Last week Moody's, one of the country's leading bond rating firms changed its outlook on Houston's general obligation bonds to negative. Specifically Moody's said the revision to negative reflects challenges the city faces from growing pension costs and liabilities which are compounded by significantly limited revenue raising flexibility and projected structural imbalance. Wow…that needs to get your attention….and this revision comes after some boom years for the city when we averaged 6% revenue growth per year.
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