RENEW HOUSTON

Good Streets. Good Drainage.

A Better Houston!

Background

Houston has a growing population and increasing density with greater demands on its drainage and streets.

Population – City of Houston

0.0

0.5

1.0

1.5

2.0

2.5

3.0

(Millio

ns

)

Density – City of Houston

0

1,000

2,000

3,000

4,000

5,000

6,000

(Po

p/S

q M

ile)

Current Drainage & Street System

• 2,800 miles of road side drainage ditches

• 3,300 miles of storm sewers

• 6,000 miles of roadways

The Problem

• Most Streets & Drainage Systems are at, or near, the end of their useful life

– 60%-65% of streets and drainage systems are beyond their useful life

– 80% will be beyond their useful life in 20 years

The Problem

• $10 Billion Needed – $4.9 billion for storm sewers– $4.2 billion for streets– $0.8 billion for bridges

The Problem

• Not Enough Money

– Houston spends $100M per year

– Houston needs to spend $500M per year

The Solution - ReNEW Houston

1. Establish a Dedicated Funda) Gain public trust that funds would not be

reallocated for other uses

2. Raise enough money to solve the drainage and streets problem

3. Limit the percent used for O&M to maximize the amount of money available for capital improvements

Rebuild Houston

Dedicated Fund

Rebuild Houston

Dedicated Fund

Existing Funding

Rebuild Houston

Dedicated Fund

Pay-As-You-Go

Pay-As-You-Go—Convert current street and drainage annual bond debt service equivalent to a $0.118/$100 tax rate to a Pay-As-You Go system, stopping the payment of significant interest and converting those dollars to drainage and street improvements.

Existing Funding

Rebuild Houston

Dedicated Fund

Third Party Funds

Capture all external monies acquired from area entities, state and federal agencies, and any future local option funds that are intended for drainage and street improvements.

Pay-As-You-Go

Pay-As-You-Go—Convert current street and drainage annual bond debt service equivalent to a $0.118/$100 tax rate to a Pay-As-You Go system, stopping the payment of significant interest and converting those dollars to drainage and street improvements.

Existing Funding

Rebuild Houston

Dedicated Fund

Third Party Funds

Capture all external monies acquired from area entities, state and federal agencies, and any future local option funds that are intended for drainage and street improvements.

Pay-As-You-Go

Pay-As-You-Go—Convert current street and drainage annual bond debt service equivalent to a $0.118/$100 tax rate to a Pay-As-You Go system, stopping the payment of significant interest and converting those dollars to drainage and street improvements.

Existing Funding

New Funding

Rebuild Houston

Dedicated Fund

Third Party Funds

Capture all external monies acquired from area entities, state and federal agencies, and any future local option funds that are intended for drainage and street improvements.

Pay-As-You-Go

Pay-As-You-Go—Convert current street and drainage annual bond debt service equivalent to a $0.118/$100 tax rate to a Pay-As-You Go system, stopping the payment of significant interest and converting those dollars to drainage and street improvements.

Existing Funding

Drainage User Fee to provide approximately 40% of the total project funding. (The fees must be established by the Mayor and City Council on an equitable basis across all residential and commercial property in accordance with state law). - $125m/year

Drainage User Fee

New Funding

Rebuild Houston

Dedicated Fund

Third Party Funds

Capture all external monies acquired from area entities, state and federal agencies, and any future local option funds that are intended for drainage and street improvements.

Development Impact Fee

Development Impact Fee for drainage. (A new fee that can only be established to offset new impacts of development in accordance with state law.)

Pay-As-You-Go

Pay-As-You-Go—Convert current street and drainage annual bond debt service equivalent to a $0.118/$100 tax rate to a Pay-As-You Go system, stopping the payment of significant interest and converting those dollars to drainage and street improvements.

Existing Funding

Drainage User Fee to provide approximately 40% of the total project funding. (The fees must be established by the Mayor and City Council on an equitable basis across all residential and commercial property in accordance with state law). - $125m/year

Drainage User Fee

New Funding

Revenue 10 Years 20 Years 30 Years Impact Fee 101,000,000 275,000,000 437,000,000

Drainage Fee 1,450,000,000 3,800,000,000 6,050,000,000

Pay As You Go 293,000,000 2,317,000,000 5,770,000,000

Third Party 1,071,000,000 2,386,000,000 3,814,000,000

Sub-total 2,915,000,000 8,778,000,000 16,071,000,000

Less O&M $ -759,000,000 -1,685,000,000 -2,691,000,000

TOTAL CIP 2,156,000,000 7,093,000,000 13,380,000,000

Estimated Drainage & Street Fund

What Will the RENEW HOUSTON Program Do?

Establish a predictable source of funds that will allow the city to prioritize, budget and schedule the massive job to repair, replace and upgrade our streets and drainage systems.

ReNEW Houston

– Improve quality of life– Improve emergency vehicles access to

neighborhoods and businesses– Encourage economic development– It’s a permanent solution to fund Drainage

and Streets

Implementation

• Proposition One is being implemented as part of the City of Houston ReBuild Houston Program.

http://www.rebuildhouston.org