Bill White, Mayor, City of Houston, and Houston City Council v. Carroll G. Robinson, Bruce R. Hotze, and Jeffrey N. Daily

CourtCourt of Appeals of Texas
DecidedApril 3, 2008
Docket14-06-00167-CV
StatusPublished

This text of Bill White, Mayor, City of Houston, and Houston City Council v. Carroll G. Robinson, Bruce R. Hotze, and Jeffrey N. Daily (Bill White, Mayor, City of Houston, and Houston City Council v. Carroll G. Robinson, Bruce R. Hotze, and Jeffrey N. Daily) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bill White, Mayor, City of Houston, and Houston City Council v. Carroll G. Robinson, Bruce R. Hotze, and Jeffrey N. Daily, (Tex. Ct. App. 2008).

Opinion

Reversed and Remanded and Opinion filed April 3, 2008

Reversed and Remanded and Opinion filed April 3, 2008.

In The

Fourteenth Court of Appeals

_______________

NO. 14-06-00167-CV

BILL WHITE, MAYOR, CITY OF HOUSTON,

AND HOUSTON CITY COUNCIL, Appellants

V.

CARROLL G. ROBINSON, BRUCE R. HOTZE, AND JEFFREY N. DAILY, Appellees

On Appeal from the 333rd District Court

Harris County, Texas

Trial Court Cause No. 04-72705

O P I N I O N


Appellees, Carroll G. Robinson, Bruce R. Hotze, and Jeffrey N. Daily, sued appellants, Bill White, Mayor of the City of Houston, and Houston City Council (collectively Athe City@), seeking a declaratory judgment that a citizen-initiated proposition passed by voters is valid and must be enforced.  The trial court denied the City=s plea to the jurisdiction and motion for summary judgment.  The trial court granted appellees= motion for summary judgment and entered a final judgment.

The City presents six issues for review.  First, the City contends the trial court had no authority to consider this suit because appellees were required to pursue an election contest or quo warranto proceeding.  In its second and third issues, the City argues the trial court did not have subject matter jurisdiction because appellees lack standing to assert their claim.  The City=s fourth, fifth, and sixth issues pertain to the merits of appellees= claim: the City asserts the trial court erred by denying the City=s motion for summary judgment and granting appellees= motion for summary judgment.  We conclude the City=s second and third issues are dispositive because appellees have failed to establish standing.  However, appellees must be afforded a reasonable opportunity to amend their pleadings and cure the jurisdictional deficiency.  Accordingly, we reverse the trial court=s final judgment and remand.

I.   Background

The City approved an ordinance placing two propositions for amendments to the city charter on the ballot in a November 2004 election: AProp. 1@ and AProp. 2.@[1]

Prop. 1 was placed on the ballot pursuant to the City=s own motion.  Prop. 1 pertains to ALimits on Annual Increases in City Property Taxes and Utility Rates.@  Prop. 1 grants the City Afull authority to assess and collect any and all revenues of the city without limitation, except as to ad valorem taxes and water and sewer rates.@  Although the full text of Prop. 1 was set forth in the election ordinance, the following summary was included on the ballot:


The Charter of the City of Houston shall be amended to require voter approval before property tax revenues may be increased in any future fiscal year above a limit measured by the lesser of 4.5% or the cumulative combined rates of inflation and population growth.  Water and sewer rates would not increase more than the cumulative combined rates of inflation and population growth without prior voter approval.  The Charter Amendment also requires minimum annual increases of 10% in the senior and disabled homestead property tax exemptions through the 2008 tax year.

 Prop. 2 resulted from a citizen-initiated referendum petition.  Prop. 2 concerns ALimits on All Combined City Revenues.@  Although the full text of Prop. 2 was set forth in the election ordinance, the following summary was included on the ballot:

The City Charter of the City of Houston shall be amended to require voter approval before the City may increase total revenues from all sources by more than the combined rates of inflation and population, without requiring any limit of any specific revenue source, including water and sewer revenues, property taxes, sales taxes, fees paid by utilities and developers, user fees, or any other sources of revenues.

On the November 2004 ballot, the electorate was allowed to vote for or against each proposition.  Prop. 1 and Prop. 2 each passed with a majority of the votes cast on the particular proposition.  Prop. 1 received more favorable votes than Prop. 2.

After the election, for two independent reasons, the City determined Prop. 1 is legally binding and Prop. 2 would not be enforced.  First, in the election ordinance, the following Apoison pill@ provision was included after the text of Prop. 1:

If another proposition for a Charter amendment relating to limitations on increases in City revenues is approved at the same election at which this proposition is also approved, and if this proposition receives the higher number of favorable votes, then this proposition shall prevail and the other shall not become effective.

Citing this provision, the City asserts Prop. 1 must prevail because it received more favorable votes than Prop. 2.

Alternatively, the City relies on Article IX, Section 19 of the Houston City Charter which provides, in pertinent part:


. . . at any election for the adoption of amendments if the provisions of two or more proposed amendments approved at said election are inconsistent the amendment receiving the highest number of votes shall prevail. 

The City posits that Prop. 1 and Prop. 2 are inconsistent; thus, Prop. 1 must prevail because it received more favorable votes.[2]

Appellees sued the City, seeking a declaratory judgment that Prop. 1 and Prop. 2 must both be added to the City Charter.  As we will later discuss in more detail, appellees are Houston citizens who sponsored and voted for Prop. 2.  In essence, appellees allege the Apoison pill@

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Bill White, Mayor, City of Houston, and Houston City Council v. Carroll G. Robinson, Bruce R. Hotze, and Jeffrey N. Daily, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bill-white-mayor-city-of-houston-and-houston-city--texapp-2008.