I came across this report concerning the annexation issue. The report, Municipal Annexation and Governance in the Woodlands, was written by L. Philip Baraldi and Justus Pang. It provides an overview, along with options, opinions, and suggestions with regard to future governance in The Woodlands.
I found the following paragraph very interesting:
Even though The Woodlands Governance Steering Committee concedes that incorporation would require the permission from the city of Houston or an act of the state legislature, we think that they are acting irresponsibly by spending property owner fees on research into governance options that are unrealistic, i.e. those calling for the incorporation of The Woodlands. While the legislature may be willing to place restrictions on a city's powers of annexation, it would be a monumental act to eliminate Houston's right to annexation. To do so would entail providing other sorts of revenue streams for landlocked metropolises (as is the model in other states); an option that the tax-unfriendly state of Texas would be very unlikely to support.
I suggest that you read the full 16 pages of this report.
After reading this report, I would not be surprised if Houston annexed a small strip of land on The Woodlands side of I-45, say one-half mile to one mile west, in order to grab a large portion of the commercial areas. Apparently the commercial areas of a city offer the most profitable return. This would allow Houston to get their hands on a new source of revenue while not becoming involved with the high service requirements of the residential areas of The Woodlands.
Another thought occurred while reading this report. Maybe the solution is to make The Woodlands extremely unattractive to Houston. One attendee at the WCA annual meeting suggested some sort of poison pill arrangement. If I recall correctly, he mentioned an arrangement that would cost Houston a few years of tax revenues when they do actually annex The Woodlands. After reading this report, it seems that The Woodlands has few, if any options, in which Houston will not have veto power. Therefore, I am uncertain if any type of poison pill is even feasible with the apparent lack of control The Woodlands has over this whole situation.
Anyone who feels they have insufficient knowledge about the annexation issue will benefit from reading this report. It contains some basic legal history which is imperative to understand in order to comprehend the issue at hand.
Please post any thoughts or comments on this subject.






March 29, 2006 @ 10:52 am
I found this quote by the deputy director of planning for the city of Houston. I could not find a date for the quote, but I think it is several years old.
If this is true, and if its true about the residential areas not being attractive to the city of Houston either, then what is attractive for annexation?
March 30, 2006 @ 10:15 am
Hmm, lets think about this……the current tax rate in the majority of the woodlands is 6.25% i think. If the quote by the city of Houston rep is accurate, then 1% would go to the harris county MTA, leaving 1% for the city. That would raise the sales tax in these areas from 6.25% to 8.25%. Is 1% from the few village commercial areas enough to warrant annexation? Hmm, maybe if they could cherry pick just those village commercial areas? And if they could offer minimal services to those commercial areas. Maybe make some deal with the Woodlands Fire Department and such for the woodlands to still cover the fire needs of these areas.
Sounds like a big mess to me