{"id":21598,"date":"2024-03-27T02:53:15","date_gmt":"2024-03-27T02:53:15","guid":{"rendered":"https:\/\/www.insurancejournal.com\/?p=766707"},"modified":"2024-03-27T02:53:15","modified_gmt":"2024-03-27T02:53:15","slug":"houston-to-sell-1-1-billion-bonds-for-firefighter-settlement","status":"publish","type":"post","link":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/2024\/03\/27\/houston-to-sell-1-1-billion-bonds-for-firefighter-settlement\/","title":{"rendered":"Houston to Sell $1.1 Billion Bonds for Firefighter Settlement"},"content":{"rendered":"<div><img decoding=\"async\" src=\"https:\/\/www.insurancejournal.com\/img\/social\/opengraph\/ij-social-default-1200x630.png\" class=\"ff-og-image-inserted\"><\/div>\n<ul class=\"nav nav-tabs tabs tabs-entry\">\n<li class=\"active\"><a href=\"https:\/\/www.insurancejournal.com\/news\/southcentral\/2024\/03\/26\/766707.htm\">Article<\/a><\/li>\n<li><a href=\"https:\/\/www.insurancejournal.com\/news\/southcentral\/2024\/03\/26\/766707.htm?comments\" rel=\"nofollow\">0 Comments<\/a><\/li>\n<\/ul>\n<div class=\"article-content clearfix\">\n<p class=\"bloomberg\">Houston plans to sell more than $1 billion in bonds to settle a firefighters\u2019 pay dispute and the city\u2019s chief financial officer is warning it will swell the annual budget shortfall by as much as 75%.<\/p>\n<p>The fourth-largest US city will need to sell so-called judgment bonds to cover a settlement that Mayor John Whitmire struck with the firefighters\u2019 union earlier this month, City Controller <a href=\"https:\/\/www.houstontx.gov\/controller\/controllerbio.html\" target=\"_blank\" rel=\"noopener noreferrer\">Chris Hollins<\/a> told reporters Tuesday.<\/p>\n<div class=\"bzn bzn-sized bzn-intext\">\n<ins data-revive-zoneid=\"79\" data-revive-block=\"1\" data-revive-id=\"36eb7c2bd3daa932a43cc2a8ffbed3a9\"><\/ins> <\/div>\n<p>Over the 25- or 30-year life of that obligation, annual interest payments probably will amount to roughly $40 million, he said. City officials have estimated the interest rate will be around 5.5%, according to documents provided by the mayor\u2019s office.<\/p>\n<p>Meanwhile, the new debt will expand the city\u2019s \u201cstructural budget shortfall\u201d to as much as $280 million a year from an estimated $160 million to $200 million in the current cycle, Hollins added.<\/p>\n<p>Read More: <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2018-10-31\/houston-s-100-million-ballot-box-fight-over-firefighter-raises\" target=\"_blank\" rel=\"noopener noreferrer\">Houston\u2019s $100 Million Ballot-Box Fight Over Firefighter Raises<\/a><\/p>\n<p>Houston operates on an annual budget of just over $6 billion. The firefighters\u2019 union and city leaders had been locked in a bitter legal dispute over pay equity for eight years before Whitmire took office in January on a pledge to come to terms.<\/p>\n<p>\u201cWe must recognize the financial challenges that lie ahead,\u201d Hollins said. Avoiding a financial squeeze that would force big cuts in city jobs and services means \u201cwe have to take a hard look at revenue options.\u201d<\/p>\n<p>Although he stopped short of advocating any specific revenue-raising measures, Hollins said city leaders need to look at imposing a trash-collection fee on residents. As the only major city in the Lone Star State without such a fee, Houston ought to analyze the feasibility of adopting a \u201csolid practice across the state of Texas.\u201d<\/p>\n<div class=\"bzn bzn-sized bzn-intext-2\">\n<ins data-revive-zoneid=\"162\" data-revive-block=\"1\" data-revive-id=\"36eb7c2bd3daa932a43cc2a8ffbed3a9\"><\/ins> <\/div>\n<p>Whitmire\u2019s office didn\u2019t immediately respond to a request for comment.<\/p>\n<p>Previously, he has said the firefighters\u2019 deal \u201crectifies past grievances and safeguards the city\u2019s financial stability by ensuring budgetary capacity for a new five-year contract with the competitive wages essential for firefighter recruitment and retention.\u201d<\/p>\n<div class=\"copyright-notice quiet\">Copyright 2024 Bloomberg.<\/div>\n<\/p><\/div>\n<div class=\"article-poll\" data-post=\"766707\">\n<div class=\"article-poll-vote\">\n<p>Was this article valuable?<\/p>\n<\/p><\/div>\n<div class=\"article-poll-feedback voted-no\">\n<form class=\"feedback-form\">\n<p>Thank you! 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