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September 13th, 2017:

Mayor seeks one-year tax hike for Harvey cleanup

This stuff isn’t going to pay for itself, you know.

Mayor Sylvester Turner

Mayor Sylvester Turner will ask City Council to approve an 8.9 percent hike in the city’s tax rate this fall to help Houston recover from Tropical Storm Harvey, in what would be the first tax rate hike from City Hall in more than two decades.

The average Houston homeowner would pay $118 more in property taxes next year under the proposal, which will begin a series of public hearings later this month and reach a formal vote in mid-October.

The tax rate would rise from 58.64 cents per $100 of appraised value – the lowest city tax rate since the late 1980s – to 63.87 cents. That was the rate from 2009 through 2013, when a 13-year-old voter-imposed limit on Houston’s property tax collections first began forcing City Council to cut the rate each year to avoid bringing in more revenue than was allowed.

Turner is able to propose an increase beyond the strictures of the revenue cap – allowing the city to collect an extra $113 million for one year – because Harvey placed Houston under a federal disaster declaration.

“If this is not an emergency, I don’t know what is. What we’re able to recoup from one year, the $113 million, will not even be enough to cover the expenses we will have incurred,” Turner said Monday. “What we don’t get from the feds we’ll have to come up with ourselves. I would be not doing my job if I did not advance it.”

Debris removal could cost more than $200 million and will require Houston to foot 10 percent of the bill without being reimbursed. The city also lost 334 vehicles to floodwaters and saw its municipal courts complex, city hall and its adjacent annex and two wastewater treatment plants knocked offline.


If adopted, the higher rate would take effect only for homeowners’ January 2018 tax bills. Come the following January, the emergency period would end and the city’s tax rate again would be dictated by the voter-imposed cap, which limits the annual growth of Houston’s property tax revenue to the combined rates of inflation and population growth, or 4.5 percent, whichever is lower.

State Sen. Paul Bettencourt, R-Houston and key revenue cap proponent, said he wants to speak with the mayor to remind him that homeowners’ assessed values are rising, meaning a tax rate hike would amount to a double increase.

Bettencourt refrained from outright criticism of the proposal and praised much of the mayor’s response to the storm. He urged caution on the tax proposal, however.

“The rate is just one half of the equation. The other half is how much the value has gone up,” he said. “This is a delicate public policy issue because we’ve got Houstonians that are literally flooded out of their homes and many people have been affected so they’re not in a position to pay the bill easily, much less if it increases.”

The average Houstonian in a $225,000 home with a standard homestead exemption sends $1,321 to City Hall annually. Turner’s proposal would see that bill rise by $117.86 next year.

Let’s be clear about a couple of things. Thanks to the revenue cap charter amendment, this can only be a one-year increase. The rate will be what we had from 2008 to 2013, so it’s not like this is some unprecedented assessment. The city can’t run a deficit, and it can’t borrow money without getting authorization from the voters. The property tax rate is basically the only mechanism the city has to raise this kind of money. The city will get some federal funds, but it may not have control over their appropriation, and some of those funds as noted in the story are contingent on the city putting up money as well. Lord only knows what the state will pay for, and the county will do its own thing.

The point here is that the city has some big unexpected bills to pay. It has to pay for a lot of overtime for police officers and firefighters who were rescuing people during the floods and who are dealing with aftereffects like traffic control. It has to pay for a lot of overtime to Solid Waste employees who are working to pick up the enormous piles of trash around the city. Your taxes are going up by a couple hundred bucks to pay for this. If you have a problem with that, I don’t know what to tell you, other than I can’t abide that kind of thinking.

Some people will say that we should find costs to cut instead. I will remind you that the vast majority of the city’s expenses are for personnel, and in this particular case the extra unbudgeted expenses are largely for overtime pay. Unless you think all these people should have worked for free, this argument is nonsense. Every time a government entity faces a budget shortfall, I hear people justify cutting programs and services as “shared sacrifice”. In my experience, most of the people who say that aren’t themselves sacrificing much of anything. The difference between those cuts and this rate increase is that this time the bulk of the sacrifice is being felt by a different crowd. If you don’t like it, maybe keep that in mind for the next time.

To address Sen. Bettencourt’s concern, I’m fine with exempting the people who were flooded out from the rate increase. If you filed a FEMA claim, you get to be assessed at the current rate. As for the Council members quoted in the story who say they can’t go along with this, I say no trash gets collected in their neighborhoods until every last piece of Harvey debris has been carted off. There’s a little shared sacrifice for you. The Press has more.

Endorsement watch: HGLBT Political Caucus, CVPE, and GPS

From the inbox:

The Houston GLBT Political Caucus PAC met on September 9, 2017. At the meeting the membership voted to endorse the following candidates:

Kara DeRocha for HISD School Board Trustee – District V

Holly Maria Flynn Vilaseca for HISD School Board Trustee – District VI

Anne Sung for HISD School Board Trustee – District VII

Dr. Carolyn Evans-Shabazz for HCC Trustee – District IV

Pretta Vandible Stallworth for HCC Trustee – District IX

We also voted to endorse the following propositions:

Propositions A, B, C, D and E

The Houston GLBT Political Caucus PAC will hold a public forum on September 22, 2017 at 7pm at Bering Memorial United Methodist Church in Montrose, Room 217A & B. (Enter through the North Entrance on Hawthorne Street where the parking lot is located.) The public forum will highlight Elizabeth Santos, Gretchen Himsl and Monica Flores Richart, candidates for HISD School Board Trustee – District I. The membership will take an endorsement vote at the end of the public forum. The Membership will also vote on the recommendation of the screening committee in the HISD School Board race for District III.

I was just saying that we are only now beginning to see campaign activity again post-Harvey, and a part of that is the group endorsement process. The GLBT Caucus endorsements hit my mailbox late on Sunday, and on Monday I found out about a couple of others that have come out. Here’s Community Voices for Public Education:

Elizabeth Santos in HISD District 1
Kara DeRocha in HISD District 5
Holly Flynn Vilaseca in HISD District 6
Anne Sung in HISD District 7

CVPE members voted to not endorse in District 9 and will screen HISD District 3 candidates in the near future.

Yes, everyone is going to have to go over this again once the filing deadline comes for District III, which was extended to allow people enough time to make the decision to run following Manuel Rodriguez’s death. I am aware of one candidate in District III so far, and I am sure there will be others.

One more set of endorsements, from Houstonians for Great Public Schools:

District I – Gretchen Himsl

District V – Sue Deigaard

District VI – Holly Maria Flynn Vilaseca

District VII – Anne Sung

District IX – Wanda Adams

I’ll post more as I see them. I suppose it’s well past time for me to create an Election 2017 page to track all this, too.

Will we spend on some flood mitigation projects?

Maybe. We’ll see.

In the wake of Hurricane Harvey, Lt. Gov. Dan Patrick is calling for the construction of flood control infrastructure in the Houston area — things he said should have been built “decades and decades ago” — including a coastal barrier to protect the region from deadly storm surge.

“We need more levees. We need more reservoirs. We need a coastal barrier,” Patrick said late last week during an interview with Fox News Radio. “These are expensive items and we’re working with [U.S. Sens. John] Cornyn and [Ted] Cruz and our congressional delegation to … get this right. We’ve had three now major floods in three years — nothing at this level but major floods.”

The need is particularly pressing because of the state’s rapid population growth, Patrick added, noting that “a lot of that growth is around the Houston area.” And he said the billions in federal aid that Texas is poised to receive presents an opportunity for Texas “to really rebuild and do things that, quite frankly, should have been done decades and decades ago.”


State Sen. Paul Bettencourt said U.S. Rep. Michael McCaul is seeking $320 million to build another reservoir that would take pressure off Addicks and Barker. That’s exciting, Bettencourt said, because the Austin Republican “can lift more than the average congressman” as chairman of the House Homeland Security Committee.

McCaul’s office didn’t immediately respond to a request for comment. But last week during a meeting with officials in Katy, he described such a project as “long-term” and said he has discussed funding with Gov. Greg Abbott, the Federal Emergency Management Agency and the U.S. Army Corps of Engineers, according to a Houston Chronicle report.

“We need to look at long-term solutions from an infrastructure standpoint,” he said.

None of it will be covered by the $15 billion short-term relief aid relief package Congress has approved for Texas, and it remains to be seen whether Congress will pay for any flood-control infrastructure projects in Texas.

As the man once said, show me the money. What we have here is state officials talking about getting Congress to spend some money on projects here. There’s no indication of willingness to spend any state funds, which among other things would raise ticklish questions about how to pay for them (*). Maybe this Congress is willing to do that, and maybe it’s not. Let’s just say that the track record is not encouraging.

(*) You may recall that in 2013, voters approved a constitutional amendment to fund a water infrastructure fund that among other things could be used to build reservoirs. The idea of this fund, which came on the heels of the devastating drought of 2011, was to make more water available for cities and industry, but I see no reason why it couldn’t be tapped for something like a flood-mitigation reservoir. I don’t know the specifics of the legislation, and frankly I haven’t heard much about this, the SWIFT fund, since its approval. As such, I may be mistaken in what it can and cannot be used for. But at the very least, it seems like a decent starting point for discussion.

Harvey’s car carnage

Lot of people lost their wheels in the floods.

More than a week after Harvey slammed Houston, wreckers like Bryan Harvey are still hauling cars and trucks from flooded neighborhoods to dealerships or to vast fields where insurance adjusters can assess the damage. Harvey killed at least 70 people, destroyed or damaged 200,000 homes — and inflicted an automotive catastrophe on one of America’s most car-dependent cities.

The Houston area has lost hundreds of thousands of cars, says Michael Hartmann, general manager of Don McGill Toyota of Katy, a city of 17,000 about 30 miles west of Houston. “We have a shortage of rental cars and people not sure how to go about handling claims and just what to do with their lives.”

The wreckage has forced Houstonians to scramble to try to rent or borrow cars or to work from home — if they can. Some have it worse: They can’t return to work until they resolve the transportation problems, depriving many of them of income and slowing the city’s return to business as usual.


Houston is used to flooding. But it had never seen anything like Harvey, which dropped a year’s worth of rain onto the metro area. Flooded roads and neighborhoods left cars submerged and, in most cases, impossible to salvage.

“Almost every square inch of your vehicle has wires in it,” says Rebecca Lindland, executive analyst at Cox Automotive. “The materials are often flame-retardant, but they are not waterproof.”

Cox estimates that up to 500,000 cars and trucks were damaged or destroyed, amounting to nearly $5 billion in damage. Auto insurance claims have reached 160,000, according to the Insurance Council of Texas. Cars are being taken by the hundreds to a make-shift lot at the 500-acre Royal Purple Raceway in Baytown, about 35 miles east of town. Most of the time, the insurance adjusters shake their heads at the damage Harvey has wrought and declare the cars a total loss.

“Put yourself in the shoes of the adjuster,” says Mark Hanna, a spokesman for the Texas insurance council. “He’s just seen, say, a 2015 Toyota Camry. He knows this vehicle has been underwater for six days. They can look at it, but they know water is all throughout that vehicle. They know it is totaled … He’s going to see the same vehicle many times.”

Many insurers are reluctant even to try to repair cars that risk further problems and repairs later.

In the meantime, there’s a desperate shortage of rental cars. Enterprise Holdings, which includes the Enterprise, National and Alamo brands, has moved thousands of vehicles to southeast Texas and plans to have brought in at least 17,000 by the end of September. The Avis Budget Group, which operates Avis and Budget, is moving 10,000 vehicles into the affected areas, waiving late fees, one-way rental fees and rental extension fees in and around Houston.

Pro tip: Don’t buy any used cars in Houston for at least the next year. If we’re going to do any big-picture radical rethinking of how Houston is built and configured post-Harvey, building a region that has more robust transit and is thus less car-dependent would be on the to-do list. Harvey was exceptional, but it’s not like we haven’t had plenty of “normal” flooding events that have caused some amount of havoc with people’s vehicles. I really don’t expect much in the way of big-picture radical rethinking to happen, but in the event I’m wrong and it does, put this down for the record.