by Kim Hogstrom
Daily Court Review
The City of Houston is projecting a year end surplus of $22.6 million, up $10 million from last month’s report, according the most recent financial reports reviewed during Wednesday’s city council meeting.
"On the expenditure side we are projecting personnel savings of $2.6 million for the following departments: controller, financial, library, mayor, parks and solid waste," said Houston City Controller Annise Parker. "Termination pay has pushed projected fire department spending up half a million dollars, and higher fuel costs has increased the police department budget by $1.2 million."
Parker said based on year-to-date trends she is increasing the projection for industrial licenses and permits by $500,000 and $790,000 respectively. The projections for municipal court fines and forfeit revenues are up $400,000 to reflect higher than anticipated collections. This is somewhat offset by a $299,999 decrease that Parker projected for Direct Interfund revenues that are directly tied to a decline in reimbursements from Public Works to the General Fund for allowable Capital Improvements Project costs.
Parker also addressed recent concerns concerning city investments.
"I want to discuss the recent situation with our investments in Fannie Mae and Freddie Mac," Parker said. "We currently have approximately 26 percent of our portfolio invested in Fannie and Freddie. That’s about $591 million. We feel confidence in the financial wellbeing of Fannie Mae and Freddie Mac. We believe that with the full credit of the United States behind these two institutions, these are safe and appropriate investments for the City of Houston."
Parker said the city is invested in the agencies themselves and she monitors this arm on a daily basis.
"We are not shareholders," she said. "Shareholders of Fannie Mae and Freddie Mac are suffering severe losses. We are not shareholders in the institutions. We loan them money."
Mayor Bill White said his interest was in maintaining budgets that were responsible and realistic and said he expects the financial plans for the city to remain successful.
In other city business, council unanimously passed a proposal from Methodist Hospital to annex a 73-acre tract of land adjacent to Interstate-10 near Barker Cypress to build a 185-bed branch. The new hospital, which is expected to generate 750 new jobs, will be adjunct to a new Texas Children’s Hospital that is currently in the planning phase.
"This is going to be a great partnership," said District A Councilwoman Toni Lawrence. "That area is growing so fast. It could be another Galleria."