Yvette Shields

Illinois' move to raise new revenue through an income-tax hike last year could not stave off a downgrade Friday by Moody's Investors Service, which cited the state's failure to address its massive unfunded pension obligations and chronic bill-payment delays.

The Chicago suburb of Lombard paid a steep price in the form of a six-notch downgrade after it refused to dip into its own coffers to cover a $912,000 debt-service shortfall on hotel and conference center debt that carries village support.

Illinois' move to raise new revenue through an income-tax hike last year could not stave off a downgrade Friday by Moody's Investors Service, which cited the state's failure to address its massive unfunded pension obligations and chronic bill-payment delays.

The Lombard Public Facilities Corp. in Illinois drew $1.5 million from reserves to cover debt-service payments owed this month on nearly $190 million of revenue bonds issued in 2005 to finance construction of a hotel and conference center in the village.

Louisville, Ky.-based Hilliard Lyons has hired Chicago-based banker Alexander Rorke to lead an expansion of its public finance banking business across the firm's 13-state footprint.

Illinois' unfunded pension obligations grew by about $7 billion in fiscal 2011 but its funded ratio dipped just slightly to 43% from 45%, according to the state's latest pension figures released Tuesday in the offering statement for its upcoming $800 million general obligation issue.

Moody’s Investors Service has upgraded Bellin Memorial Hospital one notch to A2 in recognition of its favorable operating performance.

Standard & Poor’s has raised the rating on the West Plains Industrial Development Authority’s revenue bonds issued for the Ozarks Medical Center to BB-minus, three notches below investment grade, from B-plus.

Moody’s Investors Service downgraded to A2 from A1 its rating on Maplewood’s multifamily housing revenue bonds for the Maple Ridge Apartments project, following a review of projected cash flows. The action affects $3 million of debt issued in 1996.

Children’s Memorial Hospital’s plans to build a heliport on the roof of its partially bond-financed hospital under construction in downtown Chicago is being challenged by a community group.

Growing unfunded pension liabilities and poor fund-balance levels are common challenges among many of the nine Chicago-area local governments whose finances are scrutinized by the Chicago Civic Federation.

Missouri budget revenues are expected to grow by 3.9% to $7.6 billion in fiscal 2013, officials said last week.

Standard & Poor’s has revised its outlook on Hannibal Regional Hospital’s BBB-plus rating to negative from stable as the Missouri facility struggles with declining admissions.

Moody’s Investors Service has affirmed Roosevelt University’s Baa2 rating, but analysts revised the outlook to negative from stable, partly because of recent enrollment challenges and stagnant tuition growth.

A Cook County Circuit Court judge last week dismissed a lawsuit challenging the Illinois State Toll Highway Authority’s steep increase in tolls that will take effect Jan. 1 to fund a $12 billion capital program.

The Lombard, Ill., Village Board will vote at a meeting late Tuesday on an appropriation of nearly $1 million to cover a shortfall in the Jan. 1 debt service payment owed on its conference center and hotel debt.

Illinois will kick off the new year with a competitive general obligation issue on Jan. 11 of between $500 million and $750 million to fund its ongoing public works program.

Detroit's stressed fiscal situation warrants a full-blown state review, Michigan's treasurer said in a preliminary analysis of city finances ordered by Gov. Rick Snyder.

The trustee for $39 million of bonds sold by Moberly, Mo., to help finance an artificial sweetener factory has joined with other creditors to pursue an involuntary Chapter 7 bankruptcy filing against the Chinese company that abandoned the project and defaulted on debt payments.

Moody's Investors Service dropped its rating on Greene County's debt four notches and warned of further negative action due to the county's lack of adequate financial reporting.