...CENTENNIAL (S&P Global Ratings) May 18, 2017--Atlanta is thriving with a dynamic economy, robust financial reserves, and strong management team, while some of its counterparts wrestle with shrinking economies and stagnant revenue bases requiring budget solutions to fund core services and manage long-term fixed costs such as pension contributions. The city's strengths also supported our raising of the general obligation rating to '##+' in March 2016. The proposed fiscal 2018 budget is balanced--the eighth and final one proposed under the leadership of Mayor Kasim Reed--and continues to prioritize public safety initiatives, infrastructure improvements, youth development programs, and sustainability. Despite the city's generally strong credit profile, we note the high fixed costs associated with pension and other postemployment benefit payments, which, at June 30, 2016, totaled 19.2% of governmental fund expenditures. We believe these fixed costs will increase in the near term as pension plan...
