Group says new drainage fee settlement is not a win for the city of Houston

Tuesday, June 3, 2025
HOUSTON, Texas (KTRK) -- A settlement reached last week shows funding for drainage projects in Houston will not fully go to its intended budget for another three years.

We're talking about taxpayer money voted on by you set to be used to improve drainage across the city that has been used and will continue to be used for other things, at least in the short term.

Voters first approved a charter amendment in 2010, establishing a drainage fee to fund street and drainage projects.

Then in 2018, voters amended the original fee.

A year later, two engineers sued the city, alleging they were mishandling the funds.



Fast forward to 2023, when a court sided with the city.

That was reversed by an appellate court a year later.

The city appealed again-- which the state supreme court rejected in January.

Then in April of this year, the city and two engineers reached a deal.

Groups like the Northeast Action Collective and West Street Recovery told ABC13 they're concerned about the millions of dollars that should've been going to the drainage fund for the last several years.

SEE ALSO: City of Houston slashes budget shortfall delaying full payment in drainage suit

Group organizers say there is a plan to hold a rally in front of City Hall on Thursday afternoon to have their voices heard.



"The water is the catalyst of it all where it goes where it pulls its our community. That's my neighborhood. That's your kids neighborhood, too. These bayous run everywhere," northeast action collective member Kourtney Revels said.

As a new hurricane season starts, people like Kourtney Revels have flooding and drainage issues are toward the top of her concerns list.

"I'm worried about my daughter not being able to get to my daughter if the school floods. We live in northeast Houston that has compounding issues," Revels said.



As the city reaches a settlement to move forward with funding for drainage projects, some believe this is an improvement but say the city is never going to catch up with the hundreds of millions of dollars that should've already been in the drainage fund from the last several years.

SEE ALSO: Houston ordered to spend money it doesn't have on street, drainage improvements after losing lawsuit

"If their house flooded during Harvey, we wouldn't be begging for money. We wouldn't be begging for this increase. So that's what I mean by t he tale of two cities," Revels said.

Voters passed an ordinance years ago for drainage funding in 2010. And again, after we saw devastating flooding across our city during Hurricane Harvey.

"When we get money into Houston to do preventative maintenance, this is tax revenue. This is the people's money. So that's another thing, we need to hold them accountable to do with our money what they say they're going to do with our money," Revels said.



She says the city has been under funding the drainage project fund for years, and the city's settlement will continue to under fund it for 3 more years.

SEE ALSO: Court sides with homeowners who claimed 'ReBuild Houston' isn't rebuilding Houston

The city attorney Arturo Michel in a statement last week told ABC13 the settlement agreement is a component of a larger vision.

"The settlement agreement approved by City Council, Mr. Jones, and Mr. Watson serves the public interest far better than any alternative outcome. Under the terms of the agreement, the City will make three escalating annual drainage payments from property tax revenue that represent a substantial share of the full calculation. After these initial three years, the City will apply the full formula. Crucially, starting this year and continuing indefinitely, the City will also contribute drainage funds from sources not legally required to be used for drainage-specifically METRO transfers and Tax Increment Reinvestment Zone (TIRZ) funds. These contributions are only required because of the settlement. The litigation that led to this agreement has been in the public domain for years, widely reported in the media. It has always been a dispute between two individuals and the City, and the right to settle lies solely with those parties. Members of the public had years of opportunity to seek to intervene if they wished. Furthermore, the initiation, negotiation, and conclusion of the settlement were publicly discussed and covered extensively over many months. This has never been a private or secretive matter. On the contrary, the parties involved have acted transparently and in pursuit of a settlement that enhances public drainage outcomes for Houston. Mayor John Whitmire is the first mayor in Houston's history to commit over half a billion dollars annually to streets and drainage-starting this year and continuing into the future. This level of sustained investment is unprecedented and signals a new era of long-overdue reinvestment in Houston's core infrastructure. The settlement agreement is a key component of this larger vision. Rather than fighting in court, the City has chosen to move forward with funding, with transparency, and with a clear plan to build a safer, more resilient Houston."

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