Formalizing an agreement brokered last week with Mayor Bill de Blasio, the New York City Council approved a $75 billion municipal budget for fiscal 2015.
It voted 50-0 with one abstention at around 1:20 a.m. June 26. A late arrival for budget documents prompted the overnight vote.
Queens Councilman Ruben Wills abstained, citing unanswered questions about the budget. Wills is facing grand larceny and fraud charges, announced last month by state Attorney General Eric Schneiderman.
The fiscal year starts July 1. The budget, the first for de Blasio and Council speaker Melissa Mark-Viverito and reflecting their liberal leanings, is 7% higher than last year's spending plan and is also up from the $73.9 billion de Blasio proposed on May 8.
It contains no tax increases or major cuts.
The budget includes funding for the new contract with the United Federation of Teachers, ratified earlier this month.
"Clearly, the new administration's many spending priorities are reflected in their budget increase," said John Hallacy, a managing director at Assured Guaranty Municipal Corp. "The city claims that, based on current projections, economic growth and revenue performance is expected to continue, which could help fund the increased spending.
"Additionally, the largest revenue source for the city is property taxes, which are based on billable assessed value, and that is up by 6.3%," Hallacy said, adding that growth for billable assessed value is forecast at 5%, 4.1%, and 3.9%, above inflation expectations.
"Of course, these positive forecasts are affected by the provisions of the five year phase-in for increases in property valuations," Hallacy added.
Moody's Investors Service rates the city's general obligation bonds Aa2. Fitch Ratings and Standard & Poor's rate them AA.
