Chicago CFO Lois Scott to Depart

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CHICAGO - Chicago's chief financial officer, Lois Scott, made her planned departure public Friday when she told her staff she would leave after Mayor Rahm Emanuel May 18 second-term inauguration.

Scott said she had told Emanuel after his successful re-election bid last month of her intention to end her four-year run as the city's top fiscal officer following his inauguration.

Emanuel tapped Scott to take the helm of the city's troubled finances four years ago after Emanuel first won election. To take the job she sold her stake in the financial advisory firm she co-owned, Scott Balice Strategies.

"When I asked Lois Scott to serve as my chief financial officer, I asked her to stay for one year but she ended up staying for four. That kind of commitment to going above and beyond for the residents of Chicago has been the hallmark of her tenure," Emanuel said in a brief statement. "She has been an essential member of my economic team and Chicago has without question benefitted from her strong financial expertise. I want to thank Lois for her dedicated service and for her commitment to building a stronger financial future for Chicago."

Scott said she was proud of her tenure.

"Serving the city of Chicago as chief financial officer has been the honor of a lifetime and the highlight of my professional career," Scott said. "Despite facing a litany of financial challenges from my very first day on the job, I am proud of the gains we have made in building a stronger financial foundation for Chicago's future. It has been a privilege to serve with a world-class team and at such a critical time for our city."

Scott's departure - which sources said was her choice -- comes as Emanuel is about to start his second term with the city facing a daunting $550 million spike in public safety pension contributions, and its already battered credit ratings facing further deterioration if there's no action to stabilize the pension pressures.

The administration said a replacement would be named at a later date. Other key fiscal officers include the city budget director, Alexandra Holt, and Comptroller Dan Widawsky.

In an interview, Scott said she is eyeing opportunities but has not settled on one and is looking forward to a "new chapter" in her professional career after stints as a financial advisor, public finance banker, issuer finance official, and White House fellow in the Clinton administration. Scott was honored with the Women in Public Finance's lifetime achievement award in 2012 and last year received the Freda Johnson Award for Trailblazing Women in Public Finance.

Highlights in a tenure marked by the serious financial problems the Emanuel administration inherited from predecessor Richard Daley include strides toward balancing the budget, the passage of reforms to two of the city's four pension funds, expanded disclosure and increased investor relations outreach.

Capping Scott’s tenure, Emanuel on Wednesday announced debt policy changes aimed at improving the city’s battered credit image. They include phasing out scoop and toss restructurings, shedding general obligation floating-rate debt and related swaps, and reducing the rollover of operating expenses into long term debt.   

Her stint was marred by Chicago's deteriorating ratings primarily due to the weight of the city's $19 billion of unfunded liabilities.

The start of a new term typically heralds in top changes in the mayoral cabinet. Chief of staff Lisa Schrader previously announced her intention to leave and is being replaced by Chicago Transit Authority president Forrest Claypool.

Scott said she has met with Claypool, sharing some ideas regarding a replacement, the responsibilities of the role, and skill sets needed.

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