HOUSTON — Houston City Councilmembers took a property tax increase proposal off the table for now after state leaders announced $50 million for storm recovery for impacted communities.
The council entered Wednesday expecting to debate over two tax proposals: one by Mayor John Whitmire to keep the current property tax rate as is and a second proposal put forward by councilmembers to raise the property tax rate from about 52 cents per $100 of property value to about 55 cents per $100 of property value.
The tax rate proposal was up against a deadline this month because of a state exception that allows municipalities with declared disasters to raise tax rates beyond caps that usually require voter approval.
But at the meeting’s start, Whitmire announced state leaders, including Gov. Greg Abbott, would send $50 million to derecho and Hurricane Beryl disaster-declared communities for debris removal.
"I think it is a model that we will go forward and you will see additional state and other agencies support in meeting our challenges," Whitmire said.
The mayor touted his relationships and experience in Austin as partly the reason why the aid came through.
Following the announcement of the disaster aid from the state, council members who proposed a property tax increase withdrew the item.
“Absent this information that came today, I believed that when you find yourself in a hole, it's best to stop digging," At-large Councilmember Sallie Alcorn said. "I believed that this rate increase was the right thing to do, absent the information that came today."
Alcorn and others said the funds from the state help, but discussions over the city's financial situation would need to continue in the future.
"In order to be fiscally responsible, we must look at the revenue side of this equation," Alcorn said.
Whitmire said he wants to wait until the city looks at department spending and efficiencies, before going to taxpayers for things like tax rate increases or fees.
"We are going to ask the public to give us additional resources, in my judgment, at the proper time," Whitmire said.
Whitmire said an audit of city departments by Ernst & Young remains ongoing but expects a report soon.