Houston City Council is scheduled to vote Wednesday, Sept. 2, on a $50 million deal that would permanently end the city's ability to annex The Woodlands.
The vote is the final step. The Woodlands Township Board of Directors approved the Third Amendment to the Regional Participation Agreement (RPA) 7-0 at a special meeting Aug. 26. If Houston approves, the township keeps its unincorporated status, stays in Houston's extraterritorial jurisdiction and retains an estimated $4.5 million in annual sales tax revenue starting in 2030.
Houston's Budget & Fiscal Affairs Committee was scheduled to discuss the deal Tuesday, Sept. 1, at 10 a.m. at City Hall. Finance Director Melissa Dubowski was listed as the presenter on the committee agenda.
The committee discussion was scheduled after Council Member Edward Pollard tagged the item at Houston's Aug. 26 meeting, delaying the vote one week. Pollard, who represents District J and sits on the budget committee, said he had no reservations about the agreement but wanted more time.
"You can't just always think of the short term and grab what's there today, but you have to think about maybe some of the unintended consequences for the future," Pollard told KHOU after the Aug. 26 meeting.
Houston Mayor John Whitmire called the agreement a "win-win" at that same meeting, according to the Houston Chronicle.
What the deal means for residents
Under the amendment, The Woodlands would pay Houston roughly $50 million over three years to end the RPA's long-term payment structure and eliminate annexation as a possibility. The payment schedule, per Community Impact:
- $22.63 million by Dec. 31, 2026
- $9 million by end of 2027
- $9 million by end of 2028
- $9.37 million by end of 2029
The township plans to fund those payments with $22.6 million already sitting in the Regional Participation Fund, $7.9 million in sales tax payments owed to Houston under the existing agreement from 2027 to 2029 and $19.5 million from township cash reserves.
Township President and CEO Monique Sharp said the township currently pays an average of $4.5 million annually to Houston under the existing agreement, a structure that would have continued through 2060. Sharp also noted Houston has used the fund for five projects since it was established, all within Houston's city limits, according to the Chronicle.
The original RPA dates to 2007, when The Woodlands agreed to contribute a share of local sales tax revenue in exchange for Houston not annexing the community through 2057.
What's next
Township Board Vice Chairman Craig Eissler told Woodlands Online on Aug. 28 that the process was straightforward: the budget committee would review the deal, then council would vote Wednesday.
Board Chairman Brad Bailey said in a township statement after the Aug. 26 vote that the amendment would return millions of dollars to Woodlands residents.
The amendment does not change voters' ability to consider incorporation in the future. Woodlands voters rejected an incorporation measure in 2021, with 67% voting against.
No outcome from the Tuesday budget committee discussion was available as of publication. Houston City Council meets Wednesday.
