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Moody's - Revenue shift to property tax levy supports stability and increases budgetary options

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April 24, 2024


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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Moody's Issuer In-Depth