As I look back on 2004, I’m amazed how fast my first year as city controller flew by and how much the Controller's Office achieved.

Proposition 3, my top priority for 2004, won mayoral and Council support, then 85% voter support. The Controller’s Office will now have clear authority to conduct audits, including comprehensive performance audits without seeking mayoral approval. The office is already conducting a performance review of the mayor's after school program and plans similar audits of the 311 system and the Fire Department's Life Safety Division.

Mayor and City Council

They’re still in love, but they’re beginning to notice each other’s flaws.

Although Mayor White’s still racking up almost unanimous votes, City Council discussion is getting more contentious. It’s still incredibly harmonious though, especially compared to the open warfare at the end of the Brown administration. The upbeat mood likely will continue as long as the budget stays fairly balanced and the economy keeps inching forward.

I've enjoyed working with this can-do mayor. Considering some of the heated mayor-controller battles of the past, such as Lanier vs. Greanias, our relationship is surely one of the best in recent city history. We agree on many issues, and both the mayor and I prefer to work out issues privately rather than duke them out in the newspaper.

The holiday season started early in the Controller’s Office when the big three rating agencies sent report cards:

     •  Standard & Poor’s – city “outlook” boosted to positive (AA- rating);
     •  Fitch – stable city outlook maintained (AA);
     •  Moody’s – stable city outlook maintained (Aa3). 

This is great news. Who would have thought we’d be stepping into the new year with renewed confidence considering the financial hurdles the city faced early in 2004: a $2 billion pension crisis, soaring health insurance costs and at least one property tax revenue cap proposition on the November ballot?

The rating agencies noted the city's healthy, diversifying economy and took a wait-and-see attitude about Propositions 1 and Proposition 2. They also praised city government handling of pension reform while S&P lauded the city for its management of health-care costs and a "potentially fiscally crippling revenue cap."

As the city’s chief financial officer, my office provided the mayor and council with assessments of Propositions 1 and 2 and the pension crisis. I also presented the City Council’s only written analysis of the complicated Hilton Americas hotel transfer, a critical component of the mayor’s pension proposal.

Still up in the air is my proposal to have the controller or a representative serve on the pension board. It’s a perfect fit with the controller’s responsibility as the city’s financial watchdog and a way to bring some independent oversight to the pension fund’s investing policies. There would be no conflict of interest because I have no vote at the council table.

Other 2004 Highlights

HPD inspection division – The Controllers’ Office recently completed training a group of police officers to think like auditors. The training was prompted by a request from Chief Hurtt,  who asked for help in establishing an HPD inspection division to provide more internal controls in the wake of DNA lab and evidence room scandals.

Record bond deal – In June, the city successfully completed the largest and most complex bond deal in its history. The $3.1 billion restructuring of water and sewer debt will save the city more than $80 million a year. The refinancing completes the creation of a new combined utility system that includes water, sewer and drainage services. The plan provides for up to $50 million a year for the next three years for storm water drainage maintenance and operations.

Construction delays audit – In April, the Controllers’ Office surprised everyone by revealing that the city and METRO, not private contractors, are largely responsible for those never-ending street construction projects that miss deadline after deadline. The mayor had asked the Controller’s Office to investigate street project delays in an unprecedented performance audit.

This month's Money Matters, hosted by City Controller Annise Parker, spotlights Houston's improving quality of life.

Asst. Police Chief Brian Lumpkin talks about the reorganization of the Neighborhood Protection Division, now part of HPD.   Kelly Snook, a park designer in the Parks Department, and Houston Dog Park Association President Donna Bing discuss the growing number of dog parks.

The city has two new dogs parks: Maxey Bark and Run at 601 Maxey Road (off I-10 East), and Ervan Chew at 4502 Dunlavy. For more information about Houston-area dog parks, see www.houstondogpark.org/locations.htm .

Money Matters  can be seen at 2 a.m., 8 a.m., 2 p.m. and 8 p.m. Mondays on the Municipal Channel (Warner Cable 16).