In 1994, the City of Houston began the process to annex Kingwood. According to Texas state law at the time, a home-rule city was allowed to annex an unincorporated area, without the consent of the residents, if the area is within the city's extraterritorial jurisdiction. Bob Lanier, then the Mayor of Houston, believed that the annexation of Kingwood would result in a $4 million annual gain for the City of Houston. Lanier argued that the city needed to bring in Kingwood to add more to its tax base. On Wednesday August 21, 1996, the Houston City Council asked the Planning and Development Department to create service plans for Kingwood and Jacintoport, another area being annexed by Houston. The annexation of Kingwood and Jacintoport increased the city's population by about 43,000 people. The annexation meant that areas de-annexed by the city in the 1970s were being re-annexed.