The Houston City Council on Tuesday postponed voting on an proposal to accept $50 million from The Woodlands Township and block future annexation by the city.
Council Member Edward Pollard asked to delay the item until next week so it can be discussed by the city's Budget and Fiscal Affairs Committee.
The township is scheduled to discuss the agreement in a 4 p.m. special session on Wednesday; however, it was not immediately clear whether that meeting would proceed as planned.
Mayor John Whitmire called the agreement a "win-win" for the city and the township during the city council meeting.
BUDGET: Conroe ISD approves $769M budget but will face a shortfall of $6M in its debt fund
"We are all in this together - our issues, our flooding," Whitmire said. "Our public safety doesn't stop at our city limits, and we understand the strong feelings of (The Woodlands)."
Councilwoman Sallie Alcorn supported having the item reviewed by the city's fiscal affairs committee.
"An agreement like this deserves a lot of scrutiny, but I am supportive of it," Alcorn said.
Township Chairman Brad Bailey told Houston council members that the agreement meets some short-term needs for the city but helps The Woodlands in the long run.
According to the proposal, the township would relinquish $22,626,797 to the city of Houston from a regional participation account funded by sales tax revenue, and would pay Houston $9 million in 2027, $9 million in 2028, and a final payment of $9,373,203, in exchange for Houston's agreement to eliminate the possibility of annexation as long as the terms are met.
"It's a significant amount that is just sitting there that could benefit our residents," Whitmire said.
Bailey said there would be no restriction on Houston's use of the $50 million.
The Township Board of Directors originally approved a Regional Participation Agreement with Houston in 2007, preventing Houston from annexing The Woodlands through 2057. The agreement has been amended twice since 2007.
In 2017, the Texas Legislature also passed a law that ended forced municipal annexation, requiring an automatic voter referendum before larger cities could annex communities across the state.
However, while The Woodlands is not at risk of annexation, Bailey said the reason to move forward with the agreement is to ensure The Woodlands is protected from annexation should state law change in the future.
"The Woodlands can finally put to bed the annexation thing," Bailey said.
There's more to Houston with the Chronicle. Subscribe today for just 25¢.
This article originally published at Houston postpones action on $50M proposal that would block future annexation of The Woodlands.