Frequently Asked Questions - Q3


What can Houstonians expect if this proposed amendment fails to be approved by the voters?


If it fails, we believe that Houstonians can soon expect: (a) city council to become very emboldened and take very aggressive actions to greatly increase all City revenues, similar to after the 1980s oil bust impacted the Houston economy. For example, in the 1980s the City increased the property tax rate by 27%, water rates by 119% and sewer rates by 161%; (b) enactment of a garbage fee; (c) a try for an increased sales tax rate (remember, the sales tax is the principal source of revenue for the state government, which is still trying to solve a fiscal crisis even more severe than the City’s); and (d) a sharp increase in the City’s already dangerously increasing long-term debt. In the face of the exploding debt, the mayor is unbelievably suggesting that the City partially solve its immediate budget shortfall by dipping into the debt service fund. In summary, if this proposed charter amendment fails, this City is going to embark down the road to a financial situation from which it will require many years to recover, if ever.

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