Yvette Shields

Chicago's heavy use of non-recurring revenues to balance its budget and sizable unfunded pension liabilities drove Standard & Poor's to drop the city's general obligation rating from the double-A category on Friday.

Minnesota's debt manager Kathy Kardell recently resigned to take a newly created position on Hennepin County's finance team, a loss for the state's finance team that comes as the executive and legislative branches are set to change party hands following the election last week.

The Illinois Senate adjourned a one-day session Thursday after the Democratic majority failed to muster enough support to win passage of a $3.8 billion general obligation issue to cover state pension payments owed in the current fiscal year.

The Metropolitan Water Reclamation District of Greater Chicago has selected Public Financial Management Inc. and Gardner, Underwood & Bacon LLC as co-financial advisers for its sale next month of up to $500 million of new-money debt tapping the Build America Bond program.

CHICAGO — Chicago’s reliance on non-recurring revenues over deep spending cuts to balance the proposed $6.2 billion 2011 budget is costly and only delays a financial reckoning that could lead to steep tax increases and-or harsh budget cuts, a fiscal watchdog group warned.

CHICAGO — With a water revenue deal pricing Wednesday and a pending general obligation deal, Chicago has stepped up its investor-relation efforts as it seeks to minimize the premium demanded by buyers of paper from Illinois-based borrowers due to the state’s liquidity and budget crisis.

The Minneapolis City Council last week approved up to $16.5 million of recovery zone facility bonds toward the American Academy of Neurology’s plans to build a new global headquarters, according to a news release from the city’s Community Planning and Economic Development Department.

Iowa expects to close out fiscal 2011 with an ending balance and reserves of $914 million, according to a memorandum budget director Richard Oshlo sent to Gov. Chet Culver that was released last week.

A Chicago-based government review group last week endorsed DuPage County’s proposed $459 million fiscal 2011 budget, but urged the top-rated county to improve its long-term financial planning to prepare for future issues.

CHICAGO — The Illinois Finance Authority has launched a new state-supported borrowing program for its local government, school, not-for-profit, and business clients aimed at lowering their borrowing costs to finance energy-efficiency projects.

CHICAGO — Chicago’s heavy use of reserves and other non-recurring revenues to balance its proposed 2011 budget triggered a downgrade Thursday of its general obligation rating to AA-minus by Fitch Ratings.

CHICAGO — The Chicago Park District will enter the market next week with $150 million of general obligation bonds to help finance construction of its 10th harbor on the Lake Michigan shoreline and to fund improvements and renovations to its existing harbors.

Kathy Klevorn, the director of management, planning, and budget at the Metro transit agency, is serving as interim chief financial officer following the retirement of longtime CFO John Noce.

Moody’s Investors Service has affirmed American Public Media Group’s A2 rating and revised its outlook to stable from negative ahead of a $9.4 million refunding next month.

Illinois Gov. Pat Quinn on Monday announced $64 million in capital funding to help finance construction of an interchange in the Chicago suburb of Bensenville.

CHICAGO — Minnesota will competitively sell $291 million of water-related state revolving fund bonds Tuesday, followed closely by a $164 million clean water issue from neighboring Wisconsin, as both seek to tap the Build America Bond program ahead of its expiration this year.

CHICAGO — Chicago will enter the market this week with $280 million of new-money and refunding wastewater revenue bonds and follow up next week with $500 million of new-money and refunding water revenue debt. The deals will include Build America Bonds and qualified energy conservation bonds.

CHICAGO — Retiring Chicago Mayor Richard Daley has tapped Martin Cabrera Jr., head of Cabrera Capital Markets LLC, to lead the City Colleges of Chicago board following the resignation last week of Gery Chico, who plans to focus on his 2011 bid for mayor.

CHICAGO — Some states may face a severe pension-fund reckoning, but the problems are manageable if lawmakers act now to address them through a combination of increased contributions and benefit cuts, according to Loop Capital Markets LLC.

CHICAGO — The Missouri Highways and Transportation Commission will take competitive bids Wednesday on a $140 million refunding of top-rated senior-lien state road bonds in hopes of achieving about 6% to 7% in present-value savings.