Key Takeaways
- Pandemic-related federal stimulus provided funding for the cities surveyed, helping to alleviate immediate budgetary pressure, even if federal stimulus could not be used to fund pension payments.
- Funded ratios remained relatively stable, with the overall median increasing slightly, and we estimate reported funded levels will improve in fiscal 2021 given generally strong market returns to date.
- Fixed debt service and retirement costs remain high for several cities surveyed which could cause downward rating pressures over the long term.
- For most cities surveyed, pension contributions outpaced budgetary growth over the past decade.
29 Nov, 2021