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Pension bond sales proceed

But it was close, which both boggles my mind and annoys the ever-loving crap out of me.

The City of Houston can move forward with its plan to sell $1 billion in bonds on Friday as part of Mayor Sylvester Turner’s landmark pension reform passed by the Texas Legislature earlier this year, a judge ruled.

State District Judge Mark Morefield on Thursday denied a request by former city housing department director James Noteware for a temporary restraining order to delay the issuance of the bonds.

The request for the restraining order was part of a lawsuit filed last Friday by Noteware, who alleges the city misled voters into approving the bonds so it could sidestep a voter-approved limit on how much property tax revenue Houston can collect. Noteware claims the ballot language was “materially misleading” and did not include wording to indicate the taxes levied to pay off the bonds would be exempted from the 13-year-old revenue cap.

City officials say the language cited by Noteware is boilerplate included to assure bondholders that the city would meet its obligations.

[…]

Morefield said there were “substantial” concerns regarding the legality of the ballot measure, but that he ultimately agreed with the city’s argument that delaying the issuance would significantly damage Houston’s standing among creditors and bondholders.

“I think we’re just too far down the road at this point in time to stop this train,” Morefield said. “The mayor and City Council are heavily invested in this. And this thing is going to go forward.

“They may have to pay a heavy consequence for it going forward,” he added.

See here for the background. The sale has been completed, so at least that’s one rabbit hole we won’t go down. Let me see if I can sum up all the reasons I am gobsmacked by this.

1. As a reminder, the city was only obligated to put the bond sale to a vote because that was a provision in the Senate bill that required it. Mayor Bill White sold pension obligation bonds for five years without anyone demanding a vote. The reason we voted is because Paul Bettencourt insisted on it. What does he have to say about this?

2. Proposition A passed with 77% of the vote. There was essentially no opposition to it – conservative groups like the C Club endorsed it, while the Harris County Republican Party declined to take a position. Nobody raised any objections to the ballot language, which was approved by Council in August, and nobody made this case about the stupid revenue cap before the election.

3. Specifically, James Noteware appears to have taken no action regarding Prop A before the election. Go ahead and do a Google News search on him – there’s nothing relevant to this before he filed his lawsuit. He couldn’t be bothered to put out a press release, or throw up a webpage, to outline his objections before the vote. Yet here he comes afterwards to overturn a valid election that no one had any problems with because he didn’t like the pension deal?

4. I mean, there are issues with the whole referendum system, but look: Mayor Turner won an election in 2015 on a promise to get the Legislature to pass a bill to reform the city’s pension system. Our elected legislators passed such a bill. Our elected Council members ratified that agreement, then voted to put the required bond measure on the ballot, which the voters then overwhelmingly approved. What the actual hell are we doing here? Why does none of this matter?

deep breath Anyway. I hope we get a future story that includes some quotes from legal experts who can analyze the merits of the lawsuit and its likelihood of success going forward. I can rant all I want but it’s in the hands of the judges now. Lord help us all. The Mayor’s press release has more.

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