City government officials and business leaders warn that San Antonio taxpayers would face tax increases and cuts to city services and infrastructure projects if some or all of three propositions on the November ballot are approved.
But how do propositions aimed at referenda rules, city manager salaries, and a firefighter labor contract translate to higher taxes? The answer lies in the City of San Antonio’s bond ratings.
Passage of the charter amendments and the changes they would bring could impact the City’s perceived stability, which could result in credit rating agencies giving the City a lower bond rating. That means the City would pay higher interest rates on money borrowed for infrastructure projects and the City would “pay more for less city services,” officials have said. And if the City wants to maintain the same level of services, taxpayers would fit the bill with increase taxes.
THE RIVARD REPORT
by IRIS DIMMICK
OCTOBER 21, 2018