Houston City Council unanimously approves $1 billion-plus settlement for firefighters

HOUSTON, Texas (KTRK) — The Houston City Council on Tuesday unanimously approved a back pay settlement and labor agreement with the Houston Fire Department.

The video above is from a previous report.

Approval of the deal comes after about eight years of tough negotiations. During this period, Houston firefighters were working without a contract.

City Comptroller Chris Hollins said the $650 million deal would cost Houston about $1.2 billion to $1.5 billion over the next three decades, with interest taken into account as bonds are issued for the finance.

Hollins sent a memorandum to Whitmire and other officials Sunday evening. He wrote in part: “As you know, this is not the fire department’s fault, but it remains unclear exactly how the City will finance the proposed deal (besides police raises and other significant budget increases ). The near-record fund balance on This Hand will only get us through the next fiscal year. After spending approximately $200 million of the total fund balance in FY 2025, the City will no longer have this option as an option going forward. It is essential to identify adequate sources of income. in the coming months to keep the city financially afloat without sacrificing the quality of the city’s service delivery or the quality of life of Houstonians. »

The city will not seek new revenue sources to fund the settlement in fiscal year 2025, which begins July 1, 2024. Instead, Hollis said the city will spend about 40% of its current fund balance , which he likens to an economy. account. Whitmire said the city will look for new sources of revenue in the next fiscal year.

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