Important ballot propositions
      close out Nov. 7 election ballot     

While city government may be enjoying its best financial health in years, crucial November 7 bond issues and revenue cap propositions could either maintain the patient's robust health or make the patient sick, depending on your viewpoint.

At the end of the general election ballot are eight items proposed by the City Council. Everyyone must vote on Propositions A-H individually even if casting a straight-party vote.

Propositions A-F

The $625 million bond referendum ( Propositions A-F) would authorize financing for street, storm drainage, police and fire projects as well as libraries, parks and other capital improvements. Like most cities, Houston holds a bond election (essentially a pre-authorization to borrow money as needed) every five or six years to pay for expensive capital improvements then repays the debt over 20 or more years. The bond issues would not require a tax increase.

Proposition G

Proposition G would amend the city charter to change the 2004 voter-approved Proposition 2, or Rev Cap, by excluding from the revenue cap all growth at airports and in other "enterprise" funds (water and sewer, and the Convention and Entertainment Department), which are not funded by property taxes. 

Voters approved Proposition 1, or Tax cap, by about 60%. It requires that property tax revenues not increase more than the combined growth of population and inflation, or 4.5%. About 55% of voters approved the more stringent Prop 2, which requires that city revenue from all sources not exceed the combined rates of population growth and inflation. The city contends that Prop 1 takes precedence because it received more votes. Both sides are waiting for the courts to decide.

The mayor proposed Proposition G to differentiate between revenue sources that feed the general fund (mostly property and sales tax) and sources that support fee-based programs, such as the airport. City Council voted to put it on the ballot, feeling that voters hungry for property-tax relief may have inadvertently penalized city services that are not tax-supported.

City Controller Annise Parker has certified that the city budget is in compliance with both propositions but that Prop 1 compliance requires a slight tax decrease.

"You may have heard radio ads urging you to vote against Proposition G if your electric or gasoline bills are too high. There's absolutely no correlation," she said. Prominent Prop G opponents include Bruce Hotze. Supporters include Continental Airlines.

Proposition H

Proposition H is the kind of ballot initative envisioned by both Prop 1 and Prop 2 supporters. It would allow the city to collect and spend $90 million over the revenue caps. The money would pay for  police, fire and emergency medical services (public safety) this fiscal year.

While opponents contend this would just give City Council a big blank check, proponents believe the proposition would guarantee that the city's most critical services are adequately funded and not negatively impacted by a revenue cap in the face of rising concerns about crime.

For ballot wording, see www.harrisvotes.org .

In the wake of the Mayor Pro Tem's Office bonus indictments, City Controller's Office auditors will audit all employee incentive payments made citywide between January 1, 2004 and June 30, 2006.

Auditors will review applicable city policies and laws, interview employees and examine documention. The District Attorney's office suggested the audit.  City auditors continue to assist the DA's Office in examining city documents pertaining to the Mayor Pro Tem's Office bonus scandal.

Municipal Court audit

This spring, TV news reports showed long lines of frustrated Houstonians trying to heed calls for patience with the new Municipal Courts computer system.

While the department fine-tuned the system, the Municipal Courts Administration Department asked City Controller's Office auditors to examine the new system. That just-released audit still found significant problems, such as personnel closing cases even though defendants still owed the city almost $2 million.  The good news is that the department agrees with most of the auditors'  findings and is correcting the problems.

In about a year, an audit team will do a standard follow-up audit to make sure recommendations have been implemented. Jefferson Wells performed the audit for the City Controller's Office.  For a copy of the complete audit, check www.houstontx.gov/controller/audit.html.

      Other audits

City auditors are busy auditing the vehicle home storage program, citywide travel costs and cash handling. They will soon release the HPD Classified Employees Work Hours audit and are beginning a follow-up audit of the Houston Emergency Center.