Houston City Council approves $1 billion bond deal to cover firefighters’ back pay

HOUSTON (AP) — Houston leaders have agreed to a bond deal that could cost city taxpayers more than $1 billion to cover years of back wages owed to firefighters.

Firefighters in the country’s fourth-largest city have been working without a contract for seven years. A new agreement and proposed five-year collective bargaining agreement between the city and its union promise wage increases of at least 25% over the next five years.

The bond deal approved Wednesday by the Houston City Council would cover about $650 million in back pay for firefighters who have worked since 2017. The cost of the bond, including interest, could reach $1.3 billion over 25 to 30 years, depending on the evolution of bond market prices.

Three council members voted no on the bond deal, hoping to put it to a public vote in November, a move opposed by Mayor John Whitmire.

The council has not yet approved the regulations or the new collective agreement. City Comptroller Chris Hollins, Houston’s independently elected watchdog, has not certified any of them, a necessary step before the council can approve specific financial commitments needed to assume the debt.