City of Houston, TX

Funding for a $2.55 billion expansion and renovation of George Bush Intercontinental Airport's Terminal B had been held up for months by the city's former and current controller.

The deal announced by Mayor John Whitmire last week would end an eight-year-long impasse with the firefighters union and require $650 million of judgment bonds.

The $650 million settlement will fund back pay for firefighters, who will also get future wage hikes.

The Houston City Council was unable to vote on initial financing for a $2.55 billion terminal renovation project at George Bush Intercontinental Airport without certification by the city controller.

The upcoming fiscal 2025 budget will take "some first steps" to address a structural gap of about $158 million, Melissa Dubowski said.

Mayor John Whitmire expressed confidence in Melissa Dubowski's ability to guide the city through its financial challenges.

Office sectors in some Southwest cities, including Houston, are stressed due to elevated vacancy rates that may lower assessed values and property tax revenue.

Fitch Ratings said the trajectory of the city's AA rating could depend on how Mayor John Whitmire, who took office this week, resolves the years-long impasse over firefighter pay.

The nation's fourth-largest city will have new officials at the helm of its government and finances for the first time in eight years.

City Controller Chris Brown called for more due diligence on financing plans for a $2.6 billion project to renovate Bush Intercontinental Airport's Terminal B.