- General obligation, sales-tax bonds deal expected on Thursday
- ‘No assurance’ budget will pass by Dec. 31 deadline: filing
Chicago is planning to sell about $806 million in municipal bonds this week as part of a refinancing as Mayor Brandon Johnson races to close a budget gap of nearly $1 billion by year end.
The city is expected to borrow $679.7 million of sales-tax-backed debt and $126.6 million of bonds tied to its general obligation pledge on Dec. 5. Proceeds will be used to refinance outstanding debt to save money and help close back-to-back shortfalls.
The sales come while Johnson and city council members disagree on how to fill a $982.4 million hole in next year’s budget. The mayor proposed a $300 million property-tax increase that aldermen unanimously rejected. Tensions have escalated so much that potential investors in the upcoming general obligation bond sale were warned there is “no assurance” that a spending plan will be passed on time, according to offering documents.
Bloomberg Markets
By Shruti Singh
December 2, 2024