Hi Patrick,

I understand from a public meeting today the City is going to Wall St. tomorrow and will attempt to sell more pension bonds to help wind up the Hilton hotel deal if the city can get a more attractive rate than the 8.5% the City agreed to pay on the Hotel note.

I am going to do a story tonight on that and I have a few questions as I am on deadline now for that story.  

1)   Does the Mayor have any comment on the proposed action?

2)   One of the benefits the Houston Controller sees in selling pension bonds now (which she generally thinks are bad ideas) is that it will lower the interest rate- and stop the city from deferring so much of the 8.5% to future generations.   If the new pension bond deal falls through and/or if the City can’t get the 6.5%, 6.75%, or any other rate it likes on the bonds - would the Mayor still support deferring more interest on the hotel note to future generations?  If the answer is yes, please tell me why.  If the answer is no- please tell me what his new plan would be.

We look forward to your response and/or any additional material you may have to provide or offer.   We respectfully request you get any comments or material to us as early as possible this afternoon in advance of our story which will air TONIGHT.  

Sincerely,

Mark Greenblatt

Investigative Reporter

KHOU-TV

1945 Allen Parkway

Houston, TX 77019

“We will always consider the right balance between our employees and taxpayers.  The annual cash contribution to the pension fund was negotiated through FY2011 in an agreement with the pension board.  Actuarial projections show that the Municipal Pension System will satisfy all liabilities with a constant contribution by the city of about 17% of payroll.”

I want to make sure you understand my questions (today) and our story tonight relates to that hotel deal (and the potential refinancing of that loan to save taxpayers money)-  and not so much about actuarial projections which you seem to have talked about in your response to my two questions below.

If the Mayor/his staff has comment that might more directly address the subject of what we’re specifically preparing a report on, we’d be happy to include those thoughts in our report.  In any event- we’ll be glad to go with and report whatever comments we have received in advance of our story tonight- or at any other later time you offer comment, even if that is after we go to air tonight.   

Regards,       

Mark Greenblatt

Investigative Reporter

KHOU-TV

1945 Allen Parkway

Houston, TX 77019

office) 713-284-1086

We stand by our previous statement.   This administration has clearly demonstrated prudent financial management and aggressive efforts to find the best rates for taxpayers.
[Trahan, Patrick - MYR]