Bonds
Chicago Committee Passes Controversial $1.5 Billion Refinancing
- City amends ordinance so proceeds can’t go for operating costs
- Sales-tax, general obligation bond deal heads to full council
Chicago’s use of debt — as well as its other long-term liabilities such as underfunded pensions — has historically weighed on the city’s budget and its credit ratings.
Photographer: Jamie Kelter Davis/BloombergThis article is for subscribers only.
The Chicago City Council Finance Committee passed a $1.5 billion bond proposal to refinance debt as part of Mayor Brandon Johnson’s efforts to close back-to-back deficits for the third-largest US city.
Johnson, in mid-September, proposed an ordinance to refinance bonds to glean savings that would help close this year’s budget gap. The measure will now move to the full city council for a vote, even after some members raised questions about the details of borrowing.