake, originally 30 acres but expanded to 50 acres through a $10 million project that included purchasing additional land from adjacent property owners. The lake can hold water at depths ranging from 4.5 feet during normal conditions to 15 feet during a 100-year flood event.
"The water in that lake is four. It was excavated down to 4-10. The elevation of the spillway to the south is 4-14.5. So there's 4 and 1/2 ft of water in there except in certain parts of the lake," Canuteson said, explaining the engineering behind the flood control system.
The district's pumping operations represent a significant cost when activated. Normal monthly electricity costs run about $1,000, but when pumps operate during flood events, costs spike to $17,000 monthly and continue for a year due to demand rate charges.
"When we turn the pumps on, it's like $17,000 a month and we pay that for a year at that demand rate. So, we try to watch every app we can for rain and just kind of wait it out if it looks like it's going to dry out where we can. The river will drop when we drain it out," Canuteson said.
Councilmembers raised significant concerns about governance and transparency during the presentation, particularly regarding the district's outdated website and difficulty accessing public information. Several councilmembers expressed frustration with their attempts to research the authority prior to the meeting.
"Ben [Williamson, Farmers Branch City Manager] had to request stuff from you guys because we just couldn't. It was just like, what is this?" Councilmember Tina Bennett-Burton said, describing her unsuccessful efforts to find information online.
Councilmember David Reid also acknowledged the website's inadequacies, "Yeah, I have to admit I had a tough time following the website as well." He suggested the district invest some of its reserves in updates, adding, "So take some of that million dollars and invest it in a new website."
The transparency issues extended beyond the website to meeting notices and ethics compliance. Councilmembers discovered the district posts meeting notices only with Dallas County, not on the Valwood website, despite being subject to open meetings requirements.
"Are they not supposed to be posted on the website as well?" Bennett-Burton asked.
Canuteson responded, "We have never done that."
The district board includes appointees from Farmers Branch and Carrollton, though some members no longer live in the area. The appointment process raised additional questions among councilmembers about oversight and representation.
"We were really honestly a little surprised that it came up so quickly, that a position came up so quickly," said Bennett-Burton, referring to a recent board appointment and expressing confusion about the district's governance structure.
The authority differs from municipal flood control efforts by owning the creeks within its boundaries and maintaining them directly, rather than relying on property owners. This approach allows for comprehensive watershed management based on ultimate development projections.
The district's levies are designed to withstand what engineers call a "standard project flood," equivalent to a 700-800-year flood event. Recent flooding in other parts of Texas highlighted the importance of such robust infrastructure, Canuteson noted.
"Our levy is designed for what they call the standard project flood, which is like a 7[00]- to 800-year flood," he said, adding that the George Bush Turnpike construction further reinforced parts of the levy system.
Looking forward, the district anticipates no major projects, with remaining bond funds reserved for equipment replacement and maintenance. Heavy equipment includes a $400,000 long-reach backhoe and a recently purchased $146,000 John Deere mower for levy maintenance.
The authority's annual meetings are held at 1740 Briercraft Court, with the next meeting scheduled for August 13. Despite the transparency concerns raised by councilmembers, Canuteson acknowledged the website needs updating, saying, "Our website needs to be updated. I'm sorry about that."
For Farmers Branch residents, the tax reduction comes as the district's taxable value approaches $5 billion, reflecting continued development within the protected area. The authority's debt-free status ensures the tax rate reduction will be sustained while maintaining essential flood protection infrastructure.
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