• Mike Fourcher
    APR 14, 2016
    rating
    UNLOCKED

    Mayor Tries Again With $600M Bond Issue – $100M To Go To Settlements

    Mayor Rahm Emanuel introduced a $600 million general obligation bond authorization yesterday, a retread of a January attempt, where an original $1.2 billion GO issue was chopped down to $650 million following Council concerns about growing city debt and unclear plans on how bond proceedings would be spent.

    “We will come back to the Council when we have more details around the capital projects with a proposal to do general obligation new money capital later in the year,” city CFO Carole Brown told Finance Committee members on January 11.

    The actual funds sought is about $100 million of taxable debt for settlements and judgements to be paid out in 2016 and 2017, $150.5 million of tax-exempt debt for “E-Note” or equipment purchases in 2016 and 2017 and $237.2 of tax-exempt debt for capital spending in 2016 and 2017. While the total comes to $487.7, the city is seeking authorization for $600 in spending to cover the cost of borrowing the money and issuance fees.

    The bond issue is expected to be taken up in the next Finance Committee meeting.

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