Trending...
- BITE Data raises $3m to build AI tools for global trade compliance teams
- purelyIV Expands Wellness Services with Flu/COVID Testing and Menopause Coaching & Treatment
- CCHR Supports Call to End Coercive Psychiatry at World Mental Health Congress
CHICAGO – Mayor Lori E. Lightfoot today announced the City's plans to refinance existing debt, which are expected to generate $200 million in savings, representing nearly 25 percent of the $838 million Fiscal Year (FY) 2020 gap. The City will issue General Obligation (GO) and Sales Tax Securitization Corporation (STSC) bonds to refinance $1.3 billion in outstanding callable City GO and Motor Fuel Tax (MFT) bonds for savings.
To address the City's growing cost of debt and other liabilities, the FY 2020 budget proposal, presented later this week, will prioritize sustainable solutions for the long-term. Importantly, the budget will not include any of the following one-time solutions: borrowing for settlements and judgments, scoop and toss restructuring, a significant draw down of reserves, or pension obligation bonds.
"Since my first day in office I have made responsible stewardship of taxpayer dollars a priority in every financial and budgetary action we have taken," said Mayor Lightfoot. "Today's announcement represents the latest step in creating millions of dollars in smart savings for Chicago's residents, allowing us to strengthen our financial footing and better focus on delivering the investments and services that will allow our city to grow and thrive."
More on illi News
Much like a homeowner refinancing a mortgage, the City's refinancing will issue new bonds at lower interest rates to replace higher interest bonds that are currently outstanding in order to achieve cost savings.
"These savings are a result of the City's proactive efforts to take advantage of a low interest rate environment, as well as the approach by Mayor Lightfoot's administration to create a financial plan that is reform-based, fiscally responsible and long-term sustainable," said Jennie Huang Bennett, Chief Financial Officer. "Instead of looking to one-time measures of the past, we are focused on prudent measures for addressing outstanding debt that will achieve significant near-term savings to the taxpayer without sacrificing the long-term financial health of the City."
The refinancing is pending approval by the City Council. The City and STSC anticipate issuing bonds as early as December 2019. Importantly, the minority underwriter representation on the transaction is targeted to be over 50% which is a significant increase from previous transactions.
Today's announcement represents further progress the City has made toward finding savings and efficiencies to address the financial challenges in the 2020 budget while also continuing to provide essential services to the neighborhoods. Other steps being taken by the City to reduce operational costs include improved revenue collection procedures which saves $25 million and the termination of $1.4 billion of costly and unused lines of credit which saved $22 million. The City's 2020 Budget will be presented by Mayor Lightfoot during the annual budget address, scheduled on October 23.
To address the City's growing cost of debt and other liabilities, the FY 2020 budget proposal, presented later this week, will prioritize sustainable solutions for the long-term. Importantly, the budget will not include any of the following one-time solutions: borrowing for settlements and judgments, scoop and toss restructuring, a significant draw down of reserves, or pension obligation bonds.
"Since my first day in office I have made responsible stewardship of taxpayer dollars a priority in every financial and budgetary action we have taken," said Mayor Lightfoot. "Today's announcement represents the latest step in creating millions of dollars in smart savings for Chicago's residents, allowing us to strengthen our financial footing and better focus on delivering the investments and services that will allow our city to grow and thrive."
More on illi News
- Chicago: Johnson Administration Reaches $18 Million Settlement With Doordash Over Deceptive Business Practices
- Turbo vs. Experts: Tracking OddsTrader's AI Performance at the NFL's Midpoint
- Outreaching.io Appoints Rameez Ghayas Usmani as CEO, Recognized as Best HARO Link Building Expert in the United States
- Winzele: A Trusted Isolation Transformer Manufacturer
- Luxury Mediterranean Estate in Gotha Sells for $1.52 Million, Closing $45,000 Over Asking
Much like a homeowner refinancing a mortgage, the City's refinancing will issue new bonds at lower interest rates to replace higher interest bonds that are currently outstanding in order to achieve cost savings.
"These savings are a result of the City's proactive efforts to take advantage of a low interest rate environment, as well as the approach by Mayor Lightfoot's administration to create a financial plan that is reform-based, fiscally responsible and long-term sustainable," said Jennie Huang Bennett, Chief Financial Officer. "Instead of looking to one-time measures of the past, we are focused on prudent measures for addressing outstanding debt that will achieve significant near-term savings to the taxpayer without sacrificing the long-term financial health of the City."
The refinancing is pending approval by the City Council. The City and STSC anticipate issuing bonds as early as December 2019. Importantly, the minority underwriter representation on the transaction is targeted to be over 50% which is a significant increase from previous transactions.
Today's announcement represents further progress the City has made toward finding savings and efficiencies to address the financial challenges in the 2020 budget while also continuing to provide essential services to the neighborhoods. Other steps being taken by the City to reduce operational costs include improved revenue collection procedures which saves $25 million and the termination of $1.4 billion of costly and unused lines of credit which saved $22 million. The City's 2020 Budget will be presented by Mayor Lightfoot during the annual budget address, scheduled on October 23.
0 Comments
Latest on illi News
- Chicago: Mayor Brandon Johnson Cuts Ribbon On Grace Manor Apartments, Bringing 65 Affordable Homes To North Lawndale
- Allen Field Co., Inc. Components Selected for Esko ArtiosCAD 3D Component Library
- Thirteen Reasons Why Gyminny Kids Is San Diego's Best Gymnastics Gym
- Chicago: Mayor Brandon Johnson Cuts Ribbon On Imani Village Senior Residence Affordable Housing Development In Pullman
- NBRPA Partners with Harlem Globetrotters to Celebrate 100 Years of Global Basketball Legacy
- Naperville: Pre-Trial Release Denied for Chicago Man Charged with Possession with Intent to Deliver Illegal Narcotics/Cannabis
- Heritage At Manalapan - A New Luxury Single Family Home Community Coming Late 2025
- ScanPros.ai Debuts as the Ultimate AI Optimization Engine Setting a New Standard for Web Performance
- The Lashe® Announces Exclusive November Savings for Lash and Beauty Professionals
- Downtown Downers Grove Hosts Holiday Weekend with Tree Lighting, Santa, Small Business Saturday, & Horse-Drawn Wagonnette Rides, November 28-30, 2025
- Corcoran DeRonja Real Estate Welcomes Siobhán Simões to Its Growing Team
- November is Lung Cancer Awareness Month: Screening Saves Aims to Increase Access to Lung Screenings in NC
- Valeo Health Leads a New Era of Longevity and Preventive Health in the UAE
- Torch Entertainment Presents The Frozen Zoo
- Uplift Learning Solutions' Mental Health First Aid Training Now Eligible for ETIP Funding
- Sweet Memories Vintage Tees Debuts Historic ORCA™ Beverage Nostalgic Soda Collection
- Chicago: Mayor Johnson, Park CEO Ramirez-Rosa Join Park Advocates And Community Stakeholders To Announce Future Plans For Park Development At Calumet Confined Disposal Facility As More Than Four Decades Of Dredging Disposal Comes To An End
- UK Financial Ltd Celebrates Global Recognition as MayaCat (MCAT) Evolves Into SMCAT — The World's First Meme Coin Under ERC-3643 Compliance
- Chicago: Johnson Administration Sues DOJ Over Community Policing Hiring Grant Restrictions
- U.S. Military to Benefit from Drone Tech Agreement with NovaSpark Energy, Plus Longer NASA Space Missions via Solar Power Leader: Ascent Solar $ASTI