The video below shows how other cities have been transferring revenue from utility fees to general funds for years. John Whitmire wonders why it was not done before by previous mayors. Maybe, John, it was because those mayors realized that if a city cannot supply water or treat its sewage, it is failing to meet its basic needs. While I appreciate more police and having the best-paid officers in the state, I guarantee you that when I turn on that water in the morning to take a shower, I expect water to flow. The water pressure is low at my house because there are about eight (8) water leaks within two blocks of my house. Some of those have been ongoing for over a year.
When I flush the toilet, I expect it to go down the water pipes and not back up, even when it rains. I know some people who can’t flush their toilets after a heavy rain.
John Whitmire, you are making a bad situation worse. I am not the only one who thinks that.
But the new fee is expected to generate just $24 million next fiscal year. That means it will take $93 million in water and sewer revenue to cover the rest of the solid waste budget.
Whitmire also proposes charging the utility fund for its pipes using the city right of way – moving $104 million in water bill revenues to the general fund.
That’s a combined $197 million burden on the utility system next year alone.
In announcing his budget earlier this month, Whitmire said the proposal would bring Houston in line with other major Texas cities that already rely on utility transfers and trash fees.
“Why didn’t Houston do this a long time ago? I mean, it’s just a practical solution,” he said. “We’ve really been fooling ourselves for a long time. There is a tremendous source of revenue that other cities are using and for whatever reason the city of Houston didn’t.”
But the utility system also faces serious challenges.
City water pipes leak billions of gallons each year. Water treatment plants require massive upgrades. The city sewer system spills raw waste so often that Houston must invest billions of dollars under a federal decree. The city also funds about $90 million in drainage projects each year using utility revenues.
The financial impact of Whitmire’s proposal would affect the utility system far beyond one year.
Water bills would subsidize solid waste services for at least 6 years. That’s how long administration officials say they will take to incrementally raise the fee to $25 per month and cover the solid waste budget.
“Playing fast and loose with these restricted funds shortchanges both systems and degrades trust in government,” said Alice Liu, of the Houston People’s Budget campaign. “What we need instead is a budget that prioritizes Houstonians, addresses failing water and flood infrastructure, refuses to compromise on worker safety, and stops police overspending.”
Whitmire’s office did not respond to a request for comment. The mayor’s office has not answered requests for comment from the Houston Chronicle since August.
City officials have argued the utility system is financially healthy enough to absorb the changes because years of rate increases – driven in part by the sewer consent decree – have made it flush with cash.
Kicking the problems down the road is going to make it worse.
Garbage fee – if it costs x amount, then we obviously need much more than that, because the service sucks
“And so Houston, have to understand because this is real money, right? For regular folks, 40 bucks, which is upwards of $500 a year. That’s a lot of money.”
According to Hollins, Houston’s trash operations currently cost about $120 million annually, while the proposed fee would generate about $25 million.
“And so there’s still a $95 million hole in the trash budget,” Hollins said. “And the mayor plans to use your water fund to plug that hole.”
Hollins said the “Reality Check” series is intended to give residents an opportunity to ask questions directly and better understand the city’s finances.
“These town halls give us an hour to sit and talk to one another face to face, to have me slowly explain it in plain English and have Houston ask questions,” Hollins said.
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