City Controller Annise Parker gathered more than 60 Houston area bank and credit union executives together recently to kick off Bank on Houston, a program designed to provide free bank accounts to low-income Houstonians.
"Why do the poorest pay the most for financial transactions?," the controller asked. "That's just not right , and I'm asking local credit unions and banks to join with me in doing something about it. As prices rise for food, gas and utilities, everyone is hurting. We are making a commitment to help low-income Houstonians keep more of their hard-earned dollars in their pockets."
Bank on Houston is modeled after the successful "Bank on San Francisco" program which helped more than 11,000 unbanked San Franciscans open free starter checking accounts at mainstream financial institutions last year. The Federal Deposit In
surance Corp. (FDIC), the National League of Cities and the Federal Reserve Bank of Dallas, Houston Branch have been working closely with the controller. A steering committee of bank and credit union representatives will develop a variety of alternative products and services to help Houston's unbanked residents achieve financial stability.
Wachovia Regional President Lori Vetters is already on board. "We are looking forward to working with the controller and our colleagues in the Houston banking community on this very important endeavor."
An in-depth analysis of five minority-dominated Houston neighborhoods by the city Planning Department found that more than 45,000 households (about 51%) do not have relationships with banking institutions. Another study found that seven of 10 Hurricane Katrina evacuees who came to Houston did not have accounts.
"Without a bank account, people must turn to high-cost check cashers or payday lenders to conduct financial transactions," Parker said. They also do not have safe places to keep their money. As a result, many New Orleans residents saw their money wash away when the levies broke and their Social Security checks piled up at post offices. I don't want that to happen to Houstonians."
The controller envisions Bank on Houston being fully operational by late summer or early fall.
The city is upgrading its antiquated 20-year-old phone system and must change most city government phone numbers. Old phone numbers are designed to roll over to the new ones for about three months. If you have trouble reaching an office, please dial 311.
The new Controller's Office main phone number is 832-393-3460.
A paperless payroll system implemented by City Controller Annise Parker is saving city government up to a million dollars a year in personnel, printing and paper costs.
Prior to the paperless system, all 21,000+ employees received printed records of their payroll information every two weeks. It took two employees an entire day each payroll cycle to print the documents and another four hours to fold them.
The documents were picked up by depart
mental reps and distributed manually. City employees can now access payroll information electronically from any computer by linking to a secure web site. The city is using about 600,000 fewer sheets of paper annually.
Employees now must utilize direct deposit. Before the paperless system, about 3,800 city employees did not use direct deposit. The controllers' office worked closely with human resources representatives in city departments and JPMorgan Chase Bank to inform employees of the benefits of direct deposit. Only 422 employees still opt out of direct deposit. Instead of a printed paper check, they receive payroll cards, which are loaded each payday and function like debit cards.
Controller urges pension head to OK plan
Houston City Controller Annise Parker is urging Houston Municipal Employee Pension System Executive Director David Long to release his hold on a plan that might save Houston taxpayers $100 million.
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% interest to HMEPS. Controller's office and city finance department staff believe the city can do much better and are exploring alternatives. A change would also help facilitate the impending request for proposal process for the sale of the hotel.
To move forward with refinancing and free the hotel from pension obligations, the city must obtain the approval of the Texas attorney general. So far, Long refuses
to sign an acknowledgement required by the attorney general before the proposal can move forward.
Hilton Americas Hotel top floor pool.
"It appears Mr. Long is using his signature as a bargaining chip to compel a bigger pension payment from the city for current obligations," Parker said. "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 we may take advantage of better financing alternatives."
The controller noted growing concerns about HMEPS management. She urged Mayor White and City Council to join her in calling for an investigation and for annual board member education requirements provided by independent vendors. In her first term in office, the controller was successful in securing a seat for a controller's appointee on the HMEPS board, marking the first time the city's chief financial officer has become involved in the pension system.
City Controller Annise Parker has announced the successful refinancing of $653 million of utility system debt, a move expected to lower interest payments and save taxpayers millions of dollars.
"Before the refinancing we were paying interest rates as high as 6.7%," she said. "Now the interest rate averages 1.6%. That saves taxpayers about $640,000 a week."
This is the first round in the refinancing of $1.3 billion in utility system debt financed with auction-rate securities, a type of variable rate debt familiar to those with adjustable rate mortgages. Since the first of the year interest rates on the highly rated auction-rate bonds issued by the city have risen significantly. There have also been concerns about the viability of the insurance companies that back this type of debt.
"We are watching the ups and downs on Wall Street very closely and are not immune to changes that have occurred as a result of the mortgage crisis," she said. "As a result, we are adjusting our policies to provide for the most favorable outcome for taxpayers."
In this refinancing, the auction-rate securities are being replaced with variable-rate demand notes. Both options provide long-term financing at more attractive short-term, adjustable rates. However, under current market conditions the variable rate demand notes are less expensive for municipalities because their structure is designed to guard against the recent dramatic interest rate increases for auction-rate securities.
The city uses long-term debt to finance major public improvement projects for everything from airport runways to wastewater treatment plants. The city has total outstanding debt of $11.8 billion. Since 2004 about $1.9 billion of this debt has been financed with variable rate auction-rate securities. Parker estimates the auction-rate securities saved the city about $95 million over the cost of fixed-rate financing during the same period. Savings have been reduced recently by about $15 million due to rising interest rates for auction-rate securities.
"The bottom line is that we are still about $80 million ahead of where we would have been using fixed-rate financing," she said.
Longer days. Higher electric bills. Hot, humid weather. Fast-growing grass.
Yes, it's time for weekly lawn mowings. City officials remind residents to bag lawn clippings and put them out next to the trash can, where they can be picked up and recycled. Better yet, compost them. Please do not sweep or blow grass clippings into street drains or the street, where they'll clog the drainage system.
Debris and chemicals placed in city drains run into bayous and eventually into Galveston Bay, where they can pollute the delicate ecosystem.