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City Of Houston Balance Sheet Suggests Bankruptcy

It seems that the real estate industry is not the only group who have mismanaged their markets over the last four years. Rampant over spending by the City of Houston has basically transferred ownership of the City of Houston from the local tax payers to the city employees. The most shocking part of this story is that between 2004-2008 tax revenues grew at a pace that far exceeded the population growth and inflation: yet today, we sit behind a 1.2 billion dollar 8 ball. This is roughly equivalent to the amount of the employee pension fund bonds. I personally cannot perceive any method by which the city tax payers can make up this shortfall while we are mid recession. The only reasonable choice is for the City of Houston to file bankruptcy. Embedded below is the report completed by Lemer, Farb, and Roberts, three retired CPAs who reviewed the city’s financial reports.

Lemer/Farb/Roberts assessment of City of Houston Finances (22 October 2009)

This entry was posted on Wednesday, October 28th, 2009 at 7:37 am and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.

5 Responses to “City Of Houston Balance Sheet Suggests Bankruptcy”

  1. Printable Eviction Notice Says:
    November 4th, 2009 at 1:24 am

    In places like California, bankruptcy has been looming for several years for the whole state. In Orange County, CA a few years back they have to file for bankruptcy then issues bonds to work their way out. Houston, being in trouble is not surprising as a lot of areas are in this economy, but I hope it will not come to the bankruptcy phase.

  2. edmonton houses Says:
    November 6th, 2009 at 1:15 pm

    In a business there is always a downfall. But this needs to be properly discussed and well tackled before making any decision. It is not awkward to face the real situation if it’ll benefit many lives.

  3. Richard Stabile Bergen County Real Estate Says:
    November 7th, 2009 at 9:45 am

    Cities and States are in server trouble. They must cut spending drastically. They must do the same things the domestic car companies are doing to stay alive.

  4. bwin fr Says:
    March 31st, 2010 at 2:34 pm

    I’ve been reviewing for helpful online marketing news, this is a good start. Since I’ve started building my first site, I’m always looking for ways to drive traffic. I’ve bookmarked your blog and RSS feed too. Thanks!

  5. West Campus Apartments Says:
    April 11th, 2010 at 9:19 am

    This is a good review and good blog start. I think its good for financial to be lean towards transparency so that they can be discussed and reviewed. More education and “less being left in the dark” is what i say.

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