City finance officers throughout the country are reporting improving fiscal conditions in 2013, but pension and health-care costs are placing an increasing burden on finances, according to an annual survey from the National League of Cities.
At the end of the 2013 fiscal year, cities project a 0.1% increase in general fund revenue — the first increase since 2006 — but expenditures are also expected to grow by 1.5%, led by pension and health-care costs.
“The past few years, pension costs are weighing extremely heavy on city finances,” said Christiana McFarland, interim director, city solutions and applied research, and co-author of the report.
Of the 350 cities that responded to the survey, 80% said pension costs increased from the previous year, second only to 84% that reported rising health-care costs.
I am having a hard time understanding the municipal bond market having to deal with credit worthness issues. Sub-dividing and prioritizing the bond market is costly. With Puerto Rico going down causing macro effects, the cities themselves are losing ground. Most of these city workers will be dumped onto
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