Court sides with homeowners who claimed ‘ReBuild Houston’ isn’t rebuilding Houston

In Houston, Texas, an appellate court has overturned a 2023 decision that favored the city in a dispute over the use of taxpayer funds for a voter-approved drainage fee.

The Texas 14th Court of Appeals ruled on Tuesday that the city’s calculation of the amount to charge water customers under the “ReBuild Houston” tax was “legally incorrect,” reversing a trial judgment from the 281st District Court issued last July. This legal action stemmed from a lawsuit filed in 2019, a year after voters renewed the tax.

Plaintiffs James Robert Jones and Allen Watson contended that the city council had not allocated the drainage fund in accordance with the city charter, alleging that the mayor and councilmembers had underfunded the budget for drainage projects.

The “ReBuild Houston” program, initiated in 2010 as an infrastructure improvement fund, was intended solely for flood mitigation, drainage, and related projects. However, reports from Eyewitness News over the years revealed that only a small portion of tax revenues were directed towards streets and drainage projects, with a larger allocation going towards debt reduction and non-infrastructure expenses. This discrepancy led to the lawsuit against Mayor Sylvester Turner and the city.

Following the appellate court’s decision, Mayor John Whitmire, listed as an appellee in the latest documents, emphasized the importance of addressing infrastructure needs while ensuring public safety and quality-of-life services.

In a statement, Whitmire expressed his agreement with the need for increased investment in infrastructure but cautioned against sacrificing public safety or other essential services to fund drainage projects. He called for a comprehensive discussion on the city’s financial condition, emphasizing the importance of addressing both short- and long-term financial challenges.