Public improvement bonds set for fall ballot

November's ballot will feature $495 million in public improvement bonds after City Council agreed Wednesday to send the package to Houston voters.

The general bonds, which would not require a tax hike, would fund improvements to libraries and parks, as well as items like new police and fire trucks. They will appear alongside $1 billion in pension obligation bonds.

"Many of our police officers are driving in vehicles that are 10 to 11 years old, if not longer. Same thing for firefighters," Mayor Sylvester Turner said. "Solid waste -- driving in trucks that are stopping while they're out collecting trash. So the public safety issue is important."

BB-020317-Sylvester Turner
Sylvester Turner newly elected Mayor of the City of Houston photographed at City Hall December 15 2015. (photo by Richard Carson) Photos provided for "Editorial Use" only for editorial, factual, educational, news, informational and/or historical purposes, including in order to depict persons, places or event of public interest. All other usage rights reserved.

In all, the bond package before voters asks for authorization to issue $159 million in public safety bonds, $104 million for parks, $109 million for general government improvements and $123 million for libraries.

That includes $52 million for a multi-purpose facility in Alief next fiscal year, $25 million over the next two years for a new community center in Sunnyside, $54 million to replace aging fire trucks and $66 million for police vehicles.

Council members eventually agreed by a wide margin to send the bonds to voters -- with just Councilmen Greg Travis and Michael Kubosh voting no -- but not without some customary hemming and hawing.

Councilman Mike Knox questioned why the city would request voter approval to issue nearly half a billion dollars in bonds when more than one-fifth of that authorization -- $87 million for library facilities and $21 million for park improvements -- would be for projects that have yet to be determined.

"I just don't want the city to be in the position with all this extra money going, oh we've got all this extra money, let's think of something to do," Knox said.

The mayor assured Knox that the city would, through its library master plan, settle on specific ways to use the unallocated $87 million set aside for library facilities.

Councilman Dave Martin joked that he would volunteer to use any excess funds for projects in his district.

"I'd be glad to take it," he said.

"Stand down, I'm already in line," Councilwoman Brenda Stardig responded.

Martin added: "Not to bring my personal life into it, but I live every day on to-be-determined. I live my life on things that I don't anticipate spending."

Kubosh, meanwhile, worried about the city's ability to service its bond debt.

"Even when we had our recent budget, you said there's no funding source for the district council service budget -- there's no money there for it -- so how are we going to have money for this?" he asked.

The general bond measure before voters simply would authorize Houston to issue additional bonds. It would not obligate the city to further spending without City Council approval.

If voters agree, the pension obligation bonds set to appear alongside the improvement bonds would complete the mayor's pension reform deal by infusing Houston's underfunded police and municipal pensions with $1 billion.

Without the bond proceeds, the benefit cuts Turner negotiated with the groups would be rescinded.

"If we don't get the pension obligation bonds, we don't get the benefits of those savings," Turner said. "So the pension issue -- pension reform -- is the No. 1 priority.

Tribune Content Agency
Bond elections Infrastructure Public finance Texas
MORE FROM BOND BUYER