The City of Chicago is a municipal corporation and home rule unit of local government and, as such, “may exercise any power and perform any function pertaining to its government and affairs including, but not limited to, the power to regulate for the protection of the public health, safety, morals, and welfare; to license; to tax; and to incur debt” except that it can “impose taxes upon or measured by income or earnings or upon occupation” only if authorized by statute.
City of Chicago General Obligation Bonds may be used for:
Summary: On April 19, the Chicago (Baa3 positive) City Council approved the issuance of up to $1.25 billion in bonds for housing and economic development. While substantial, the financing will only moderately increase the city's leverage ratio. To pay debt service on the bonds, the Mayor announced a significant change in the city's operating revenue framework whereby the city will allow tax increment financing (TIF) districts to expire. The resulting decline in TIF incremental revenue will be offset by increases in the property tax levy. This shift of revenue has several credit positive benefits for the city.
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