Houston City Controller Annise Parker is urging Houston Municipal Employee Pension System Executive Director David Long to release his hold on a plan that has the potential to save Houston taxpayers up to $100 million for the life of the deal. “While I assume Mr. Long believes he is acting in the best interest of the pension system members, his actions are not in the best interest of taxpayers and they are definitely contrary to sound fiscal judgment,” said Controller Parker.

The city owned Hilton Americas Convention Center Hotel is currently being used as collateral in funding the city's financial obligation to the HMEPS. Under the existing agreement, the city pays more than 8 percent interest to HMEPS. Controller's office and city finance department staff believe the city can do much better and are exploring available alternatives. A change would also help facilitate the impending request for proposal process for the sale of the hotel.

In order to move forward with a refinancing and free the hotel from the pension obligations, the city must obtain the approval of the Texas Attorney General. So far, Long is refusing to sign an acknowledgement required by the attorney general before the new proposal can move forward. “It appears Mr. Long is using his signature as a bargaining chip to compel a bigger annual pension payment from the city,” said Parker. “The plan being considered for the pension system would save taxpayer dollars while still meeting the city's pension obligations. There will be no adverse impact to the future retirement benefits of municipal employees. I am calling on Mr. Long to release his hold on the deal so that we may take advantage of better financing alternatives.”

Parker noted that there are growing concerns about the management of HMEPS. She urged Mayor White and city council to join her in calling for further investigation of the concerns. In her first term in office, Controller Parker was successful in securing a seat for a controller's appointee on the HMEPS Board of Trustees, marking the first time the city's chief financial officer has had any involvement in the pension system.

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