* Moody’s just downgraded Springfield’s credit rating over some huge pension liability growth…
In Moody’s calculation, the net pension liability grew from $503 million in 2015 to $707 million in 2016. The agency knocked down the city’s general fund two notches from A1 to A3 and its water fund from Aa2 to A1.
“We’ve been aware of and discussing this liability for years, which is why we’ve worked diligently to eliminate pension spiking, tie wage growth to the (consumer pricing index), and change our city’s health insurance benefit matrix in order to mitigate growth and future liability,” said budget director Bill McCarty in a release Friday.
The city noted the agency recognized Springfield’s “satisfactory financial operations,” which it says is because of the city’s efforts to control costs.