Yvette Shields

Illinois Gov. Pat Quinn's recent proposals to stabilize state finances may not help shrink the interest rate penalty demanded by investors on the state's $1.8 billion refunding set for next week.

Moody's Investors Service put Chicago on notice that its unfunded pension obligations of nearly $15 billion threaten the stability of the city's Aa3 general obligation rating.

CHICAGO — A bankruptcy court judge in Chicago has signed off on the $53.5 million purchase of the assets of the Clare at Water Tower continuing care retirement community that provides a recovery rate of about 24 cents on the dollar for secured creditors, including most holders of $229 million of municipal bonds.

CHICAGO — The Chicago City Council overwhelmingly approved Mayor Rahm Emanuel's controversial plan to establish an infrastructure trust to tap private investment in public projects after rejecting several measures aimed at tightening oversight of the new nonprofit.

Milwaukee’s recent downgrade by Moody’s Investors Service became a campaign issue last week when Mayor Tom Barrett, who hopes to unseat Gov. Scott Walker in an upcoming recall election, blamed Walker for the action.

Moody’s Investors Service has downgraded Coralville, Iowa’s urban renewal tax-increment finance bonds from a 2007 issue two notches to Baa2 from A3 and warned of further action by assigning a negative outlook.

Federal Bureau of Investigation agents last week arrested Dixon, Ill., Comptroller Rita Crundwell for allegedly defrauding the city of more than $3.2 million in public funds since last fall and misappropriating $30 million since 2006, federal prosecutors in Chicago announced.

Illinois is "treading water," as strong tax revenue growth for the first three quarters of the fiscal year failed to make a dent in a rising backlog of state obligations that totaled $9 billion at the end of March, according to the state comptroller's quarterly report.

A California state court judge on Thursday appointed a receiver to manage the transfer of three parking garages in Stockton from city control to Wells Fargo NA, the trustee on $30 million of defaulted bonds.

Illinois Gov. Pat Quinn unveiled a sweeping plan aimed at erasing $80 billion of unfunded pension liabilities and fully funding in 30 years a system now just 43% funded by increasing employee contributions, raising the retirement age, and limiting cost of living increases.

Illinois Gov. Pat Quinn unveiled a plan Thursday to trim $2 billion in Medicaid spending through cuts and other savings while raising $700 million in new revenue from a cigarette tax hike and federal matching funds in an attempt to ease the program's strain on state finances.

Chicago Mayor Rahm Emanuel submitted to the City Council ordinances allowing for the issuance of up to $1.5 billion of Midway Airport bonds and about $300 million of wastewater revenue bonds while pushing off a vote on his controversial plan to set up a new financing arm for some infrastructure projects.

The Chicago City Council is expected to take up Mayor Rahm Emanuel's plan to establish an infrastructure trust that would serve as a vehicle to leverage private investment in public works projects.

CHICAGO — Milwaukee will enter the market Wednesday with a new comptroller at the helm, with a mix of about $225 million of new-money and refunding bonds and cash-flow borrowing.

The sales tax imposed in 1996 in the Milwaukee region to cover the public share of the Milwaukee Brewers’ ballpark may no longer be needed as soon as 2017, according to a new report.

Illinois House Speaker Michael Madigan, D-Chicago, has introduced legislation seeking a constitutional amendment to require a three-fifths supermajority vote of the General Assembly for any future pension benefit increases.

Moody’s Investors Service has placed Springfield’s A1 senior-lien electric revenue bond rating under review for a downgrade due to a significant narrowing of the utility’s financial position that resulted in a debt covenant violation for fiscal 2012.

A bankruptcy court judge in Chicago will be asked next week to approve a $53.5 million cash offer to purchase the assets of the Clare at Water Tower continuing-care community in a deal that provides holders of the facility’s $229 million of debt with a recovery rate of at least 20 cents on the dollar, sources said.

Holders of $229 million of debt issued for a now-bankrupt upscale continuing care retirement community in downtown Chicago stand to recoup at least 20 cents on the dollar following a competitive auction Thursday among three bidders vying to purchase the facility's assets, according to a lawyer involved in the case.

CHICAGO — Two former Raymond James & Associates Chicago bankers have resigned to join Stifel, Nicolaus & Co. with the goal of bolstering the firm's business with big issuers in Illinois and complementing its Midwestern and national public finance practice as it seeks to expand its fixed-income business.