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Details of Chicago’s 5-year, $3.7 billion plan to repair, maintain roads, bridges, other city assets

Written by on November 3, 2020

High mayoral aides on Tuesday unveiled a five-year, $3.7 billion capital program amid concern concerning the metropolis’s capacity to finance nonetheless extra huge borrowing and Mayor Lori Lightfoot’s demand that aldermen relinquish at the very least some management over their treasured menu program in change for elevated “shopping for energy.”

In digital briefings conspicuously timed for Election Day, aldermen had been advised the huge borrowing could be bankrolled by a mixture of tax increment financing, a first-year bond difficulty backed by property and/or gross sales taxes and “interim financing and cash-flow administration” in anticipation of future state and federal funding.

That’s not ok to fulfill Civic Federation President Laurence Msall. Not when Lightfoot’s “pandemic” funds already features a $1.7 billion debt restructuring and refinancing with almost $949 million of the financial savings claimed within the first two years. Critics have known as it “scoop-and-toss on steroids.”

“It’s very laborious to see how the town may afford to go to marketplace for a $3.7 billion capital plan with out a new income supply to again it up on the similar time they’re seeking to re-structure their current debt merely to unencumber room within the present working funds,” Msall stated.

“The town could be very extremely leveraged. It has a really low credit standing. And to bear that sort of extra borrowing with out a new income supply could be very costly. And it may not be possible.”

Ald. Ray Lopez (15th) “understands the necessity” to restore and exchange Chicago’s “getting old infrastructure,” particularly in long-neglected South and West Aspect neighborhoods.

However, with out a “strong funding supply,” the mayor’s plan is extra about “hopes and desires” of attracting a future federal bailout.

“We’re gonna use the voodoo economics of [tax increment financing] and bonds to attempt to get by means of this. If that doesn’t work out, we’re gonna ask Chicago taxpayers to shoulder much more debt at a time after they can barely afford the federal government that’s already in debt now,” Lopez stated.

“They don’t have a dedicated funding supply from begin to end. … We’re simply gonna make this up as we go alongside. That has by no means labored out effectively for Chicago taxpayers. Whereas it is a first rate street map on the venture facet, if the funding isn’t there from the onset, this might very effectively find yourself being simply one other plan … amassing mud on a shelf.”

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