After lots of talk and comments from the public over the last week, today Houston Mayor John Whitmire officially released a new budget proposal that includes a first ever 'trash' fee, which Whitmire says is an "administrative fee" for residents who use the city’s solid waste services.
The city is currently facing a record high $174 million dollar budget deficit, the largest in Houston's history.
Whitmire's is scheduled to present a detailed five-year forecast and budget proposal to the city council's budget and fiscal affairs committee tomorrow.
The mayor also said he does not plan to raise property taxes. At least not now.
“We’re not raising property taxes. It’s not an option at this point due to the circumstances in our country concerning affordability, the cost of a home,” Whitmire said. “So, property taxes are not even in my thoughts.”
The proposal protects vital services including public safety, parks and libraries, neighborhood services and the municipal court system. The transformational budget plan does not include a property tax increase or expand government programs, nor does it defer infrastructure obligations or rely on one-time transfers or gimmicks.
“Houston is at a turning point. Our city continues to grow rapidly, and the cost of delivering essential services, from public safety to infrastructure, has risen alongside it. At the same time, local and state-imposed property tax caps have significantly limited the City’s ability to keep up with these demands," Mayor Whitmire said.
"Under my administration, we have tightened our belt, improved efficiency, and reduced year-over-year spending for the first time in decades. But efficiency alone is no longer enough. This year’s budget introduces a modern, sustainable approach to funding core services, protecting the programs that Houstonians rely on without raising property taxes. This budget represents the next step towards ensuring Houston remains strong, reliable and ready for the future,” said Mayor Whitmire.
The budget plan includes:
- Designating the Solid Waste Municipal Department as a Municipal Utility
- Implementing a $5 per month administrative user fee to align with the actual cost of service and to support long term fleet, staff and reliability
Right-of-Way Rental Fee through the Combined Utility System:
- Implements a fee on water and wastewater utilities for use of public right-of-way, similar to a franchise fee
- The ROW fee benefits help preserve public safety, libraries, parks, municipal courts and multi-service centers
The changes move the city closer to a structurally balanced budget that:
- Supports transformational public works and consent decrees
- Reduces pressure for layoffs and service cuts
- Both are standard practice in major cities, align costs with service and support a structural budget balance
“Efficiency Alone Cannot Close the Fiscal Gap,” – Mayor John Whitmire
"Everything I’m talking about is just the beginning, and it's going to get better in future years. This budget plan represents financial security for the city of Houston, and it’s the health of the city’s finances. We are not kicking the can down the road in my administration," said Mayor Whitmire.
Budget Priorities/Key Investments include:
- All services preserved
- No layoffs
- $12M in efficiency savings achieved without service reductions
- Five police and 11 fire cadet classes
- $31M added to the drainage fund from the general fund
- The new fiscal year begins July 1, 2026.
City Controller Chris Hollins, who has sparred with Mayor Whitmire over the budget, gave his response.
“What’s happening here is that money that should be going to important water and sewer infrastructure is no longer going to be going there, or we keep that money going towards water and sewer, and we raise people’s water rate,” Hollins said.