Aldermen approve Bel-Aire, pension ordinances – Aug 6, 2014

Jamie Munks
The State Journal-Register

The Springfield City Council overwhelmingly passed two ordinances Wednesday that some city administrators have come out against. With no debate, the council unanimously passed an ordinance directing city police to begin chronic nuisance proceedings against the troubled Bel-Aire Motel. Aldermen spent more time discussing an ordinance to devote extra revenue from City Water, Light and Power to the city’s underfunded police and firefighter pension plans, which ultimately passed by a wide margin.

The city is already in the midst of a legal battle with the out-of-state owner of the Bel-Aire Motel over numerous building code violations at the property, and the legal opinion city officials have received is that the chronic nuisance ordinance that’s on the books doesn’t apply in this instance.

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The motel’s owner, Gopal Motwani, is a Florida resident and has put the property up for sale. He’s due back in city administrative court later this month related to the building code violations levied against him by the city.

Pension payment

Aldermen spent the better part of Wednesday’s meeting debating whether or not to designate $1 million in revenue the city drew in from a payment in lieu of taxes from the city-owned utility to the city’s police and fire pension funds. Aldermen voted in favor of the measure 8-2, with Ward 2 Ald. Gail Simpson and Ward 4 Ald. Frank Lesko casting the dissenting votes.

The ordinance the council passed was a compromise from Ward 7 Ald. Joe McMenamin’s original proposal, which would have designated the full amount of excess revenue the city received from City Water, Light and Power at the close of last fiscal year. The original proposal would have put more than $2 million toward paying down the city’s debt to the two public safety pension funds. Currently, the unfunded liabilities for the pension funds is hovering around $230 million.

McMenamin called the proposal a “message” to Houston and Budget Director Bill McCarty about a pressing need to remedy the structural deficit when it comes to the two pension funds. “We’re looking for leadership,” McMenamin said.

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