Houston officials delayed voting on an agreement that would permanently eliminate the possibility of Houston annexing The Woodlands Township and provide for $50 million in payments from The Woodlands to Houston by 2030.
What happened
Initially set for a vote at its Aug. 26 meeting, council member Edward Pollard tagged the agenda item, delaying voting by one week.
Pollard said he has no reservations about the agreement but thinks it would be good to send it to the Budget & Fiscal Affairs committee for additional discussion.
“We heard some explanations on why this would be something to consider today, but I do think it needs to be fleshed out a little further and give the entire council the opportunity to do that,” Pollard said.
Pollard said the agreement has been under discussion between Houston and The Woodlands officials for months, but he recently learned about some of its dynamics.
“For a move like this, I think it would take a little more time to understand the specifics,” Pollard said. “And that’s what this tag will do.”
The discussion
Brad Bailey, chairman of The Woodlands Township board of directors, said a move like this would be a “win-win” for both Houston and the township.
“In the short term for Houston that needs cash, and in the long-term for The Woodlands that we’d like to keep all of our sales taxes at home,” he said.
Bailey said the agreement would also address annexation terms, a move that would allow Houston to add portions of The Woodlands in its extraterritorial jurisdiction to the city’s boundaries, which, he said, is an important issue for residents in The Woodlands.
Bailey added that they had anticipated a tag of the agenda item, but not from Pollard.
“I thought we had it. We had one person who was going to tag it, and at the last minute he said ‘we’re not tagging it,’” Bailey said. “So I thought we were home free; then it got tagged. It’s a bit of a shock, but we are still moving forward.”
The details
The amendment would end the long-term Regional Participation Fund payment structure between Houston and The Woodlands, providing for a total of about $27.4 million in payments from The Woodlands Township to the city over the next three years as well as releasing restrictions on the $22.6 million currently in the RPF to make those funds available to the city of Houston.
The payment schedule to Houston for the $50 million is proposed as:
- $22.63 million by Dec. 31 this year
- $9 million by the end of 2027
- $9 million by the end of 2028
- $9.37 million final payment by Dec. 31, 2029
Previously, The Woodlands had paid Houston one-sixteenth of 1% of sales tax revenue for future regional public works projects "of mutual benefit" in exchange for annexation being off the table until 2057. If both entities approve the agreement, The Woodlands would no longer pay Houston the annual sales tax percentage.
One more thing
Pollard said there has not been a plan on how the city will allocate the payments, but he would like to ask about it at the BFA meeting, which will occur Sept. 1. The Woodlands board is scheduled to hold a special meeting Aug. 26 at 4 p.m.
