CHICAGO – Pat Dowell, Chair of the City Council Finance Committee and Alderman of the 3rd ward, published an editorial on Monday in the Chicago Tribune to combat misinformation around the City’s proposed bond issuance. In her op-ed, Chair Dowell breaks down why the City needs this infrastructure bond and debunks misinformation around the repayment structure.  

 See excerpts from Chair Dowell’s op-ed below:  

 “Overnight, those who know nothing about municipal finance seem to believe that they have a stronger grasp on bond amortization schedules than the city’s own chief financial officer, who has decades of experience in public finance. While scrutiny of public finance decisions is always welcome, outright duplicity regarding the city’s fiscal plan is a disservice to the residents and businesses that depend on critical infrastructure funded by municipal bonds.” 

 “Currently, the city has a front-loaded general obligation debt profile, and we’re rapidly paying down debt each year. In fact, the city will pay down approximately 39% of its outstanding principal over the next decade. This existing debt profile places a greater burden on current residents relative to future residents. In light of this, what the example repayment structure really does is level the playing field for current taxpayers.” 

 “The repayment of this particular bond is in line with the standard payment schedule for capital bonds, and mirrors how the city has paid off these types of bonds in years past.  The specific two-year delay in payments is simply a consequence of how the budget and levy years interact, which is difficult to grasp if one has no understanding of municipal finance.” 

 “The idea that this bond issuance “kicks the can down the road” is another falsehood. In fact, the opposite is true. Deferring infrastructure maintenance only gives rise to higher costs, greater liabilities and diminished quality of life for residents.” 

 Read the piece in full at this link.  

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