Lawmaker questions Metro rail finance plan

Jennifer Naedler — Thu, 10 Dec 2009 15:00:00 GMT

Lawmaker questions Metro rail finance plan

By CAROLYN FEIBEL
HOUSTON CHRONICLE

Dec. 10, 2009, 12:49AM

U.S. Rep. John Culberson is trying to throw a wrench into Metro's plan to move quickly into the next phase of designing the University light rail line.

The Houston Republican, who is a persistent critic of the transit agency, contends Metro is in “precarious financial condition.” He also criticized some of Metro's financial projections, because they assume future voters will agree to another $620 million in bonds and approve a major change in how Metro divvies up its 1-cent sales tax revenue.

Culberson filed a formal objection with the Federal Transit Authority late Tuesday, ahead of a deadline today for members of Congress to file any concerns. Otherwise the FTA would have given Metro the nod to begin preliminary engineering work on the line. Part of the 10-mile route lies within Culberson's congressional district.

FTA spokesman Paul Griffo said the agency retains the final say. “It is not a process that requires explicit congressional approval or disapproval,” Griffo said. “The FTA will keep Mr. Culberson's concerns in mind, as we do the concerns of all elected officials, as projects advance through our evaluation process.”

Culberson could not be reached Wednesday.

Metro officials dismissed his letter, saying it contained errors and that Culberson used an outdated financial forecast.

“He would have you believe we can't afford University. Not true,” said Metro President Frank Wilson. “This is a clever excising of information.”

‘Pandering' charge

Metro Chairman David Wolff charged that Culberson's action was politically motivated.

“He is just pandering to a hard-right constituency that just cannot accept the idea that the majority of people in Houston want light rail, and they want it built,” Wolff said. “It's just part of his delaying tactics, and it's unfortunate.”

Wolff has been outspoken about wishing to end the arrangement under which Metro must turn over 25 percent of the revenue from its 1-cent sales tax to Houston, Harris County, and other cities.

These “general mobility” payments cost the agency more than $100 million a year, and Wolff wants voters to end the diversions when they expire in 2014. Metro must call a referendum to let voters decide before 2013.

Culberson used a document from Metro's Web site that showed the agency assumed it would win such a referendum. The document, dated April 2008, also assumed that voters would OK a $620 million bond issue.

Wilson said Metro had submitted more recent financial models to the FTA that were more conservative and did not assume voter approval of either referendum.

The models show Metro can afford its entire Metro Solutions program, which includes light rail lines as well as improvements to the bus and HOV system, he said.

Moody's gives thumbs-up

On Dec. 3, Moody's Investors Service reaffirmed Metro's Aa3 bond rating and said the agency had a “demonstrated history of strong fiscal controls.”

The issue surfaces at a politically sensitive time for Metro: days before Houston's mayoral election on Saturday and weeks before the agency expects to get the final word on $900 million in federal matching funds for two other light rail lines, the North and Southeast.

Mayoral candidate Annise Parker seized on Culberson's letter to reiterate a campaign theme that Metro needs to display more “accountability.” Houston's mayor effectively controls the Metro board by appointing five of its nine members.

Parker's opponent, Gene Locke, said he had not had time to review Culberson's letter but said “it's precarious to make an assumption like that before the people vote” on a bond issue or the general mobility fund.

10-Dec-09 9:00 AM

Culberson for Congress - Articles

Lawmaker questions Metro rail finance plan

Lawmaker questions Metro rail finance plan

By CAROLYN FEIBELHOUSTON CHRONICLE

Dec. 10, 2009, 12:49AM

‘Pandering' charge

Moody's gives thumbs-up

By CAROLYN FEIBEL
HOUSTON CHRONICLE