From Moody’s

From a report today by Moody’s Investors Service, in which it sustained City Hall’s credit rating and pulled it from its watch list (Moody’s, apparently, is more optimistic about the city’s deal with its fire union than the fire union is):

The city has reached an agreement with the fire safety union saving approximately $7.1 million in the current fiscal year and $5 million going forward, in part by allowing 42 vacancies to remain in place, and limiting overtime to ensure adherence to budgeted expenditures. Agreement with the police union initially was not forthcoming. As a result, in order to effect the needed expenditure reductions the council sent out over forty layoff notices. An agreement was reached last week, however, providing $7.1 million in concessions over a three-year period; once the council approves the contract, the layoffs will not be necessary to balance the budget and they will be rescinded. Additional reductions in the 2010 budget include 12 days of furloughs or equivalents, executive reorganization and downsizing, layoffs, program reductions, and expenditure transfers to other funds if appropriate.

The city is also conservatively budgeting the interest on its $40 million of variable rate debt The city’s demonstrated commitment to achieving and maintaining structural balance, even in the face of difficult expenditure cuts, is key to our affirmation of the city’s rating.

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