A small public library district in the suburbs south of Chicago was late in a payment to bond investors despite its high bond rating, in the latest hiccup attributed to delayed Cook County, Illinois, property tax bills.
The Glenwood-Lynwood Public Library District failed to make a scheduled payment of principal and interest due on Dec. 1, according
After receiving a tax payment from the county Tuesday, the district made the bond payment, according to a
The library has roughly $2.35 million of debt outstanding, according to data compiled by Bloomberg.
The missed payment for bonds sold in 2014 was caused by "delays in the distribution of property tax receipts held by Cook County, Illinois," according to the district, roughly 30 miles south of Chicago. The library's debt is paid from operational tax revenue and, if that falls short, is then secured by property taxes, according to an August 2024 report from S&P Global Ratings, which assigns the district its AA-minus rating.
"The District anticipates that all future principal and interest payments on the Bonds, including any additional interest, if any, owed due to the late payment as calculated by DTC, will be made in a timely manner," it said in the disclosure.
The missed payment appears to be another manifestation of cash-flow constraints after a computer overhaul
The cash crunch for taxing bodies in the county comes at a time when federal pandemic aid has dried up and additional revenue from Washington is uncertain.
In recent months, Chicago Public Schools faced costs tied to penalties over late contributions to its pension fund while the city has had to loan its underfunded pensions millions to avoid asset sales to make benefit payments.
Cook County in November announced
Library director Brian Vagt did not respond to requests via email or telephone for comment on Tuesday. Spokesmen for Cook County did not respond to emails seeking comment. S&P wasn't immediately able to provide comment on its bond rating.
