Tuesday, November 10, 2009

Gene Locke is Running Pell Mell Towards Bankruptcy

Gene Locke is quoted in today's Chronicle Houston Politics blog as being for the development of a soccer stadium for the Dynamo. However might I remind you that the Harris County Sports Authority is on the brink of bankruptcy and may shaft the taxpayers of Harris County with a $117 million balloon payment over the next five years on variable rate backloaded bonds (which Gene Locke helped to negotiate and underwrite as General Council for the HCSA) that were renegotiated just last year because they could not meet the balloon payment then either.
Meanwhile the city itself is also on the brink of bankruptcy, so says three well respected CPA's in town, and that bankruptcy if it happens will have a domino effect on the whole area because the city has sold some of it's debt to METRO, Harris County, and even itself. Yes, you read that right, the city has even bought it's own bonds in an arbitrage scheme. The city has in turn bought debt securities from METRO, Harris County, Harris County Sports Authority, and other municipalities. so a default in one, could trigger a default in all of them. The city is believed to be short at a minimum 1400, and possibly as many as 5000 policemen, and must pick and choose which crimes they will investigate/prosecute. This is according to Chief Harold Hurtt himself.

Edit: Here is an unedited interview with Ray Hunt with HPOU on the shortage by Isiah Carey with Fox26 news:

Do we really need a soccer stadium that damned bad?


Anonymous Anonymous said...

Also note HC Toll Rd funds have flowed to Sports Authority.

As to the 5k cop shortage I call bs. We do not need a 10k army in blue but damn well better fill in the bodies who are ready to retire. Those retirements will further strain the underfunded pension schemes and require huge DROP payments as well.

Parker helped build the house of cards over 6yrs on cncl and 6 as controller.

Bottom line, we are bankrupt and the homeowner particularly is screwed. Huge water bill increases will be needed to pay the sinking CUS bond debt and operating costs.

November 10, 2009 4:40 PM  
Blogger Rorschach said...

No argument that Annise Parker is no prize either. Just the lesser of two evils methinks.

Somewhat in her defense, the way the power structures are set up in city hall, you don't get anywhere bucking the mayor, at least not publicly. If you want to survive, you do what you are told and keep your trap shut.

November 10, 2009 4:46 PM  

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