San Antonio Credit Rating Takes Hit Following Charter Amendment Passage
Fitch, an international credit rating agency, has downgraded San Antonio’s credit to AA+.
For nine years, the city had held a AAA rating, which allowed it to secure bonds at lower interest rates.
Prop C, a city charter amendment that allows the San Antonio Professional Fire Fighters Association to declare an impasse and request binding arbitration in healthcare and wage contract negotiations, was cited as a reason for the downgrade. Voters approved the amendment in November by a margin of less than one percent
“Fitch believes this proposition further constrains the city's spending flexibility over what Fitch already considered to be limited due to long evergreen clauses. Unlike non-public safety compensation, management can't control pay hikes and benefit levels for police officers and firefighters, which must be established through a (collective bargaining agreement),” said Fitch in a statement.
Read more: http://www.tpr.org/post/san-antonio-credit-rating-takes-hit-following-charter-amendment-passage