Over the course of Mayor Curry’s first term, Fitch Ratings, Standard & Poor’s (S&P) Global Ratings, and Moody’s Investor Service have all applauded the City’s disciplined financial management practices by upgrading or affirming Jacksonville’s credit rating in various areas a total of nine times (see attached). Improved credit ratings can save cities hundreds of thousands, and in some cases, millions of dollars on future debt issues by lowering borrowing costs. “From Day 1, we committed to scrutinizing our City’s finances to root out waste and find the best ways to use taxpayer dollars; and within two weeks of taking office, we submitted a balanced budget that City Council members unanimously approved,” said Mayor Lenny Curry. “Every day we look for ways to protect taxpayers and these improved credit ratings speak to that disciplined approach to finances and budgeting.”

Before Curry took office, bond rating agencies were downgrading Jacksonville’s ratings largely due to concerns over the City’s staggering pension debt. In 2014, Fitch Ratings noted that “pension and debt service expenses consume a considerable portion of the annual operating budget.” Downgrades by Moody’s Investors Service also reflected concerns about Jacksonville’s pension crisis.

In announcing numerous credit upgrades since Mayor Curry took office, Fitch and S&P acknowledged “prudent management,” while Moody’s applauded the City’s “strong management with good financial policies and practices.” However, even in the midst of that financial praise, experts raised concerns about Jacksonville’s mounting unfunded pension liabilities. In a July statement, Fitch noted that Jacksonville’s long-term credit rating depended on its ability to “continue to moderate the impact of its pension liability on the annual budget.”

With the pension liability budget impact approaching $300-million, Mayor Curry took action to deal with the pension crisis. In August, voters overwhelmingly approved his plan to extend a half-penny sales tax to fund the City’s pension liabilities. In its Sept. 15 U.S. Weekly Credit Outlook, Moody’s called the mayor’s victory a “credit positive” adding that it “represents a positive step related to Jacksonville’s most significant credit challenge.”