HOUSTON, Texas (KTRK) — Houston city leaders have the same goal of addressing budget shortfalls, but how to do so is up for debate.
At Wednesday’s City Council meeting, leaders are scheduled to discuss two different property tax proposals. One is to keep the tax rate roughly the same, and the other is to raise it by just under 6%.
Mayor John Whitmire wants to focus on reducing waste in government, according to our partners at the Houston Chronicle. His proposal would maintain the current interest rate of just under $0.52 per $100 of a home’s appraised value.
A second proposal put forward by several City Council members would increase the tax rate to $0.55 for every $100 of home appraised value in a year. The price increase will cost the average household $144.
The city’s finance director warns that millions of dollars in cuts to address budget shortfalls are at risk.
“You can’t have it both ways. You can’t have great city services and the lowest tax rates at the same time,” said one City Council member.
“We all know there is a shortfall. The city has essentially been funded by one-time federal funds for the past two budget cycles,” Whitmire said. .
City Council members say the city of Houston currently faces a $230 million deficit. The city is still waiting to pay Houston firefighters a $1.5 billion settlement after a year of contract settlements. The city may also have to pay an additional $100 million a year for streets and drainage projects if the appeals court rejects the city’s appeal in a long-running lawsuit.
Houston has previously been unable to raise its tax rate due to state and local revenue caps. However, the May derecho and Hurricane Beryl disaster declarations freed up gaps in these caps for disaster recovery purposes.
Wednesday’s City Council meeting begins at 9 a.m.
The deadline for the City Council to finalize property tax rates is Oct. 28.
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