The Woodlands Township Board of Directors has unanimously approved a significant amendment to its agreement with the City of Houston, aimed at permanently preventing any future annexation of the community. This decision involves a financial commitment of $50 million from The Woodlands to Houston in exchange for this protection.
Under the newly approved amendment, The Woodlands would secure its status against annexation while also eliminating the requirement to contribute a portion of sales tax revenue to the Regional Participation Fund, effective 2030. However, the agreement is still pending approval from the Houston City Council, which is anticipated to vote on the matter next week.
The Regional Participation Agreement, initially established in 2007, created the Regional Participation Fund, which was sustained through sales tax revenues from The Woodlands. This fund was intended for regional projects, requiring Houston to match the township’s contributions dollar for dollar, and in return, Houston agreed to defer annexation until 2057.
The recent amendment, approved by all seven members of the Board, aims to permanently eliminate any potential for annexation by Houston while allowing The Woodlands to remain within Houston’s extraterritorial jurisdiction. This change will not affect the community’s future consideration of incorporation, a decision ultimately left to its residents.
Financially, the amendment stipulates that The Woodlands will provide approximately $27.4 million to Houston over the next three years, which includes $7.9 million from prior obligations and $19.5 million from cash reserves. Additionally, $22.6 million in existing sales tax revenue, accumulated over the past two decades, will be made available for immediate use by Houston. Starting in 2030, sales tax revenues that were previously allocated to the fund will be retained within The Woodlands, projected to average around $4.5 million annually.
Brad Bailey, Chairman of The Woodlands Township Board of Directors, emphasized the board’s commitment to safeguarding the interests of the community. He noted that this unanimous vote represents a proactive measure to ensure financial stability and local control over revenues for the future. He expressed gratitude towards Houston’s leaders for their collaborative efforts in crafting an agreement beneficial to both communities.
Although the Houston City Council was set to consider the amendment recently, the item was postponed. The council is expected to revisit the proposal in the upcoming week.
