RESOLUTION

STATEOF TEXAS §
§
COUNTY OF HARRIS §

WHEREAS, at the City of Houston elections on November 2, 2010, voters will be

presented with a proposed amendment to the City of Houston charter commonly known as
RENEW HOUSTON;

WHEREAS, the amendment proposes to have voters authorize a dedicated fund for the
capital cost of future drainage and street needs, a major portion funded annually by property
owners through drainage charges and fees;

WHEREAS, the fund is subject to and is a "municipal drainage utility system" under
Subchapter C of Chapter 552 of the Texas Local Government Code;

WHEREAS, the mandatory exemptions under state law include land appraised for
agricultural use and property of state agencies and public and private institutions of higher
education;

WHEREAS, the mandatory exemptions do not include elementary and secondary

schools;

WHEREAS, City has the discretionary authority to exempt school districts;

WHEREAS, school districts support drainage and flooding control and abatement, and
already pay collectively hundreds of thousands of dollars for retention ponds and other
improvements;

WHEREAS, the proposed City fee on school districts is likely to result in either an
increase of public schools districts' tax rates or a reduction in education services;

WHEREAS, the cost to Houston ISD is estimated at $2.5 - $3.5 million per year and the
cost to all school districts in the City is estimated at $5.0 - $6.0 million per year, which is an
amount equivalent to a quarter cent or more on the school districts' tax rates;

WHEREAS, school districts' only significant local revenue source is property taxes, and
increased local property values do not benefit school districts under the state funding formulas,
but only reduce state aid to school districts;

WHEREAS, a significant reduction in state funding for public education already is

anticipated in 2011 in an estimated amount of $3.0 - $5.0 billion;

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WHEREAS, the proposed charges are the most expensive way to fund drainage and
street improvement for school districts, since the alternative funding mechanism of a bond
issuance would both exempt school districts and provide taxpayers with an income tax
deduction; and

WHEREAS, the proposed charges will effectively cause school districts to pass the cost
on to their non-City of Houston residents, because all residents of school districts share
proportionally in tax increases or reduced services.

NOW THEREFORE, BE IT RESOLVED AND ORDERED BY THE HOUSTON

INDEPENDENT SCHOOL DISTRICT BOARD OF EDUCAnON THAT:

1. The Board hereby expresses its concern about Proposition 1 on the November 2,
2010 ballot and the impact ofthe City's proposed fee on school districts to pay for
RENEW HOUSTON, since this fee is likely to result in either increased school
taxes or reduced educational services;

2. The Board respectively requests that the City exercise its discretionary authority
to exempt school districts from the City's proposed drainage fee, so that school
districts are treated the same as higher education institutions.

PASSED, APPROVED and ADOPTED this r1 day of 0 cr ',)~ , 2010.

President,
Attest:

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