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James Noteware

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.

Inevitable lawsuit over pension bond ballot language filed

Like night follows day, like flies garbage.

Mayor Sylvester Turner misled voters into approving a $1 billion pension bond referendum last month, a new lawsuit alleges, claiming that city officials plan to use the bonds’ passage to sidestep a voter-approved limit on the property tax revenue Houston can collect.

A local businessman and former Houston housing department director, James Noteware, sued the city on Friday in state district court, contesting the Nov. 7 election on the grounds that the ballot language was “materially misleading.”

The full language, rather than the summary listed for voters on the ballot, stated that the taxes levied to repay the bonds would not be “limited by any provision of the city home rule charter limiting or otherwise restricting the city’s combined ad valorem tax rates or combined revenues from all city operations.”

The suit claims that phrasing means the taxes levied to pay for the bonds will be exempted from the 13-year-old revenue cap, which limits the annual growth of property tax revenue to the combined rates of inflation and population growth, or 4.5 percent, whichever is lower.

“Omitting the fact that the proposition created a billion-dollar exception to default limits on the city’s taxing authority renders the proposition materially misleading and void,” the suit states.

More coverage from the Chron here. This is, in a word, nonsense. I mean look, Paul Bettencourt, who insisted on the pension bond referendum and who loves the revenue cap and the spotlight more than his own children, had nothing to say about this during the campaign. Nobody complained about the ballot language. At this point, this kind of lawsuit is basically pro forma, and serves as nothing more than an attempt by the losing side to get bailed out by the Supreme Court. If you have the resources to hire a lawyer to file this kind of crap, you have the resources to mount some kind of campaign against the referendum before the election, even if it’s nothing more than sending an incendiary press release to a gaggle of reporters. If James Noteware, who by the way was a Mayoral candidate for about 15 minutes in 2013, did anything like that, he failed spectacularly to get a news story out of it. If this thing goes anywhere, it can only mean that the Supreme Court is now an official part of the referendum process, and we may as well ask their opinion before we bother wasting our time voting on anything.

(Also, too: Yet another reason to kill the awful, terrible, no good, very bad revenue cap. I’m just saying.)

Hall inches closer to running

He’s still qualifying it, but Ben Hall sounds like a candidate for Mayor.

Ben Hall

Former city attorney Ben Hall says this time, he’s really ready to run for mayor.

“I intend to be on the ballot, if the Lord gives me good health in 2013,” Hall said.

The longtime trial lawyer has flirted with politics before, almost jumping into the mayor’s race four years ago, when Parker was running for her first term. This time, he says he’s in it to win, and he’s sounding confident.

“We have a strong coalition between moderate conservatives, liberal Democrats, African Americans and Hispanic voters,” Hall said.

Less equivocal than before, but still with an out clause, just in case. Nothing is truly official until the filing deadline, of course, but we’ll know soon enough if Hall really does mean it this time.

But Hall may have company. James Noteware, the city’s former housing director, has confirmed to Eyewitness News that he is seriously considering running for mayor. Mayor Parker hired Noteware in 2010, but he quit earlier this year.

I know even less about Noteware than I do about Hall. To be honest, I don’t know anything about him. Here’s a story about Noteware’s resignation, and a story about HUD rejecting the city’s fair housing effort, which the writer of that piece says is highly unusual. A blog called Harris County Conservative Politics mentioned Noteware as a possible candidate a couple of weeks ago, while also uncritically passing along the rumors of Mayor Parker being appointed to some unnamed position within the Obama administration, which was mentioned in this story and emphatically denied by the Mayor. I first heard that rumor last week, and all I can say is that it makes no sense. Anyway, that’s what I now know about James Noteware after a cursory Google search. As with Hall and the possible Latino candidate Campos alludes to, anyone can say they’re running. Actually running is a whole ‘nother thing.