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Bond to help pay for $650M settlement with firefighters union approved by Houston City Council

Some city leaders say the settlement will ultimately cost Houston taxpayers more than $1.5 billion

HOUSTON — The Houston City Council approved the issuance of a bond to help pay for a $1.5 billion deal with the firefighters union, bringing a bitter legal battle one step closer to completion.

The item passed on a 14 to 3 vote after a long debate at Wednesday’s City Council meeting.

The deal guarantees Houston firefighters eight years of back pay and annual raises over the next five years. It also makes a 2021 temporary 18% pay increase permanent and mandates additional raises of 10% on July 1, 2024.

“This is one, almost final step in a very long journey for the firefighters,” Houston Professional Firefighters Association President Marty Lancton told reporters following the bond’s passage.

Several councilmembers expressed concerns about the settlement and how the amount was reached in negotiations.

“My only issue is where did we start? How did we get to this number?” Councilmember Edward Pollard said during debate, referring to the $650 million settlement amount.

The council rejected efforts by Pollard and Councilmember Tiffany Thomas to put the issue to voters in November. Mayor John Whitmire emphasized how the city was facing court-ordered deadlines for the deal to pass.

“We’re elected to carry out our responsibility and it is a tough vote and it’s a huge responsibility but it’s only going to get tougher if we don’t resolve it with this negotiated settlement,” Whitmire said.

The council was unable to vote on the proposed settlement because City Controller Chris Hollins did not certify the item in time for the council’s meeting, a step needed before it can move forward as the bond pays for the backpay for union members.

Hollins withheld the certification of the item because of concerns over the cost to taxpayers and the city.

“I wouldn't be doing my job as Houston's taxpayer watchdog if I allowed this important item – one that will ultimately cost the City more than $1 billion – to move forward without answering critical questions that are relevant to the fiscal sustainability of the City and the safety of Houstonians,” Hollins said in a statement sent to KHOU Tuesday night. “It would be irresponsible and put the City at significant financial risk to move forward without additional clarity."

Hollins had sent a letter Mayor Whitmire’s office asking for clarification on the agreement between the city and the union, after receiving a copy on June 3. Whitmire’s office sent two responses aiming to answer the questions laid out by Hollins.

While Hollins is concerned about the overall $1.5 billion cost, Whitmire’s office said according to the city attorney, Hollins’ only role for certification is approving $6.5 million in legal fees.

The actual settlement deal and collective bargaining agreement was not voted on Wednesday.

"The ball is in the mayor’s court, our questions are very clear, and we just need clear and straightforward and honest answers. As soon as we get those, then we’ll move it forward and let the city council vote on it," Hollins said.

 

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