HFD pension battle at center of city's proposed 2015 budget

HOUSTON (KTRK) -- Mayor Annise Parker presented Thursday a proposed fiscal year 2015 budget and it's bringing a years-long battle back to the forefront.

The mayor again focused on the city's growing pension obligations for all employees. Parker says in this coming year's budget, the pension obligations will increase by $45 million, which is more than 21 percent above this year's estimates.

"The one area of expense completely out of control is pension payments," said Parker.

While the estimates include both municipal, police and fire employees, Parker says the majority of that increase, $28 million, is for the required payments to firefighter pensions.

Mayor Parker and the firefighters pension board have been logged in a multi-year legal battle over opening its books to the city. The firefighters pension board has said its pension fund is in good shape and by state law, does not have to open it books. The city has filed a lawsuit trying to force the pension board's hand.

The legal wrangling is continuing. Just last week, the pension board said it won a major victory when a judge refused to rule that the laws governing the firefighters pensions were unconstitutional.

"We are pleased the court has upheld the rights of Houston firefighters and their families," said Todd E. Clark, Chairman of the Fund. "The city had no basis to bring this legal challenge. We are very pleased that the court agreed with the firefighters' position."

Mayor Annise Parker said Thursday the city will appeal that ruling. But for the upcoming year, the city will fully fund all pension obligations.